The bill amends the detachment process for regional airport authorities from municipalities in Arkansas by modifying 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. Additionally, the bill repeals Arkansas Code Title 14, Chapter 362, Subchapter 3, which previously outlined the detachment and annexation processes, thereby streamlining the legal framework and providing greater flexibility for regional airport authorities in managing their operations and relationships with local governments.

Moreover, the bill removes restrictions on municipalities regarding tax increases or revenue reallocations once a detachment petition has been filed. It establishes requirements for municipalities and authorities to enter into agreements concerning tax payments while debt obligations are outstanding, including terms 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 this date, thereby clarifying the legal framework governing these relationships and ensuring municipalities can manage their finances effectively during the detachment process.

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