3 | 2 | | *SSS134* 02/03/2025 4:31:11 PM SSS134 |
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4 | 3 | | State of Arkansas 1 |
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5 | 4 | | 95th General Assembly A Bill 2 |
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6 | 5 | | Regular Session, 2025 SENATE BILL 182 3 |
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7 | 6 | | 4 |
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8 | 7 | | By: Senators Gilmore, S. Flowers 5 |
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9 | 8 | | By: Representatives Barnes, K. Ferguson, Holcomb, Wardlaw 6 |
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10 | 9 | | 7 |
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11 | 10 | | For An Act To Be Entitled 8 |
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12 | 11 | | AN ACT TO AMEND THE LAW CONCERNING ANNUAL 9 |
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13 | 12 | | APPROPRIATIONS FOR LOCAL GOVERNMENT; TO REQUIRE A 10 |
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14 | 13 | | LOCAL GOVERNMENT TO CONTINUE TO OPERATE UNDER THE 11 |
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15 | 14 | | ANNUAL APPROPRIATION ORDINANCE FOR THE PREVIOUS YEAR 12 |
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16 | 15 | | UNTIL A NEW APPROPRIATION ORDINANCE IS ADOPTED; TO 13 |
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17 | 16 | | DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES. 14 |
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18 | 17 | | 15 |
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19 | 18 | | 16 |
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20 | 19 | | Subtitle 17 |
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21 | 20 | | TO REQUIRE A LOCAL GOVERNMENT TO 18 |
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22 | 21 | | CONTINUE TO OPERATE UNDER THE ANNUAL 19 |
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23 | 22 | | APPROPRIATION ORDINANCE FOR THE PREVIOUS 20 |
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24 | 23 | | YEAR UNTIL A NEW APPROPRIATION ORDINANCE 21 |
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25 | 24 | | IS ADOPTED; AND TO DECLARE AN EMERGENCY. 22 |
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26 | 25 | | 23 |
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27 | 26 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24 |
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28 | 27 | | 25 |
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29 | 28 | | SECTION 1. Arkansas Code § 14 -14-904(b)(1)(A)(ii), concerning the 26 |
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30 | 29 | | procedure for appropriations by a quorum court, is amended to add an 27 |
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31 | 30 | | additional subdivision to read as follows: 28 |
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32 | 31 | | (c)(1) If a quorum court does not pass an 29 |
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33 | 32 | | annual appropriation ordinance as required under subdivision (b)(1)(A)(ii)(a) 30 |
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34 | 33 | | of this section by January 1, the annual appropriation ordinance from the 31 |
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35 | 34 | | previous year, including any amendments to the annual appropriation budget 32 |
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36 | 35 | | adopted by ordinance that were enacted on or before December 31 of the year 33 |
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37 | 36 | | of the annual appropriation ordinance, is readopted by operation of this 34 |
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38 | 37 | | subdivision (b)(1)(A)(ii)(c), at the final level of appropriation and the 35 |
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39 | 38 | | beginning level of zero (0) expenditure. 36 SB182 |
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40 | 39 | | |
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42 | 41 | | (2) Expenditures of the county, 1 |
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43 | 42 | | including without limitation the payment of salaries to employees as the 2 |
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44 | 43 | | employee's salary existed on December 31, shall continue to be paid under the 3 |
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45 | 44 | | annual appropriation ordinance levels of the previous year until a new annual 4 |
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46 | 45 | | appropriation ordinance is adopted. 5 |
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47 | 46 | | (3) Expenditures of the county paid 6 |
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48 | 47 | | under subdivision (b)(1)(A)(ii)(c)(2) of this section shall not include per 7 |
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49 | 48 | | diem compensation for the justices of the peace under § 14 -14-1205 or salary 8 |
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50 | 49 | | for the county judge under § 14 -14-1204(c). 9 |
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51 | 50 | | (4) An annual appropriation ordinance 10 |
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52 | 51 | | adopted by the quorum court after January 1 shall not include per diem 11 |
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53 | 52 | | compensation for the justices of the peace under § 14 -14-1205 or salary for 12 |
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54 | 53 | | the county judge under § 14 -14-1204(c) for any period when the previous 13 |
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55 | 54 | | year's annual appropriation ordinance has been readopted. 14 |
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56 | 55 | | (5) For the purposes of this subdivision 15 |
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57 | 56 | | (b)(1)(A)(ii)(c), the annual appropriation ordinance adopted by the quorum 16 |
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58 | 57 | | court in the previous year shall be readopted by operation of this 17 |
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59 | 58 | | subdivision (b)(1)(A)(ii)(c) regardless of any determination that the annual 18 |
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60 | 59 | | appropriation ordinance for the previous year is or may be invalid. 19 |
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61 | 60 | | 20 |
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62 | 61 | | SECTION 2. Arkansas Code § 14 -14-1204(c), concerning compensation of 21 |
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63 | 62 | | elected county officers, is amended to add an additional subdivision to read 22 |
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64 | 63 | | as follows: 23 |
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65 | 64 | | (3) If an annual appropriation ordinance is not adopted by 24 |
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66 | 65 | | January 1 under § 14 -14-904, the annual salary of a county judge shall not be 25 |
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67 | 66 | | paid until an annual appropriation ordinance is adopted. 26 |
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68 | 67 | | 27 |
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69 | 68 | | SECTION 3. Arkansas Code § 14 -14-1205(a)(1), concerning compensation 28 |
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70 | 69 | | of township officers, is amended to add an additional subdivision to read as 29 |
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71 | 70 | | follows: 30 |
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72 | 71 | | (C) If an annual appropriation ordinance is not adopted by 31 |
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73 | 72 | | January 1 under § 14 -14-904, the per diem compensation for justices of the 32 |
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74 | 73 | | peace shall not be paid until an appropriation ordinance is adopted. 33 |
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75 | 74 | | 34 |
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76 | 75 | | SECTION 4. Arkansas Code § 14 -58-202 is amended to read as follows: 35 |
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77 | 76 | | 14-58-202. Adoption of budget. 36 SB182 |
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78 | 77 | | |
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80 | 79 | | (a) Under this subchapter, the governing body of the municipality 1 |
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81 | 80 | | shall, on or before February 1 of each year, adopt a budget by ordinance or 2 |
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82 | 81 | | resolution for operation of the city or town municipality. 3 |
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83 | 82 | | (b)(1) If the governing body of the municipality has not adopted a 4 |
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84 | 83 | | budget by ordinance for the operation of the municipality by January 1, any 5 |
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85 | 84 | | expenditure of the municipality for that year shall continue to be paid 6 |
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86 | 85 | | according to the adopted budget from the previous year, including any 7 |
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87 | 86 | | amendments to the budget adopted by ordinance that were enacted on or before 8 |
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88 | 87 | | December 31 of the year of the budget, until a new budget for the year is 9 |
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89 | 88 | | adopted by the governing body of the municipality. 10 |
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90 | 89 | | (2) The expenditures of the municipality paid under subdivision 11 |
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91 | 90 | | (b)(1) of this section shall be limited to necessary operational expenses of 12 |
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92 | 91 | | the municipality, including without limitation: 13 |
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93 | 92 | | (A) Expenditures to ensure all regular and usual 14 |
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94 | 93 | | government services offered by the municipality are maintained; 15 |
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95 | 94 | | (B) Expenditures necessary to protect the peace, health, 16 |
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96 | 95 | | and safety of the residents of the municipality; 17 |
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97 | 96 | | (C) Payroll and benefits of employees of the municipality 18 |
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98 | 97 | | as the employee's salary existed on December 31; 19 |
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99 | 98 | | (D) Payments of contracts for commodities or services 20 |
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100 | 99 | | previously entered into by the municipality in which payment is due; and 21 |
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101 | 100 | | (E) Payments of outstanding debt or bonds, including 22 |
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102 | 101 | | interest, as authorized under applicable law. 23 |
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103 | 102 | | (3) Expenditures authorized under this subsection do not include 24 |
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104 | 103 | | a new capital purchase based on prior authorization for a capital purchase in 25 |
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105 | 104 | | the adopted budget from the previous year. 26 |
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106 | 105 | | 27 |
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107 | 106 | | SECTION 5. EMERGENCY CLAUSE. It is found and determined by the 28 |
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108 | 107 | | General Assembly of the State of Arkansas that when the governing body of a 29 |
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109 | 108 | | county or municipality does not pass an annual appropriation ordinance, the 30 |
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110 | 109 | | county or municipality cannot provide basic services and the employees of the 31 |
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111 | 110 | | county or municipality cannot be paid; that this act will allow expenditures 32 |
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112 | 111 | | to be paid until an annual appropriation ordinance is in place; that the lack 33 |
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113 | 112 | | of an appropriation ordinance makes it impossible for the county or 34 |
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114 | 113 | | municipality to provide necessary services to the residents of the county or 35 |
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115 | 114 | | municipality, which threatens the public peace, health, and safety of the 36 SB182 |
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116 | 115 | | |
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118 | 117 | | residents of the county or municipality; and that this act is immediately 1 |
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119 | 118 | | necessary because failure to pass an annual appropriation ordinance puts 2 |
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120 | 119 | | employees of the county or municipality in financial distress and at risk of 3 |
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121 | 120 | | being unable to pay for financial responsibilities. Therefore, an emergency 4 |
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122 | 121 | | is declared to exist, and this act being immediately necessary for the 5 |
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123 | 122 | | preservation of the public peace, health, and safety shall become effective 6 |
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124 | 123 | | on: 7 |
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125 | 124 | | (1) The date of its approval by the Governor; 8 |
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126 | 125 | | (2) If the bill is neither approved nor vetoed by the Governor, 9 |
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127 | 126 | | the expiration of the period of time during which the Governor may veto the 10 |
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128 | 127 | | bill; or 11 |
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129 | 128 | | (3) If the bill is vetoed by the Governor and the veto is 12 |
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130 | 129 | | overridden, the date the last house overrides the veto. 13 |
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131 | 130 | | 14 |
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132 | 131 | | 15 |
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