AR HB1692

Amends Arkansas Code § 27-70-207 to clarify that funds from the severance tax on natural gas (§ 26-58-124(c)(2)) can be used by municipalities for any legitimate municipal purpose, not limited to transportation projects.

Allows counties receiving severance gas turnback funds to expend them on any legitimate county purpose, removing restrictions to transportation-only uses.

Removes the reference to "Section 2 of the Highway Improvement Revenue Act of 2007" and replaces it with the direct statutory citation "§ 26-58-124(c)(2) related to the severance tax on natural gas" for technical clarification.

Maintains existing distribution formulas for County Aid Fund (based on area, motor vehicle fees, population, and rural population) and Municipal Aid Fund (based on population per federal census).

Applies the same general-use authorization to both county and city funds derived from natural gas severance tax revenues.