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HB 1522

GOVERNMENT-TECH

104th Regular Session Introduced by Marcus Evans

House Bill 1522 allows newly incorporated Arkansas municipalities to access vital funds for services and infrastructure, ensuring timely financial support during establishment.

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Bill Summary · HB 1522

Summary of House Bill 1522 (Act 620)

Bill Number: HB 1522
Title: To Amend the Law to Allow for the Distribution of Funds in the Municipal Aid Fund, Turnback Funds, and County Sales and Use Tax Revenues to Newly Incorporated Municipalities; and to Declare an Emergency.
Status: Now Act 620
Introduced: February 18, 2025
Sponsors: Representative Womack and Senator Clark

Purpose and Intent

House Bill 1522 aims to facilitate the financial support of newly incorporated municipalities in Arkansas by allowing them to access funds from the Municipal Aid Fund, turnback funds, and county sales and use tax revenues. The bill addresses the need for a method to determine the population of these municipalities until official federal census data becomes available.

Key Provisions

  1. Population Calculation Method:

    • The bill establishes that when a municipality incorporates during a federal decennial census year, its population will be calculated by the Arkansas Geographic Information Systems Office based on the most recent federal census data. This calculation will be used for:
      • Municipal Aid Fund: Ensures newly incorporated municipalities receive appropriate funding.
      • County Sales Taxes: Affects the distribution of funds for capital improvements among municipalities within a county.
      • Highway Revenue Distribution: Impacts the allocation of highway revenues to newly incorporated municipalities.

  2. Emergency Clause:

    • The bill includes an emergency clause, which allows it to take effect immediately upon approval by the Governor, or if not vetoed, at the end of the veto period. This urgency is justified by the need for newly incorporated municipalities to access funds for essential services.

Impact

  • Affected Entities: Newly incorporated municipalities in Arkansas will benefit from this legislation as it provides them with a clear mechanism to receive necessary funds for public services and infrastructure.
  • Fiscal Impact: The bill is reported to have no fiscal impact on the state budget or taxpayers, as it does not create new funding but rather clarifies the distribution of existing funds.

Procedural Timeline

  • February 18, 2025: Bill filed and introduced.
  • February 25, 2025: Bill engrossed and amendments adopted.
  • April 9, 2025: Passed by both the House and Senate, with the emergency clause adopted.
  • April 14, 2025: Notification that HB 1522 is now Act 620.

Conclusion

House Bill 1522 represents a significant step in supporting newly incorporated municipalities in Arkansas by ensuring they have access to essential funding during a critical period of establishment. The bill's provisions and emergency status underscore the importance of timely financial support for local governance and community services.

Compiled from official sources — confirm details with the bill’s official record.

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