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Arkansas Senate Bill SB361

Arkansas 2025 Regular Session

Arkansas Senate Bill SB361 Compare Versions

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11 Stricken language would be deleted from and underlined language would be added to present law.
2-Act 576 of the Regular Session
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43 State of Arkansas 1
54 95th General Assembly A Bill 2
65 Regular Session, 2025 SENATE BILL 361 3
76 4
87 By: Senator Dees 5
98 By: Representative Beaty Jr. 6
109 7
1110 For An Act To Be Entitled 8
1211 AN ACT TO CREATE THE INDUSTRIAL DEVELOPMENT 9
1312 AUTHORITIES EXPANSION ACT; TO PROVIDE FOR THE 10
1413 CREATION OF INDUSTRIAL DEVELOPMENT AUTHORITIES TO 11
1514 SECURE AND DEVELOP INDUSTRY AND FOSTER ECONOMIC 12
1615 DEVELOPMENT; TO IMPROVE THE STATE'S ABILITY TO 13
1716 EFFECTIVELY COMPETE, WIN, AND DEVELOP ECONOMIC 14
1817 DEVELOPMENT PROJECTS; TO INCREASE JOB CREATION AND 15
1918 CAPITAL INVESTMENT; AND FOR OTHER PURPOSES. 16
2019 17
2120 18
2221 Subtitle 19
2322 TO CREATE THE INDUSTRIAL DEVELOPMENT 20
2423 AUTHORITIES EXPANSION ACT; AND TO 21
2524 PROVIDE FOR THE CREATION OF INDUSTRIAL 22
2625 DEVELOPMENT AUTHORITIES TO SECURE AND 23
2726 DEVELOP INDUSTRY AND FOSTER ECONOMIC 24
2827 DEVELOPMENT. 25
2928 26
3029 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 27
3130 28
3231 SECTION 1. Arkansas Code Title 14, is amended to add an additional 29
3332 chapter to read as follows: 30
3433 Chapter 189 31
3534 Industrial Development Authorities Expansion Act 32
3635 33
3736 14-189-101. Title. 34
3837 This chapter shall be known and may be cited as the "Industrial 35
3938 Development Authorities Expansion Act". 36 SB361
4039
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4241 1
4342 14-189-102. Definitions. 2
4443 As used in this chapter: 3
4544 (1) “County” means a county of this state or, where a county is 4
4645 divided into two (2) districts, “county” means the entire county or either 5
4746 district of the county; 6
4847 (2) “Governing body” means the: 7
4948 (A) Council, board of directors, or other like body in 8
5049 which the legislative functions of a municipality are vested; or 9
5150 (B) Quorum court of the county as the quorum court has 10
5251 been duly constituted and acting as the legislative body of the county under 11
5352 Arkansas Constitution, Amendment 55, or if not so constituted and acting, the 12
5453 county court of the county; 13
5554 (3) "Industrial development authority" means a public benefit 14
5655 corporation authorized by one (1) or more local governments as a political 15
5756 subdivision of the state for the purpose of securing and developing industry 16
5857 and fostering economic development and that is invested with all the powers 17
5958 that may be necessary to enable it to accomplish those purposes; 18
6059 (4) "Local government" means a county or a municipality; 19
6160 (5) "Mortgage lien" means a security interest in any personal 20
6261 property embodied in the facilities acquired, constructed, reconstructed, 21
6362 extended, equipped, or improved, in whole or in part, with the proceeds of 22
6463 bonds issued under this chapter; 23
6564 (6) “Municipality” means a city of the first class, a city of the 24
6665 second class, or an incorporated town; and 25
6766 (7) “Person” means any natural person, partnership, corporation, 26
6867 association, organization, business trust, and public or private person or 27
6968 entity. 28
7069 29
7170 14-189-103. Power to establish. 30
7271 (a) One (1) or more local governments may organize and establish an 31
7372 industrial development authority in the manner and for the accomplishment of 32
7473 the purposes specified in this chapter. 33
7574 (b)(1) Each industrial development authority established under this 34
7675 chapter shall consist of and be governed by a board of directors. 35
7776 (2) The members of the board of directors of the industrial 36 SB361
7877
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8079 development authority shall be selected and shall serve as set forth in this 1
8180 chapter. 2
8281 3
8382 14-189-104. Organization of industrial development authority. 4
8483 (a) The governing body of each local government desiring to organize 5
8584 an industrial development authority under this chapter shall declare its 6
8685 intention to do so by ordinance if the local government is a municipality or 7
8786 by order if the local government is a county. 8
8887 (b)(1) An ordinance shall authorize and direct the mayor of the 9
8988 municipality issuing the ordinance and an order shall authorize and direct 10
9089 the county judge of the county issuing the order to prepare, or cause to be 11
9190 prepared, and to sign and file with the circuit clerk of any county that is 12
9291 to be a party to the organization of an industrial development authority 13
9392 under this chapter a petition requesting the circuit court of the county 14
9493 where the petition is filed to establish an industrial development authority 15
9594 under this chapter. 16
9695 (2) The petition shall at least contain the following 17
9796 information: 18
9897 (A) The identity of the local governments desiring to 19
9998 organize the industrial development authority; 20
10099 (B)(i) The population of each petitioning local 21
101100 government. 22
102101 (ii) The population of a petitioning county is the 23
103102 population of the county exclusive of the population of each petitioning 24
104103 municipality in the county, according to the most recent federal decennial 25
105104 census; 26
106105 (C) The official name desired by the petitioners for the 27
107106 industrial development authority to be established; 28
108107 (D) The total number of the members of the board of 29
109108 directors of the industrial development authority desired by the petitioners, 30
110109 subject to the conditions pertaining thereto specified in this chapter; 31
111110 (E) The number of the members of the board of directors of 32
112111 the industrial development authority that shall represent each petitioning 33
113112 local government, determined in accordance with the conditions specified in 34
114113 this chapter; and 35
115114 (F) A request that the circuit court enter an order 36 SB361
116115
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118117 designating the total number of the members of the board of directors of the 1
119118 industrial development authority, designating the number that shall represent 2
120119 each petitioning local government, and establishing an industrial development 3
121120 authority under this chapter as a public agency of the petitioning local 4
122121 government, but with the powers set forth in this chapter, which need not be 5
123122 enumerated in the order. 6
124123 (c)(1) The circuit court shall enter an order establishing and naming 7
125124 the industrial development authority and designating the board of directors 8
126125 of the industrial development authority in accordance with the petition. 9
127126 (2) The circuit court shall enter the order as a record of the 10
128127 court, and the order shall be placed in the permanent records of the circuit 11
129128 clerk of the court. 12
130129 (d) After the entry of the order of the circuit court establishing the 13
131130 industrial development authority and after the appointments of its members, 14
132131 the industrial development authority shall be in existence and thereafter 15
133132 exist as a separate entity and body corporate as set forth in this chapter. 16
134133 17
135134 14-189-105. Members of board of directors of industrial development 18
136135 authority. 19
137136 (a) Immediately after the filing of the order of the circuit court 20
138137 issued under § 14-189-104, the governing body of each petitioning local 21
139138 government shall appoint the persons to be the members of the board of 22
140139 directors of the industrial development authority established by the order of 23
141140 the circuit court in accordance with the order as to the number of members to 24
142141 be selected by the respective petitioning local governments. 25
143142 (b) The total number of the members of the board of directors of the 26
144143 industrial development authority established by the order shall be an odd 27
145144 number, each petitioning local government shall have at least one (1) 28
146145 representative as a member of the board of directors of the industrial 29
147146 development authority, and the number of members that represent each 30
148147 petitioning local government shall be apportioned in the ratio that each 31
149148 petitioner's population bears to the total population of all petitioners. 32
150149 (c)(1) The term of each member of the board of directors of the 33
151150 industrial development authority shall be for three (3) years from the date 34
152151 of his or her appointment, and he or she shall serve for that term and 35
153152 thereafter until his or her successor shall be duly appointed and qualified. 36 SB361
154153
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156155 (2) At the expiration of the term of each member of the board of 1
157156 directors of the industrial development authority, the governing body of the 2
158157 local government that is represented on the board of directors of the 3
159158 industrial development authority by the member shall appoint a successor 4
160159 member or may reappoint the same member to another term. 5
161160 (d)(1) Except as provided in subdivision (d)(2) of this section, a 6
162161 vacancy on the board of directors of the industrial development authority 7
163162 shall be filled by the governing body of the local government represented on 8
164163 the board of directors of the industrial development authority by the 9
165164 vacating member. 10
166165 (2)(A) If a vacancy on the board of directors of the industrial 11
167166 development authority is not filled by the governing body under subdivision 12
168167 (d)(1) of this section within ninety (90) days after the vacancy occurs, a 13
169168 majority of the remaining members of the board of directors of the industrial 14
170169 development authority shall promptly fill the vacancy by appointing a 15
171170 qualified person to serve for either the unexpired portion of the term of the 16
172171 vacated member or for a new term if the vacating member is unable to serve 17
173172 until a new member is otherwise appointed and qualified. 18
174173 (B) For the purposes of this section, the expiration of a 19
175174 member's term does not create a vacancy unless the member whose term has 20
176175 expired is unable to serve until his or her successor is appointed and 21
177176 qualified. 22
178177 (e) Before entering upon his or her duties, each member of the board 23
179178 of directors of the industrial development authority shall take and subscribe 24
180179 and file in the office of the circuit clerk of the county where the order 25
181180 establishing the industrial development authority was filed an oath to 26
182181 support the United States Constitution and the Arkansas Constitution and 27
183182 faithfully to perform the duties of the office upon which he or she is about 28
184183 to enter. 29
185184 (f) To be eligible for membership on the board of directors of the 30
186185 industrial development authority, a person, at the time of his or her 31
187186 appointment and qualification by filing the required oath, must be a 32
188187 qualified elector of the municipality or of the county, as the case may be, 33
189188 that he or she represents on the board of directors of the industrial 34
190189 development authority. 35
191190 (g)(1)(A) The board of directors of each industrial development 36 SB361
192191
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194193 authority shall select one (1) of its members as chair, one (1) of its 1
195194 members as secretary, and one (1) of its members as treasurer. 2
196195 (B) The offices of secretary and treasurer may be combined 3
197196 and held by one (1) member. 4
198197 (2) The term and duties of the officers shall be fixed by 5
199198 resolution of the board of directors of each industrial development 6
200199 authority. 7
201200 8
202201 14-189-106. Permanent records of industrial development authority. 9
203202 A certified copy of each ordinance and a certified copy of each order 10
204203 appointing persons to membership on the board of directors of the industrial 11
205204 development authority shall be filed with the secretary of the board of 12
206205 directors of the industrial development authority and shall be and remain 13
207206 part of the permanent records of the industrial development authority. 14
208207 15
209208 14-189-107. General purposes of industrial development authority. 16
210209 (a) An industrial development authority may accomplish the following 17
211210 general purposes: 18
212211 (1) To establish, acquire, develop, improve, or maintain: 19
213212 (A) Commerce and industrial parks; 20
214213 (B) Research, technology, and development proving grounds 21
215214 and facilities; 22
216215 (C) Job training facilities, air cargo operations, depots 23
217216 for military use, rail lines, rail transload operations, and short -line 24
218217 railroads; and 25
219218 (D) All other qualifying economic development projects 26
220219 under § 14-174-105; 27
221220 (2) To acquire, purchase, install, lease, own, hold, use, 28
222221 control, construct, equip, maintain, develop, and improve lands and 29
223222 facilities, of whatever nature necessary or desirable, in connection with 30
224223 establishing, developing, improving, and maintaining: 31
225224 (A) Commerce and industrial parks; 32
226225 (B) Research, technology, and development proving grounds 33
227226 and facilities; 34
228227 (C) Job training facilities, air cargo operations, depots 35
229228 for military use, rail lines, rail transload operations, and short -line 36 SB361
230229
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232231 railroads; and 1
233232 (D) All other qualifying economic development projects 2
234233 under § 14-174-105, including without limitation, buildings, warehouses, 3
235234 utilities, and the improvement of portions of highways or roadways, and other 4
236235 facilities not within the exclusive jurisdiction of the United States 5
237236 Government; 6
238237 (3) To foster and stimulate the shipment of freight and 7
239238 commerce, whether by rail, air, roadway, highway, or other modes of 8
240239 transport, and whether originating within or without the State of Arkansas; 9
241240 (4) To accept and use funds from any sources and to use them in 10
242241 such a manner as is within the purposes of the industrial development 11
243242 authority; 12
244243 (5) To cooperate with the State of Arkansas and all agencies, 13
245244 departments, and instrumentalities of the State of Arkansas and with other 14
246245 counties, municipalities, and political subdivisions in the maintenance, 15
247246 development, improvement, and use of: 16
248247 (A) Commerce and industrial parks; 17
249248 (B) Research, technology, and development proving grounds 18
250249 and facilities; 19
251250 (C) Job training facilities, air cargo operations, depots 20
252251 for military use, rail lines, rail transload operations, and short -line 21
253252 railroads; and 22
254253 (D) All other qualifying economic development projects 23
255254 under § 14-174-105; 24
256255 (6) To cooperate with any other state and all its agencies, 25
257256 departments, and instrumentalities and port authorities, counties, 26
258257 municipalities, political subdivisions, and all their instrumentalities and 27
259258 agencies in other states in the maintenance, development, improvement, and 28
260259 use of: 29
261260 (A) Commerce and industrial parks; 30
262261 (B) Research, technology, and development proving grounds 31
263262 and facilities; 32
264263 (C) Job training facilities, air cargo operations, depots 33
265264 for military use, rail lines, rail transload operations, and short -line 34
266265 railroads; and 35
267266 (D) All other qualifying economic development projects 36 SB361
268267
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270269 under § 14-174-105; 1
271270 (7) To act as agent for the United States Government or any 2
272271 agency, department, corporation, or instrumentality of the United States 3
273272 Government and for the State of Arkansas and any agency, department, 4
274273 instrumentality, or political subdivision of the State of Arkansas in any 5
275274 matter pertaining to the accomplishment of the purposes of the industrial 6
276275 development authority; 7
277276 (8) To acquire, construct, equip, maintain, develop, and improve 8
278277 facilities at: 9
279278 (A) Commerce and industrial parks; 10
280279 (B) Research, technology, and development proving grounds 11
281280 and facilities; 12
282281 (C) Job training facilities, air cargo operations, depots 13
283282 for military use, rail lines, rail transload operations, and short -line 14
284283 railroads; and 15
285284 (D) All other qualifying economic development projects 16
286285 under § 14-174-105; 17
287286 (9) To sell, lease, contract concerning, or permit the use of 18
288287 all or any part of the facilities acquired, constructed, and equipped under 19
289288 this subsection to any person for industrial or commercial activities; and 20
290289 (10) In general, to do and perform any act or function that may 21
291290 tend to or be useful toward the development and improvement of: 22
292291 (A) Commerce and industrial parks; 23
293292 (B) Research, technology, and development proving grounds 24
294293 and facilities; 25
295294 (C) Job training facilities, air cargo operations, depots 26
296295 for military use, rail lines, rail transload operations, and short -line 27
297296 railroads; and 28
298297 (D) All other qualifying economic development projects 29
299298 under § 14-174-105; 30
300299 (b) The enumeration of the purposes under subsection (a) of this 31
301300 section shall not limit or circumscribe the broad objectives and purposes of 32
302301 this chapter and the broad objectives of developing to the utmost: 33
303302 (1) Commerce and industrial parks; 34
304303 (2) Research, technology, and development proving grounds and 35
305304 facilities; 36 SB361
306305
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308307 (3) Job training facilities, air cargo operations, depots for 1
309308 military use, rail lines, rail transload operations, and short -line 2
310309 railroads; 3
311310 (4) All other qualifying economic development projects under § 4
312311 14-174-105; and 5
313312 (5) Industrial and commercial development possibilities of the 6
314313 state and the political subdivisions of the state. 7
315314 8
316315 14-189-108. Powers of industrial development authority generally. 9
317316 In order to enable an industrial development authority to carry out the 10
318317 purposes of this chapter, the industrial development authority shall: 11
319318 (1) Have the powers of a body corporate including the power to 12
320319 sue and be sued, to make contracts, and to adopt and use a seal; 13
321320 (2) Have the power to rent, acquire, improve, develop, operate, 14
322321 maintain, lease, buy, own, mortgage, otherwise encumber, sell, dispose of, 15
323322 and otherwise deal with such real, personal, or mixed property as an 16
324323 industrial development authority may deem proper, necessary, or desirable to 17
325324 carry out the purposes of this chapter; 18
326325 (3) Have the power to acquire, purchase, install, lease, rent, 19
327326 own, hold, use, control, develop, sell, improve, construct, maintain, equip 20
328327 and operate, and otherwise deal with and dispose of any: 21
329328 (A) Commerce and industrial parks; 22
330329 (B) Research, technology, and development proving grounds 23
331330 and facilities; 24
332331 (C) Job training facilities, air cargo operations, depots 25
333332 for military use, rail lines, rail transload operations, and short -line 26
334333 railroads; and 27
335334 (D) All other qualifying economic development projects 28
336335 under § 14-174-105; 29
337336 (4) Have the power consistent with this chapter to acquire, own, 30
338337 construct, reconstruct, extend, equip, improve, operate, maintain, sell, 31
339338 lease, lease with or without options to purchase, lease with or without 32
340339 options to extend or renew, contract concerning, or otherwise deal in, with, 33
341340 or dispose of any lands, buildings, improvements, machinery, equipment, or 34
342341 facilities of any and every nature for the securing and developing of 35
343342 industry and commerce and parks for industrial and commercial operations; 36 SB361
344343
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346345 (5) Have the power to appoint and employ and dismiss at pleasure 1
347346 such agents and employees as may be selected by an industrial development 2
348347 authority and to fix and pay their compensation; 3
349348 (6) Have the power to establish an office for the transaction of 4
350349 business at such place as, in the opinion of an industrial development 5
351350 authority, shall be advisable or necessary in carrying out the purposes of 6
352351 this chapter; 7
353352 (7) Have the power to create and operate such agencies, 8
354353 departments, and instrumentalities as an industrial development authority may 9
355354 deem necessary, desirable, or useful for the accomplishment and furtherance 10
356355 of any of the purposes of this chapter; 11
357356 (8) Have the power to pay and expend funds for all necessary 12
358357 costs and expenses involved in and incident to the formation and organization 13
359358 of an industrial development authority and the carrying out of the powers and 14
360359 purposes of this chapter; 15
361360 (9) Have the power to adopt, alter, or repeal from time to time 16
362361 its own bylaws, rules, and regulations consistent with this chapter governing 17
363362 the manner in which the business of an industrial development authority may 18
364363 be transacted and in which the purposes and powers may be transacted and in 19
365364 which the purposes and powers of an industrial development authority may be 20
366365 accomplished and carried out; 21
367366 (10) Have the power to fix and change, from time to time, rates 22
368367 and charges for the use of the facilities and services of an industrial 23
369368 development authority; 24
370369 (11) Have the power to promulgate and to alter or repeal, from 25
371370 time to time, rules and regulations consistent with this chapter and to 26
372371 enforce the same governing and pertaining to the use of the facilities and 27
373372 services of an industrial development authority; 28
374373 (12) Have the power to sell, contract concerning, or lease any 29
375374 of its warehouses, industrial or commercial plants and facilities, and other 30
376375 improvements and facilities of whatever nature and to permit the use of any 31
377376 such facilities by any person engaging in any industrial or commercial 32
378377 activity; 33
379378 (13) Have the power to do any and all other acts and things of 34
380379 whatever nature consistent with this chapter necessary or incidental to the 35
381380 carrying out of the powers specified in this section and the accomplishment 36 SB361
382381
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384383 of the purposes of this chapter, whether or not specifically enumerated; and 1
385384 (14) Be authorized to carry out the powers of an industrial 2
386385 development authority and to accomplish the purposes of this chapter. 3
387386 4
388387 14-189-109. Industrial development authority -owned facilities — 5
389388 Proposals for lease or operation. 6
390389 (a) With regard to industrial development authority -owned facilities 7
391390 used for commercial and industrial purposes, before entering into a new lease 8
392391 of existing facilities or into a lease of new facilities, in whole or in 9
393392 part, or before operating facilities for these purposes, in whole or in part, 10
394393 an industrial development authority shall first publicly solicit proposals 11
395394 for the leasing or operation of the facilities for these purposes on such 12
396395 terms as shall be customary and usual in the commercial industry. 13
397396 (b) An industrial development authority shall accept a proposal under 14
398397 subsection (a) of this section that is commercially reasonable and in the 15
399398 industrial development authority's best interest. 16
400399 17
401400 14-189-110. Acquisition of property, including rights -of-way. 18
402401 (a) For the acquiring of property, including rights -of-way, necessary 19
403402 or desirable for the carrying out of the powers of an industrial development 20
404403 authority and for the accomplishment of the purposes of this chapter, an 21
405404 industrial development authority may acquire property by gift, by purchase, 22
406405 by negotiation, or by condemnation. 23
407406 (b) If an industrial development authority determines to exercise the 24
408407 right of eminent domain, the right of eminent domain may be exercised in the 25
409408 manner provided for taking private property for railroads as provided by §§ 26
410409 18-15-1202 — 18-15-1207, in the manner provided by §§ 18 -15-301 — 18-15-307, 27
411410 or in the manner provided by any other statutes enacted for the exercise of 28
412411 the power of eminent domain by the state, or by any officers, departments, 29
413412 agencies, or political subdivisions of the state. 30
414413 (c) An industrial development authority may exchange any property 31
415414 acquired under this chapter for other property necessary or desirable in 32
416415 carrying out of the powers of an industrial development authority. 33
417416 34
418417 14-189-111. Condemnation of utility system prohibited. 35
419418 This chapter does not authorize any industrial development authority to 36 SB361
420419
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422421 acquire by condemnation, or to issue bonds and use the proceeds of the bonds 1
423422 to acquire by condemnation, a utility plant or utility distribution system, 2
424423 or any part of them, owned or operated by a regulated public utility for the 3
425424 purpose of operation by the acquiring industrial development authority. 4
426425 5
427426 14-189-112. Operation of railroads. 6
428427 (a)(1) An industrial development authority may acquire, own, lease, 7
429428 locate, install, construct, equip, hold, maintain, control, and operate 8
430429 railroads with necessary sidings, turnouts, spur branches, switches, yard 9
431430 tracks, transload on and off -loading equipment, bridges, trestles, and 10
432431 causeways. 11
433432 (2) In connection with the lines and appurtenances to the lines 12
434433 under subdivision (a)(1) of this section, an industrial development authority 13
435434 may lease, install, construct, acquire, own, maintain, control, and use any 14
436435 and every kind or character of motive power and conveyances or appliances 15
437436 necessary or proper to carry passengers, goods, wares, and merchandise over, 16
438437 along, or upon the tracks of railroads or other conveyances. 17
439438 (b)(1) An industrial development authority may make agreements as to 18
440439 scale of wages, seniority, working conditions, and related matters with 19
441440 locomotive engineers, firemen, switchmen, foremen, hostlers, and other 20
442441 employees engaged in the operation of the railroads and the service and 21
443442 equipment pertinent to railroads. 22
444443 (2) An industrial development authority may connect with or 23
445444 cross any other railroad upon payment of just compensation and receive, 24
446445 deliver to, and transport the freight, passengers, and cars of common carrier 25
447446 railroads as though they were ordinary common carriers. 26
448447 27
449448 14-189-113. Dealings with United States Government. 28
450449 (a)(1) An industrial development authority may assign, transfer, 29
451450 lease, convey, grant, or donate to the United States Government or to the 30
452451 appropriate agency of the United States Government any or all of the property 31
453452 of the industrial development authority for use by the United States 32
454453 Government or the appropriate agency of the United States Government, for any 33
455454 purpose included within the purposes of this chapter. 34
456455 (2) An assignment, transfer, lease, conveyance, grant, or 35
457456 donation under subdivision (a)(1) of this section shall not be made that 36 SB361
458457
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460459 would constitute an impairment of the covenants and obligations of an 1
461460 industrial development authority in connection with bonds or other 2
462461 certificates of indebtedness issued and outstanding by the industrial 3
463462 development authority or that would constitute an event of default under any 4
464463 indenture or similar instrument securing any indebtedness of an industrial 5
465464 development authority. 6
466465 (3) Any assignment, transfer, lease, conveyance, grant, or 7
467466 donation, subject to the limitations specified, shall be upon such terms as 8
468467 the industrial development authority involved may deem advisable. 9
469468 (b) If the United States Government or the appropriate agency or 10
470469 department of the United States Government should decide to undertake the 11
471470 acquisition, construction, equipment, maintenance, or operation of any of the 12
472471 properties and facilities of an industrial development authority and should 13
473472 decide to acquire the lands and properties necessarily needed in connection 14
474473 with it by condemnation or otherwise, the industrial development authority 15
475474 may transfer and pay over to the United States Government or to the 16
476475 appropriate agency of the United States Government such of the moneys 17
477476 belonging to the industrial development authority as may be reasonably 18
478477 required by the United States Government or the appropriate agency of the 19
479478 United States Government to meet and pay the amount of judgments in 20
480479 condemnation proceedings as may be rendered from time to time against the 21
481480 United States Government or the appropriate agency of the United States 22
482481 Government or as may be reasonably necessary to permit the United States 23
483482 Government or the appropriate agency of the United States Government to 24
484483 acquire and become possessed of such lands and properties as are reasonably 25
485484 required for the acquisition, construction, and use of the properties and 26
486485 facilities referred to in this section. 27
487486 28
488487 14-189-114. Local government assistance — Legislative determination. 29
489488 (a)(1) It is determined by the General Assembly that the following are 30
490489 necessary for and useful in the securing and developing of industry in the 31
491490 State of Arkansas: 32
492491 (A) Commerce and industrial parks; 33
493492 (B) Research, technology, and development proving grounds 34
494493 and facilities; 35
495494 (C) Job training facilities, air cargo operations, depots 36 SB361
496495
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498497 for military use, rail lines, rail transload operations, and short -line 1
499498 railroads; 2
500499 (D) All other qualifying economic development projects 3
501500 under § 14-174-105; and 4
502501 (E) The facilities authorized to be acquired, constructed, 5
503502 reconstructed, extended, equipped, or improved by an industrial development 6
504503 authority under this chapter. 7
505504 (2) Therefore, an industrial development authority may contract 8
506505 with the local governments represented on the board of directors of the 9
507506 industrial development authority for the local governments to make available 10
508507 the proceeds of bonds issued under Arkansas Constitution, Amendment 62, or 11
509508 prior amendments to the Arkansas Constitution repealed by Arkansas 12
510509 Constitution, Amendment 62, to the industrial development authority for the 13
511510 purpose of financially assisting the industrial development authority to 14
512511 accomplish the purposes of this chapter consistent with Arkansas 15
513512 Constitution, Amendment 62, or prior amendments to the Arkansas Constitution 16
514513 repealed by Arkansas Constitution, Amendment 62. 17
515514 (b)(1) In addition, local governments may use and make available to an 18
516515 industrial development authority, by way of donation, loan, or otherwise, any 19
517516 available revenues for the purpose of financially assisting the industrial 20
518517 development authority to accomplish the purposes of this chapter. 21
519518 (2) Revenues made available under subdivision (b)(1) of this 22
520519 section may be used by the industrial development authority either alone or 23
521520 together with any other available funds and revenues for the accomplishment 24
522521 of the authorized purposes of this chapter. 25
523522 26
524523 14-189-115. Authorization to borrow funds and issue bonds. 27
525524 (a) An industrial development authority may enter into the necessary 28
526525 contracts for the borrowing of funds, pursuant to this chapter, that the 29
527526 industrial development authority may determine will be required to carry out 30
528527 the purposes of this chapter. In this regard, an industrial development 31
529528 authority may issue bonds and use the proceeds of the bonds for the 32
530529 accomplishment of the purposes of this chapter, either alone or together with 33
531530 other available funds and revenues. 34
532531 (b) An industrial development authority also may issue revenue bonds 35
533532 under this chapter for the purpose of applying a major portion of the 36 SB361
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536535 proceeds of the revenue bonds, alone or with other revenues that may be 1
537536 pledged, to the acquisition of an investment contract or contracts at a rate 2
538537 or rates of interest at least sufficient to provide for principal, premium, 3
539538 if any, and interest on the revenue bonds, as due, in consideration of the 4
540539 receipt of a portion of the proceeds for application by the industrial 5
541540 development authority to one (1) or more of the purposes authorized by this 6
542541 chapter. 7
543542 8
544543 14-189-116. Bonds — Authority to issue. 9
545544 (a) This chapter is the sole authority required for the issuance of 10
546545 bonds under this chapter and for the exercise of the powers of an industrial 11
547546 development authority established under this chapter. 12
548547 (b) A local government represented on the board of directors of an 13
549548 industrial development authority need not authorize or approve the: 14
550549 (1) Issuance of bonds under this chapter; or 15
551550 (2) Exercise of any other powers by an industrial development 16
552551 authority under this chapter. 17
553552 18
554553 14-189-117. Bonds — Covenants and agreements — Enforcement. 19
555554 (a) All covenants and agreements entered into and made by an 20
556555 industrial development authority shall be binding in all respects on the 21
557556 industrial development authority and the members of the industrial 22
558557 development authority and their successors from time to time in accordance 23
559558 with the terms of the covenants and agreements. 24
560559 (b) All of the terms of the covenants and agreements under subsection 25
561560 (a) of this section shall be enforceable by mandamus or other appropriate 26
562561 proceedings at law or in equity. 27
563562 28
564563 14-189-118. Bonds — Purposes. 29
565564 Bonds may be issued for the acquisition, construction, and equipment of 30
566565 facilities and the reconstructing, extending, improving, equipping, or 31
567566 reequipping of facilities. 32
568567 33
569568 14-189-119. Bonds — Principal amount. 34
570569 Each bond issued under this chapter shall be in the principal amount 35
571570 sufficient, together with other available funds, for: 36 SB361
572571
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574573 (1) The acquisition, construction, and equipment of facilities 1
575574 or the reconstruction, extension, improvement, equipment, or reequipment of 2
576575 facilities; 3
577576 (2) All costs of issuing the bonds; 4
578577 (3) The amount necessary for a reserve, if deemed desirable by 5
579578 the industrial development authority issuing the bonds; 6
580579 (4) The amount necessary to provide for debt service on the 7
581580 bonds until revenues for the payment of the bonds are available; and 8
582581 (5) Any cost of whatever nature necessarily incidental to the 9
583582 bonds. 10
584583 11
585584 14-189-120. Bonds — Resolution or trust indenture generally. 12
586585 (a)(1) An industrial development authority issuing the bonds under 13
587586 this chapter, by resolution or indenture, among other things, may control the 14
588587 subsequent issuance of additional bonds and the priority, between and among 15
589588 issues, of the pledge of revenues and of the mortgage lien, provide for the 16
590589 use of surplus pledged revenues, and provide for the creation of special 17
591590 trust funds to be maintained in such banks as the industrial development 18
592591 authority issuing the bonds may select. 19
593592 (2) The moneys in the special trust funds under subdivision 20
594593 (a)(1) of this section shall be secured and disbursed as determined by the 21
595594 industrial development authority. 22
596595 (b) The special trust funds under subsection (a) of this section may 23
597596 include without limitation a bond fund, a depreciation fund, an operation and 24
598597 maintenance fund, and such reserve funds as the industrial development 25
599598 authority issuing the bonds may determine to be in the best interests of the 26
600599 industrial development authority in accomplishing the purposes of this 27
601600 chapter. 28
602601 29
603602 14-189-121. Bonds — Authorizing resolution. 30
604603 (a) Each issue of bonds under this chapter shall be authorized by 31
605604 resolution of the industrial development authority issuing the bonds. 32
606605 (b) Priority, between and among successive issues of bonds under this 33
607606 chapter, of the pledge of revenues and mortgage lien may be controlled by the 34
608607 resolutions authorizing the issuance of bonds under this chapter. 35
609608 36 SB361
610609
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612611 14-189-122. Bonds — Terms and conditions. 1
613612 (a) Bonds issued under this chapter may: 2
614613 (1) Be coupon bonds payable to bearer as the authorizing 3
615614 resolution may provide; 4
616615 (2) Be registered as to principal or as to principal and 5
617616 interest, or be coupon bonds subject to registration as to principal or as to 6
618617 principal and interest as the authorizing resolution may provide; 7
619618 (3) Be in one (1) or more series as the authorizing resolution 8
620619 may provide; 9
621620 (4) Bear such date or dates as the authorizing resolution may 10
622621 provide; 11
623622 (5) Mature at such time or times, not exceeding thirty -five (35) 12
624623 years from their respective dates as the authorizing resolution may provide; 13
625624 (6) Bear interest at such rate or rates as the authorizing 14
626625 resolution may provide; 15
627626 (7) Be in such form as the authorizing resolution may provide; 16
628627 (8) Be executed in such manner as the authorizing resolution may 17
629628 provide; 18
630629 (9) Be payable in such medium of payment at such place or places 19
631630 as the authorizing resolution may provide; 20
632631 (10) Be subject to such terms of redemption as the authorizing 21
633632 resolution may provide; and 22
634633 (11) Contain such terms, covenants, and conditions as the 23
635634 authorizing resolution may provide, including without limitation those 24
636635 pertaining to: 25
637636 (A) The custody and application of the proceeds of the 26
638637 bonds; 27
639638 (B) The collection and disposition of revenues; 28
640639 (C) The maintenance and investment of various funds and 29
641640 reserves; 30
642641 (D) The nature and extent of the security; 31
643642 (E) The rights, duties, and obligations of the industrial 32
644643 development authority issuing the bonds and of the trustee for the holders or 33
645644 registered owners of the bonds; and 34
646645 (F) The rights of the holders or registered owners of the 35
647646 bonds. 36 SB361
648647
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650649 (b) Bonds issued under this chapter shall have all of the qualities of 1
651650 negotiable instruments under the negotiable instruments laws of the state, 2
652651 subject to the provisions of this section pertaining to registration. 3
653652 4
654653 14-189-123. Bonds — Trust indenture. 5
655654 (a) Each resolution of an industrial development authority authorizing 6
656655 the issuance of bonds under this chapter may provide for the execution of an 7
657656 indenture defining the rights of the holders and registered owners of the 8
658657 bonds and providing for the appointment of a trustee for the holders and 9
659658 registered owners of the bonds. 10
660659 (b) An indenture under subsection (a) of this section may control the 11
661660 priority, between and among successive issues, of the pledge of revenues and 12
662661 mortgage lien and may control any other terms, covenants, and conditions that 13
663662 are deemed desirable, including without limitation, those pertaining to: 14
664663 (1) The custody and application of the proceeds of the bonds; 15
665664 (2) The collection and disposition of revenues; 16
666665 (3) The maintenance of various funds and reserves; 17
667666 (4) The nature and extent of the security; 18
668667 (5) The rights, duties, and obligations of the industrial 19
669668 development authority and the trustee for the holders and registered owners 20
670669 of the bonds; and 21
671670 (6) The rights of the holders and registered owners of the 22
672671 bonds. 23
673672 24
674673 14-189-124. Bonds — Contents. 25
675674 It shall be plainly stated on the face of each bond issued under this 26
676675 chapter that the bond has been issued under the provisions of this chapter. 27
677676 28
678677 14-189-125. Bonds — Sale. 29
679678 Bonds issued under this chapter may be sold for such price, including 30
680679 without limitation sale at a discount, and in such manner as the industrial 31
681680 development authority issuing the bonds may determine by resolution. 32
682681 33
683682 14-189-126. Bonds and coupons — Execution. 34
684683 (a)(1) Bonds issued under this chapter may be executed by the 35
685684 facsimile signature of the chair of the board of directors of the industrial 36 SB361
686685
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688687 development authority issuing the bonds and by the manual signature of the 1
689688 secretary of the board of directors of the industrial development authority 2
690689 issuing the bonds and sealed with the seal of the industrial development 3
691690 authority issuing the bonds. 4
692691 (2) The coupons attached to the bonds may be executed by the 5
693692 facsimile signature of the chair of the board of directors of the industrial 6
694693 development authority issuing the bonds. 7
695694 (b) In case any of the officers whose signatures appear on the bonds 8
696695 or coupons shall cease to be such officers before the delivery of the bonds 9
697696 or coupons, their signatures shall, nevertheless, be valid and sufficient for 10
698697 all purposes. 11
699698 12
700699 14-189-127. Bonds — Conversion. 13
701700 (a) Bonds issued under this chapter may be sold with the privilege of 14
702701 conversion to an issue bearing a lower rate or rates of interest upon such 15
703702 terms that the industrial development authority issuing the bonds receive no 16
704703 less and pay no more than the industrial development authority would receive 17
705704 and pay if the bonds were not converted. 18
706705 (b) The conversion shall be subject to the approval of the industrial 19
707706 development authority issuing the bonds. 20
708707 21
709708 14-189-128. Bonds — Issues. 22
710709 There may be separate issues involving different facilities and there 23
711710 may be successive issues involving the same facilities. 24
712711 25
713712 14-189-129. Bonds — General or special obligations. 26
714713 Bonds issued under this chapter: 27
715714 (1) Shall be general or special obligations only of the 28
716715 industrial development authority issuing the bonds; and 29
717716 (2) Do not constitute an indebtedness for which the faith and 30
718717 credit of the state or the faith and credit of any municipality, county, or 31
719718 other political subdivision of the state or any of their revenues are 32
720719 pledged. 33
721720 34
722721 14-189-130. Bonds — Liability. 35
723722 A member of an industrial development authority shall not be personally 36 SB361
724723
725724 20 03/03/2025 3:22:26 PM CEB194
726725 liable on the bonds issued under this chapter or for any damages sustained by 1
727726 anyone in connection with the contracts with the holders and registered 2
728727 owners of the bonds or the construction, reconstruction, extension, 3
729728 improvement, or equipping of buildings or facilities unless the member has 4
730729 acted with a corrupt intent. 5
731730 6
732731 14-189-131. Bonds — Pledge of revenues. 7
733732 (a) The principal of, premium, if any, or interest on, and trustee's 8
734733 and paying agent's fees in connection with each issue of bonds issued by the 9
735734 industrial development authority under this chapter shall be secured by a 10
736735 pledge of, and shall be payable from, the revenues derived from the lands, 11
737736 buildings, or facilities acquired, constructed, reconstructed, extended, 12
738737 improved, or equipped, in whole or in part, with the proceeds of the bonds of 13
739738 the particular issue. 14
740739 (b) In addition, the industrial development authority issuing the 15
741740 bonds may pledge to, and use for the payment of the principal of, premium, if 16
742741 any, or interest on, and trustee's and paying agent's fees in connection with 17
743742 a particular issue of bonds, revenues derived from other lands, buildings, or 18
744743 facilities owned or held by the industrial development authority, and an 19
745744 investment contract or contracts entered into by the industrial development 20
746745 authority for the purpose of paying and securing the bonds, and any revenues 21
747746 to be derived from the contract or contracts. 22
748747 23
749748 14-189-132. Refunding bonds. 24
750749 (a)(1) Bonds may be issued under this chapter for the purpose of 25
751750 refunding bonds previously issued under this chapter. 26
752751 (2)(A) Refunding bonds may be issued alone or combined with 27
753752 bonds issued under this chapter into a single issue for the purpose of 28
754753 refunding outstanding bonds, acquiring lands, and constructing and equipping 29
755754 buildings or facilities or reconstructing, extending, improving, or 30
756755 reequipping existing buildings or facilities. 31
757756 (B)(i) When refunding bonds are issued, the bonds may be 32
758757 either sold or delivered in exchange for the outstanding bonds being 33
759758 refunded. 34
760759 (ii) If sold, the proceeds may either be applied to 35
761760 the payment of the bonds being refunded, or the proceeds may be deposited in 36 SB361
762761
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764763 escrow for the retirement of them. 1
765764 (b)(1) All refunding bonds shall, in all respects, be authorized, 2
766765 issued, and secured in the manner provided for other bonds issued under this 3
767766 chapter and shall have all the attributes of such bonds. 4
768767 (2) The resolution or indenture authorizing or securing 5
769768 refunding bonds may provide that the bonds shall have the same priority of 6
770769 lien on the revenues pledged for their payment and on the property mortgaged 7
771770 as security for their payment as was enjoyed by the bonds refunded by them. 8
772771 9
773772 14-189-133. Bonds — Tax exemption. 10
774773 (a) Bonds issued under this chapter are exempt from all state, county, 11
775774 and municipal taxes. 12
776775 (b) The exemption under this section includes without limitation 13
777776 income, inheritance, and estate taxes. 14
778777 15
779778 14-189-134. Bonds as legal investment. 16
780779 Bonds issued under this chapter shall be eligible to secure deposits of 17
781780 all public funds and shall be legal for investment of bank, insurance 18
782781 company, and retirement funds. 19
783782 20
784783 14-189-135. Bonds — Mortgage lien. 21
785784 (a) The resolution or indenture referred may impose a foreclosable 22
786785 mortgage lien upon the facilities acquired, constructed, reconstructed, 23
787786 extended, equipped, or improved, in whole or in part, with the proceeds of 24
788787 bonds issued under this chapter. 25
789788 (b) The nature and extent of the mortgage lien under this section may 26
790789 be controlled by the resolution or indenture, including without limitation 27
791790 provisions pertaining to: 28
792791 (1) The release of all or part of the land, buildings, or 29
793792 facilities from the mortgage lien; and 30
794793 (2) The priority of the mortgage lien in the event of successive 31
795794 bond issues as authorized by this chapter. 32
796795 (c) The resolution or indenture authorizing or securing the bonds may 33
797796 authorize any holder or registered owner of bonds issued under the provisions 34
798797 of this chapter or a trustee on behalf of all holders and registered owners, 35
799798 either at law or in equity, to enforce the mortgage lien and, by proper suit, 36 SB361
800799
801800 22 03/03/2025 3:22:26 PM CEB194
802801 to compel the performance of the duties of the officials of the industrial 1
803802 development authority set forth in this chapter and set forth in the 2
804803 resolution or indenture authorizing or securing the bonds. 3
805804 4
806805 14-189-136. Bonds — Default — Receiver. 5
807806 (a) In the event of a default in the payment of the principal of or 6
808807 interest on any bonds issued under this chapter, any court having 7
809808 jurisdiction may appoint a receiver to take charge of the land, buildings, or 8
810809 facilities upon which there is a mortgage lien securing the bonds. 9
811810 (b) The receiver shall have the power to operate and maintain the 10
812811 land, buildings, or facilities and to charge and collect rates or rents with 11
813812 reference to them. These rents shall be sufficient to provide for the payment 12
814813 of the principal of and interest on bonds, after providing for the payment of 13
815814 any costs of receivership and operating expenses of the land, buildings, or 14
816815 facilities, and to apply the income and revenues derived from them in 15
817816 conformity with this chapter and the resolution or indenture authorizing or 16
818817 securing the bonds. 17
819818 (c) When the default has been cured, the receivership shall be ended 18
820819 and the properties returned to the industrial development authority issuing 19
821820 the bonds. 20
822821 (d) The relief afforded by this section is in addition and 21
823822 supplemental to the remedies that may be afforded the trustee for the 22
824823 bondholders and the bondholders in the resolution or indenture authorizing or 23
825824 securing the bonds and shall be so granted and administered as to accord full 24
826825 recognition to priority rights of bondholders as to the pledge of revenues 25
827826 from, and the mortgage lien on, the land, buildings, or facilities as 26
828827 specified in and fixed by the resolution or indenture authorizing or securing 27
829828 successive bond issues. 28
830829 29
831830 SECTION 2. Arkansas Code Title 14, Chapter 164, Subchapter 7 is 30
832831 amended to read as follows: 31
833832 14-164-701. Legislative intent. 32
834833 (a) It is declared and confirmed that the securing and developing of 33
835834 industry is vital to the economic welfare of the state and its people. To 34
836835 this end, it is necessary that maximum flexibility be given to the Arkansas 35
837836 Development Finance Authority and to the counties , and municipalities, and 36 SB361
838837
839838 23 03/03/2025 3:22:26 PM CEB194
840839 industrial development authorities organized under the Industrial Development 1
841840 Authorities Expansion Act, § 14 -189-101 et seq., in the state in their 2
842841 efforts to retain and expand existing industrial facilities and locate new 3
843842 industrial facilities. This task involves the opportunity for the full 4
844843 utilization of the benefits of financing industrial facilities under Arkansas 5
845844 Constitution, Amendment 49 [repealed], Amendment 62, or prior amendments to 6
846845 the Arkansas Constitution repealed by Arkansas Constitution, Amendment 62, 7
847846 and §§ 14-164-201 — 14-164-206, 14-164-208 — 14-164-224, the Industrial 8
848847 Development Authorities Expansion Act, § 14 -189-101 et seq., § 14-267-101 et 9
849848 seq., §§ 15-5-101 — 15-5-105, 15-5-207, § 15-5-301 et seq., and the Arkansas 10
850849 Development Finance Authority Bond Guaranty Act of 1985, § 15 -5-401 et seq., 11
851850 including the exemption from ad valorem taxation of all industrial facilities 12
852851 that were exempt under Arkansas Constitution, Article 16, § 5, as interpreted 13
853852 by the Supreme Court in Wayland v. Snapp, 232 Ark. 57, 334 S.W.2d 633 (1960). 14
854853 (b) While concerns using industrial bond financing should be 15
855854 encouraged to make payments in lieu of ad valorem taxes, and that is declared 16
856855 to be the general policy of the General Assembly, the final determination of 17
857856 whether these payments are to be made and, if made, in what amounts should be 18
858857 negotiated and contracted by the counties , or municipalities, or industrial 19
859858 development authorities in the state and by the industrial concerns involved 20
860859 under § 14-164-704. 21
861860 22
862861 14-164-702. Applicability. 23
863862 (a) Pursuant to the findings and declarations of the state in § 14 -24
864863 164-701, it is found and declared that not only are the industrial facilities 25
865864 owned by a municipality, county, industrial development authority organized 26
866865 under the Industrial Development Authorities Expansion Act, § 14 -189-101 et 27
867866 seq., or the Arkansas Development Finance Authority financed with bonds 28
868867 issued under §§ 14-164-201 — 14-164-206, 14-164-208 — 14-164-224, the 29
869868 Industrial Development Authorities Expansion Act, § 14 -189-101 et seq., § 14-30
870869 267-101 et seq., §§ 15-5-101 — 15-5-105, 15-5-207, § 15-5-301 et seq., and 31
871870 the Arkansas Development Finance Authority Bond Guaranty Act of 1985, § 15 -5-32
872871 401 et seq., to be exempt from ad valorem taxation, but the interest of a 33
873872 lessee or of a purchaser under a contract for sale of industrial facilities 34
874873 that are so exempt are also exempt from ad valorem taxation. To this end, the 35
875874 interest of a lessee or of a purchaser is intangible personal property for 36 SB361
876875
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878877 purposes of ad valorem taxation. This finding and declaration is made under 1
879878 the authority granted to the General Assembly by and in implementation of the 2
880879 provisions and purposes of Arkansas Constitution, Amendment 57. 3
881880 (b) The findings and declarations made in § 14 -164-701 and the policy 4
882881 declared in this section apply to all existing industrial facilities and to 5
883882 all future industrial facilities involved in Arkansas Constitution, Amendment 6
884883 49 [repealed], Amendment 62, or prior amendments to the Arkansas Constitution 7
885884 repealed by Arkansas Constitution, Amendment 62, §§ 14-164-201 — 14-164-206, 8
886885 14-164-208 — 14-164-224, the Industrial Development Authorities Expansion 9
887886 Act, § 14-189-101 et seq., § 14-267-101 et seq., §§ 15-5-101 — 15-5-105, 15-10
888887 5-207, § 15-5-301 et seq., and the Arkansas Development Finance Authority 11
889888 Bond Guaranty Act of 1985, § 15 -5-401 et seq., financings, and to all 12
890889 existing and future interests in leases or purchase contracts pertaining to 13
891890 these industrial facilities. 14
892891 15
893892 14-164-703. Payments in lieu of taxes. 16
894893 (a) If the Arkansas Development Finance Authority or a county , or 17
895894 municipality, or industrial development authority organized under the 18
896895 Industrial Development Authorities Expansion Act, § 14 -189-101 et seq., in 19
897896 the state and a lessee under a lease or a purchaser under a contract for sale 20
898897 enter into an agreement for payments in lieu of ad valorem taxes, each 21
899898 agreement shall provide, or under this subchapter shall be interpreted as 22
900899 providing, that all in -lieu-of-taxes payments shall be distributed to the 23
901900 local political subdivisions that would have received ad valorem tax payments 24
902901 on the industrial facilities if the interest involved had not been exempt 25
903902 from ad valorem taxes in the proportions that the millage levied by each 26
904903 affected local political subdivision bears to the millage levied by all 27
905904 affected political subdivisions, unless all such local political 28
906905 subdivisions, including without limitation the affected school district or 29
907906 districts, shall otherwise agree. 30
908907 (b) This section does not affect the rights or obligations of any of 31
909908 the parties to an agreement under this subchapter that exists on the date of 32
910909 enactment of this subchapter providing for payments in lieu of ad valorem 33
911910 taxes. 34
912911 35
913912 14-164-704. Sale of property. 36 SB361
914913
915914 25 03/03/2025 3:22:26 PM CEB194
916915 (a)(1)(A) When the Arkansas Development Finance Authority or a 1
917916 municipality, or county, industrial development authority organized under the 2
918917 Industrial Development Authorities Expansion Act, § 14 -189-101 et seq., in 3
919918 the state enters into a lease of property owned by the authority Arkansas 4
920919 Development Finance Authority , a municipality, or a county, or an industrial 5
921920 development authority or enters into a contract for sale of property by the 6
922921 authority Arkansas Development Finance Authority , a municipality, or a 7
923922 county, or an industrial development authority to a private for-profit entity 8
924923 under this subchapter or any other law or the Arkansas Constitution for the 9
925924 purpose of securing and developing industry, the lease or contract for sale 10
926925 shall, except as otherwise provided in this section, include an obligation 11
927926 that the lessee or purchaser make payments in lieu of property taxes in an 12
928927 amount as negotiated between the parties except the aggregate amount of the 13
929928 payments during the initial term of the lease or contract for sale shall be 14
930929 not less than thirty -five percent (35%) of the aggregate amount of ad valorem 15
931930 taxes that would be paid if the property were on the tax rolls, unless the 16
932931 Director of the Arkansas Economic Development Commission and the Chief Fiscal 17
933932 Officer of the State approve a lesser amount. 18
934933 (B) If the authority Arkansas Development Finance 19
935934 Authority is the owner of the property, there shall be a separate agreement 20
936935 for payment in lieu of taxes among the authority Arkansas Development Finance 21
937936 Authority, the lessee or purchaser, the county in which the industrial 22
938937 facilities are located, and, if applicable, the municipality in which the 23
939938 industrial facilities are located. 24
940939 (2)(A) The aggregate amount of ad valorem taxes that would be 25
941940 paid if the property were on the tax rolls during the initial term of the 26
942941 lease or contract for sale may be determined based on: 27
943942 (i) The millage and assessment rates in effect at 28
944943 the time the obligation to make payments in lieu of property taxes is entered 29
945944 into; 30
946945 (ii) The projected installed costs of the taxable 31
947946 real and personal property subject to or to be subject to the lease or 32
948947 contract for sale, which may be evidenced by an affidavit of an authorized 33
949948 officer of the private for -profit entity; and 34
950949 (iii) Depreciation guidelines for personal property 35
951950 published by the Assessment Coordination Division. 36 SB361
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953952 26 03/03/2025 3:22:26 PM CEB194
954953 (B) The aggregate amount determined under this subdivision 1
955954 (a)(2) shall be adjusted based on the actual installed costs of the taxable 2
956955 real and personal property at the time the lease or contract for sale is 3
957956 entered into or the time of completion of the project subject to the lease or 4
958957 contract for sale, whichever is later. 5
959958 (3) In cases in which the municipality , or county, or industrial 6
960959 development authority is the lessor or seller, the obligation may be 7
961960 contained in a separate agreement at the option of the parties to the lease 8
962961 or contract for sale. 9
963962 (4)(A)(i) For agreements entered into on or after September 1, 10
964963 2023, the lessee or purchaser shall provide a copy of the agreement for 11
965964 payment in lieu of taxes under this subsection to the county assessor, 12
966965 including a description of all real and personal property that is subject to 13
967966 the agreement for payment in lieu of taxes. 14
968967 (ii) This section does not require a lessee or 15
969968 purchaser to provide any information that the lessee or purchaser in good 16
970969 faith considers to be a trade secret, proprietary information, or other 17
971970 information that, if disclosed, would give an advantage to competitors. 18
972971 (B)(i) Payments in lieu of ad valorem taxes under this 19
973972 subsection shall be billed by the county collector to the lessee or purchaser 20
974973 or their respective designees. 21
975974 (ii) Payments made to the county collector for 22
976975 disbursement by the county treasurer shall be distributed to the respective 23
977976 taxing entities at the same time and in the same manner that ad valorem taxes 24
978977 are disbursed as provided by law. 25
979978 (b) Before a meeting of municipal officials , or county officials, 26
980979 officers of the industrial development authority, or officials of the 27
981980 authority Arkansas Development Finance Authority in which action may be taken 28
982981 regarding approval of in -lieu-of-tax payments, the authority Arkansas 29
983982 Development Finance Authority , municipality, or county, or industrial 30
984983 development authority shall give at least ten (10) days' notice of the date, 31
985984 time, and place of the meeting to the: 32
986985 (1) Superintendent of each school district in which all or any 33
987986 part of the property that is subject to the lease or contract of sale is 34
988987 located; 35
989988 (2) Chief Fiscal Officer of the State; and 36 SB361
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992991 (3) County assessor, county tax collector, and county treasurer 1
993992 of the county in which the property is located. 2
994993 (c) Subsections (a) and (b) of this section do not apply to: 3
995994 (1) An agreement existing before July 1, 2001; 4
996995 (2) An agreement entered into on or after July 1, 2001, under a 5
997996 memorandum of intent or agreement to issue bonds authorized by a municipality 6
998997 or county before July 1, 2001; 7
999998 (3) An agreement entered into on or after July 1, 2001, related 8
1000999 to a project covered by a financial incentive proposal from the Arkansas 9
10011000 Economic Development Commission, or by resolution of the governing body of a 10
10021001 municipality or a county designating the project by name for the purposes of 11
10031002 this exemption, dated before July 1, 2001; 12
10041003 (4) A reissue or refinancing of bonds that are subject to an 13
10051004 existing in-lieu-of-tax agreement; and 14
10061005 (5) A lease or contract for sale with a qualified manufacturer 15
10071006 of steel as defined in § 26 -52-901 or in Acts 2001, No. 541, entered into 16
10081007 before June 30, 2009. 17
10091008 18
10101009 SECTION 3. Arkansas Code § 14 -233-102(6), concerning the definition of 19
10111010 "district" with respect to the Joint County Municipal Solid Waste Disposal 20
10121011 Act, is amended to read as follows: 21
10131012 (6) “District” means an entity established pursuant to § 14 -114-22
10141013 101 et seq., the Interstate Watershed Cooperation Act, § 14 -115-101 et seq., 23
10151014 The Regional Water Distribution District Act, § 14 -116-101 et seq., the 24
10161015 Arkansas Irrigation, Drainage, and Watershed Improvement District Act of 25
10171016 1949, § 14-117-101 et seq., § 14-118-101 et seq., The Water Improvement 26
10181017 District Accounting Law of 1973, § 14 -119-101 et seq., § 14-120-101 et seq., 27
10191018 § 14-121-101 et seq., § 14-122-101 et seq., § 14-123-201 et seq., § 14-124-28
10201019 101 et seq., the Conservation Districts Law, § 14 -125-101 et seq., the 29
10211020 Central Business Improvement District Act, § 14 -184-101 et seq., the 30
10221021 Metropolitan Port Authority Act of 1961, § 14 -185-101 et seq., § 14-186-101 31
10231022 et seq., § 14-187-101 et seq., the Rural Development Authority Act, § 14 -188-32
10241023 101 et seq., the Industrial Development Authorities Expansion Act, § 14 -189-33
10251024 101 et seq., § 14-249-101 et seq., the Wastewater Treatment Districts Act, § 34
10261025 14-250-101 et seq., and § 14 -251-101 et seq.; 35
10271026 36 SB361
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10301029 SECTION 4. Arkansas Code § 15 -11-211 is amended to read as follows: 1
10311030 15-11-211. Disposal of railroad track material. 2
10321031 (a) The State Parks, Recreation, and Travel Commission and the 3
10331032 Department of Parks, Heritage, and Tourism are authorized to may dispose of 4
10341033 rail and other railroad track material by gift or contract to a regional 5
10351034 intermodal facilities authority organized pursuant to the Regional Intermodal 6
10361035 Facilities Act, § 14 -143-101 et seq., a metropolitan port authority organized 7
10371036 pursuant to the Metropolitan Port Authority Act of 1961, § 14 -185-101 et 8
10381037 seq., an industrial development authority organized under the Industrial 9
10391038 Development Authorities Expansion Act, § 14 -189-101 et seq., or a planning 10
10401039 and development district recognized by § 14 -166-202. 11
10411040 (b) A regional intermodal facilities authority, a metropolitan port 12
10421041 authority, an industrial development authority, or a planning and development 13
10431042 district may receive and acquire the property described in subsection (a) of 14
10441043 this section upon such terms and conditions acceptable to it and shall use 15
10451044 the property for railroad purposes in accordance with the power and authority 16
10461045 conferred by law. 17
10471046 (c) If a regional intermodal facilities authority, a metropolitan port 18
10481047 authority, an industrial development authority, or a planning and development 19
10491048 district subsequently sells the property described in subsection (a) of this 20
10501049 section, the net proceeds received from disposition of the property, after 21
10511050 deduction of all costs and expenses related thereto, shall be remitted to the 22
10521051 commission and the department. 23
10531052 24
10541053 SECTION 5. Arkansas Code § 27 -67-322(f)(1) and (2), concerning the 25
10551054 disposition of surplus rail or other railroad track material by the State 26
10561055 Highway Commission, are amended to read as follows: 27
10571056 (f)(1) The transfer of surplus rail and other railroad track material 28
10581057 purchased in part with federal transportation enhancement funds and granted 29
10591058 to the State Parks, Recreation, and Travel Commission or the Department of 30
10601059 Parks, Heritage, and Tourism, or both, by the State Highway Commission shall 31
10611060 not be subject to the procedures set forth in subsections (a) -(e) of this 32
10621061 section. 33
10631062 (2) Surplus rail and other track material described under this 34
10641063 subsection may be transferred by gift or contract to a regional intermodal 35
10651064 facilities authority, a metropolitan port authority, or a planning and 36 SB361
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10681067 development district , or an industrial development authority . 1
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10701069 3
1071-APPROVED: 4/14/25 4
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