Arkansas 2025 Regular Session

Arkansas House Bill HB1399 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 216 of the Regular Session
3	2		JLL135 02/04/2025 11:14:18 AM JLL135
4	3		State of Arkansas 1
5	4		95th General Assembly A Bill 2
6	5		Regular Session, 2025 HOUSE BILL 1399 3
7	6		4
8	7		By: Representative Richmond 5
9	8		By: Senator G. Stubblefield 6
10	9		7
11	10		For An Act To Be Entitled 8
12	11		AN ACT TO AMEND THE LAW CONCERNING THE ISSUANCE OF 9
13	12		DONATION DEEDS AND HOMESTEAD DONATION DEEDS BY THE 10
14	13		COMMISSIONER OF STATE LANDS; AND FOR OTHER PURPOSES. 11
15	14		12
16	15		13
17	16		Subtitle 14
18	17		TO AMEND THE LAW CONCERNING THE ISSUANCE 15
19	18		OF DONATION DEEDS AND HOMESTEAD DONATION 16
20	19		DEEDS BY THE COMMISSIONER OF STATE 17
21	20		LANDS. 18
22	21		19
23	22		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 20
24	23		21
25	24		SECTION 1. Arkansas Code § 18 -60-212(a), concerning the recovery of 22
26	25		lands held under tax title, is amended to read as follows: 23
27	26		(a) No action for the recovery of any lands or for the possession 24
28	27		thereof against any person, or his or her heirs or assigns, who may hold such 25
29	28		lands by virtue of a purchase thereof at a sale by the collector or 26
30	29		Commissioner of State Lands, for the nonpayment of taxes, or who may have 27
31	30		purchased them from the state by virtue of any act providing for the sale of 28
32	31		lands forfeited to the state or the nonpayment of taxes , or who may hold the 29
33	32		land under a donation deed from the state, shall be maintained unless it 30
34	33		appears that the plaintiff, his or her ancestors, predecessors, or grantors 31
35	34		were seized or possessed of the lands in question within two (2) years next 32
36	35		before the commencement of the action. 33
37	36		34
38	37		SECTION 2. Arkansas Code § 18 -61-106(a), concerning the recovery of 35
39	38		lands held under tax title, is amended to read as follows: 36 HB1399
40	39
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42	41		(a) No action for the recovery of any lands or for the possession 1
43	42		thereof against any person or persons, their heirs and assigns, who may hold 2
44	43		such lands by virtue of a purchase thereof at a sale by the collector, or the 3
45	44		Commissioner of State Lands, for the nonpayment of taxes, or who may have 4
46	45		purchased the lands from the state by virtue of any act providing for the 5
47	46		sale of lands forfeited to the state for the nonpayment of taxes , or who may 6
48	47		hold the land under a donation deed from the state, shall be maintained, 7
49	48		unless it appears that the plaintiff, his or her ancestors, predecessors, or 8
50	49		grantors, was seized or possessed of the lands in question within two (2) 9
51	50		years next before the commencement of the suit or action. 10
52	51		11
53	52		SECTION 3. Arkansas Code § 19 -6-301(76), concerning the enumeration of 12
54	53		special revenues, is amended to read as follows: 13
55	54		(76)(A) Commissioner of State Lands fees, including patent fees, 14
56	55		as enacted by Acts 1883, No. 117, § 21-6-203; 15
57	56		(B) Deed fees, as enacted by Acts 1931, No. 245, § 22-5-16
58	57		408; 17
59	58		(C) Donation deed fees, as enacted by Acts 1883, No. 18
60	59		117, § 21-6-203; 19
61	60		(D) Field notes and plats fees, as enacted by Acts 1881, 20
62	61		No. 12, §§ 22-5-701 and 22-5-702; 21
63	62		(E)(D) Certificate of donation to forfeited land fees, as 22
64	63		enacted by Acts 1883, No. 117, § 21-6-203; and 23
65	64		(F)(E) Those fees as specified in Acts 1983, No. 886, § 24
66	65		21-6-203; 25
67	66		26
68	67		SECTION 4. Arkansas Code Title 20, Chapter 80, Subchapter 4, is 27
69	68		repealed. 28
70	69		Subchapter 4 — Commissioner of State Lands Urban Homestead Act 29
71	70		30
72	71		20-80-401. Title. 31
73	72		This subchapter shall be known as the “Commissioner of State Lands 32
74	73		Urban Homestead Act”. 33
75	74		34
76	75		20-80-402. Purpose. 35
77	76		(a) This subchapter shall apply only to urban property and shall be 36 HB1399
78	77
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80	79		established to prevent waste of valuable real property already offered for 1
81	80		public sale and not disposed of which has been certified to the office of the 2
82	81		Commissioner of State Lands for nonpayment of ad valorem real property taxes. 3
83	82		(b) The further intent of this section is to provide cities, 4
84	83		incorporated towns, legal entities that intend to apply for an award of low -5
85	84		income housing tax credits under section 42 of the Internal Revenue Code, and 6
86	85		community organizations the ability to better serve any eligible person in 7
87	86		need of a homestead and to provide the eligible person the opportunity to 8
88	87		hold and maintain a private residence, and to contribute to the taxing 9
89	88		structure of the applicable taxing units. 10
90	89		11
91	90		20-80-403. Definitions. 12
92	91		As used in this subchapter, unless the context otherwise requires: 13
93	92		(1) “Applicant” means any city, incorporated town, legal entity 14
94	93		that intends to apply for an award of low -income housing tax credits under 15
95	94		section 42 of the Internal Revenue Code, or community organization applying 16
96	95		to the Commissioner of State Lands for donation of tax -forfeited land; 17
97	96		(2)(A) “Community organization” means a recreational, 18
98	97		educational, social, or benevolent organization dedicated to improving the 19
99	98		mental or physical health and welfare of its members and of the public. 20
100	99		(B) A community organization may be established for 21
101	100		community betterment or beautification, environmental protection, 22
102	101		establishment of housing, and other purposes beneficial to the community and 23
103	102		may be a division of the federal, state, county, or local government or may 24
104	103		be a private nonprofit corporation; 25
105	104		(3) “Eligible person” means an individual person or family unit 26
106	105		meeting eligibility criteria for the sale, lease, or grant of a homestead. A 27
107	106		corporation, partnership, association, or similar organization shall not be 28
108	107		an eligible person; 29
109	108		(4) “Homestead” means the home and accompanying or adjoining 30
110	109		land of the primary residence of a person; and 31
111	110		(5) “Urban” means land found within the city limits of any city 32
112	111		or incorporated town in the state. 33
113	112		34
114	113		20-80-404. Duties of Commissioner of State Lands. 35
115	114		(a) All land subject to donation under this subchapter must have been 36 HB1399
116	115
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118	117		offered for sale to the highest bidder by the Commissioner of State Lands 1
119	118		pursuant to § 26-37-101 et seq. 2
120	119		(b) After the Commissioner of State Lands has met the requirements of 3
121	120		§ 26-37-101 et seq., the Commissioner of State Lands may accept applications 4
122	121		for donation of remaining tax -forfeited urban property. 5
123	122		(c) The Commissioner of State Lands shall prescribe the requisite 6
124	123		contracts, forms, or applications. 7
125	124		8
126	125		20-80-405. Applications for donations. 9
127	126		(a)(1) Applications for donation may be made by the following persons 10
128	127		or community organizations: 11
129	128		(A) Agents of cities and incorporated towns that also have 12
130	129		one (1) of the community organizations listed in subdivisions (a)(1)(B)(i) -13
131	130		(iv) of this section; or 14
132	131		(B) The chair of the board or executive director of one 15
133	132		(1) of the following community organizations: 16
134	133		(i) A housing authority; 17
135	134		(ii) A community development agency; 18
136	135		(iii) A community development corporation; or 19
137	136		(iv) A local initiative support corporation. 20
138	137		(2) Other community organizations may apply for donation of the 21
139	138		land so long as that organization is a nonprofit corporation that qualifies 22
140	139		as an Internal Revenue Service section 501(c)(3) tax -exempt organization. 23
141	140		(3) A legal entity that intends to apply for an award of federal 24
142	141		low-income housing tax credits under section 42 of the Internal Revenue Code 25
143	142		may apply for donation of land under this subchapter only if the legal entity 26
144	143		is a qualified nonprofit organization pursuant to section 42 of the Internal 27
145	144		Revenue Code and accompanying regulations and guidance of the Internal 28
146	145		Revenue Service. 29
147	146		(b) Any applicant must have legal authority to accept and convey title 30
148	147		to properties for homesteading purposes. 31
149	148		32
150	149		20-80-406. Disposition of applications — Prior municipal approval. 33
151	150		(a) The Commissioner of State Lands may accept, modify, or deny any 34
152	151		application. 35
153	152		(b) Before the Commissioner of State Lands may donate any parcel to 36 HB1399
154	153
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156	155		any applicant, other than agents of a city or incorporated town, the city or 1
157	156		town shall grant express approval of the donation, thereby avoiding possible 2
158	157		conflicts in planning or development projects overseen by the cities or towns 3
159	158		of this state. 4
160	159		5
161	160		20-80-407. Contracts or deeds. 6
162	161		(a)(1) Accepted applications will result in a contract or limited 7
163	162		warranty donation deed between the Commissioner of State Lands and the 8
164	163		applicant for donation of tax -forfeited lands. 9
165	164		(2) The contract or deed, to be provided by the Commissioner of 10
166	165		State Lands, shall provide that the applicant will have primary 11
167	166		responsibility for the development of the donated parcel. 12
168	167		(3) The contract or deed shall also set out the eligiblity 13
169	168		criteria for determining an eligible person with respect to a sale, lease, or 14
170	169		grant of a homestead from the donated parcel and shall require the applicant 15
171	170		to follow the eligiblity criteria in making sales, leases, or grants from the 16
172	171		donated parcel. 17
173	172		(b) Upon execution of a donation deed to the applicant, the 18
174	173		Commissioner of State Lands may no longer be an immediate party to the 19
175	174		construction or maintenance of the parcel, except that the contract or 20
176	175		donation deed may contain a possibility of reverter to the Commissioner of 21
177	176		State Lands should the proposed homestead, for any reason, not develop 22
178	177		pursuant to specifications. 23
179	178		(c) In addition, the contract or deed may provide the time period 24
180	179		within which the property may be developed. 25
181	180		26
182	181		20-80-408. Taxes — Liens — Encumbrances. 27
183	182		(a) With execution of the donation deed, the Commissioner of State 28
184	183		Lands may waive outstanding taxes, penalties, and interest within the 29
185	184		authority of the office of the Commissioner of State Lands. 30
186	185		(b) Other liens or encumbrances attached to the property not within 31
187	186		the authority of the Commissioner of State Lands pursuant to § 26 -37-101 et 32
188	187		seq. will be considered a matter to be resolved between the applicant and the 33
189	188		lienholder. 34
190	189		35
191	190		20-80-409. Title transfer — Consideration — Costs. 36 HB1399
192	191
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194	193		(a) No consideration shall be required for the transfer of title 1
195	194		between the Commissioner of State Lands and the applicant, except one dollar 2
196	195		($1.00). 3
197	196		(b) Additional, actual costs associated with the conveyance, 4
198	197		including, but not limited to, abstracting, researching, confirmation of 5
199	198		title, and the filing of documents with the county, may be charged to the 6
200	199		applicant by the Commissioner of State Lands. 7
201	200		8
202	201		20-80-410. Development. 9
203	202		(a)(1) Development of the donated parcel shall be strictly for the 10
204	203		construction or maintenance of a homestead for eligible persons. 11
205	204		(2) Upon completion of the construction of the home, the city, 12
206	205		incorporated town, or community organization may sell, lease, or grant the 13
207	206		home to any eligible person. 14
208	207		(b)(1) The homestead is to be used strictly for the private residence 15
209	208		of the eligible person. 16
210	209		(2) The sale, lease, or grant of the home shall be a transaction 17
211	210		between the applicant and the eligible person. 18
212	211		19
213	212		20-80-411. Restrictions — Taxes. 20
214	213		(a) The applicant is responsible for transferring the donated parcel 21
215	214		to an eligible person. 22
216	215		(b) The eligibility criteria for the sale, lease, or grant of a 23
217	216		homestead shall be established by the Commissioner of State Lands and shall 24
218	217		take into account the income of the person or family unit, which shall not 25
219	218		exceed the median family income, as determined by the United States 26
220	219		Department of Housing and Urban Development, for the area in which the 27
221	220		applicant is located. 28
222	221		(c) Upon transferring the land to the eligible person, the homestead 29
223	222		will be treated as any other private residence and subject to all laws, 30
224	223		rules, and regulations of the government, including the payment of real 31
225	224		property taxes. 32
226	225		33
227	226		20-80-412. Public school development. 34
228	227		(a) A donated parcel of land held by a community organization under 35
229	228		this subchapter may be used for educational purposes by a public school 36 HB1399
230	229
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232	231		district or open-enrollment public charter school if: 1
233	232		(1) The donated parcel of land is in a census tract with a 2
234	233		poverty rate higher than the average poverty rate in the State of Arkansas; 3
235	234		(2) The community organization received the donated parcel of 4
236	235		land from the Commissioner of State Lands at least three (3) years earlier; 5
237	236		(3) An eligible person does not currently use the donated parcel 6
238	237		of land for a homestead; and 7
239	238		(4) The proposed activities or uses are not prohibited by any 8
240	239		use restrictions that were placed on the property for the purpose of 9
241	240		protecting: 10
242	241		(A) Human health; or 11
243	242		(B) The integrity of any remedial action measures 12
244	243		implemented on the property to protect human health or the environment. 13
245	244		(b) A community organization that receives a donated parcel of land 14
246	245		may transfer the donated parcel of land to a recipient that shall use the 15
247	246		donated parcel of land for development by a public school district or an 16
248	247		open-enrollment public charter school. 17
249	248		(c) Once a public school district or an open -enrollment public charter 18
250	249		school begins to use a donated parcel of land under this section for 19
251	250		educational purposes, the donated parcel of land shall be released from 20
252	251		present and future obligations, restrictions, and reversions imposed on the 21
253	252		use and development of the donated parcel of land, except as provided by 22
254	253		subdivision (a)(4) of this section. 23
255	254		(d) Taxes from previous tax years shall not apply to a donated parcel 24
256	255		of land utilized by a public school district or an open -enrollment public 25
257	256		charter school under this section. 26
258	257		27
259	258		SECTION 5. Arkansas Code § 26-38-103(a), concerning the release of 28
260	259		overdue tax lands sold to state under Acts 1881, No. 39, is amended to read 29
261	260		as follows: 30
262	261		(a) As to all lands in the State of Arkansas which were sold to the 31
263	262		state under the provisions of an act to enforce the payment of overdue taxes, 32
264	263		Acts 1881, No. 39, approved March 12, 1881 [repealed], and an act amendatory 33
265	264		thereto, approved March 22, 1881, to which the Commissioner of State Lands 34
266	265		has executed deeds of donation, deeds of sale, or deeds of relinquishment, 35
267	266		the state does release its title in favor of the grantees in these deeds, 36 HB1399
268	267
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270	269		their heirs, successors, and assigns forever. As to all these lands that have 1
271	270		not been disposed of by the Commissioner of State Lands as indicated but 2
272	271		which have been placed back upon the tax books of the counties wherein the 3
273	272		lands lie, and the taxes have been paid thereon for more than seven (7) years 4
274	273		since they were sold to the state under the provisions of these acts, the 5
275	274		state does release all of its title. These provisions apply whether the lands 6
276	275		were certified by the commissioner of the court to the county clerk of the 7
277	276		county, as required by these acts, or not, and also to apply whether the 8
278	277		lands were certified by the county clerk to the Office of the Commissioner of 9
279	278		State Lands, or not. 10
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