Arkansas 2025 Regular Session

Arkansas Senate Bill SB182 Compare Versions

OldNewDifferences
11 Stricken language would be deleted from and underlined language would be added to present law.
2-Act 24 of the Regular Session
32 *SSS134* 02/03/2025 4:31:11 PM SSS134
43 State of Arkansas 1
54 95th General Assembly A Bill 2
65 Regular Session, 2025 SENATE BILL 182 3
76 4
87 By: Senators Gilmore, S. Flowers 5
98 By: Representatives Barnes, K. Ferguson, Holcomb, Wardlaw 6
109 7
1110 For An Act To Be Entitled 8
1211 AN ACT TO AMEND THE LAW CONCERNING ANNUAL 9
1312 APPROPRIATIONS FOR LOCAL GOVERNMENT; TO REQUIRE A 10
1413 LOCAL GOVERNMENT TO CONTINUE TO OPERATE UNDER THE 11
1514 ANNUAL APPROPRIATION ORDINANCE FOR THE PREVIOUS YEAR 12
1615 UNTIL A NEW APPROPRIATION ORDINANCE IS ADOPTED; TO 13
1716 DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES. 14
1817 15
1918 16
2019 Subtitle 17
2120 TO REQUIRE A LOCAL GOVERNMENT TO 18
2221 CONTINUE TO OPERATE UNDER THE ANNUAL 19
2322 APPROPRIATION ORDINANCE FOR THE PREVIOUS 20
2423 YEAR UNTIL A NEW APPROPRIATION ORDINANCE 21
2524 IS ADOPTED; AND TO DECLARE AN EMERGENCY. 22
2625 23
2726 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
2827 25
2928 SECTION 1. Arkansas Code § 14 -14-904(b)(1)(A)(ii), concerning the 26
3029 procedure for appropriations by a quorum court, is amended to add an 27
3130 additional subdivision to read as follows: 28
3231 (c)(1) If a quorum court does not pass an 29
3332 annual appropriation ordinance as required under subdivision (b)(1)(A)(ii)(a) 30
3433 of this section by January 1, the annual appropriation ordinance from the 31
3534 previous year, including any amendments to the annual appropriation budget 32
3635 adopted by ordinance that were enacted on or before December 31 of the year 33
3736 of the annual appropriation ordinance, is readopted by operation of this 34
3837 subdivision (b)(1)(A)(ii)(c), at the final level of appropriation and the 35
3938 beginning level of zero (0) expenditure. 36 SB182
4039
4140 2 02/03/2025 4:31:11 PM SSS134
4241 (2) Expenditures of the county, 1
4342 including without limitation the payment of salaries to employees as the 2
4443 employee's salary existed on December 31, shall continue to be paid under the 3
4544 annual appropriation ordinance levels of the previous year until a new annual 4
4645 appropriation ordinance is adopted. 5
4746 (3) Expenditures of the county paid 6
4847 under subdivision (b)(1)(A)(ii)(c)(2) of this section shall not include per 7
4948 diem compensation for the justices of the peace under § 14 -14-1205 or salary 8
5049 for the county judge under § 14 -14-1204(c). 9
5150 (4) An annual appropriation ordinance 10
5251 adopted by the quorum court after January 1 shall not include per diem 11
5352 compensation for the justices of the peace under § 14 -14-1205 or salary for 12
5453 the county judge under § 14 -14-1204(c) for any period when the previous 13
5554 year's annual appropriation ordinance has been readopted. 14
5655 (5) For the purposes of this subdivision 15
5756 (b)(1)(A)(ii)(c), the annual appropriation ordinance adopted by the quorum 16
5857 court in the previous year shall be readopted by operation of this 17
5958 subdivision (b)(1)(A)(ii)(c) regardless of any determination that the annual 18
6059 appropriation ordinance for the previous year is or may be invalid. 19
6160 20
6261 SECTION 2. Arkansas Code § 14 -14-1204(c), concerning compensation of 21
6362 elected county officers, is amended to add an additional subdivision to read 22
6463 as follows: 23
6564 (3) If an annual appropriation ordinance is not adopted by 24
6665 January 1 under § 14 -14-904, the annual salary of a county judge shall not be 25
6766 paid until an annual appropriation ordinance is adopted. 26
6867 27
6968 SECTION 3. Arkansas Code § 14 -14-1205(a)(1), concerning compensation 28
7069 of township officers, is amended to add an additional subdivision to read as 29
7170 follows: 30
7271 (C) If an annual appropriation ordinance is not adopted by 31
7372 January 1 under § 14 -14-904, the per diem compensation for justices of the 32
7473 peace shall not be paid until an appropriation ordinance is adopted. 33
7574 34
7675 SECTION 4. Arkansas Code § 14 -58-202 is amended to read as follows: 35
7776 14-58-202. Adoption of budget. 36 SB182
7877
7978 3 02/03/2025 4:31:11 PM SSS134
8079 (a) Under this subchapter, the governing body of the municipality 1
8180 shall, on or before February 1 of each year, adopt a budget by ordinance or 2
8281 resolution for operation of the city or town municipality. 3
8382 (b)(1) If the governing body of the municipality has not adopted a 4
8483 budget by ordinance for the operation of the municipality by January 1, any 5
8584 expenditure of the municipality for that year shall continue to be paid 6
8685 according to the adopted budget from the previous year, including any 7
8786 amendments to the budget adopted by ordinance that were enacted on or before 8
8887 December 31 of the year of the budget, until a new budget for the year is 9
8988 adopted by the governing body of the municipality. 10
9089 (2) The expenditures of the municipality paid under subdivision 11
9190 (b)(1) of this section shall be limited to necessary operational expenses of 12
9291 the municipality, including without limitation: 13
9392 (A) Expenditures to ensure all regular and usual 14
9493 government services offered by the municipality are maintained; 15
9594 (B) Expenditures necessary to protect the peace, health, 16
9695 and safety of the residents of the municipality; 17
9796 (C) Payroll and benefits of employees of the municipality 18
9897 as the employee's salary existed on December 31; 19
9998 (D) Payments of contracts for commodities or services 20
10099 previously entered into by the municipality in which payment is due; and 21
101100 (E) Payments of outstanding debt or bonds, including 22
102101 interest, as authorized under applicable law. 23
103102 (3) Expenditures authorized under this subsection do not include 24
104103 a new capital purchase based on prior authorization for a capital purchase in 25
105104 the adopted budget from the previous year. 26
106105 27
107106 SECTION 5. EMERGENCY CLAUSE. It is found and determined by the 28
108107 General Assembly of the State of Arkansas that when the governing body of a 29
109108 county or municipality does not pass an annual appropriation ordinance, the 30
110109 county or municipality cannot provide basic services and the employees of the 31
111110 county or municipality cannot be paid; that this act will allow expenditures 32
112111 to be paid until an annual appropriation ordinance is in place; that the lack 33
113112 of an appropriation ordinance makes it impossible for the county or 34
114113 municipality to provide necessary services to the residents of the county or 35
115114 municipality, which threatens the public peace, health, and safety of the 36 SB182
116115
117116 4 02/03/2025 4:31:11 PM SSS134
118117 residents of the county or municipality; and that this act is immediately 1
119118 necessary because failure to pass an annual appropriation ordinance puts 2
120119 employees of the county or municipality in financial distress and at risk of 3
121120 being unable to pay for financial responsibilities. Therefore, an emergency 4
122121 is declared to exist, and this act being immediately necessary for the 5
123122 preservation of the public peace, health, and safety shall become effective 6
124123 on: 7
125124 (1) The date of its approval by the Governor; 8
126125 (2) If the bill is neither approved nor vetoed by the Governor, 9
127126 the expiration of the period of time during which the Governor may veto the 10
128127 bill; or 11
129128 (3) If the bill is vetoed by the Governor and the veto is 12
130129 overridden, the date the last house overrides the veto. 13
131130 14
132131 15
133-APPROVED: 2/10/25 16
132+ 16
134133 17
135134 18
136135 19
137136 20
138137 21
139138 22
140139 23
141140 24
142141 25
143142 26
144143 27
145144 28
146145 29
147146 30
148147 31
149148 32
150149 33
151150 34
152151 35
153152 36