Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 361 3
4
By: Senator Dees 5
By: Representative Beaty Jr. 6
7
For An Act To Be Entitled 8
AN ACT TO CREATE THE INDUSTRIAL DEVELOPMENT 9
AUTHORITIES EXPANSION ACT; TO PROVIDE FOR THE 10
CREATION OF INDUSTRIAL DEVELOPMENT AUTHORITIES TO 11
SECURE AND DEVELOP INDUSTRY AND FOSTER ECONOMIC 12
DEVELOPMENT; TO IMPROVE THE STATE'S ABILITY TO 13
EFFECTIVELY COMPETE, WIN, AND DEVELOP ECONOMIC 14
DEVELOPMENT PROJECTS; TO INCREASE JOB CREATION AND 15
CAPITAL INVESTMENT; AND FOR OTHER PURPOSES. 16
17
18
Subtitle 19
TO CREATE THE INDUSTRIAL DEVELOPMENT 20
AUTHORITIES EXPANSION ACT; AND TO 21
PROVIDE FOR THE CREATION OF INDUSTRIAL 22
DEVELOPMENT AUTHORITIES TO SECURE AND 23
DEVELOP INDUSTRY AND FOSTER ECONOMIC 24
DEVELOPMENT. 25
26
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 27
28
SECTION 1. Arkansas Code Title 14, is amended to add an additional 29
chapter to read as follows: 30
Chapter 189 31
Industrial Development Authorities Expansion Act 32
33
14-189-101. Title. 34
This chapter shall be known and may be cited as the "Industrial 35
Development Authorities Expansion Act". 36 SB361
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1
14-189-102. Definitions. 2
As used in this chapter: 3
(1) “County” means a county of this state or, where a county is 4
divided into two (2) districts, “county” means the entire county or either 5
district of the county; 6
(2) “Governing body” means the: 7
(A) Council, board of directors, or other like body in 8
which the legislative functions of a municipality are vested; or 9
(B) Quorum court of the county as the quorum court has 10
been duly constituted and acting as the legislative body of the county under 11
Arkansas Constitution, Amendment 55, or if not so constituted and acting, the 12
county court of the county; 13
(3) "Industrial development authority" means a public benefit 14
corporation authorized by one (1) or more local governments as a political 15
subdivision of the state for the purpose of securing and developing industry 16
and fostering economic development and that is invested with all the powers 17
that may be necessary to enable it to accomplish those purposes; 18
(4) "Local government" means a county or a municipality; 19
(5) "Mortgage lien" means a security interest in any personal 20
property embodied in the facilities acquired, constructed, reconstructed, 21
extended, equipped, or improved, in whole or in part, with the proceeds of 22
bonds issued under this chapter; 23
(6) “Municipality” means a city of the first class, a city of the 24
second class, or an incorporated town; and 25
(7) “Person” means any natural person, partnership, corporation, 26
association, organization, business trust, and public or private person or 27
entity. 28
29
14-189-103. Power to establish. 30
(a) One (1) or more local governments may organize and establish an 31
industrial development authority in the manner and for the accomplishment of 32
the purposes specified in this chapter. 33
(b)(1) Each industrial development authority established under this 34
chapter shall consist of and be governed by a board of directors. 35
(2) The members of the board of directors of the industrial 36 SB361
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development authority shall be selected and shall serve as set forth in this 1
chapter. 2
3
14-189-104. Organization of industrial development authority. 4
(a) The governing body of each local government desiring to organize 5
an industrial development authority under this chapter shall declare its 6
intention to do so by ordinance if the local government is a municipality or 7
by order if the local government is a county. 8
(b)(1) An ordinance shall authorize and direct the mayor of the 9
municipality issuing the ordinance and an order shall authorize and direct 10
the county judge of the county issuing the order to prepare, or cause to be 11
prepared, and to sign and file with the circuit clerk of any county that is 12
to be a party to the organization of an industrial development authority 13
under this chapter a petition requesting the circuit court of the county 14
where the petition is filed to establish an industrial development authority 15
under this chapter. 16
(2) The petition shall at least contain the following 17
information: 18
(A) The identity of the local governments desiring to 19
organize the industrial development authority; 20
(B)(i) The population of each petitioning local 21
government. 22
(ii) The population of a petitioning county is the 23
population of the county exclusive of the population of each petitioning 24
municipality in the county, according to the most recent federal decennial 25
census; 26
(C) The official name desired by the petitioners for the 27
industrial development authority to be established; 28
(D) The total number of the members of the board of 29
directors of the industrial development authority desired by the petitioners, 30
subject to the conditions pertaining thereto specified in this chapter; 31
(E) The number of the members of the board of directors of 32
the industrial development authority that shall represent each petitioning 33
local government, determined in accordance with the conditions specified in 34
this chapter; and 35
(F) A request that the circuit court enter an order 36 SB361
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designating the total number of the members of the board of directors of the 1
industrial development authority, designating the number that shall represent 2
each petitioning local government, and establishing an industrial development 3
authority under this chapter as a public agency of the petitioning local 4
government, but with the powers set forth in this chapter, which need not be 5
enumerated in the order. 6
(c)(1) The circuit court shall enter an order establishing and naming 7
the industrial development authority and designating the board of directors 8
of the industrial development authority in accordance with the petition. 9
(2) The circuit court shall enter the order as a record of the 10
court, and the order shall be placed in the permanent records of the circuit 11
clerk of the court. 12
(d) After the entry of the order of the circuit court establishing the 13
industrial development authority and after the appointments of its members, 14
the industrial development authority shall be in existence and thereafter 15
exist as a separate entity and body corporate as set forth in this chapter. 16
17
14-189-105. Members of board of directors of industrial development 18
authority. 19
(a) Immediately after the filing of the order of the circuit court 20
issued under § 14-189-104, the governing body of each petitioning local 21
government shall appoint the persons to be the members of the board of 22
directors of the industrial development authority established by the order of 23
the circuit court in accordance with the order as to the number of members to 24
be selected by the respective petitioning local governments. 25
(b) The total number of the members of the board of directors of the 26
industrial development authority established by the order shall be an odd 27
number, each petitioning local government shall have at least one (1) 28
representative as a member of the board of directors of the industrial 29
development authority, and the number of members that represent each 30
petitioning local government shall be apportioned in the ratio that each 31
petitioner's population bears to the total population of all petitioners. 32
(c)(1) The term of each member of the board of directors of the 33
industrial development authority shall be for three (3) years from the date 34
of his or her appointment, and he or she shall serve for that term and 35
thereafter until his or her successor shall be duly appointed and qualified. 36 SB361
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(2) At the expiration of the term of each member of the board of 1
directors of the industrial development authority, the governing body of the 2
local government that is represented on the board of directors of the 3
industrial development authority by the member shall appoint a successor 4
member or may reappoint the same member to another term. 5
(d)(1) Except as provided in subdivision (d)(2) of this section, a 6
vacancy on the board of directors of the industrial development authority 7
shall be filled by the governing body of the local government represented on 8
the board of directors of the industrial development authority by the 9
vacating member. 10
(2)(A) If a vacancy on the board of directors of the industrial 11
development authority is not filled by the governing body under subdivision 12
(d)(1) of this section within ninety (90) days after the vacancy occurs, a 13
majority of the remaining members of the board of directors of the industrial 14
development authority shall promptly fill the vacancy by appointing a 15
qualified person to serve for either the unexpired portion of the term of the 16
vacated member or for a new term if the vacating member is unable to serve 17
until a new member is otherwise appointed and qualified. 18
(B) For the purposes of this section, the expiration of a 19
member's term does not create a vacancy unless the member whose term has 20
expired is unable to serve until his or her successor is appointed and 21
qualified. 22
(e) Before entering upon his or her duties, each member of the board 23
of directors of the industrial development authority shall take and subscribe 24
and file in the office of the circuit clerk of the county where the order 25
establishing the industrial development authority was filed an oath to 26
support the United States Constitution and the Arkansas Constitution and 27
faithfully to perform the duties of the office upon which he or she is about 28
to enter. 29
(f) To be eligible for membership on the board of directors of the 30
industrial development authority, a person, at the time of his or her 31
appointment and qualification by filing the required oath, must be a 32
qualified elector of the municipality or of the county, as the case may be, 33
that he or she represents on the board of directors of the industrial 34
development authority. 35
(g)(1)(A) The board of directors of each industrial development 36 SB361
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authority shall select one (1) of its members as chair, one (1) of its 1
members as secretary, and one (1) of its members as treasurer. 2
(B) The offices of secretary and treasurer may be combined 3
and held by one (1) member. 4
(2) The term and duties of the officers shall be fixed by 5
resolution of the board of directors of each industrial development 6
authority. 7
8
14-189-106. Permanent records of industrial development authority. 9
A certified copy of each ordinance and a certified copy of each order 10
appointing persons to membership on the board of directors of the industrial 11
development authority shall be filed with the secretary of the board of 12
directors of the industrial development authority and shall be and remain 13
part of the permanent records of the industrial development authority. 14
15
14-189-107. General purposes of industrial development authority. 16
(a) An industrial development authority may accomplish the following 17
general purposes: 18
(1) To establish, acquire, develop, improve, or maintain: 19
(A) Commerce and industrial parks; 20
(B) Research, technology, and development proving grounds 21
and facilities; 22
(C) Job training facilities, air cargo operations, depots 23
for military use, rail lines, rail transload operations, and short -line 24
railroads; and 25
(D) All other qualifying economic development projects 26
under § 14-174-105; 27
(2) To acquire, purchase, install, lease, own, hold, use, 28
control, construct, equip, maintain, develop, and improve lands and 29
facilities, of whatever nature necessary or desirable, in connection with 30
establishing, developing, improving, and maintaining: 31
(A) Commerce and industrial parks; 32
(B) Research, technology, and development proving grounds 33
and facilities; 34
(C) Job training facilities, air cargo operations, depots 35
for military use, rail lines, rail transload operations, and short -line 36 SB361
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railroads; and 1
(D) All other qualifying economic development projects 2
under § 14-174-105, including without limitation, buildings, warehouses, 3
utilities, and the improvement of portions of highways or roadways, and other 4
facilities not within the exclusive jurisdiction of the United States 5
Government; 6
(3) To foster and stimulate the shipment of freight and 7
commerce, whether by rail, air, roadway, highway, or other modes of 8
transport, and whether originating within or without the State of Arkansas; 9
(4) To accept and use funds from any sources and to use them in 10
such a manner as is within the purposes of the industrial development 11
authority; 12
(5) To cooperate with the State of Arkansas and all agencies, 13
departments, and instrumentalities of the State of Arkansas and with other 14
counties, municipalities, and political subdivisions in the maintenance, 15
development, improvement, and use of: 16
(A) Commerce and industrial parks; 17
(B) Research, technology, and development proving grounds 18
and facilities; 19
(C) Job training facilities, air cargo operations, depots 20
for military use, rail lines, rail transload operations, and short -line 21
railroads; and 22
(D) All other qualifying economic development projects 23
under § 14-174-105; 24
(6) To cooperate with any other state and all its agencies, 25
departments, and instrumentalities and port authorities, counties, 26
municipalities, political subdivisions, and all their instrumentalities and 27
agencies in other states in the maintenance, development, improvement, and 28
use of: 29
(A) Commerce and industrial parks; 30
(B) Research, technology, and development proving grounds 31
and facilities; 32
(C) Job training facilities, air cargo operations, depots 33
for military use, rail lines, rail transload operations, and short -line 34
railroads; and 35
(D) All other qualifying economic development projects 36 SB361
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under § 14-174-105; 1
(7) To act as agent for the United States Government or any 2
agency, department, corporation, or instrumentality of the United States 3
Government and for the State of Arkansas and any agency, department, 4
instrumentality, or political subdivision of the State of Arkansas in any 5
matter pertaining to the accomplishment of the purposes of the industrial 6
development authority; 7
(8) To acquire, construct, equip, maintain, develop, and improve 8
facilities at: 9
(A) Commerce and industrial parks; 10
(B) Research, technology, and development proving grounds 11
and facilities; 12
(C) Job training facilities, air cargo operations, depots 13
for military use, rail lines, rail transload operations, and short -line 14
railroads; and 15
(D) All other qualifying economic development projects 16
under § 14-174-105; 17
(9) To sell, lease, contract concerning, or permit the use of 18
all or any part of the facilities acquired, constructed, and equipped under 19
this subsection to any person for industrial or commercial activities; and 20
(10) In general, to do and perform any act or function that may 21
tend to or be useful toward the development and improvement of: 22
(A) Commerce and industrial parks; 23
(B) Research, technology, and development proving grounds 24
and facilities; 25
(C) Job training facilities, air cargo operations, depots 26
for military use, rail lines, rail transload operations, and short -line 27
railroads; and 28
(D) All other qualifying economic development projects 29
under § 14-174-105; 30
(b) The enumeration of the purposes under subsection (a) of this 31
section shall not limit or circumscribe the broad objectives and purposes of 32
this chapter and the broad objectives of developing to the utmost: 33
(1) Commerce and industrial parks; 34
(2) Research, technology, and development proving grounds and 35
facilities; 36 SB361
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(3) Job training facilities, air cargo operations, depots for 1
military use, rail lines, rail transload operations, and short -line 2
railroads; 3
(4) All other qualifying economic development projects under § 4
14-174-105; and 5
(5) Industrial and commercial development possibilities of the 6
state and the political subdivisions of the state. 7
8
14-189-108. Powers of industrial development authority generally. 9
In order to enable an industrial development authority to carry out the 10
purposes of this chapter, the industrial development authority shall: 11
(1) Have the powers of a body corporate including the power to 12
sue and be sued, to make contracts, and to adopt and use a seal; 13
(2) Have the power to rent, acquire, improve, develop, operate, 14
maintain, lease, buy, own, mortgage, otherwise encumber, sell, dispose of, 15
and otherwise deal with such real, personal, or mixed property as an 16
industrial development authority may deem proper, necessary, or desirable to 17
carry out the purposes of this chapter; 18
(3) Have the power to acquire, purchase, install, lease, rent, 19
own, hold, use, control, develop, sell, improve, construct, maintain, equip 20
and operate, and otherwise deal with and dispose of any: 21
(A) Commerce and industrial parks; 22
(B) Research, technology, and development proving grounds 23
and facilities; 24
(C) Job training facilities, air cargo operations, depots 25
for military use, rail lines, rail transload operations, and short -line 26
railroads; and 27
(D) All other qualifying economic development projects 28
under § 14-174-105; 29
(4) Have the power consistent with this chapter to acquire, own, 30
construct, reconstruct, extend, equip, improve, operate, maintain, sell, 31
lease, lease with or without options to purchase, lease with or without 32
options to extend or renew, contract concerning, or otherwise deal in, with, 33
or dispose of any lands, buildings, improvements, machinery, equipment, or 34
facilities of any and every nature for the securing and developing of 35
industry and commerce and parks for industrial and commercial operations; 36 SB361
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(5) Have the power to appoint and employ and dismiss at pleasure 1
such agents and employees as may be selected by an industrial development 2
authority and to fix and pay their compensation; 3
(6) Have the power to establish an office for the transaction of 4
business at such place as, in the opinion of an industrial development 5
authority, shall be advisable or necessary in carrying out the purposes of 6
this chapter; 7
(7) Have the power to create and operate such agencies, 8
departments, and instrumentalities as an industrial development authority may 9
deem necessary, desirable, or useful for the accomplishment and furtherance 10
of any of the purposes of this chapter; 11
(8) Have the power to pay and expend funds for all necessary 12
costs and expenses involved in and incident to the formation and organization 13
of an industrial development authority and the carrying out of the powers and 14
purposes of this chapter; 15
(9) Have the power to adopt, alter, or repeal from time to time 16
its own bylaws, rules, and regulations consistent with this chapter governing 17
the manner in which the business of an industrial development authority may 18
be transacted and in which the purposes and powers may be transacted and in 19
which the purposes and powers of an industrial development authority may be 20
accomplished and carried out; 21
(10) Have the power to fix and change, from time to time, rates 22
and charges for the use of the facilities and services of an industrial 23
development authority; 24
(11) Have the power to promulgate and to alter or repeal, from 25
time to time, rules and regulations consistent with this chapter and to 26
enforce the same governing and pertaining to the use of the facilities and 27
services of an industrial development authority; 28
(12) Have the power to sell, contract concerning, or lease any 29
of its warehouses, industrial or commercial plants and facilities, and other 30
improvements and facilities of whatever nature and to permit the use of any 31
such facilities by any person engaging in any industrial or commercial 32
activity; 33
(13) Have the power to do any and all other acts and things of 34
whatever nature consistent with this chapter necessary or incidental to the 35
carrying out of the powers specified in this section and the accomplishment 36 SB361
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of the purposes of this chapter, whether or not specifically enumerated; and 1
(14) Be authorized to carry out the powers of an industrial 2
development authority and to accomplish the purposes of this chapter. 3
4
14-189-109. Industrial development authority -owned facilities — 5
Proposals for lease or operation. 6
(a) With regard to industrial development authority -owned facilities 7
used for commercial and industrial purposes, before entering into a new lease 8
of existing facilities or into a lease of new facilities, in whole or in 9
part, or before operating facilities for these purposes, in whole or in part, 10
an industrial development authority shall first publicly solicit proposals 11
for the leasing or operation of the facilities for these purposes on such 12
terms as shall be customary and usual in the commercial industry. 13
(b) An industrial development authority shall accept a proposal under 14
subsection (a) of this section that is commercially reasonable and in the 15
industrial development authority's best interest. 16
17
14-189-110. Acquisition of property, including rights -of-way. 18
(a) For the acquiring of property, including rights -of-way, necessary 19
or desirable for the carrying out of the powers of an industrial development 20
authority and for the accomplishment of the purposes of this chapter, an 21
industrial development authority may acquire property by gift, by purchase, 22
by negotiation, or by condemnation. 23
(b) If an industrial development authority determines to exercise the 24
right of eminent domain, the right of eminent domain may be exercised in the 25
manner provided for taking private property for railroads as provided by §§ 26
18-15-1202 — 18-15-1207, in the manner provided by §§ 18 -15-301 — 18-15-307, 27
or in the manner provided by any other statutes enacted for the exercise of 28
the power of eminent domain by the state, or by any officers, departments, 29
agencies, or political subdivisions of the state. 30
(c) An industrial development authority may exchange any property 31
acquired under this chapter for other property necessary or desirable in 32
carrying out of the powers of an industrial development authority. 33
34
14-189-111. Condemnation of utility system prohibited. 35
This chapter does not authorize any industrial development authority to 36 SB361
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acquire by condemnation, or to issue bonds and use the proceeds of the bonds 1
to acquire by condemnation, a utility plant or utility distribution system, 2
or any part of them, owned or operated by a regulated public utility for the 3
purpose of operation by the acquiring industrial development authority. 4
5
14-189-112. Operation of railroads. 6
(a)(1) An industrial development authority may acquire, own, lease, 7
locate, install, construct, equip, hold, maintain, control, and operate 8
railroads with necessary sidings, turnouts, spur branches, switches, yard 9
tracks, transload on and off -loading equipment, bridges, trestles, and 10
causeways. 11
(2) In connection with the lines and appurtenances to the lines 12
under subdivision (a)(1) of this section, an industrial development authority 13
may lease, install, construct, acquire, own, maintain, control, and use any 14
and every kind or character of motive power and conveyances or appliances 15
necessary or proper to carry passengers, goods, wares, and merchandise over, 16
along, or upon the tracks of railroads or other conveyances. 17
(b)(1) An industrial development authority may make agreements as to 18
scale of wages, seniority, working conditions, and related matters with 19
locomotive engineers, firemen, switchmen, foremen, hostlers, and other 20
employees engaged in the operation of the railroads and the service and 21
equipment pertinent to railroads. 22
(2) An industrial development authority may connect with or 23
cross any other railroad upon payment of just compensation and receive, 24
deliver to, and transport the freight, passengers, and cars of common carrier 25
railroads as though they were ordinary common carriers. 26
27
14-189-113. Dealings with United States Government. 28
(a)(1) An industrial development authority may assign, transfer, 29
lease, convey, grant, or donate to the United States Government or to the 30
appropriate agency of the United States Government any or all of the property 31
of the industrial development authority for use by the United States 32
Government or the appropriate agency of the United States Government, for any 33
purpose included within the purposes of this chapter. 34
(2) An assignment, transfer, lease, conveyance, grant, or 35
donation under subdivision (a)(1) of this section shall not be made that 36 SB361
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would constitute an impairment of the covenants and obligations of an 1
industrial development authority in connection with bonds or other 2
certificates of indebtedness issued and outstanding by the industrial 3
development authority or that would constitute an event of default under any 4
indenture or similar instrument securing any indebtedness of an industrial 5
development authority. 6
(3) Any assignment, transfer, lease, conveyance, grant, or 7
donation, subject to the limitations specified, shall be upon such terms as 8
the industrial development authority involved may deem advisable. 9
(b) If the United States Government or the appropriate agency or 10
department of the United States Government should decide to undertake the 11
acquisition, construction, equipment, maintenance, or operation of any of the 12
properties and facilities of an industrial development authority and should 13
decide to acquire the lands and properties necessarily needed in connection 14
with it by condemnation or otherwise, the industrial development authority 15
may transfer and pay over to the United States Government or to the 16
appropriate agency of the United States Government such of the moneys 17
belonging to the industrial development authority as may be reasonably 18
required by the United States Government or the appropriate agency of the 19
United States Government to meet and pay the amount of judgments in 20
condemnation proceedings as may be rendered from time to time against the 21
United States Government or the appropriate agency of the United States 22
Government or as may be reasonably necessary to permit the United States 23
Government or the appropriate agency of the United States Government to 24
acquire and become possessed of such lands and properties as are reasonably 25
required for the acquisition, construction, and use of the properties and 26
facilities referred to in this section. 27
28
14-189-114. Local government assistance — Legislative determination. 29
(a)(1) It is determined by the General Assembly that the following are 30
necessary for and useful in the securing and developing of industry in the 31
State of Arkansas: 32
(A) Commerce and industrial parks; 33
(B) Research, technology, and development proving grounds 34
and facilities; 35
(C) Job training facilities, air cargo operations, depots 36 SB361
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for military use, rail lines, rail transload operations, and short -line 1
railroads; 2
(D) All other qualifying economic development projects 3
under § 14-174-105; and 4
(E) The facilities authorized to be acquired, constructed, 5
reconstructed, extended, equipped, or improved by an industrial development 6
authority under this chapter. 7
(2) Therefore, an industrial development authority may contract 8
with the local governments represented on the board of directors of the 9
industrial development authority for the local governments to make available 10
the proceeds of bonds issued under Arkansas Constitution, Amendment 62, or 11
prior amendments to the Arkansas Constitution repealed by Arkansas 12
Constitution, Amendment 62, to the industrial development authority for the 13
purpose of financially assisting the industrial development authority to 14
accomplish the purposes of this chapter consistent with Arkansas 15
Constitution, Amendment 62, or prior amendments to the Arkansas Constitution 16
repealed by Arkansas Constitution, Amendment 62. 17
(b)(1) In addition, local governments may use and make available to an 18
industrial development authority, by way of donation, loan, or otherwise, any 19
available revenues for the purpose of financially assisting the industrial 20
development authority to accomplish the purposes of this chapter. 21
(2) Revenues made available under subdivision (b)(1) of this 22
section may be used by the industrial development authority either alone or 23
together with any other available funds and revenues for the accomplishment 24
of the authorized purposes of this chapter. 25
26
14-189-115. Authorization to borrow funds and issue bonds. 27
(a) An industrial development authority may enter into the necessary 28
contracts for the borrowing of funds, pursuant to this chapter, that the 29
industrial development authority may determine will be required to carry out 30
the purposes of this chapter. In this regard, an industrial development 31
authority may issue bonds and use the proceeds of the bonds for the 32
accomplishment of the purposes of this chapter, either alone or together with 33
other available funds and revenues. 34
(b) An industrial development authority also may issue revenue bonds 35
under this chapter for the purpose of applying a major portion of the 36 SB361
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proceeds of the revenue bonds, alone or with other revenues that may be 1
pledged, to the acquisition of an investment contract or contracts at a rate 2
or rates of interest at least sufficient to provide for principal, premium, 3
if any, and interest on the revenue bonds, as due, in consideration of the 4
receipt of a portion of the proceeds for application by the industrial 5
development authority to one (1) or more of the purposes authorized by this 6
chapter. 7
8
14-189-116. Bonds — Authority to issue. 9
(a) This chapter is the sole authority required for the issuance of 10
bonds under this chapter and for the exercise of the powers of an industrial 11
development authority established under this chapter. 12
(b) A local government represented on the board of directors of an 13
industrial development authority need not authorize or approve the: 14
(1) Issuance of bonds under this chapter; or 15
(2) Exercise of any other powers by an industrial development 16
authority under this chapter. 17
18
14-189-117. Bonds — Covenants and agreements — Enforcement. 19
(a) All covenants and agreements entered into and made by an 20
industrial development authority shall be binding in all respects on the 21
industrial development authority and the members of the industrial 22
development authority and their successors from time to time in accordance 23
with the terms of the covenants and agreements. 24
(b) All of the terms of the covenants and agreements under subsection 25
(a) of this section shall be enforceable by mandamus or other appropriate 26
proceedings at law or in equity. 27
28
14-189-118. Bonds — Purposes. 29
Bonds may be issued for the acquisition, construction, and equipment of 30
facilities and the reconstructing, extending, improving, equipping, or 31
reequipping of facilities. 32
33
14-189-119. Bonds — Principal amount. 34
Each bond issued under this chapter shall be in the principal amount 35
sufficient, together with other available funds, for: 36 SB361
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(1) The acquisition, construction, and equipment of facilities 1
or the reconstruction, extension, improvement, equipment, or reequipment of 2
facilities; 3
(2) All costs of issuing the bonds; 4
(3) The amount necessary for a reserve, if deemed desirable by 5
the industrial development authority issuing the bonds; 6
(4) The amount necessary to provide for debt service on the 7
bonds until revenues for the payment of the bonds are available; and 8
(5) Any cost of whatever nature necessarily incidental to the 9
bonds. 10
11
14-189-120. Bonds — Resolution or trust indenture generally. 12
(a)(1) An industrial development authority issuing the bonds under 13
this chapter, by resolution or indenture, among other things, may control the 14
subsequent issuance of additional bonds and the priority, between and among 15
issues, of the pledge of revenues and of the mortgage lien, provide for the 16
use of surplus pledged revenues, and provide for the creation of special 17
trust funds to be maintained in such banks as the industrial development 18
authority issuing the bonds may select. 19
(2) The moneys in the special trust funds under subdivision 20
(a)(1) of this section shall be secured and disbursed as determined by the 21
industrial development authority. 22
(b) The special trust funds under subsection (a) of this section may 23
include without limitation a bond fund, a depreciation fund, an operation and 24
maintenance fund, and such reserve funds as the industrial development 25
authority issuing the bonds may determine to be in the best interests of the 26
industrial development authority in accomplishing the purposes of this 27
chapter. 28
29
14-189-121. Bonds — Authorizing resolution. 30
(a) Each issue of bonds under this chapter shall be authorized by 31
resolution of the industrial development authority issuing the bonds. 32
(b) Priority, between and among successive issues of bonds under this 33
chapter, of the pledge of revenues and mortgage lien may be controlled by the 34
resolutions authorizing the issuance of bonds under this chapter. 35
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14-189-122. Bonds — Terms and conditions. 1
(a) Bonds issued under this chapter may: 2
(1) Be coupon bonds payable to bearer as the authorizing 3
resolution may provide; 4
(2) Be registered as to principal or as to principal and 5
interest, or be coupon bonds subject to registration as to principal or as to 6
principal and interest as the authorizing resolution may provide; 7
(3) Be in one (1) or more series as the authorizing resolution 8
may provide; 9
(4) Bear such date or dates as the authorizing resolution may 10
provide; 11
(5) Mature at such time or times, not exceeding thirty -five (35) 12
years from their respective dates as the authorizing resolution may provide; 13
(6) Bear interest at such rate or rates as the authorizing 14
resolution may provide; 15
(7) Be in such form as the authorizing resolution may provide; 16
(8) Be executed in such manner as the authorizing resolution may 17
provide; 18
(9) Be payable in such medium of payment at such place or places 19
as the authorizing resolution may provide; 20
(10) Be subject to such terms of redemption as the authorizing 21
resolution may provide; and 22
(11) Contain such terms, covenants, and conditions as the 23
authorizing resolution may provide, including without limitation those 24
pertaining to: 25
(A) The custody and application of the proceeds of the 26
bonds; 27
(B) The collection and disposition of revenues; 28
(C) The maintenance and investment of various funds and 29
reserves; 30
(D) The nature and extent of the security; 31
(E) The rights, duties, and obligations of the industrial 32
development authority issuing the bonds and of the trustee for the holders or 33
registered owners of the bonds; and 34
(F) The rights of the holders or registered owners of the 35
bonds. 36 SB361
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(b) Bonds issued under this chapter shall have all of the qualities of 1
negotiable instruments under the negotiable instruments laws of the state, 2
subject to the provisions of this section pertaining to registration. 3
4
14-189-123. Bonds — Trust indenture. 5
(a) Each resolution of an industrial development authority authorizing 6
the issuance of bonds under this chapter may provide for the execution of an 7
indenture defining the rights of the holders and registered owners of the 8
bonds and providing for the appointment of a trustee for the holders and 9
registered owners of the bonds. 10
(b) An indenture under subsection (a) of this section may control the 11
priority, between and among successive issues, of the pledge of revenues and 12
mortgage lien and may control any other terms, covenants, and conditions that 13
are deemed desirable, including without limitation, those pertaining to: 14
(1) The custody and application of the proceeds of the bonds; 15
(2) The collection and disposition of revenues; 16
(3) The maintenance of various funds and reserves; 17
(4) The nature and extent of the security; 18
(5) The rights, duties, and obligations of the industrial 19
development authority and the trustee for the holders and registered owners 20
of the bonds; and 21
(6) The rights of the holders and registered owners of the 22
bonds. 23
24
14-189-124. Bonds — Contents. 25
It shall be plainly stated on the face of each bond issued under this 26
chapter that the bond has been issued under the provisions of this chapter. 27
28
14-189-125. Bonds — Sale. 29
Bonds issued under this chapter may be sold for such price, including 30
without limitation sale at a discount, and in such manner as the industrial 31
development authority issuing the bonds may determine by resolution. 32
33
14-189-126. Bonds and coupons — Execution. 34
(a)(1) Bonds issued under this chapter may be executed by the 35
facsimile signature of the chair of the board of directors of the industrial 36 SB361
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development authority issuing the bonds and by the manual signature of the 1
secretary of the board of directors of the industrial development authority 2
issuing the bonds and sealed with the seal of the industrial development 3
authority issuing the bonds. 4
(2) The coupons attached to the bonds may be executed by the 5
facsimile signature of the chair of the board of directors of the industrial 6
development authority issuing the bonds. 7
(b) In case any of the officers whose signatures appear on the bonds 8
or coupons shall cease to be such officers before the delivery of the bonds 9
or coupons, their signatures shall, nevertheless, be valid and sufficient for 10
all purposes. 11
12
14-189-127. Bonds — Conversion. 13
(a) Bonds issued under this chapter may be sold with the privilege of 14
conversion to an issue bearing a lower rate or rates of interest upon such 15
terms that the industrial development authority issuing the bonds receive no 16
less and pay no more than the industrial development authority would receive 17
and pay if the bonds were not converted. 18
(b) The conversion shall be subject to the approval of the industrial 19
development authority issuing the bonds. 20
21
14-189-128. Bonds — Issues. 22
There may be separate issues involving different facilities and there 23
may be successive issues involving the same facilities. 24
25
14-189-129. Bonds — General or special obligations. 26
Bonds issued under this chapter: 27
(1) Shall be general or special obligations only of the 28
industrial development authority issuing the bonds; and 29
(2) Do not constitute an indebtedness for which the faith and 30
credit of the state or the faith and credit of any municipality, county, or 31
other political subdivision of the state or any of their revenues are 32
pledged. 33
34
14-189-130. Bonds — Liability. 35
A member of an industrial development authority shall not be personally 36 SB361
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liable on the bonds issued under this chapter or for any damages sustained by 1
anyone in connection with the contracts with the holders and registered 2
owners of the bonds or the construction, reconstruction, extension, 3
improvement, or equipping of buildings or facilities unless the member has 4
acted with a corrupt intent. 5
6
14-189-131. Bonds — Pledge of revenues. 7
(a) The principal of, premium, if any, or interest on, and trustee's 8
and paying agent's fees in connection with each issue of bonds issued by the 9
industrial development authority under this chapter shall be secured by a 10
pledge of, and shall be payable from, the revenues derived from the lands, 11
buildings, or facilities acquired, constructed, reconstructed, extended, 12
improved, or equipped, in whole or in part, with the proceeds of the bonds of 13
the particular issue. 14
(b) In addition, the industrial development authority issuing the 15
bonds may pledge to, and use for the payment of the principal of, premium, if 16
any, or interest on, and trustee's and paying agent's fees in connection with 17
a particular issue of bonds, revenues derived from other lands, buildings, or 18
facilities owned or held by the industrial development authority, and an 19
investment contract or contracts entered into by the industrial development 20
authority for the purpose of paying and securing the bonds, and any revenues 21
to be derived from the contract or contracts. 22
23
14-189-132. Refunding bonds. 24
(a)(1) Bonds may be issued under this chapter for the purpose of 25
refunding bonds previously issued under this chapter. 26
(2)(A) Refunding bonds may be issued alone or combined with 27
bonds issued under this chapter into a single issue for the purpose of 28
refunding outstanding bonds, acquiring lands, and constructing and equipping 29
buildings or facilities or reconstructing, extending, improving, or 30
reequipping existing buildings or facilities. 31
(B)(i) When refunding bonds are issued, the bonds may be 32
either sold or delivered in exchange for the outstanding bonds being 33
refunded. 34
(ii) If sold, the proceeds may either be applied to 35
the payment of the bonds being refunded, or the proceeds may be deposited in 36 SB361
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escrow for the retirement of them. 1
(b)(1) All refunding bonds shall, in all respects, be authorized, 2
issued, and secured in the manner provided for other bonds issued under this 3
chapter and shall have all the attributes of such bonds. 4
(2) The resolution or indenture authorizing or securing 5
refunding bonds may provide that the bonds shall have the same priority of 6
lien on the revenues pledged for their payment and on the property mortgaged 7
as security for their payment as was enjoyed by the bonds refunded by them. 8
9
14-189-133. Bonds — Tax exemption. 10
(a) Bonds issued under this chapter are exempt from all state, county, 11
and municipal taxes. 12
(b) The exemption under this section includes without limitation 13
income, inheritance, and estate taxes. 14
15
14-189-134. Bonds as legal investment. 16
Bonds issued under this chapter shall be eligible to secure deposits of 17
all public funds and shall be legal for investment of bank, insurance 18
company, and retirement funds. 19
20
14-189-135. Bonds — Mortgage lien. 21
(a) The resolution or indenture referred may impose a foreclosable 22
mortgage lien upon the facilities acquired, constructed, reconstructed, 23
extended, equipped, or improved, in whole or in part, with the proceeds of 24
bonds issued under this chapter. 25
(b) The nature and extent of the mortgage lien under this section may 26
be controlled by the resolution or indenture, including without limitation 27
provisions pertaining to: 28
(1) The release of all or part of the land, buildings, or 29
facilities from the mortgage lien; and 30
(2) The priority of the mortgage lien in the event of successive 31
bond issues as authorized by this chapter. 32
(c) The resolution or indenture authorizing or securing the bonds may 33
authorize any holder or registered owner of bonds issued under the provisions 34
of this chapter or a trustee on behalf of all holders and registered owners, 35
either at law or in equity, to enforce the mortgage lien and, by proper suit, 36 SB361
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to compel the performance of the duties of the officials of the industrial 1
development authority set forth in this chapter and set forth in the 2
resolution or indenture authorizing or securing the bonds. 3
4
14-189-136. Bonds — Default — Receiver. 5
(a) In the event of a default in the payment of the principal of or 6
interest on any bonds issued under this chapter, any court having 7
jurisdiction may appoint a receiver to take charge of the land, buildings, or 8
facilities upon which there is a mortgage lien securing the bonds. 9
(b) The receiver shall have the power to operate and maintain the 10
land, buildings, or facilities and to charge and collect rates or rents with 11
reference to them. These rents shall be sufficient to provide for the payment 12
of the principal of and interest on bonds, after providing for the payment of 13
any costs of receivership and operating expenses of the land, buildings, or 14
facilities, and to apply the income and revenues derived from them in 15
conformity with this chapter and the resolution or indenture authorizing or 16
securing the bonds. 17
(c) When the default has been cured, the receivership shall be ended 18
and the properties returned to the industrial development authority issuing 19
the bonds. 20
(d) The relief afforded by this section is in addition and 21
supplemental to the remedies that may be afforded the trustee for the 22
bondholders and the bondholders in the resolution or indenture authorizing or 23
securing the bonds and shall be so granted and administered as to accord full 24
recognition to priority rights of bondholders as to the pledge of revenues 25
from, and the mortgage lien on, the land, buildings, or facilities as 26
specified in and fixed by the resolution or indenture authorizing or securing 27
successive bond issues. 28
29
SECTION 2. Arkansas Code Title 14, Chapter 164, Subchapter 7 is 30
amended to read as follows: 31
14-164-701. Legislative intent. 32
(a) It is declared and confirmed that the securing and developing of 33
industry is vital to the economic welfare of the state and its people. To 34
this end, it is necessary that maximum flexibility be given to the Arkansas 35
Development Finance Authority and to the counties , and municipalities, and 36 SB361
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industrial development authorities organized under the Industrial Development 1
Authorities Expansion Act, § 14 -189-101 et seq., in the state in their 2
efforts to retain and expand existing industrial facilities and locate new 3
industrial facilities. This task involves the opportunity for the full 4
utilization of the benefits of financing industrial facilities under Arkansas 5
Constitution, Amendment 49 [repealed], Amendment 62, or prior amendments to 6
the Arkansas Constitution repealed by Arkansas Constitution, Amendment 62, 7
and §§ 14-164-201 — 14-164-206, 14-164-208 — 14-164-224, the Industrial 8
Development Authorities Expansion Act, § 14 -189-101 et seq., § 14-267-101 et 9
seq., §§ 15-5-101 — 15-5-105, 15-5-207, § 15-5-301 et seq., and the Arkansas 10
Development Finance Authority Bond Guaranty Act of 1985, § 15 -5-401 et seq., 11
including the exemption from ad valorem taxation of all industrial facilities 12
that were exempt under Arkansas Constitution, Article 16, § 5, as interpreted 13
by the Supreme Court in Wayland v. Snapp, 232 Ark. 57, 334 S.W.2d 633 (1960). 14
(b) While concerns using industrial bond financing should be 15
encouraged to make payments in lieu of ad valorem taxes, and that is declared 16
to be the general policy of the General Assembly, the final determination of 17
whether these payments are to be made and, if made, in what amounts should be 18
negotiated and contracted by the counties , or municipalities, or industrial 19
development authorities in the state and by the industrial concerns involved 20
under § 14-164-704. 21
22
14-164-702. Applicability. 23
(a) Pursuant to the findings and declarations of the state in § 14 -24
164-701, it is found and declared that not only are the industrial facilities 25
owned by a municipality, county, industrial development authority organized 26
under the Industrial Development Authorities Expansion Act, § 14 -189-101 et 27
seq., or the Arkansas Development Finance Authority financed with bonds 28
issued under §§ 14-164-201 — 14-164-206, 14-164-208 — 14-164-224, the 29
Industrial Development Authorities Expansion Act, § 14 -189-101 et seq., § 14-30
267-101 et seq., §§ 15-5-101 — 15-5-105, 15-5-207, § 15-5-301 et seq., and 31
the Arkansas Development Finance Authority Bond Guaranty Act of 1985, § 15 -5-32
401 et seq., to be exempt from ad valorem taxation, but the interest of a 33
lessee or of a purchaser under a contract for sale of industrial facilities 34
that are so exempt are also exempt from ad valorem taxation. To this end, the 35
interest of a lessee or of a purchaser is intangible personal property for 36 SB361
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purposes of ad valorem taxation. This finding and declaration is made under 1
the authority granted to the General Assembly by and in implementation of the 2
provisions and purposes of Arkansas Constitution, Amendment 57. 3
(b) The findings and declarations made in § 14 -164-701 and the policy 4
declared in this section apply to all existing industrial facilities and to 5
all future industrial facilities involved in Arkansas Constitution, Amendment 6
49 [repealed], Amendment 62, or prior amendments to the Arkansas Constitution 7
repealed by Arkansas Constitution, Amendment 62, §§ 14-164-201 — 14-164-206, 8
14-164-208 — 14-164-224, the Industrial Development Authorities Expansion 9
Act, § 14-189-101 et seq., § 14-267-101 et seq., §§ 15-5-101 — 15-5-105, 15-10
5-207, § 15-5-301 et seq., and the Arkansas Development Finance Authority 11
Bond Guaranty Act of 1985, § 15 -5-401 et seq., financings, and to all 12
existing and future interests in leases or purchase contracts pertaining to 13
these industrial facilities. 14
15
14-164-703. Payments in lieu of taxes. 16
(a) If the Arkansas Development Finance Authority or a county , or 17
municipality, or industrial development authority organized under the 18
Industrial Development Authorities Expansion Act, § 14 -189-101 et seq., in 19
the state and a lessee under a lease or a purchaser under a contract for sale 20
enter into an agreement for payments in lieu of ad valorem taxes, each 21
agreement shall provide, or under this subchapter shall be interpreted as 22
providing, that all in -lieu-of-taxes payments shall be distributed to the 23
local political subdivisions that would have received ad valorem tax payments 24
on the industrial facilities if the interest involved had not been exempt 25
from ad valorem taxes in the proportions that the millage levied by each 26
affected local political subdivision bears to the millage levied by all 27
affected political subdivisions, unless all such local political 28
subdivisions, including without limitation the affected school district or 29
districts, shall otherwise agree. 30
(b) This section does not affect the rights or obligations of any of 31
the parties to an agreement under this subchapter that exists on the date of 32
enactment of this subchapter providing for payments in lieu of ad valorem 33
taxes. 34
35
14-164-704. Sale of property. 36 SB361
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(a)(1)(A) When the Arkansas Development Finance Authority or a 1
municipality, or county, industrial development authority organized under the 2
Industrial Development Authorities Expansion Act, § 14 -189-101 et seq., in 3
the state enters into a lease of property owned by the authority Arkansas 4
Development Finance Authority , a municipality, or a county, or an industrial 5
development authority or enters into a contract for sale of property by the 6
authority Arkansas Development Finance Authority , a municipality, or a 7
county, or an industrial development authority to a private for-profit entity 8
under this subchapter or any other law or the Arkansas Constitution for the 9
purpose of securing and developing industry, the lease or contract for sale 10
shall, except as otherwise provided in this section, include an obligation 11
that the lessee or purchaser make payments in lieu of property taxes in an 12
amount as negotiated between the parties except the aggregate amount of the 13
payments during the initial term of the lease or contract for sale shall be 14
not less than thirty -five percent (35%) of the aggregate amount of ad valorem 15
taxes that would be paid if the property were on the tax rolls, unless the 16
Director of the Arkansas Economic Development Commission and the Chief Fiscal 17
Officer of the State approve a lesser amount. 18
(B) If the authority Arkansas Development Finance 19
Authority is the owner of the property, there shall be a separate agreement 20
for payment in lieu of taxes among the authority Arkansas Development Finance 21
Authority, the lessee or purchaser, the county in which the industrial 22
facilities are located, and, if applicable, the municipality in which the 23
industrial facilities are located. 24
(2)(A) The aggregate amount of ad valorem taxes that would be 25
paid if the property were on the tax rolls during the initial term of the 26
lease or contract for sale may be determined based on: 27
(i) The millage and assessment rates in effect at 28
the time the obligation to make payments in lieu of property taxes is entered 29
into; 30
(ii) The projected installed costs of the taxable 31
real and personal property subject to or to be subject to the lease or 32
contract for sale, which may be evidenced by an affidavit of an authorized 33
officer of the private for -profit entity; and 34
(iii) Depreciation guidelines for personal property 35
published by the Assessment Coordination Division. 36 SB361
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(B) The aggregate amount determined under this subdivision 1
(a)(2) shall be adjusted based on the actual installed costs of the taxable 2
real and personal property at the time the lease or contract for sale is 3
entered into or the time of completion of the project subject to the lease or 4
contract for sale, whichever is later. 5
(3) In cases in which the municipality , or county, or industrial 6
development authority is the lessor or seller, the obligation may be 7
contained in a separate agreement at the option of the parties to the lease 8
or contract for sale. 9
(4)(A)(i) For agreements entered into on or after September 1, 10
2023, the lessee or purchaser shall provide a copy of the agreement for 11
payment in lieu of taxes under this subsection to the county assessor, 12
including a description of all real and personal property that is subject to 13
the agreement for payment in lieu of taxes. 14
(ii) This section does not require a lessee or 15
purchaser to provide any information that the lessee or purchaser in good 16
faith considers to be a trade secret, proprietary information, or other 17
information that, if disclosed, would give an advantage to competitors. 18
(B)(i) Payments in lieu of ad valorem taxes under this 19
subsection shall be billed by the county collector to the lessee or purchaser 20
or their respective designees. 21
(ii) Payments made to the county collector for 22
disbursement by the county treasurer shall be distributed to the respective 23
taxing entities at the same time and in the same manner that ad valorem taxes 24
are disbursed as provided by law. 25
(b) Before a meeting of municipal officials , or county officials, 26
officers of the industrial development authority, or officials of the 27
authority Arkansas Development Finance Authority in which action may be taken 28
regarding approval of in -lieu-of-tax payments, the authority Arkansas 29
Development Finance Authority , municipality, or county, or industrial 30
development authority shall give at least ten (10) days' notice of the date, 31
time, and place of the meeting to the: 32
(1) Superintendent of each school district in which all or any 33
part of the property that is subject to the lease or contract of sale is 34
located; 35
(2) Chief Fiscal Officer of the State; and 36 SB361
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(3) County assessor, county tax collector, and county treasurer 1
of the county in which the property is located. 2
(c) Subsections (a) and (b) of this section do not apply to: 3
(1) An agreement existing before July 1, 2001; 4
(2) An agreement entered into on or after July 1, 2001, under a 5
memorandum of intent or agreement to issue bonds authorized by a municipality 6
or county before July 1, 2001; 7
(3) An agreement entered into on or after July 1, 2001, related 8
to a project covered by a financial incentive proposal from the Arkansas 9
Economic Development Commission, or by resolution of the governing body of a 10
municipality or a county designating the project by name for the purposes of 11
this exemption, dated before July 1, 2001; 12
(4) A reissue or refinancing of bonds that are subject to an 13
existing in-lieu-of-tax agreement; and 14
(5) A lease or contract for sale with a qualified manufacturer 15
of steel as defined in § 26 -52-901 or in Acts 2001, No. 541, entered into 16
before June 30, 2009. 17
18
SECTION 3. Arkansas Code § 14 -233-102(6), concerning the definition of 19
"district" with respect to the Joint County Municipal Solid Waste Disposal 20
Act, is amended to read as follows: 21
(6) “District” means an entity established pursuant to § 14 -114-22
101 et seq., the Interstate Watershed Cooperation Act, § 14 -115-101 et seq., 23
The Regional Water Distribution District Act, § 14 -116-101 et seq., the 24
Arkansas Irrigation, Drainage, and Watershed Improvement District Act of 25
1949, § 14-117-101 et seq., § 14-118-101 et seq., The Water Improvement 26
District Accounting Law of 1973, § 14 -119-101 et seq., § 14-120-101 et seq., 27
§ 14-121-101 et seq., § 14-122-101 et seq., § 14-123-201 et seq., § 14-124-28
101 et seq., the Conservation Districts Law, § 14 -125-101 et seq., the 29
Central Business Improvement District Act, § 14 -184-101 et seq., the 30
Metropolitan Port Authority Act of 1961, § 14 -185-101 et seq., § 14-186-101 31
et seq., § 14-187-101 et seq., the Rural Development Authority Act, § 14 -188-32
101 et seq., the Industrial Development Authorities Expansion Act, § 14 -189-33
101 et seq., § 14-249-101 et seq., the Wastewater Treatment Districts Act, § 34
14-250-101 et seq., and § 14 -251-101 et seq.; 35
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SECTION 4. Arkansas Code § 15 -11-211 is amended to read as follows: 1
15-11-211. Disposal of railroad track material. 2
(a) The State Parks, Recreation, and Travel Commission and the 3
Department of Parks, Heritage, and Tourism are authorized to may dispose of 4
rail and other railroad track material by gift or contract to a regional 5
intermodal facilities authority organized pursuant to the Regional Intermodal 6
Facilities Act, § 14 -143-101 et seq., a metropolitan port authority organized 7
pursuant to the Metropolitan Port Authority Act of 1961, § 14 -185-101 et 8
seq., an industrial development authority organized under the Industrial 9
Development Authorities Expansion Act, § 14 -189-101 et seq., or a planning 10
and development district recognized by § 14 -166-202. 11
(b) A regional intermodal facilities authority, a metropolitan port 12
authority, an industrial development authority, or a planning and development 13
district may receive and acquire the property described in subsection (a) of 14
this section upon such terms and conditions acceptable to it and shall use 15
the property for railroad purposes in accordance with the power and authority 16
conferred by law. 17
(c) If a regional intermodal facilities authority, a metropolitan port 18
authority, an industrial development authority, or a planning and development 19
district subsequently sells the property described in subsection (a) of this 20
section, the net proceeds received from disposition of the property, after 21
deduction of all costs and expenses related thereto, shall be remitted to the 22
commission and the department. 23
24
SECTION 5. Arkansas Code § 27 -67-322(f)(1) and (2), concerning the 25
disposition of surplus rail or other railroad track material by the State 26
Highway Commission, are amended to read as follows: 27
(f)(1) The transfer of surplus rail and other railroad track material 28
purchased in part with federal transportation enhancement funds and granted 29
to the State Parks, Recreation, and Travel Commission or the Department of 30
Parks, Heritage, and Tourism, or both, by the State Highway Commission shall 31
not be subject to the procedures set forth in subsections (a) -(e) of this 32
section. 33
(2) Surplus rail and other track material described under this 34
subsection may be transferred by gift or contract to a regional intermodal 35
facilities authority, a metropolitan port authority, or a planning and 36 SB361
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development district , or an industrial development authority . 1
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