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requirement for compliance with detachment procedures outlined in Arkansas Code 14-362-301 et seq., which are now repealed. Additionally, the bill repeals Subchapter 3 of Arkansas Code Title 14, Chapter 362, which included various provisions related to annexation and detachment, streamlining the process and providing greater flexibility for regional airport authorities.

Furthermore, the bill addresses the relationship between municipalities and authorities concerning detachment petitions and debt obligations. It removes previous restrictions on municipalities regarding tax increases or revenue reallocations after a detachment petition has been filed, instead requiring municipalities to enter into agreements with authorities to document tax collections and payments while debt obligations are outstanding. 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 legal framework for municipal and authority interactions, ensuring that municipalities cannot initiate litigation regarding contract impairments if a written agreement exists or if a court order for detachment has been issued.

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