An act TO AMEND THE LAW CONCERNING THE DISTRIBUTION 10 OF CERTAIN FUNDS TO MUNICIPALITIES, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas          As Engrossed: H2/25/25
2 95th General Assembly
                                   A Bill

3 Regular Session, 2025                                          HOUSE BILL 1522

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5 By: Representative Womack

6 By: Senator A. Clark

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8                            For An Act To Be Entitled

9   AN ACT TO AMEND THE LAW CONCERNING THE DISTRIBUTION

10  OF CERTAIN FUNDS TO MUNICIPALITIES; TO AMEND THE LAW

11  TO ALLOW FOR THE DISTRIBUTION OF FUNDS IN THE

12  MUNICIPAL AID FUND, TURNBACK FUNDS, AND COUNTY SALES

13  AND USE TAX REVENUES TO NEWLY INCORPORATED

14  MUNICIPALITIES; TO DECLARE AN EMERGENCY; AND FOR

15  OTHER PURPOSES.

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18                           Subtitle

19                       TO AMEND THE LAW TO ALLOW FOR THE

20                       DISTRIBUTION OF FUNDS IN THE MUNICIPAL

21                       AID FUND, TURNBACK FUNDS, AND COUNTY

22                       SALES AND USE TAX REVENUES TO NEWLY

23                       INCORPORATED MUNICIPALITIES; AND TO

24                       DECLARE AN EMERGENCY.

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26 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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28  SECTION 1. Arkansas Code � 19-5-601(c)(6), concerning the Municipal

29 Aid Fund, is amended to read as follows:

30  (6) If When a municipality incorporates during a year in which a

31 federal decennial census is conducted, then for purposes of this section and

32 until data from a federal decennial or special census is made available to

33 the municipality, the population of the municipality shall be calculated by

34 the Arkansas Geographic Information Systems Office based on the most recent

35 federal decennial census as calculated by the Arkansas Geographic Information

36 Systems Office.

    *JLL205*                                                     02-25-2025 09:49:13 JLL205
    As Engrossed: H2/25/25                                                  HB1522

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2   SECTION 2. Arkansas Code � 26-74-313(d)(8)(B), concerning the

3 disposition of funds generated from a municipal sales tax levied for capital

4 improvements, is amended to read as follows:

5               (B) If When a municipality incorporates during a year in

6 which a federal decennial census is conducted, then for purposes of this

7 section and until data from a federal decennial or special census is made

8 available to the municipality, the population of the municipality shall be

9 calculated by the Arkansas Geographic Information Systems Office based on the

10 most recent federal decennial census as calculated by the Arkansas Geographic

11 Information Systems Office.

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13  SECTION 3. Arkansas Code � 27-70-207(c)(2)(B), concerning the

14 distribution of highway revenues to county and city funds, is amended to read

15 as follows:

16              (B) If When a municipality incorporates during a year in

17 which a federal decennial census is conducted, then for purposes of this

18 section and until data from a federal decennial or special census is made

19 available to the municipality, the population of the municipality shall be

20 calculated by the Arkansas Geographic Information Systems Office based on the

21 most recent federal decennial census as calculated by the Arkansas Geographic

22 Information Systems Office.

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24  SECTION 4. EMERGENCY CLAUSE. It is found and determined by the

25 General Assembly of the State of Arkansas that federal population data from

26 the federal decennial census or a special census is required for the

27 Treasurer of State to distribute moneys received as municipal turnback funds

28 or generated from existing county sales and use taxes; that a procedure is

29 necessary to allow a newly incorporated municipality to use alternative

30 population data until a special census or the federal decennial census is

31 conducted for the purpose of distributing municipal turnback funds and county

32 sales and use tax revenues; that without a proper procedure, a newly

33 incorporated municipality may not have federal census data for over a year

34 and will not be able to receive proper disbursement of turnback funds or

35 county sales and use tax revenues; and that this act is immediately necessary

36 to enable a newly incorporated municipality to provide the residents of the

                                2               02-25-2025 09:49:13 JLL205
    As Engrossed: H2/25/25                                                 HB1522

1 municipality with services that are necessary for the health, safety, and

2 welfare of the community. Therefore, an emergency is declared to exist, and

3 this act being immediately necessary for the preservation of the public

4 peace, health, and safety shall become effective on:

5           (1) The date of its approval by the Governor;

6           (2) If the bill is neither approved nor vetoed by the Governor,

7 the expiration of the period of time during which the Governor may veto the

8 bill; or

9           (3) If the bill is vetoed by the Governor and the veto is

10 overridden, the date the last house overrides the veto.

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12                          /s/Womack

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