Stricken language would be deleted from and underlined language would be added to present law.
Act 24 of the Regular Session
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 182 3
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By: Senators Gilmore, S. Flowers 5
By: Representatives Barnes, K. Ferguson, Holcomb, Wardlaw 6
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For An Act To Be Entitled 8
AN ACT TO AMEND THE LAW CONCERNING ANNUAL 9
APPROPRIATIONS FOR LOCAL GOVERNMENT; TO REQUIRE A 10
LOCAL GOVERNMENT TO CONTINUE TO OPERATE UNDER THE 11
ANNUAL APPROPRIATION ORDINANCE FOR THE PREVIOUS YEAR 12
UNTIL A NEW APPROPRIATION ORDINANCE IS ADOPTED; TO 13
DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES. 14
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Subtitle 17
TO REQUIRE A LOCAL GOVERNMENT TO 18
CONTINUE TO OPERATE UNDER THE ANNUAL 19
APPROPRIATION ORDINANCE FOR THE PREVIOUS 20
YEAR UNTIL A NEW APPROPRIATION ORDINANCE 21
IS ADOPTED; AND TO DECLARE AN EMERGENCY. 22
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
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SECTION 1. Arkansas Code § 14 -14-904(b)(1)(A)(ii), concerning the 26
procedure for appropriations by a quorum court, is amended to add an 27
additional subdivision to read as follows: 28
(c)(1) If a quorum court does not pass an 29
annual appropriation ordinance as required under subdivision (b)(1)(A)(ii)(a) 30
of this section by January 1, the annual appropriation ordinance from the 31
previous year, including any amendments to the annual appropriation budget 32
adopted by ordinance that were enacted on or before December 31 of the year 33
of the annual appropriation ordinance, is readopted by operation of this 34
subdivision (b)(1)(A)(ii)(c), at the final level of appropriation and the 35
beginning level of zero (0) expenditure. 36 SB182
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(2) Expenditures of the county, 1
including without limitation the payment of salaries to employees as the 2
employee's salary existed on December 31, shall continue to be paid under the 3
annual appropriation ordinance levels of the previous year until a new annual 4
appropriation ordinance is adopted. 5
(3) Expenditures of the county paid 6
under subdivision (b)(1)(A)(ii)(c)(2) of this section shall not include per 7
diem compensation for the justices of the peace under § 14 -14-1205 or salary 8
for the county judge under § 14 -14-1204(c). 9
(4) An annual appropriation ordinance 10
adopted by the quorum court after January 1 shall not include per diem 11
compensation for the justices of the peace under § 14 -14-1205 or salary for 12
the county judge under § 14 -14-1204(c) for any period when the previous 13
year's annual appropriation ordinance has been readopted. 14
(5) For the purposes of this subdivision 15
(b)(1)(A)(ii)(c), the annual appropriation ordinance adopted by the quorum 16
court in the previous year shall be readopted by operation of this 17
subdivision (b)(1)(A)(ii)(c) regardless of any determination that the annual 18
appropriation ordinance for the previous year is or may be invalid. 19
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SECTION 2. Arkansas Code § 14 -14-1204(c), concerning compensation of 21
elected county officers, is amended to add an additional subdivision to read 22
as follows: 23
(3) If an annual appropriation ordinance is not adopted by 24
January 1 under § 14 -14-904, the annual salary of a county judge shall not be 25
paid until an annual appropriation ordinance is adopted. 26
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SECTION 3. Arkansas Code § 14 -14-1205(a)(1), concerning compensation 28
of township officers, is amended to add an additional subdivision to read as 29
follows: 30
(C) If an annual appropriation ordinance is not adopted by 31
January 1 under § 14 -14-904, the per diem compensation for justices of the 32
peace shall not be paid until an appropriation ordinance is adopted. 33
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SECTION 4. Arkansas Code § 14 -58-202 is amended to read as follows: 35
14-58-202. Adoption of budget. 36 SB182
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(a) Under this subchapter, the governing body of the municipality 1
shall, on or before February 1 of each year, adopt a budget by ordinance or 2
resolution for operation of the city or town municipality. 3
(b)(1) If the governing body of the municipality has not adopted a 4
budget by ordinance for the operation of the municipality by January 1, any 5
expenditure of the municipality for that year shall continue to be paid 6
according to the adopted budget from the previous year, including any 7
amendments to the budget adopted by ordinance that were enacted on or before 8
December 31 of the year of the budget, until a new budget for the year is 9
adopted by the governing body of the municipality. 10
(2) The expenditures of the municipality paid under subdivision 11
(b)(1) of this section shall be limited to necessary operational expenses of 12
the municipality, including without limitation: 13
(A) Expenditures to ensure all regular and usual 14
government services offered by the municipality are maintained; 15
(B) Expenditures necessary to protect the peace, health, 16
and safety of the residents of the municipality; 17
(C) Payroll and benefits of employees of the municipality 18
as the employee's salary existed on December 31; 19
(D) Payments of contracts for commodities or services 20
previously entered into by the municipality in which payment is due; and 21
(E) Payments of outstanding debt or bonds, including 22
interest, as authorized under applicable law. 23
(3) Expenditures authorized under this subsection do not include 24
a new capital purchase based on prior authorization for a capital purchase in 25
the adopted budget from the previous year. 26
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SECTION 5. EMERGENCY CLAUSE. It is found and determined by the 28
General Assembly of the State of Arkansas that when the governing body of a 29
county or municipality does not pass an annual appropriation ordinance, the 30
county or municipality cannot provide basic services and the employees of the 31
county or municipality cannot be paid; that this act will allow expenditures 32
to be paid until an annual appropriation ordinance is in place; that the lack 33
of an appropriation ordinance makes it impossible for the county or 34
municipality to provide necessary services to the residents of the county or 35
municipality, which threatens the public peace, health, and safety of the 36 SB182
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residents of the county or municipality; and that this act is immediately 1
necessary because failure to pass an annual appropriation ordinance puts 2
employees of the county or municipality in financial distress and at risk of 3
being unable to pay for financial responsibilities. Therefore, an emergency 4
is declared to exist, and this act being immediately necessary for the 5
preservation of the public peace, health, and safety shall become effective 6
on: 7
(1) The date of its approval by the Governor; 8
(2) If the bill is neither approved nor vetoed by the Governor, 9
the expiration of the period of time during which the Governor may veto the 10
bill; or 11
(3) If the bill is vetoed by the Governor and the veto is 12
overridden, the date the last house overrides the veto. 13
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APPROVED: 2/10/25 16
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