HB 1663 Summary

• Adds Subchapter 22 to Arkansas Code Title 14, Chapter 86, establishing financial requirements and minimum standards for improvement districts including levee, drainage, road, irrigation, watershed, and utility districts

• Requires districts to retain all financial records, bank statements, and contracts for the life of the district plus 5 years after dissolution; violations are Class C misdemeanor (negligent) or Class B misdemeanor (purposeful)

• Mandates majority owner approval by vote before districts can incur subsequent bonds, notes, or indebtedness, with exceptions for regulatory directives, districts with 1,000+ owners, non-collateralized debt, and debt refunding for cost savings

• Requires districts to assess all lands within boundaries without exclusions or nominal assessments, except state agencies/commissions may opt out of newly formed districts

• Directs the Department of Health to promulgate rules establishing minimum standards for water and sewer improvements by districts, with final rules to be filed by January 1, 2020