AR SB640

Establishes Property Assessed Clean Energy (PACE) Act creating energy improvement districts authorized to issue revenue bonds and provide loans for energy efficiency improvements, renewable energy projects, and water conservation improvements on residential, commercial, and industrial properties.

Districts may be created by municipalities, counties, or combinations thereof through ordinance adoption and joint agreements; governed by boards of directors consisting of at least seven members including county judges and mayors or their designated representatives.

Allows districts to place liens on properties equal to loan values, with liens attaching upon filing in county recorder's office and subordinate to tax liens; liens transfer to new owners if property is sold and cannot be accelerated in default situations.

Requires loan payments to be combined with real property tax billing; mandates annual reporting to county clerks including district contracts, indebtedness, board member information, meeting schedules, and financial statements by March 1 each year.

Districts must hold public hearings before enacting loan programs, charge specified commissions to county officials for assessment collection (1.5% to assessor/collector, 0.125% to treasurer), and comply with underwriting standards and consumer protections established by the board of directors.