The bill modifies the detachment process for regional airport authorities from municipalities in Arkansas by amending Arkansas Code 14-362-132(c). It allows an authority to detach from a municipality if the municipality merges, is annexed, or consolidates with another municipality, contingent upon a majority vote from the authority's board of directors. This change replaces the previous requirement for compliance with detachment procedures outlined in Arkansas Code 14-362-301 et seq., which has been entirely repealed. Additionally, the bill repeals Subchapter 3 of Arkansas Code Title 14, Chapter 362, which included various provisions related to annexation and detachment, thereby streamlining the detachment process and simplifying the legal framework governing the relationship between regional airport authorities and municipalities.

Furthermore, the bill removes restrictions on municipalities regarding actions such as increasing taxes or reallocating revenues after a detachment petition has been filed. Instead, it mandates that municipalities must enter into agreements with authorities to document tax collections and payments while debt obligations are outstanding, with provisions for renegotiation in unforeseen circumstances. The bill also introduces a retroactive effect, applying to actions taken from January 1, 2024, and invalidating any detachment petitions filed by regional airport authorities after that date. This aims to clarify the financial interactions between municipalities and authorities, ensuring that pledged taxes and revenues are used solely for debt obligations and preventing municipalities from initiating litigation regarding contract impairments if an agreement is in place.

Statutes affected:
SB 96: 14-362-132(c)