Introduction
Now that the 95th General Assembly of the Arkansas Legislature has adjourned sine die, I think we can all agree: What a session!
Going into the session, we knew cities and towns would be a focal point for many a legislator, with bills directly impacting Arkansas’ municipalities being filed from the get-go. The primary focus of the session was the role that cities and towns play in development, or as some legislators contend, the role cities and towns play in slowing down development. Our constant flurry of legislative alerts likely alerted you all to the fact that housing, development and land-use issues dominated the session, and in turn we dedicated a great deal of our attention to those issues, too.
Of course, much more happened while land use was dominating the conversation. The Freedom of Information Act underwent an overhaul, legislators restricted district court funding, a bevy of election bills were passed, and big changes arrived for accounting and budgeting law. All in all, it was an incredibly eventful session, and it’s one we won’t soon forget.
Before we dig into some of the most impactful bills of the session, I want to acknowledge the hard work and dedication of the League’s legislative advocacy team. Throughout the session, these folks have worked diligently on issues critical to the growth and sustainability of the cities and towns of Arkansas. It’s an honor to be a part of such a great group of dedicated and talented individuals.
Finally, none of this is possible without Arkansas’ municipal officials making their voices heard. Your voices play a critical role during any legislative session, and the strength of your collective voices was on full display in 2025. Your insights and advocacy were instrumental in shaping policies that truly address the needs and concerns of the cities and towns of Arkansas. While we represent your collective voices in front of the legislature, the legislative advocacy team agrees that our voices are mere whispers compared to yours!
Now, on to the most noteworthy pieces of legislation of the 95th General Assembly. To help organize such an intense session in a clear and concise manner, the Acts are categorized by topic and include a summary and a link to the full text of each Act at arkleg.state.ar.us. Use the table of contents below to jump directly to a specific topic. And as always, please contact your city attorney or the League’s Municipal Law department with any questions.—John Wilkerson, General Counsel & Legislative Director
Table of Contents
Accounting, Bidding & Budgets
Act 24 authorizes a municipality that has not adopted a budget by January 1 to pay for certain expenditures in accordance with the budget from the previous year until a new budget for the year is adopted by the governing body. However, expenditures are limited to necessary operational expenses of the municipality, including without limitation: (1) Expenditures to ensure all regular and usual government services offered by the municipality are maintained; (2) Expenditures necessary to protect the peace, health and safety of the residents of the municipality; (3) Payroll and benefits of employees of the municipality as the employee’s salary existed on December 31; (4) Payments of contracts for commodities or services previously entered into by the municipality in which payment is due; and (5) Payments of outstanding debt or bonds, including interest, as authorized under applicable law. The municipality will not be allowed to make new capital purchases based on the previous budget’s authorization of capital purchases. The purpose of Act 24 is to give municipalities leeway in operating throughout the month of January and onward until a new budget is adopted, but it limits this authorization to only expenditures on those items necessary to continue the operation of the municipality.
READ ACT 24Prior to Act 107, the law authorized municipalities to purchase after-market equipment for new motor vehicles up to $1,200 without the need to solicit bids; the law also allowed for the purchase amount of the new motor vehicle to include additional options up to $600 without the need to solicit bids. Act 107 increased both these thresholds to $2,000.
Read Act 107Act 111 requires Arkansas Legislative Audit to establish a uniform chart of accounts for cities of the second class and incorporated towns by ~ August 2028. Legislative Audit will provide for a uniform account coding structure over revenues, expenditures and balances, and will include budgeting and fund classification aspects designed to classify the receipt of funds and the appropriations and disbursements of funds in accordance with the object and purpose for the expenditures in sufficient details to ensure that current information will always be available concerning the financial condition of municipalities. This may sound like a burden, but Legislative Audit has promised to work with the League in developing the uniform chart of accounts. Additionally, Legislative Audit will aid in future training of municipal treasurers and finance officers on the use of the new chart of accounts.
Read Act 111Act 371 makes robust changes to the district court funding scheme, removing the obligation of cities and counties to pay district court judges’ salaries. Municipalities will need to adjust their budgets to reflect the removal of district court judges’ salary obligations, allocate funds from the city administration of justice funds to specified programs, manage and report the retention and use of these funds, follow specified procedures for fund management and disbursement, implement new installment payment procedures and fee structures, consider specified factors when authorizing salary increases, and collect and remit the court technology fee as specified.
READ ACT 371Act 671 requires each city treasurer, whether elected or appointed, to complete a minimum of eight hours of training provided by the Arkansas Municipal League in cooperation with the Arkansas Legislative Audit. The training must be completed within 180 days of the city treasurer taking office. If the city treasurer does not comply with the training requirements within the specified timeframe, the governing body of the municipality may assign specific duties of the city treasurer to another private, qualified person or entity. The Act defines a “private, qualified person” as a person who is a resident of Arkansas and has previous experience in municipal accounting in Arkansas, or has completed the required eight-hour training. Act 671 becomes effective on July 1, 2026.
Read Act 671Act 720 requires the Arkansas Department of Finance and Administration to send a notification to the governing body of a municipality stating that a sales and use tax is expiring at least 120 days prior to the expiration of the sales tax.
Read Act 720Act 993 clarifies the law concerning the collection and distribution of sums collected by a district court and provides a mechanism for cities and incorporated towns that do not operate a district court and do not have a police department to receive the appropriate distribution of sums collected by the district court to ensure remediation. Moreover, the Act provides accounting procedures for all fines, penalties, forfeitures, fees, and costs received by the district court or any officers of the town or city.
Read Act 993Administrative / General
Act 573 amends the Arkansas Code requiring local government buildings to display the national motto, “In God We Trust,” to add an additional requirement that each public building, upon donation or by voluntary contributions to the governing body, display a copy of the Ten Commandments in the exact language provided in the text of the Act, in a durable poster or framed copy that is at least 16 inches by 20 inches.
READ ACT 573Act 834 amends the Arkansas Code to allow cities of the first class with a population of less than 7,500 to be reduced to a city of the second class upon adoption of an ordinance. The law previously required a city of the first class to be reduced to a population under 5,000 to have the option to be reduced to a city of the second class.
READ ACT 834Act 848 requires all public entities to create a technology resources policy that defines the authorized uses of technology resources for the public entity. Under the Act, a public entity is defined as “an instrumentality funded in whole or in part by taxpayer funds.” The Act also requires public entities to create an artificial intelligence (AI) and automated decision tool policy that defines the authorized uses of the tools and requires an authorized human employee or designee to make and final decision in the course of their employment, regardless of AI recommendations.
READ ACT 848Act 929 requires municipal governments to use a “.gov” domain for the municipal government website and any email addresses made available by the municipal government for the municipality or its employees. A municipal government may operate a website in addition to a “.gov” domain if a reasonable person would not mistake the website as the primary municipality website and it is solely for internal use, in temporary use for no more than one year, or relates to an event, program or informational campaign operated by the municipality in partnership with another person or entity that is not a governmental entity.
READ ACT 929Elections
Act 250 requires a candidate for office to file a final report 20 days after the end of the month following the month in which the candidate’s name appeared on the ballot in any primary, runoff, general or special election covering all contributions received and expenditures made for that election which have not been disclosed on reports previously filed through the month following the month during which an election is held.
READ ACT 250Act 283 requires cities of the first class to send a copy of the ordinance detailing whether the election for city council members will be by ward or at-large to the county clerk. The city council under A.C.A. § 14-43-207(b)(1)(A) is already permitted to provide, by ordinance, for the election of city council members by ward; this Act merely requires a copy of that ordinance to be filed with the county clerk’s office by the specified date.
READ ACT 283Act 360 simply adds “beginning at 12:00 noon and” to the current law to read that petitions for independent candidates for municipal office are required to be filed during a one-week period “beginning at 12:00 noon and ending at 12:00 noon 90 days before the general election with the county clerk.”
READ ACT 360Act 405 amends the dates during which the preferential primary election will be held to the first Tuesday after the first Monday in March. A few sessions back, the General Assembly amended the dates in which we could hold local special elections to coincide with the primary and general elections. With the changes made under Act 405, the special election dates also changed. Special elections may now be held on (1) the first Tuesday after the first Monday in March and/or (2) the second Tuesday of November. This change still provides municipalities two dates a year to hold a special election, and it will also be in March and November regardless of if the president is on the ballot or not.
READ ACT 405Under Act 768, the sponsor of each local initiative and referendum petition must submit to the county clerk: 1. The original draft of the initiative or referendum petition, 2. Ballot title for approval or denial, 3. All canvasser affidavits, 4. Complete list of all paid canvassers’ names and current addresses, 5. Copy of signed statement provided by the paid canvasser; and 6. Sponsor certification that each paid canvasser has no disqualifying offenses. The county clerk must certify the following: that the ballot title (or “substitute and certify a more suitable and correct ballot title”); that each canvasser who collected signatures submitted an affidavit certifying that the canvasser complied with the Arkansas Constitution and that all Arkansas laws regarding canvassing, perjury, forgery, etc., in the procurement of petition signatures; and that the sponsor submits a list of all paid canvassers who collected signatures (updated upon any changes) with the canvasser’s name, current address, a signature card and a copy of the signed statement discussed above. The Act also requires that each initiative and referendum petition contain the full ballot title at the top of EACH signature page.
READ ACT 768Act 991 amends the law concerning runoff elections to mirror the procedure for runoff elections in county elected offices. When there are more than two candidates for election to a municipal office at any general election held in Arkansas, and no candidate receives a majority of the votes cast for that office, there shall be a runoff election held in the municipality four weeks following the date of the general election at which the names of the two candidates receiving the highest number of votes, but not a majority, shall be placed on the ballot to be voted on by qualified electors of the municipality.
READ ACT 991Act 995 requires that, regardless of the classification or form of government of the municipality, a vacancy of a municipal office shall be filled according to one of the following methods: (1) At the first council meeting after the vacancy is declared, the governing body shall elect, by a majority vote, a person to serve the unexpired term. In a city with a population of 50,000 or less, the governing body can vote to appoint a member of the governing body of the municipality to fill the vacancy. Such an appointment is not subject to veto by the mayor. (2) At the first council meeting after the vacancy is declared, the governing body shall either 1) call a special election to fill the vacancy to be held at the next special election date under A.C.A. § 7-11-101 et seq. to fill the vacant position for the remainder of the term or 2) appoint a qualified elector, including a member of the governing body of the municipality—if the population is less than 50,000—to serve in office until the special election.
READ ACT 995Police & Fire
Act 317 mandates that all full-time law enforcement officers, regardless of their titles, employed by municipalities (cities of the first class, cities of the second class and incorporated towns) be compensated for all legal holidays established by the governing body of the municipality.
Read Act 317Act 398 requires public employers to provide licensed counseling coverage for a certain number of hours within a calendar year for public safety employees who experienced a traumatic event. The Act defines public safety employees as probation officers, surveillance officers, adult or juvenile detention officers, police officers and firefighters. Moreover, the Act defines a traumatic event as a public safety employee’s exposure in the line of duty to an incident involving the extraordinary traumatic bodily injury or death of a person; the serious injury, death, abuse or exploitation of a minor; an immediate threat to the life of the public safety employee or another person; or a mass casualty event.
Read Act 398Act 415 amends the Arkansas Code to include a firefighter—defined as a full-time or part-time paid member of a fire department who actively engages in fire suppression, rescue, pump operation or other firefighting activity and receives more than $5,000 in total compensation during the taxable year from the fire department—to remain on a municipality’s health benefit plan until eligible for Medicare. This Act does not change the law regarding the requirements for a retiree to stay on the municipality’s health benefits plan such as payment of premiums. It simply provides a retired firefighter with the option to stay on the health plan until they are eligible for Medicare.
Read Act 415Act 673 permits the quorum court to levy dues on those residents upon adoption of an ordinance by the quorum court authorizing a county official to collect and remit those dues to the volunteer fire department whose fire protection district covers an unincorporated area of the county.
Read Act 673Employment & Retirement
Prior to Act 413, the Arkansas Code only authorized retirement benefits for city clerks, city clerk/treasurers, and mayors in cities of the first class to be passed on to the official’s spouse if the municipal official passed way and if approved by the governing body. In other words, there was no option for the governing body to elect to authorize spouses to receive retirement benefits in the event the retired municipal official passed away for any other official other than city clerks, city clerk/treasurers, and mayors in cities of the first class. Act 413 amends the Arkansas Code to authorize the spouse of deceased city attorneys, deputy city clerks, mayors in cities of the second class and incorporated towns, and city treasurers to receive those retirement benefits. This is purely optional for cities and towns; there is no requirement to provide such benefits to spouses.
Read Act 413Regulation / General
Act 747 prohibits local governments from establishing or implementing a diversity, equity and inclusion (DEI) initiative or requiring a current or prospective employee, officer, agent, administrator or contractor of the local government to submit a statement or diversity statement describing his or her views on matters related to race, ethnicity, sex, color or national origin to be considered for the purposes of hiring, evaluating, admitting or promoting that person. A DEI initiative is defined as an office, division, department or administrative provider of a unit of the local government with the purpose of (1) influencing administrative, hiring or employment practices of the local government, (2) promoting: (a) preferences based on race, color, sex, ethnicity or national origin, (b) differential treatment on the basis of race, color, sex, ethnicity or national origin, or (c) political or social activities to consider race, color, sex, ethnicity or national origin as factors in decision making, except when required by federal or state law. Moreover, the Act prohibits an officer, agent, administrator, employee or contractor of local governments from adversely or advantageously treating an individual on the basis of his or her race, color, sex, ethnicity or national origin.
Read Act 747Regulation / Zoning
Act 313 restricts a municipality from regulating against the use of at least one ADU using on a lot or parcel that contains a single-family dwelling. An “accessory dwelling unit” is defined under the Act to mean a self-contained and independently accessed living unit on the same parcel as a single-family dwelling of greater square footage that includes its own cooking, sleeping and sanitation facilities and complies with or is otherwise exempt from any applicable regulatory requirements, for example, fire codes, and permit regulations. The ADU can, under the Act, operate as a short-term rental and if detached, must not occupy more than 75% of the size of the internal habitable area of the single-family dwelling or 1,000 square feet, whichever is less.
Read Act 313For more than 50 years, municipalities have had some limited authority to certain powers outside of the corporate limits of the city—anywhere from 1-3 miles outside of the corporate limits depending on the size and certain characteristics of the municipality. Municipalities could exercise jurisdiction over subdivisions, the construction, installation and inspection of electrical work, and in some limited cases zoning authority in this extraterritorial jurisdiction. After the passage of Act 314, extraterritorial jurisdiction no longer exists.
Read Act 314Act 459 prohibits local governments from enacting, maintaining or enforcing an ordinance or resolution that would have the effect of controlling the amount charged for rent, rental application fees or rental deposits for the leasing of private residential or commercial properties.
Read Act 459Act 591 provides a framework for the usage of third-party inspectors. After receipt of a request for a permit, the local government shall notify the applicant, within five days of receipt, as to whether the request for a permit meets the regulatory requirements for a complete application. Once the local government notifies the applicant of the completeness of the application, the local government must also notify the applicant as to whether personnel employed with or contracted by the local government will be able to provide by plan review for approval, denial or request for revisions on the request for permit within 60 days. If the government cannot provide the personnel within 60 days, the applicant may, within three days of notification from the local government official, request that the local government retain a private professional provider, at the local government’s expense, to provide the required plan review. If the local government can provide the personnel for the plan review within the required timeframe, the applicant may still elect to retain a private professional provider, but such services will be solely at the applicant’s expense.
Read Act 591Act 595 authorizes a municipality to create an administrative procedure for changing the zone or district designation of a property. The governing body of a municipality may establish, by ordinance, an administrative procedure for changing the zone or district designation of a property when the request is: (1) made by the property owner; and (2) consistent with the adopted land use plans. Decisions rendered on administrative changes of a zone or district designation may be appealed to the planning commission of the municipality.
Read Act 595Utilities
Act 699 outlines the procedures between ARDOT and utilities when the utilities need to be moved out of the state’s right-of-way. When a utility is located within the state’s right-of-way and needs to be removed, relocated, or adjusted to accommodate changes, ARDOT and the utility must negotiate a relocation agreement. This agreement will define a reasonable schedule for the relocation and outline the responsibilities of each party. The agreement will include a timeline for relocating the utility. If the municipal utility cannot comply with this timeline, ARDOT has the authority to relocate the utility. However, if the municipality provides ARDOT with a list of at least three approved engineers and contractors or design specifications for the utility relocation within 10 days of receiving notice from ARDOT, ARDOT will contract only with those approved by the municipality. Additionally, if the municipality supplies design specifications within 10 days of receiving notice, ARDOT will adhere to these specifications. The municipal utility also has the right to inspect the relocation process, including any underground utility before it is covered, and may pursue claims against any person or entity other than ARDOT related to the relocation, whether under the contract with ARDOT or by law.
Read Act 699Act 736 expands the eligibility for water development state programs to include, in addition to nonprofit corporations, any governmental entity, municipal nonprofit entity, municipal authority, governmental authority, investor-owned water or wastewater utility, improvement district or rural development authority that provides, distributes, transmits, treats, pumps or stores raw or potable water to or for the benefit of members of the general public and commercial, industrial and other users that proposes to accomplish, develop or construct any of the foregoing.
Read Act 736Act 812 establishes the Water and Sewer Treatment Facilities Grand Program Fund to be used by the Arkansas Natural Resources Commission to award grants for primarily shovel-ready infrastructure and improvement projects for eligible water and sewer treatment facilities. The Commission is tasked with creating and awarding grants, and will award up to 80%.
Read Act 812Act 925 establishes that all public and private providers of a sewage collection service or sewage treatment service will be determined to be in fiscal distress if the provider: (1) fails to provide a rate study; (2) fails to implement the completed rate study required under this Act; or (3) has been found by the Arkansas Natural Resources Commission to be in significant noncompliance with the rules of the Commission because of inadequate funds for operation and maintenance or inadequate compliance with the rules of the Commission. For providers serving 500 or fewer customers, the rate study must be obtained by July 1, 2028, and every five years thereafter. For providers serving not less than 501 customers and not more than 1,000 customers, the rate study must be obtained by July 1, 2029, and every five years thereafter. For providers serving more than 1,000 customers, the rate study must be obtained by July 1, 2030, and every five years thereafter. Such rates must be implemented within one year of receipt of the rate study unless the rate study requires a rate increase of 50% or more, in which case it will be implemented over a two-year period. Like Act 605 of 2023, which required rate studies for water systems, Act 925 requires a provider to deposit a minimum of 5% per annum of gross revenues in a dedicated refurbishment and replacement account. Moreover, a provider’s board members must complete eight hours of training as promulgated by rule of the Arkansas Natural Resources Commission.
Read Act 925Freedom of Information Act
Act 505 amends the Arkansas Freedom of Information Act to provide clearer guidance on communications of employees or agents of a public entity and discussions outside of public meetings. The Act defines a “public meeting” to mean the formal gathering together, in a special or regular gathering, of a governing body, whether in person or remotely. The definition of public meeting specifically excludes the gathering of members of a governing body to discuss the settlement of a cause of action in a court-ordered alternative dispute resolution process and meetings of the Child Maltreatment Investigations Oversight Committee. Moreover, the Act defines an “informal meeting” as a gathering of two or more members of the governing body outside of a public meeting. An informal meeting that includes deliberation or that is for the purpose of exercising a responsibility, authority, power or duty of a governing body is strictly prohibited. However, two or more employees or agents of a public entity may communicate for the purpose of exercising an authorized responsibility, authority, power or duty of an employee or agent of the public entity outside of a public meeting without violating Arkansas’ FOIA laws. The difference between the prohibited and permissible informal meetings is the prior public deliberation or discussion of the responsibility, authority, power or duty. Where the responsibility, authority, power or duty has not been deliberated or voted on at public meetings, it cannot be discussed by employees or agents of the governing body at informal meetings. If the circuit court finds that a governing body has violated this section, the circuit court may invalidate any action the governing body took at the unlawful public meeting.
Read Act 505Act 992 amends Act 505 of 2025 to provide additional authority of the circuit court to invalidate a governing body’s issuance of bonds within 30 days of the governing body’s issuance where such issuance was enacted in violation of Arkansas FOIA.
Read Act 992
