§ 14-362-305 — Petition for detachment

(a) An authority may petition for detachment under this section upon the passing of a resolution by the board of directors of the authority: (1) Recommending the detachment of property owned by the authority from one (1) or more municipalities in which the authority's property is located; and (2) Approved by a vote of at least two-thirds (2/3) of the members of the board. (b) (1) An authority shall file a petition for detachment in the county in which the property the authority is petitioning for detachment is located with the: (A) County court; (B) County assessor; and (C) County clerk. (2) A petition filed under subdivision (b)(1) of this section shall: (A) Be in writing; (B) Name the persons authorized to act on behalf of the authority; (C) Contain an attestation signed before a notary or notaries by a person authorized to sign for the authority as the owner of the property or an agent of the authority confirming the desire to be detached; (D) Contain an accurate description of the relevant property; (E) Contain a letter or title opinion from a certified abstractor or title company verifying that the authority is the owner of record of the relevant property; (F) Contain a letter or verification from a certified surveyor or engineer verifying that an enclave that is not owned by the authority will not be created; (G) Include a schedule of services that are currently provided by the municipality to the property being detached; and (H) Identify any special considerations or factors that the authority and municipality should agree to before the detachment is finalized, including without limitation: (i) The negotiation of outstanding debt obligations; and (ii) A determination of all financial matters pertaining to the schedule of services provided by the municipality under subdivision (b)(2)(G) of this section. (c) (1) Within fifteen (15) days from the date the petition is filed under subdivision (b)(1) of this section, the county assessor and the county clerk shall: (A) Determine whether the petition meets the requirements of subdivision (b)(2) of this section; and (B) Report the determination required under subdivision (b)(2) of this section to the county court. (2) (A) If it is determined that the petition does not meet the requirements of subdivision (b)(2) of this section, the county court shall enter a court order identifying the deficiencies in the petition within five (5) business days from the date the determination was reported to the county court under subdivision (c)(1)(B) of this section. (B) (i) An authority may file an amended petition at any time after the county court enters the court order required under subdivision (c)(2)(A) of this section. (ii) The amended petition is required to meet the requirements of subdivision (b)(2) of this section. (3) If a county assessor and a county clerk report that the petition meets the requirements of subdivision (b)(2) of this section, the county court has fifteen (15) business days from the date the determination was reported to: (A) Review the petition and records for completeness and accuracy; (B) Determine that the detachment does not create an enclave that is not owned by the authority; (C) Confirm the petition contains the schedule of services required by subdivision (b)(2)(G) of this section; (D) At the discretion of the county judge, determine whether the county will be responsible for the maintenance of dedicated public roads and rights-of-way abutting or traversing the property that is being detached; and (E) Issue an order stating the findings required under this subdivision (c)(3) and provide the: (i) Order to the authority; and (ii) Petition and order to the municipality to which the authority is petitioning for detachment. (d) (1) An order issued under subdivision (c)(3)(E) of this section shall require the municipality being petitioned for detachment to file a response with the county court: (A) Within fifteen (15) business days from the date the court order was received; and (B) That states whether the municipality agrees or does not agree with the special considerations or factors to be addressed before the detachment is finalized under subdivision (b)(2)(H) of this section. (2) A municipality that does not agree with the special considerations or factors stated in the petition under subdivision (b)(2)(H) of this section shall file a response with the county court that: (A) States the reason the municipality disagrees with the special considerations or factors stated in the petition under subdivision (b)(2)(H) of this section; and (B) Includes any additional special considerations or factors the municipality may have. (e) (1) An authority has five (5) business days from the date the municipality files the response required under subdivision (d)(2) of this section to respond to the municipality's additional special considerations or factors under subdivision (d)(2)(B) of this section. (2) (A) If the authority does not agree with the additional special considerations or factors, the county court clerk shall set a hearing date to determine the special considerations or factors to be addressed before detachment. (B) The hearing under subdivision (e)(2)(A) of this section shall be set on a date of earliest convenience for both parties but no later than sixty (60) calendar days after the filing of the authority's response under subdivision (e)(1) of this section. (3) (A) If a municipality agrees with the special considerations or factors in the petition required under subdivision (b)(2)(H) of this section, then the county court shall enter an order providing a timeline for the authority and the municipality to negotiate in good faith and to reach an agreement with respect to the special considerations or factors required before detachment is finalized. (B) Unless a different period of time is mutually agreed to by the municipality and the authority, the county court shall require the municipality and the authority to report their agreement to the county court not later than ninety (90) calendar days from the date the order was filed. (C) (i) If an authority and a municipality cannot reach an agreement by the deadline provided under this subdivision (e)(3), the county court shall order the municipality and authority to participate in mediation. (ii) The mediation shall take place not later than sixty (60) calendar days from the date of the order requiring mediation. (iii) (a) The mediator shall file a mediation report with the county court no later than thirty (30) calendar days after the date of the mediation required under subdivision (e)(3)(C)(i) of this section. (b) The mediator's report shall: (1) Contain the agreed-upon terms relating to the special considerations and factors, but only if the mediation is successful; or (2) If the mediation is unsuccessful, state that the parties were unable to come to an agreement relating to the special considerations and factors. (iv) (a) The county court shall enter an order confirming the detachment, and no later than thirty (30) calendar days from the date the mediation report is filed, the county clerk shall forward a copy of the order to the county assessor and to the Secretary of State. (b) The order shall contain: (1) The final terms relating to the special considerations and factors, but only if the mediation is successful; or (2) If the mediation is unsuccessful, the order shall only address the matters required under § 14-362-306 . (f) The property shall be detached from the municipality on the date the county court enters the order confirming the detachment and the county clerk forwards a copy of the order as required under subdivision (e)(3)(C)(iv) of this section. (g) (1) This section shall not prevent the municipality and the authority from presenting a joint agreement confirming their mutually agreed-upon resolution of special considerations or factors that should be addressed before detachment at any time after the petition for detachment is filed by the authority. (2) Absent a determination by the county court that the mutually agreed-upon resolution under subdivision (g)(1) of this section violates Arkansas law, the county court shall accept the mutually agreed-upon resolution and include it in the order approving detachment.

Legislative History

Added by Act 2023, No. 769,§ 7, eff. 8/1/2023.