Stricken language would be deleted from and underlined language would be added to present law. Act 359 of the Regular Session 1 State of Arkansas As Engrossed: S3/2/21 2 93rd General Assembly A Bill 3 Regular Session, 2021 HOUSE BILL 1251 4 5 By: Representatives Bentley, Hillman 6 By: Senators G. Stubblefield, Rapert 7 8 For An Act To Be Entitled 9 AN ACT TO AMEND THE LAW CONCERNING IMPROVEMENT 10 DISTRICT AND PROTECTION DISTRICT REPORTING 11 REQUIREMENTS FOR COLLECTION OF ASSESSMENTS BY COUNTY 12 COLLECTORS; AND FOR OTHER PURPOSES. 13 14 15 Subtitle 16 TO AMEND THE LAW CONCERNING IMPROVEMENT 17 DISTRICT AND PROTECTION DISTRICT 18 REPORTING REQUIREMENTS FOR COLLECTION OF 19 ASSESSMENTS BY COUNTY COLLECTORS. 20 21 22 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 23 24 SECTION 1. Arkansas Code 14-86-103 is amended to read as follows: 25 14-86-103. Reporting Definition. 26 (a) Definitions. 27 As used in this section, district means any levee, drainage, 28 irrigation, watershed, or river improvement district in Arkansas, including 29 without limitation those districts: 30 (1) Formed or operating under this chapter, 14-87-101 et seq., 31 14-88-101 et seq., 14-89-101 et seq., 14-90-101 et seq., 14-91-101 et 32 seq., 14-92-101 et seq., the Property Owners' Improvement District Law, 33 14-93-101 et seq., the Municipal Property Owner's Improvement District Law, 34 14-94-101 et seq., 14-95-101 et seq., 14-114-101 et seq., the Interstate 35 Watershed Cooperation Act, 14-115-101 et seq., the Arkansas Irrigation, 36 Drainage, and Watershed Improvement District Act of 1949, 14-117-101 et *KLL013* 03-02-2021 13:29:28 KLL013 As Engrossed: S3/2/21 HB1251 1 seq., 14-118-101 et seq., The Water Improvement District Accounting Law of 2 1973, 14-119-101 et seq., 14-120-101 et seq., 14-121-101 et seq., 14- 3 122-101 et seq., 14-123-101 et seq., 14-124-101 et seq., and the 4 Conservation Districts Law, 14-125-101 et seq.; or 5 (2) Created by a special act of the General Assembly. 6 (b)(1) On or before December 31, 2009, each district shall file an 7 initial report with the clerk of the county court in whose jurisdiction any 8 property of the district is located. 9 (2) The initial report shall include the following: 10 (A) The name of the district; 11 (B) The date on which the district was formed; 12 (C) The statutory or other legal authority under which the 13 district was formed; 14 (D) A description of the district's boundaries and a map 15 of the district; 16 (E) The names and addresses of the district's directors 17 and its officers and their respective terms of office; 18 (F) An identification of any vacancy on the district board 19 or district commission; 20 (G) A map of the parcels of property located in the 21 district; and 22 (H) The time, date, and location of the district board's 23 or district commission's next annual meeting or, if the annual meeting is 24 unscheduled, the time, date, and location of the district board's or district 25 commission's next meeting. 26 (c)(b)(1) On Upon creation, on or before December 31, 2010 April 1, 27 2022, and annually afterwards thereafter, the district shall file with the 28 clerk of the county court in whose jurisdiction any property of the district 29 is located a report an Annual Report for the preceding fiscal year that 30 includes: 31 (A) Provides the names and addresses of the members of the 32 district board or district commission and its officers; 33 (B) Identifies any vacancy on the district board or the 34 district commission; and 35 (C) Provides the time, date, and location of the district 36 board's or district commission's next annual meeting, if scheduled, and its 2 03-02-2021 13:29:28 KLL013 As Engrossed: S3/2/21 HB1251 1 next regularly scheduled meeting 2 The name of the district; 3 (B) The date on which the district was formed; 4 (C) The statutory or other legal authority under which the 5 district was formed; 6 (D) A description of the district's boundaries and a map 7 of the district; 8 (E) The names, phone numbers, addresses, and email 9 addresses of the district's directors or commissioners and the district's 10 officers, if any, and their respective terms of office; 11 (F) An identification of any vacancy on the district board 12 or district commission; 13 (G) The date, time, and location of the district board's 14 or district commission's next annual meeting or, if the annual meeting is 15 unscheduled, the date, time, and location of the district board's or district 16 commission's next meeting; 17 (H) A general description of the districts current and 18 future maintenance and repair needs; 19 (I) A list of contracts, the identity of the parties to 20 the contracts, and the obligations of the district; 21 (J) Any indebtedness, including bonded indebtedness, and: 22 (i) The reason for the indebtedness; and 23 (ii) The stated payout or maturity date of the 24 indebtedness; 25 (K) The total existing delinquent assessments and the 26 party responsible for the collection; 27 (L) The contact information for the district assessor, 28 including name, phone number, address, and email address; 29 (M) If the county collects for the district, information 30 concerning to whom the county treasurer is to pay district assessments; 31 (N) An explanation of the statutory penalties, interest, 32 and costs; 33 (O) The method used to compute district assessments; and 34 (P) A statement itemizing the income and expenditures of 35 the district, including a statement of fund and account balances of the 36 district for the most recent fiscal year. 3 03-02-2021 13:29:28 KLL013 As Engrossed: S3/2/21 HB1251 1 (2) The Within thirty (30) days of receipt, the clerk of the 2 county court in whose jurisdiction any property of the district is located 3 shall forward a file-marked copy of all reports filed under this subsection 4 to the Arkansas Natural Resources Commission and the Division of Emergency 5 Management. 6 (d)(c)(1) A The county judge of the county or the mayor of the 7 municipality in which all or a portion of the district lies shall appoint an 8 administrator of the district to act as the board of commissioners if the 9 district that fails to perform any of the requirements of subsection (b) or 10 subsection (c) of this section commits a violation punishable by a fine of 11 not less than one hundred dollars ($100) and not more than one thousand 12 dollars ($1,000) for each offense. 13 (2) A fine recovered under subdivision (d)(1) of this section 14 shall be deposited into the county clerk's cost fund The administrator 15 appointed under subdivision (c)(1) of this section: 16 (A) Is subject to the applicable laws of the district; 17 (B) Shall provide evidence of his or her economic 18 viability; 19 (C) Shall receive such payment for his or her services as 20 the county judge or the mayor may allow; 21 (D) Shall serve at the pleasure of the county judge or 22 mayor and until such time as the county judge or mayor determines the 23 administrator is no longer necessary; and 24 (E) Is not liable for damages in connection with the 25 district unless the administrator acted with corrupt and malicious intent. 26 (3) A district shall not receive financial assistance from any 27 state agency for a two-year period following the date the fine was assessed 28 under subdivision (d)(1) of this section. 29 30 SECTION 2. Arkansas Code 14-86-2101 is amended to read as follows: 31 14-86-2101. Legislative intent. 32 This subchapter applies to all improvement districts or protection 33 districts organized under Arkansas law or created by special act of the 34 General Assembly that use the county collector either voluntarily or by 35 statutory requirement for collection of improvement district assessments or 36 protection district assessments unless otherwise noted. 4 03-02-2021 13:29:28 KLL013 As Engrossed: S3/2/21 HB1251 1 2 SECTION 3. Arkansas Code 14-86-2102 is amended to read as follows: 3 14-86-2102. Annual improvement district or protection district filing. 4 (a)(1)(A) By March 1 of each year Beginning April 1, 2022, or upon the 5 creation of an improvement district or protection district and on April 1 of 6 each year thereafter, an improvement district or protection district that 7 uses or intends to use the county collector for collection of improvement 8 district assessments or protection district assessments shall: 9 (1)(A) File file an annual report Annual Report with the county 10 clerk in any county in which a portion of the improvement district or 11 protection district is located. 12 (B) The annual report shall be available for inspection 13 and copying by assessed landowners in the improvement district or protection 14 district. 15 (C) The county clerk shall not charge any costs or fees 16 for filing the annual report. 17 (D) The improvement district or protection district shall 18 deliver a filed copy of the annual report to the county collector, county 19 assessor, and county treasurer within five (5) days of filing; and. 20 (E) Within thirty (30) days of receipt, the county clerk 21 shall forward to the Arkansas Natural Resources Commission and the Division 22 of Emergency Management a file-marked copy of the report filed by a levee 23 district, drainage district, or levee and drainage district that is a 24 district as defined in 14-86-103. 25 (2) The annual report shall contain the following information as 26 of December 31 of the current calendar for the preceding fiscal year: 27 (A) Identification of the primary statute under which the 28 improvement district or protection district was formed; 29 (B) A general statement of the purpose of the improvement 30 district or protection district; 31 (C) A list of contracts, the identity of the parties to 32 the contracts, and the obligations of the improvement district or protection 33 district; 34 (D)(i) Any indebtedness, including bonded indebtedness, 35 and the reason for the indebtedness. 36 (ii) The stated payout or maturity date of the 5 03-02-2021 13:29:28 KLL013 As Engrossed: S3/2/21 HB1251 1 indebtedness, if any, shall be included.; 2 (iii)(E) The total existing delinquent assessments 3 and the party responsible for the collection; 4 (E)(F) Identification of the improvement district or 5 protection district directors or commissioners and improvement district or 6 protection district officers, if any, and contact information, including 7 names, phone numbers, addresses, and email addresses; 8 (F)(G) The date, time, and location for any scheduled 9 meeting of the improvement district or protection district for the following 10 current year; 11 (G)(H) The contact information for the improvement 12 district or protection district assessor, including name, phone number, 13 address, and email address; 14 (H)(I) Information concerning to whom the county treasurer 15 is to pay improvement district or protection district assessments; 16 (I)(J) An explanation of the statutory penalties, 17 interest, and costs; 18 (J)(K) The method used to compute improvement district or 19 protection district assessments; and 20 (K)(L) A statement itemizing the income and expenditures 21 of the improvement district or protection district, including a statement of 22 fund and account activity for balances of the improvement district or 23 protection district for the most recent fiscal year. 24 (b)(1) An The county judge of the county or the mayor of the 25 municipality in which a portion of an improvement district or protection 26 district that is located shall appoint an administrator of the improvement 27 district or protection district to act as the board of commissioners if the 28 improvement district or protection district does not comply with subsection 29 (a) of this section commits a violation punishable by a fine of not less than 30 one hundred dollars ($100) and not more than one thousand dollars ($1,000) 31 for each offense. 32 (2) A fine recovered under subdivision (b)(1) of this section 33 shall be deposited into the county clerk's cost fund The administrator 34 appointed under subdivision (b)(1) of this section: 35 (A) Is subject to the applicable laws of the improvement 36 district or protection district; 6 03-02-2021 13:29:28 KLL013 As Engrossed: S3/2/21 HB1251 1 (B) Shall provide evidence of his or her economic 2 viability; 3 (C) Shall receive such payment for his or her services as 4 the county judge or the mayor may allow; 5 (D) Shall serve at the pleasure of the county judge or 6 mayor and until such time as the county judge or mayor determines the 7 administrator is no longer necessary; and 8 (E) Is not liable for damages in connection with the 9 improvement district or protection district unless the administrator acted 10 with corrupt and malicious intent. 11 (c)(1) On or before December 31 15 of each year, the improvement 12 district or protection district shall file its list of special assessments 13 for the following calendar year with the county clerk in any county in which 14 a portion of the improvement district or protection district is located. 15 (2)(A) After filing the list of special assessments, the 16 improvement district or protection district shall deliver a copy of the filed 17 list of special assessments to the preparer of the tax books. 18 (B) If the county collector is not the designated preparer 19 of the tax books, the improvement district or protection district shall 20 deliver a copy of the filed list of special assessments to the county 21 collector. 22 (3) The list of special assessments shall contain: 23 (A) A list of each parcel with an assessment levied 24 against it within the improvement district or protection district; and 25 (B) The contact information for the improvement district 26 assessor or protection district assessor, including name, phone number, 27 address, and email address. 28 (4) The list of fees special assessments shall not include 29 assessments on parcels that otherwise would not appear on the tax books for 30 the following year. 31 (5) After the December 31 15 deadline to file the list of 32 special assessments, the county collector may shall reject an assessment 33 submitted by the improvement district or protection district for inclusion in 34 the list of special assessments. 35 (6) If an improvement district or protection district has failed 36 to file the annual report required under this section, the county treasurer 7 03-02-2021 13:29:28 KLL013 As Engrossed: S3/2/21 HB1251 1 shall withhold disbursement of any funds collected through assessments until 2 receipt of the most recent annual report required under this section.