AR HB1249

Adds Subchapter 6 to Arkansas Code Title 14, Chapter 123, establishing a procedure for dissolving or abolishing levee districts created under § 14-123-201 et seq.

Allows the board of commissioners, board of directors, or a majority of property owners (by number, acreage, or value) to petition the county court for dissolution if the district's improvements are deemed inadvisable, impractical, or not in the property owners' best interest.

Requires the county court to publish notice of the petition in a newspaper for at least 2 consecutive weeks, hold a hearing, and determine whether dissolution serves the best interests of property owners; overruling one petition does not bar future petitions.

Permits the county court to prohibit the district from making contracts, pledging assessments, incurring new debt, or issuing bonds during the petition's pendency; if all board positions are vacant, the court shall appoint an administrator.

Dissolved districts continue existing solely to prosecute and defend suits, settle business, dispose of property, and levy taxes for obligations and liquidation expenses, but cannot construct improvements or create new debt except for settlement purposes.

Establishes a 6-month deadline for creditors to present claims after the dissolution order, with claims barred thereafter; the county court must rule on allowances within 30 days and creditors may appeal or institute separate actions.

Requires commissioners to certify indebtedness and necessary tax levy to the county court, which approves and certifies the levy to the quorum court; taxes are collected using standard enforcement procedures.