Chapter 1 General Provisions

Subchapter 1 — General Provisions

[Reserved.]

Subchapter 2 — Fiscal Duties of Department of Finance and Administration

Cross References. Department of Finance and Administration, § 25-8-101 et seq.

Effective Dates. Acts 1955, No. 315, § 12: Apr. 1, 1955. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that: (1) because of the many demands for public funds for essential and vital public services, there is a continual and pressing need for efficiency in the operation of the fiscal affairs of our state government, and for maintaining the state and all of its agencies on a sound financial basis, thereby making the establishment of the Office of State Comptroller an immediate and vital necessity; and, (2) because it is imperative that the State Comptroller have adequate time before the commencement of the new biennial period, on July 1, 1955, within which to prepare and distribute the manuals of procedure and other regulations for the control of the expenditure of public funds; therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in force from and after April 1, 1955.”

Acts 1971, No. 585, § 34: approved Apr. 6, 1971. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that in order to establish an orderly procedure which will insure the monthly and quarterly distribution of funds for the necessary services and operations of the state government, as provided for in this act, it is necessary that the provisions of this act become effective immediately; that under the provisions of this act seriously needed improvements for many of our public institutions are contemplated, and only the provisions of this act will provide such funds which will be adequate to alleviate this situation; and that only the provisions of this act will correct many of our financial difficulties, and which otherwise may deprive the citizens of this state from receiving the benefits for which the operation of state government contemplates. Therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage.”

Acts 2001, No. 1453, § 49: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that proper and effective management requires that changes to the state's finance and accounting laws begin on the first day of the fiscal year and that if there is an extended recess of the General Assembly, the required ninety day period may extend past July 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 153: July 1, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Arkansas Building Authority, the Arkansas Science and Technology Authority, the Department of Rural Services, and the Division of Land Surveys of the Arkansas Agriculture Department are inefficiently structured; that this inefficient structuring causes an excessive and unnecessary cost to the taxpayers of the this state; and that this act is essential to alleviating that financial burden. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2015.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-1-201. Chief Fiscal Officer of the State.

The Secretary of the Department of Finance and Administration shall be the Chief Fiscal Officer of the State.

History. Acts 1971, No. 585, § 17; A.S.A. 1947, § 13-202; Acts 2019, No. 910, § 3427.

Publisher's Notes. Acts 1971, No. 38, § 5, created the Department of Finance and Administration to replace the State Administration Department, which previously had transferred to it the functions, etc., of the Office of State Comptroller by Acts 1967, No. 468, § 2, abolishing the position of State Comptroller. See § 25-8-101.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration”.

19-1-202. Secretary.

  1. The Secretary of the Department of Finance and Administration shall be at least thirty (30) years of age, of good moral character, and of demonstrated ability in the field of his or her employment.
  2. Before entering upon his or her duties of employment, the Secretary of the Department of Finance and Administration shall take, subscribe, and file in the office of the Secretary of State an oath or affirmation to support the United States Constitution and the Arkansas Constitution and to faithfully discharge the duties of the employment upon which he or she is about to enter.
    1. The Secretary of the Department of Finance and Administration shall furnish bond to the state, with a corporate surety thereon, in the penal sum of ten thousand dollars ($10,000), conditioned upon the faithful performance of his or her duties and for the proper accounting for all funds received and disbursed by him or her.
    2. The Secretary of the Department of Finance and Administration shall be the disbursing agent for the Department of Finance and Administration but shall not be required to furnish additional bond as that disbursing agent, nor shall he or she be required to furnish additional bond as disbursing agent of other appropriations for which he or she may be designated disbursing agent under or pursuant to any law of this state unless so directed by the General Assembly.
    3. The Secretary of the Department of Finance and Administration, if he or she deems it advisable, may require other employees of his or her office to furnish bond, in such penal sums as he or she shall determine.
      1. The original of the bond of the Secretary of the Department of Finance and Administration shall be filed in the office of the Secretary of State, and an executed counterpart thereof shall be filed in the office of the Auditor of State.
      2. Any bonds which may be required of employees shall be filed with the Secretary of the Department of Finance and Administration.

History. Acts 1955, No. 315, § 3; 1971, No. 707, § 1; A.S.A. 1947, § 13-203; Acts 2019, No. 910, § 3428.

A.C.R.C. Notes. The operation of subsection (c) of this section was suspended by adoption of a self-insured fidelity bond program for public officers, officials, and employees, effective July 20, 1987, pursuant to § 21-2-701 et seq. The subsection may again become effective upon cessation of coverage under that program. See § 21-2-703.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a); and substituted “Secretary of the Department of Finance and Administration” for “director” in (b) and throughout (c).

19-1-203. Deputy director.

The Deputy Director of the Department of Finance and Administration, acting under the authority granted to him or her by the Secretary of the Department of Finance and Administration, and under the laws relating to budget and accounting procedure, shall:

  1. Prepare and publish all necessary rules for carrying out the budget and accounting laws of the state and have the authority to require of any state agency the necessary fiscal information for carrying out such laws;
  2. Acting in behalf of the Governor and the secretary, prepare the preliminary budget information biennially to be submitted to the Legislative Council and to the members of the General Assembly for consideration of the budget requirements of all state agencies; and
  3. Be prepared, when called upon to do so, to appear before the Legislative Council and committees of the General Assembly for the purpose of supplying information and reporting upon the financial condition of the state or any of its agencies.

History. Acts 1955, No. 315, § 7; A.S.A. 1947, § 13-208; Acts 2001, No. 1453, § 1; 2019, No. 315, § 1690; 2019, No. 910, § 3429.

Amendments. The 2019 amendment by No. 315 substituted “rules” for “regulations” in (1).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration”.

Cross References. Deputy Director of the Department of Finance and Administration as Director of Budgets and Accounting, § 25-8-104.

19-1-204. Personnel.

  1. Except as otherwise provided for by this subchapter, all of the personnel of the Department of Finance and Administration shall be employed by and serve at the pleasure of the Secretary of the Department of Finance and Administration.
  2. Nothing contained in this subchapter shall be so construed as to inhibit the rights of any employees of the department who shall have gained civil service or merit system status under any law of this state.

History. Acts 1955, No. 315, § 7; A.S.A. 1947, § 13-207; 2019, No. 910, § 3430.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a).

19-1-205. Office.

The Building Authority Division shall assign to the Department of Finance and Administration and divisions of the department suitable office space with the necessary conveniences for the transaction of the department's business and the safekeeping of the department's records.

History. Acts 1955, No. 315, § 4; A.S.A. 1947, § 13-204; Acts 2009, No. 251, § 1; 2015 (1st Ex. Sess.), No. 7, § 9; 2015 (1st Ex. Sess.), No. 8, § 9; 2019, No. 910, § 6079.

A.C.R.C. Notes. Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 1, provided: “Transfer of the Arkansas Building Authority to the Department of Finance and Administration.

“(a)(1) The Arkansas Building Authority is transferred to the Department of Finance and Administration by a type 2 transfer under § 25-2-105.

“(2) For the purposes of this act, the Department of Finance and Administration shall be considered a principal department established by Acts 1971, No. 38.

“(b) All authority, powers, duties, functions, records, personnel, property, unexpended balances of appropriations, allocations, and other funds, including the functions of budgeting or purchasing, are transferred to the Department of Finance and Administration, except as specified by this act.

“(c) All powers, duties, and functions, including rulemaking, regulation, and licensing, promulgation of rules, rates, regulations, and standards, and the rendering of findings, orders, and adjudications are transferred to the Director of the Department of Finance and Administration.

“(d) The members of the Arkansas Building Authority Council, and their successors, shall continue to be selected in the manner and serve for the terms provided by the statutes applicable to the council except as specified in this act.

“(e) The Arkansas Code Revision Commission shall make appropriate name changes in the Arkansas Code to implement this act.”

Amendments. The 2009 amendment substituted “Arkansas Building Authority” for “officer or board having custody of the public buildings,” deleted “in the State Capitol Building” following “office space,” and made minor stylistic changes.

The 2015 amendment by Acts 2015 (1st Ex. Sess.), Nos. 7 and 8 substituted “Building Authority Division of the Department of Finance and Administration” for “Arkansas Building Authority”.

The 2019 amendment deleted “of the Department of Finance and Administration” following “Building Authority Division”.

19-1-206. Seal.

The Governor shall procure an official seal for the Department of Finance and Administration. Every paper executed by the Secretary of the Department of Finance and Administration or by any other employee of the department and sealed with its official seal shall be received in evidence in any court or other tribunal and may be recorded in the same manner and with like effect as deeds regularly acknowledged.

History. Acts 1955, No. 315, § 4; A.S.A. 1947, § 13-204; Acts 2019, No. 910, § 3431.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in the second sentence.

Research References

Ark. L. Rev.

Documentary Evidence — Arkansas, 15 Ark. L. Rev. 79.

19-1-207. General accounting system.

The Secretary of the Department of Finance and Administration shall:

  1. Have the duty and responsibility of enforcing the general accounting and fiscal procedures of the State of Arkansas which have been placed upon him or her by law;
  2. Exercise supervision over the general accounting system of the state and of state agencies; and
  3. Maintain in his or her office a system of accounts and control which will at all times reflect:
    1. The unencumbered balance of all funds and accounts carried on the books of the Auditor of State and the Treasurer of State;
    2. The distribution and allotment of state revenues; and
    3. A detailed record of the receipts and expenditures of all State Treasury funds.

History. Acts 1955, No. 315, § 7; A.S.A. 1947, § 13-207; Acts 2019, No. 910, § 3432.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in the introductory language.

Cross References. Monitoring of state expenditures, § 19-4-1301 et seq.

19-1-208. Rules.

The Secretary of the Department of Finance and Administration is vested with the authority to make such reasonable rules, not inconsistent with the law, as shall be necessary or desirable for the orderly discharge of the duties vested in the Department of Finance and Administration.

History. Acts 1955, No. 315, § 7; A.S.A. 1947, § 13-207; Acts 2019, No. 315, § 1691; 2019, No. 910, § 3433.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “Rules” in the section heading; and deleted “and regulations” following “rules”.

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration”.

Case Notes

Rule-making Authority.

Section 26-51-404(b)(24)(B) plainly indicates that I.R.C. § 72 does not apply to annuity income received from employment-related retirement plans. In contrast, the Emergency Income Tax Rule provides that § 72 would apply to annuity income received from employment-related retirement plans; because an inconsistency existed, the Emergency Rule is inconsistent with the law, and infringes a legislative function, and as a result, the Emergency Rule is outside the scope of the director of the Department of Finance and Administration's rule-making authority as set forth in this section. Weiss v. Maples, 369 Ark. 282, 253 S.W.3d 907 (2007).

19-1-209. Publications required.

  1. The Secretary of the Department of Finance and Administration shall publish and furnish copies to all state agencies of such rules as are issued by him or her, pursuant to the provisions of law, providing for a general accounting procedure.
  2. The secretary shall also publish, not less often than biennially, a financial report covering the fiscal affairs of the state and state agencies and shall make the report available to:
    1. Members of the General Assembly;
    2. State agencies; and
    3. Others having an interest therein.

History. Acts 1955, No. 315, § 7; A.S.A. 1947, § 13-207; Acts 2019, No. 315, § 1692; 2019, No. 910, §§ 3434, 3435.

Amendments. The 2019 amendment by No. 315 substituted “rules” for “regulations” in (a).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a); and substituted “secretary” for “director” in the introductory language of (b).

19-1-210. Recordkeeping.

  1. For the purpose of effectively carrying out the fiscal procedures provided for by law, the Secretary of the Department of Finance and Administration shall have the authority to install such recordkeeping and other procedures in his or her own office and in other state offices and departments as he or she shall deem necessary or advisable.
  2. The secretary shall have the authority to require from any state agency any fiscal information which will be necessary for providing adequate records in his or her office and shall prescribe uniform records and forms for all vouchers and other documents which are to be transmitted to the Department of Finance and Administration.

History. Acts 1955, No. 315, § 7; A.S.A. 1947, § 13-207; Acts 2019, No. 910, § 3436.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a); and substituted “secretary” for “director” in (b).

19-1-211. Investigations.

    1. In any matter within the jurisdiction of the Department of Finance and Administration, the Secretary of the Department of Finance and Administration shall have the power to make investigations and may delegate that power to any division or section head of the department.
    2. For this purpose, the secretary shall have the power to subpoena witnesses and require the production of any books, records, papers, or documents that may be material or relevant as evidence and to administer oaths to and take the testimony of witnesses.
    1. In case of disobedience to any subpoena or other process, the secretary may invoke the aid, with the written approval of the Governor, of the Pulaski County Circuit Court in requiring the testimony of witnesses and the production of evidence, books, records, papers, or documents.
      1. In case of refusal to obey the subpoena issued to any person, firm, or corporation, the circuit court shall issue an order calling such person, firm, or corporation to appear before the secretary or other employee designated by the secretary and to produce all books and papers so ordered and give evidence touching the matter in question.
      2. Any failure to obey the order of the circuit court may be punished by the circuit court as contempt of the circuit court.
  1. A subpoena for a witness may be issued by the secretary or by any division or section head of the department in whom any such authority may have been vested by the secretary and shall be served as provided by law for the service of other subpoenas.
      1. The failure or refusal of any witness to appear or to produce any books, papers, or documents required by the secretary and to submit them for inspection or the refusal to answer any relevant question propounded by the secretary shall constitute a violation punishable by a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500).
      2. Each failure or refusal by any witness to appear or produce any such books, papers, or documents shall constitute a separate offense.
    1. False testimony given in any such inquiry shall constitute perjury punishable as provided by law.

History. Acts 1955, No. 315, § 7; A.S.A. 1947, § 13-207; Acts 2005, No. 1994, § 100; 2019, No. 910, § 3437.

Amendments. The 2005 amendment substituted “witnessess may” for “witnessess shall” in (c); and substituted “violation” for “misdemeanor” in (d)(1)(A).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(1); and substituted “secretary” for “director” in (a)(2), throughout (b), twice in (c), and twice in (d)(1)(A).

19-1-212. Duty to avoid deficit.

It shall be the duty and responsibility of the Secretary of the Department of Finance and Administration to:

  1. Keep advised at all times as to the revenues and other income available for the operation, maintenance, and improvement of all state agencies;
  2. Exercise the powers conferred upon him or her by law to see that the state and all state agencies are maintained on a basis of accounting recommended by the Governmental Accounting Standards Board for governmental purposes;
  3. See that no obligation shall be incurred which shall not be payable when the obligation shall become due; and
  4. Exercise his or her powers to see that the funds on hand and estimated to become available to each state agency shall be sufficient to maintain the state and all of its agencies on a sound financial basis without incurring a deficit.

History. Acts 1955, No. 315, § 7; A.S.A. 1947, § 13-207; Acts 2001, No. 1453, § 2; 2019, No. 910, § 3438.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in the introductory language.

19-1-213. Leasing of state property.

  1. The Secretary of the Department of Finance and Administration may lease, with approval of the Governor, any state property, real or personal, which is not needed for public use, and the leasing of which is not prohibited by law, where the authority to lease the property is not vested in any other state agency.
  2. No property shall be leased under this section for a term exceeding two (2) years.

History. Acts 1955, No. 315, § 7; 1973, No. 876, § 31; A.S.A. 1947, § 13-207; Acts 2019, No. 910, § 3439.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a).

19-1-214. Federal gifts and surplusage.

The Secretary of the Department of Finance and Administration may enter into any contract with the United States Government or with any agency thereof for the purpose of accepting gifts and for the acquisition of surplus materials or property upon such terms and conditions as may be agreed upon without regard to the provisions of this subchapter or any other law that requires advertisement for bids or the soliciting or receiving of competitive bids.

History. Acts 1955, No. 315, § 7; 1973, No. 876, § 31; A.S.A. 1947, § 13-207; Acts 2019, No. 910, § 3440.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” and “United States Government” for “United States of America”.

Cross References. Federal grants, aids, and reimbursement procedures, § 19-7-601 et seq.

Subchapter 3 — Fiscal Impact Statements

Effective Dates. Acts 1977, No. 221, § 6: Feb. 21, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that the cities and towns and counties of this State are faced with financial crises as a result of having rules, regulations, and orders of regulatory bodies, and Acts of the General Assembly imposed on them with great fiscal impact without anyone knowing the full extent of such fiscal impact; and that such financial crises constitute such an emergency that the immediate passage of this Act is necessary in order to provide financial relief to such cities and towns and counties. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1985, No. 806, § 3: Apr. 3, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 221 of 1977, which requires the filing of a Fiscal Impact Statement with respect to bills that impose new or increased cost obligations on municipalities or counties, is not accomplishing the purposes for which it was initially enacted, and that this Act is designed to accomplish procedures more in keeping with the rules and procedures of the two houses of the General Assembly with respect to the consideration of bills which require Fiscal Impact Statements on new or additional costs imposed on municipalities or counties, and that the immediate passage of this Act is necessary to provide for the enactment of said procedure prior to the adjournment of this Regular Session. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

19-1-301. Definition.

As used in this subchapter, unless the context otherwise requires, “fiscal impact statement” means a realistic statement of the estimated financial cost of implementing or complying with the proposed law, rule, policy, order, or administrative law upon municipalities or counties to which the proposed law, rule, policy, order, or administrative law applies.

History. Acts 1977, No. 221, § 1; A.S.A. 1947, § 13-2301; Acts 2019, No. 315, § 1693.

Amendments. The 2019 amendment deleted “regulation” following “proposed law” twice.

19-1-302. Before adoption of rule, etc.

  1. No rule, policy, order, or administrative law which would have a fiscal impact on any municipality or county in this state shall be valid unless, thirty (30) days prior to its adoption by a board, commission, agency, department, officer, or other authority of the government of the State of Arkansas, excepting the General Assembly, the courts, and the Governor, the board, commission, agency, department, officer, or other authority has filed a fiscal impact statement with the Secretary of State.
  2. Any municipality or county which will be affected by the proposed rule, policy, order, or administrative law upon request shall immediately be furnished with a copy of the fiscal impact statement by the board, commission, agency, department, officer, or other authority.

History. Acts 1977, No. 221, § 2; A.S.A. 1947, § 13-2302; Acts 2019, No. 315, § 1694.

Amendments. The 2019 amendment substituted “rule” for “regulation” in the section heading; deleted “regulation” following “No” in (a); and deleted “regulation” following “proposed” in (b).

19-1-303. Bills imposing new or additional costs on municipality or county — Fiscal impact statements — Definition.

    1. Any bill filed with the Senate that requires an expenditure of public funds by a municipality or county, or otherwise imposes a new or increased cost obligation on any municipality or county, shall have a fiscal impact statement attached to it, prepared by the author of the bill and filed with the bill at the time of its introduction. A copy of such fiscal impact statement shall be placed on the desk of each member of the Senate committee to which the bill is referred before the bill may be called up for final action in the committee. A copy of it shall also be placed on the desk of each member of the Senate before a final vote may be taken on it for final passage.
    2. If the author of any Senate or House of Representatives bill affected by this section shall fail to file a fiscal impact statement, any member of the Senate committee to which the bill is referred may object to its being called up for final action in the committee until a fiscal impact statement is made available to the committee. If such an objection is made by a member of the Senate committee, the chair of the committee shall refer the bill to the appropriate state agency or to the legislative staff for the preparation of a fiscal impact statement, to be returned to the committee in writing not later than five (5) days from the date of the request.
    3. If any such Senate or House bill is called up for final passage in the Senate and a fiscal impact statement has not been provided by the author of the bill or by the committee to which the bill was referred, any member of the Senate may object to the bill's being called up for final passage until a fiscal impact statement is prepared and made available on the desk of each member of the Senate at least one (1) day prior to the bill's being called up for final passage. If such an objection is made, the presiding officer of the Senate shall cause the bill to be referred to the appropriate state agency or to the designated legislative staff for the preparation of a fiscal impact statement, which shall be filed in writing with the Senate not later than five (5) days from the date of the request.
    1. When any House or Senate bill requiring an expenditure of public funds or otherwise imposing a new or increased cost obligation on any municipality or county is pending before any committee of the House of Representatives, any member of the committee may request that a fiscal impact statement for the bill be placed on the desk of each member of the committee before the bill is called up for final action in the committee. If the request is made, the chair of the committee shall refer the bill to the appropriate state agency or to the legislative staff for the preparation of a fiscal impact statement, to be returned to the committee in writing not later than five (5) days from the date of the request.
    2. Any time before the bill is read the third time in the House of Representatives, a member of the House of Representatives may request that a fiscal impact statement for the bill be prepared and placed on the desk of each member. When a member of the House of Representatives so requests a fiscal impact statement on any bill, the Speaker of the House of Representatives shall furnish the member a fiscal impact statement signature form which shows the number of the bill for which the statement is requested and the date and time the request was made. If the member returns the form containing the signature of the requesting member and the signatures of at least nine (9) other House of Representatives members within thirty (30) minutes of the time shown on the form, the fiscal impact statement shall be prepared and placed on the desk of each member of the House of Representatives before the bill is read the third time.
    3. If a bill is called up for final passage in the House of Representatives and a fiscal impact statement has not been provided for the bill, any member of the House of Representatives in which the bill is being considered may move that a final vote on the passage of the bill be delayed until a fiscal impact statement is prepared and made available on the desk of each member of the House of Representatives at least one (1) full day prior to the bill’s being called up for final passage. If the motion is made and is adopted by a majority vote of the membership of the House of Representatives, the Speaker of the House of Representatives shall cause the bill to be referred to the appropriate state agency or to the designated legislative staff for the preparation of a fiscal impact statement, which shall be filed with the House of Representatives within five (5) days of the date of the request.
  1. Failure of the sponsor of a bill to provide the fiscal impact statement required in this section shall not prohibit the consideration of it in the committee to which referred or on the floor of the house in which the bill is called up for final passage if no objection to it is made at the time such action is taken.
  2. Nothing in this section shall prohibit a committee to which a bill is referred or the house in which the bill is being considered from suspending the requirement of the filing of a fiscal impact statement on any such bill in the same manner as provided for the suspension of the rules in the house in which the bill is being considered.
  3. Copies of fiscal impact statements prepared in compliance with this section shall be made available upon request for them to representatives of municipal or county governments. A fiscal impact statement filed or prepared in compliance with this section is declared to be a public record within the meaning of the Freedom of Information Act of 1967, § 25-19-101 et seq.
  4. For the purposes of this section, the term “fiscal impact statement” means a realistic statement of the estimated financial cost to municipalities or counties of implementing or complying with a proposed law and rules promulgated under it.

History. Acts 1985, No. 806, § 1; A.S.A. 1947, § 13-2304; Acts 1992 (1st Ex. Sess.), No. 43, § 1; 2019, No. 315, § 1695.

Publisher's Notes. Acts 1985, No. 806, § 1, and Acts 1992 (1st Ex. Sess.), No. 43, § 1, are also codified as § 10-2-114.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (f).

Subchapter 4 — Officers' Surety Bonds

Cross References. Arkansas Governmental Compliance Act, § 10-4-301 et seq.

Effective Dates. Acts 1955, No. 338, § 15: Apr. 1, 1955. Emergency clause provided: “It has been found and is hereby declared by the General Assembly that general revenues of the State are declining and that the investment provisions of this act will provide additional revenues immediately needed for the efficient operation of the State Government. Therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after April 1, 1955.”

Acts 1987, No. 1014, § 5: Apr. 14, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1226 of the Extended Session 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-1-401. Exceptions.

All constitutional officers other than the Treasurer of State are exempt from the provisions of this subchapter.

History. Acts 1955, No. 338, § 12; 1977, No. 940, § 1; A.S.A. 1947, § 13-412.

19-1-402. Treasurer of State.

  1. The bond for the Treasurer of State shall be one million dollars ($1,000,000).
  2. The original of the bond required by this section to be filed by the Treasurer of State shall be filed in the office of the Secretary of State, and a copy shall be filed with the Auditor of State.

History. Acts 1955, No. 338, § 12; 1975, No. 677, §§ 1, 4; 1975 (Extended Sess., 1976), No. 1226, § 2; 1977, No. 940, § 1; A.S.A. 1947, §§ 13-412, 13-412.3; reen. Acts 1987, No. 1014, § 2.

A.C.R.C. Notes. The operation of this section was suspended by adoption of a self-insured fidelity bond program for state officers, officials, and employees, effective July 20, 1987, pursuant to § 21-2-701 et seq. The section may again become effective upon cessation of coverage under that program. See § 21-2-703.

Part of this section was reenacted by Acts 1987, No. 1014, § 2. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

19-1-403. County and municipal officials and employees.

    1. All county officials and employees, municipal officials and employees, and all other officers and employees of any political subdivision of this state who are required by law to furnish bond and who receive and disburse cash funds from bank accounts shall obtain a surety bond from a corporate surety authorized to do business in this state in the minimum amounts to be computed as follows:
      1. On the first one hundred thousand dollars ($100,000), or any part thereof, of receipts of the office, ten percent (10%) of the amount;
      2. On the next two hundred thousand dollars ($200,000), or any part thereof, of receipts of the office, seven and one-half percent (7½%) of the amount;
      3. On the next two hundred thousand dollars ($200,000), or any part thereof, of receipts of the office, five percent (5%) of the amount;
      4. On the next five hundred thousand dollars ($500,000), or any part thereof, of receipts of the office, two and one-half percent (2½%) of the amount; and
      5. On all amounts in excess of one million dollars ($1,000,000), one percent (1%).
    2. These amounts shall be based on the total cash receipts of the office for the preceding calendar or fiscal year. However, in no event shall the penal amount of any bond be less than the amount as computed in this subsection.
    3. The bonds shall be conditioned that the officer or employee shall faithfully perform the duties of his or her office or employment and properly account for all cash funds received and disbursed by him or her as an officer or employee.
    1. All county officials and employees, municipal officials and employees, and all other officers and employees of any political subdivision of this state who are required by law to furnish bond and who receive or approve the disbursement of any funds appropriated and disbursed through the State Treasury shall obtain a bond in the following minimum amounts based on the disbursements of the agency during the preceding calendar or fiscal year:
      1. On the first one hundred thousand dollars ($100,000), or any part thereof, of disbursements, five percent (5%) of the amount;
      2. On the next four hundred thousand dollars ($400,000), or any part thereof, of disbursements, two and one-half percent (2½%) of the amount; and
      3. On all disbursements in excess of five hundred thousand dollars ($500,000), one-half of one percent (½ of 1%) of the amount.
    2. The provisions of subsection (a) of this section shall apply in determining the bond requirements of all officers and employees handling both cash funds and moneys appropriated and disbursed from the State Treasury.
    3. The bond shall be conditioned that the officer or employee shall faithfully perform the duties of his or her office or employment and properly account for the disbursement of funds.
  1. The maximum amount of any bond required under subsections (a) and (b) of this section shall not exceed five hundred thousand dollars ($500,000).
  2. The Legislative Auditor shall inform municipal and county officials of the requirements set forth in this subchapter regarding the determination of the amount of bond for the officials. However, it shall not be the duty of the Legislative Auditor to set the bond of municipal and county officials.
    1. The original of each bond required by this section to be filed by a county officer or employee shall be filed in the office of the circuit clerk in the county involved.
    2. The original of each bond required by this section to be filed by municipal officials and employees shall be filed in the office of the municipal clerk of the municipality involved.

History. Acts 1955, No. 338, § 12; 1975, No. 677, §§ 1, 4; 1975 (Extended Sess., 1976), No. 1226, § 2; 1977, No. 940, § 1; A.S.A. 1947, §§ 13-412, 13-412.3.

A.C.R.C. Notes. The operation of this section was suspended by adoption of a self-insured fidelity bond program for public officers, officials, and employees, effective July 20, 1987, pursuant to § 21-2-701 et seq. The section may again become effective upon cessation of coverage under that program. See § 21-2-703.

19-1-404. County judges.

    1. The county judge in each county shall furnish bond in an amount computed in accordance with the provisions of § 19-1-403(b).
    2. The bond shall be conditioned that the officer shall faithfully perform the duties of the office and properly account for all funds disbursed by him or her as county judge.
  1. The original bond shall be filed with the circuit clerk of the respective county.

History. Acts 1975, No. 677, § 2; 1975 (Extended Sess., 1976), No. 1226, § 1; A.S.A. 1947, § 13-412.1; reen. Acts 1987, No. 1014, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1014, § 1. Acts 1987, No. 834, provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

The operation of this section was suspended by adoption of a self-insured fidelity bond program for public officers, officials, and employees, effective July 20, 1987, pursuant to § 21-2-701 et seq. The section may again become effective upon cessation of coverage under that program. See § 21-2-703.

19-1-405. State agency employees as disbursing agents.

    1. In the event the executive head of any state agency designates some full-time employee to act as his or her agent in the disbursement of funds under his or her control, the agent shall furnish additional bond to be fixed by the Secretary of the Department of Finance and Administration.
    2. The executive head of the state agency shall notify the secretary and the Auditor of State in writing of the designation and shall furnish to the secretary and the Auditor of State a sample of the signature of the agent.
  1. In the event appropriations are made available to a state agency or to a nongovernment agency or activity and no disbursing agent is provided for by law, then the secretary and the Auditor of State shall designate a person to act as disbursing agent and fix the amount of bond for such purposes.

History. Acts 1975, No. 677, § 3; A.S.A. 1947, § 13-412.2; Acts 2019, No. 910, § 3441.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(1); and substituted “secretary” for “director” twice in (a)(2) and in (b).

Subchapter 5 — Investment of Public Funds

Effective Dates. Acts 1943, No. 273, § 4: Mar. 18, 1943. Emergency clause provided: “It is hereby ascertained and declared that the National Government is at war, and that in order to finance the war it must in a large measure rely upon the sale of its bonds. The enactment of this act is necessary for the successful conclusion of the war and for the preservation of the public peace, health and safety. An emergency is declared to exist, and this act shall take effect from and after its passage and approval.”

Acts 1973, No. 106, § 6: Feb. 12, 1973. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that the present laws governing investment of public funds are inadequate and that due to these inadequacies such funds are in many instances not invested though available for investment, with resulting loss of substantial income. Therefore an emergency is declared to exist, and this Act, being immediately necessary for the preservation of the public peace, health and safety, shall be in effect upon its passage and approval.”

19-1-501. “Eligible investment securities” defined.

As used in this subchapter, “eligible investment securities” means:

  1. A direct or guaranteed obligation of the United States that is backed by the full faith and credit of the United States Government;
  2. A direct obligation of an agency, instrumentality, or government-sponsored enterprise created by act of the United States Congress and authorized to issue securities or evidences of indebtedness, regardless of whether the securities or evidences of indebtedness are guaranteed for repayment by the United States Government;
  3. A bond or other debt of the state, a school district, a county government, a municipal government, or an authority of a governmental entity that:
    1. Is issued for an essential governmental purpose or is guaranteed by a state agency; and
    2. Has a debt rating from a nationally recognized credit rating agency of “A” or better at the time of purchase; and
  4. A bond from the State of Israel that is guaranteed and backed by the full faith and credit of the government of Israel as the sovereign debt of the State of Israel.

History. Acts 1943, No. 273, § 2; 1973, No. 106, § 2; A.S.A. 1947, § 13-902; Acts 2011, No. 629, § 1; 2017, No. 644, § 1.

Amendments. The 2011 amendment rewrote the section.

The 2017 amendment added (4).

19-1-502. Provisions supplemental.

This subchapter does not repeal any prior legislation or affect any statute pertaining to the conversion of funds of public officials and agencies into investments authorized under this subchapter but is supplemental to present law and confers additional powers.

History. Acts 1943, No. 273, § 3; A.S.A. 1947, § 13-903; Acts 2011, No. 629, § 1.

Amendments. The 2011 amendment rewrote the section.

19-1-503. Construction.

  1. This subchapter does not affect the power of counties, municipalities, improvement districts, and other public bodies to make a deposit of funds in the form of a demand deposit, a savings deposit, or a time deposit as authorized by law.
  2. The adoption of this subchapter does not affect or impair the power of counties, municipalities, improvement districts, and other public bodies to make investments of funds in their possession or under their control as authorized by other laws.

History. Acts 1973, No. 106, § 3; A.S.A. 1947, § 13-904; Acts 2011, No. 629, § 1.

Amendments. The 2011 amendment substituted “a demand deposit, a savings deposit, or a time deposit” for “certificates of deposit” in (a) and made stylistic changes.

19-1-504. Investments permitted.

    1. With the approval of the county or municipal depository board, a treasurer may convert any funds in the treasurer's possession or under the treasurer's control and not presently needed for other purposes into one (1) or more of the following investments:
      1. Eligible investment securities having a maturity of not longer than five (5) years from the date of acquisition unless, as documented at the time of acquisition, the investment is to fund or support a specific purpose and there are no expectations that the investment will be sold before maturity;
      2. An Arkansas bank certificate of deposit or a certificate of deposit authorized under § 19-8-111;
      3. An account established by a local government joint investment trust authorized under the Local Government Joint Investment Trust Act, § 19-8-301 et seq.; or
      4. An Arkansas financial institution repurchase agreement for eligible investment securities in which the seller agrees to repurchase the investment at a price including interest earned during the holding period as determined by the repurchase agreement.
    2. The following entities may convert funds that are in the possession of the entity or under the control of the entity and that are not presently needed for other purposes into an investment listed in subdivision (a)(1) of this section:
      1. A county board or commission;
      2. A municipal board or commission, including without limitation a board of trustees of a policemen's pension and relief fund, a board of trustees of a firemen's relief and pension fund, a waterworks commission, and a sewer committee; and
      3. A drainage district, levee district, and improvement district, including without limitation a waterworks district, electric light district, municipal improvement district, and suburban improvement district.
    3. This subsection does not apply to funds of a school district.
    1. Unless otherwise provided by a signed written agreement between the school district or districts and the county treasurer, funds of a school district shall be invested by the:
      1. School district treasurer when the school district has a treasurer; or
      2. County treasurer when the school district does not have a treasurer.
    2. To the extent directed by the board of directors of the school district, investments shall be in:
      1. General obligation bonds of the United States;
      2. Bonds, notes, debentures, or other obligations issued by an agency of the United States Government;
      3. General obligation bonds of the state; or
      4. Bank certificates of deposit.
  1. A school district may invest moneys held for the repayment of a federally recognized qualified zone academy bond under 26 U.S.C. § 1397E, as it existed on January 1, 2005, in a guaranteed investment contract or forward delivery agreement in which the school district is guaranteed a certain rate of interest on its investment if the guaranteed investment contract or the forward delivery agreement is entered into between the school district and the purchaser of the qualified zone academy bond.
  2. A treasurer or other custodian of public funds who is authorized to purchase and hold eligible investment securities may use a brokerage account to acquire, sell, and hold the investment if the investment is established with a broker-dealer that:
    1. Has offices in the state;
    2. Is registered with the State Securities Department;
    3. Is a member of the Financial Industry Regulatory Authority, Inc.; and
    4. Is a member of the Securities Investor Protection Corporation.
  3. Unless restrictions are established by the donor, a private donation to a city of the first class, a city of the second class, or an incorporated town may be invested in accordance with the prudent investor rule established under § 28-71-105.

History. Acts 1943, No. 273, § 1; 1973, No. 106, § 1; A.S.A. 1947, § 13-901; Acts 1995, No. 402, § 1; 1997, No. 800, § 1; 2005, No. 2205, § 1; 2009, No. 251, § 2; 2011, No. 629, § 1.

Amendments. The 2005 amendment added (c).

The 2009 amendment substituted “1397E, as it existed on January 1, 2005” for “1379E” in (c).

The 2011 amendment rewrote (a); substituted “state” for “State of Arkansas” in (b)(2)(C); and added (d) and (e).

Cross References. State Treasury Management Law, § 19-3-501 et seq.

Deposit of school funds, § 6-20-222.

19-1-505. Additional authority of certain cities.

    1. A city that has real property assessed valuation in excess of three hundred million dollars ($300,000,000) may invest the city's funds in securities under § 23-47-401 and according to the investment policy adopted by the governing body of the city.
    2. The investment policy adopted by the city's governing body may authorize a maturity term exceeding the term stated in § 19-1-504(a)(1)(A).
    1. Each investment shall be made with the judgment and care under prevailing circumstances that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation but for investment, considering the probable safety of the capital and the probable income to be derived.
    2. Investment of funds shall be governed by the following investment objectives in order of priority:
      1. Preservation and safety of the principal;
      2. Liquidity; and
      3. Yield.
  1. In determining whether an investment officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration:
    1. The investment of city funds and funds under the officer's control and over which the officer had responsibility, rather than a consideration as to the prudence of a single investment; and
    2. Whether the investment decision is consistent with the written investment policy of the city.

History. Acts 2011, No. 629, § 1.

Subchapter 6 — State Fiscal Management Responsibility Act

Effective Dates. Acts 2015, No. 557, § 9: Aug. 1, 2015.

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-1-601. Title.

This subchapter may be known and cited as the “State Fiscal Management Responsibility Act”.

History. Acts 1991, No. 280, § 1.

19-1-602. Intent and purpose.

  1. The General Assembly has enacted various laws relating to the receipting, disbursing, depositing, and accounting for public funds, as well as laws relating to establishing salaries, and the purchasing of commodities by various state agencies. In addition, the Department of Finance and Administration or other appropriate agency has issued rules pertaining to the administration of these various laws.
  2. It is the intent of the General Assembly that all state officers and employees comply with the provisions of these laws and rules. Presently, most of these laws and rules do not provide penalty provisions for violations thereof.
  3. It is the purpose of this subchapter to provide procedures and civil penalties regarding violations of the fiscal responsibility and management laws of the state.

History. Acts 1991, No. 280, § 2; 2019, No. 315, § 1696.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in the second sentence of (a); and substituted “rules” for “regulations” twice in (b).

19-1-603. Definitions.

As used in this subchapter:

  1. “Agency” means any state agency, bureau, board, commission, council, department, institution, or office of the State of Arkansas;
  2. “Executive agencies” means all agencies other than constitutional, judicial, and legislative officers, agencies, and departments;
  3. “Fiscal responsibility and management laws” means the following laws and rules applicable thereto, as amended:
    1. General Accounting and Budgetary Procedures Law, § 19-4-101 et seq.;
    2. State procurement laws, Arkansas Code Title 19, Chapter 11;
    3. Attendance and leave laws, § 21-4-101 et seq.;
    4. Regular Salary Procedures and Restrictions Act, §§ 19-4-1601 and 21-5-101;
    5. Uniform Classification and Compensation Act, § 21-5-201 et seq.;
    6. Higher Education Expenditure Restriction Act, § 6-63-301 et seq.;
    7. Accounts and Notes Receivable Abatement Act for the State of Arkansas, § 19-2-301 et seq.;
    8. Revenue Stabilization Law, § 19-5-101 et seq.;
    9. Revenue Classification Law, § 19-6-101 et seq.;
    10. Depositories for public funds, § 19-8-101 et seq.;
    11. Public works, § 22-9-101 et seq.; and
    12. State Fiscal Management Responsibility Act, § 19-1-601 et seq.;
  4. “Knowingly” means that a person is aware or should have been aware that his or her conduct will violate the fiscal responsibility and management laws; and
  5. “Public officer or employee” means any officer or employee of the State of Arkansas.

History. Acts 1991, No. 280, § 3; 1995, No. 1296, § 67; 2015, No. 557, § 2; 2019, No. 315, § 1697.

Amendments. The 2015 amendment, in (3)(B), substituted “State procurement” for “Arkansas purchasing” at the beginning and substituted “Arkansas Code Title 19, Chapter 11” for “§ 19-11-101 et seq.”.

The 2019 amendment substituted “rules” for “regulations” in the introductory language of (3).

19-1-604. Existing remedies not impaired.

The provisions of this subchapter do not limit or diminish any civil rights or administrative procedures available to any public officer or employee.

History. Acts 1991, No. 280, § 16.

19-1-605. Civil procedures apply.

All actions and procedures under the provisions of this subchapter are civil in nature and shall be governed by the appropriate rules and laws regarding civil actions and remedies.

History. Acts 1991, No. 280, § 15; 2019, No. 315, § 1698.

Amendments. The 2019 amendment deleted “regulations” following “rules”.

19-1-606. Investigation of violations.

Upon discovery or notification of an alleged violation of the fiscal responsibility and management laws, each agency shall investigate the allegation and take appropriate administrative action. The director of each agency or, in the case of a constitutional office, the constitutional officer, is responsible for complying with the provisions of this subchapter.

History. Acts 1991, No. 280, § 4.

19-1-607. Documentation and notification of violation — Remedial action.

  1. After completing the investigation, if the agency determines that there has been a violation of the fiscal responsibility and management laws, the facts and circumstances relating to a violation and any corrective or remedial action taken shall be documented and placed in the personnel files of the public officer or employee involved in the violation.
  2. The agency shall notify the public officer or employee of its findings and any corrective or remedial action to be taken. Notification shall be made in a manner ensuring actual notice to the public officer or employee. The public officer or employee shall be notified that the failure to make corrective or remedial action within thirty (30) days after the date of notification creates the rebuttable presumption that the violation was committed knowingly.
  3. The public officer or employee violating a fiscal responsibility and management law shall be given not more than thirty (30) days after notification to effect corrective or remedial action recommended by the agency. Failure to make corrective or remedial action within thirty (30) days after notification creates the rebuttable presumption that the violation was committed knowingly.

History. Acts 1991, No. 280, §§ 5-7.

19-1-608. Notification of Department of Finance and Administration — Review.

  1. Within thirty (30) days after the expiration of the time period for the public officer or employee to effect corrective or remedial action, the agency shall transfer to the Secretary of the Department of Finance and Administration a document containing a summary of the violation and any corrective remedial action taken.
    1. The secretary shall review the summaries of violations received. The secretary may:
      1. Accept the summary and approve the corrective or remedial action by the agency;
      2. Request additional information regarding the violation and corrective or remedial action by the agency; or
      3. Impose additional corrective or remedial action upon public officers and employees of executive agencies as provided in § 19-1-609.
    2. Quarterly, the secretary shall submit a summary of all violations of the fiscal responsibility and management laws, including any corrective or remedial action by the agency or the secretary, to the Governor and members of the General Assembly.

History. Acts 1991, No. 280, §§ 8, 9; 2019, No. 910, § 3442.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a); and substituted “secretary” for “director” throughout (b).

19-1-609. Executive agencies.

  1. Before the Secretary of the Department of Finance and Administration may impose additional corrective or remedial action regarding public officers or employees of executive agencies, the secretary shall conduct an investigation regarding any violation. The public officer or employee shall be notified and given the opportunity for a hearing conducted by the secretary regarding any violation.
  2. The secretary may impose any one (1) or more of the following as additional corrective or remedial action:
    1. Oral or written warnings or reprimands;
    2. Suspension with or without pay for specified periods of time; or
    3. Termination of employment.

History. Acts 1991, No. 280, § 14; 2019, No. 910, § 3443.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a); and substituted “secretary” for “director” throughout the section.

19-1-610. Investigation and suit by Attorney General.

  1. The Secretary of the Department of Finance and Administration, the Legislative Joint Auditing Committee, or the Legislative Council may request the office of the Attorney General to review any information concerning any violation of the fiscal responsibility and management laws of the state in order to determine whether legal action is appropriate.
  2. The Attorney General may file a civil suit in the circuit court against the public officer or employee violating the fiscal responsibility and management laws. Venue shall be in the county where the violation occurred. However, if the violation occurred outside the borders of the state, venue shall be in Pulaski County.

History. Acts 1991, No. 280, §§ 10, 11; 2019, No. 910, § 3444.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a).

19-1-611. Civil penalty.

If the public officer or employee is found by the court to have knowingly violated the fiscal responsibility and management laws, the court shall impose a civil penalty upon the public officer or employee of not less than one hundred dollars ($100), nor more than one thousand dollars ($1,000) for each violation, and may subject the public officer or employee to the payment of damages resulting as a direct consequence of any violation.

History. Acts 1991, No. 280, § 12.

19-1-612. Recovery of costs.

If the public officer or employee is found by the court to have knowingly violated the provisions of the fiscal responsibility and management laws, the Attorney General shall be allowed to recover costs and attorney's fees associated with the civil suit from the public officer or employee. Any costs or fees recovered by the Attorney General under this section shall be deposited into the State Treasury.

History. Acts 1991, No. 280, § 13.

Subchapter 7 — Fiscal Impact Statements

Effective Dates. Acts 1997, No. 112, § 40: Feb. 7, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 10 of the First Extraordinary Session of 1995 abolished the Joint Interim Committee on Education and in its place established the House Interim Committee and Senate Interim Committee on Education; that various sections of the Arkansas Code refer to the Joint Interim Committee on Education and should be corrected to refer to the House and Senate Interim Committees on Education; that this act so provides; and that this act should go into effect immediately in order to make the laws compatible as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-1-701. Definition.

  1. As used in this subchapter, “fiscal impact statement” means a realistic statement of the purpose of a proposed law, or a rule promulgated under a law, and the estimated financial cost to the state or any local school district of implementing or complying with the proposed law or rule.
  2. A fiscal impact statement shall be developed with the guidance of the Office of Economic and Tax Policy of the Bureau of Legislative Research and with the approval of the Division of Elementary and Secondary Education.

History. Acts 1995, No. 1253, § 1; 2009, No. 251, § 3; 2011, No. 856, § 1; 2019, No. 315, § 1699; 2019, No. 910, § 2252.

Publisher's Notes. Acts 1995, No. 1253, § 1, is also codified as § 10-2-127(a).

Amendments. The 2009 amendment deleted “Office of Economic and Tax Policy of the” preceding “Bureau” in (b).

The 2011 amendment inserted “Office of Economic and Tax Policy of the” in (b).

The 2019 amendment by No. 315 substituted “rule” for “regulation” twice in (a).

The 2019 amendment by No. 910 substituted “Division of Elementary and Secondary Education” for “Department of Education” in (b).

19-1-702. Fiscal impact statements required for rules.

Thirty-five (35) days prior to the adoption of any rule or other proposal that will impose a new or increased cost obligation for education on the state or any local school district, the board, commission, agency, department, officer, or other authority, excepting the General Assembly and the courts, shall give notice of such rule or proposal and shall file a fiscal impact statement with the Secretary of State and the House Committee on Education and the Senate Committee on Education.

History. Acts 1995, No. 1253, § 2; 1997, No. 112, § 28; 2019, No. 315, § 1700.

Amendments. The 2019 amendment substituted “rules” for “regulations” in the section heading; and substituted “rule” for “regulation” twice.

19-1-703. Fiscal impact statements required for bills.

  1. Any bill filed in the House of Representatives or Senate that will impose a new or increased cost obligation for education on the state or any local school district shall have a fiscal impact statement attached to it, prepared by the author of the bill and filed with the chair of the committee to which the bill is referred:
    1. At least seven (7) days before the bill may be called up for final action in the committee during a regular session of the General Assembly;
    2. At least seven (7) days before the bill may be called up for final action in the committee during a fiscal session; and
    3. At least one (1) day before the bill may be called up for final action in the committee during a special session.
  2. If the author of any House or Senate bill affected by this section shall fail to comply with subsection (a) of this section, any member of the House of Representatives or Senate committee to which the bill is referred may object and thereby prevent its being called up for final action in the committee until a fiscal impact statement is made available. An affirmative vote of two-thirds (2/3) of a quorum present and voting shall override such objection.
      1. If any such House or Senate bill is called up for final passage in the House of Representatives or Senate and a fiscal impact statement has not been provided by the author of the bill, or by the committee to which the bill was referred, any member of the House of Representatives or Senate may object to the bill's being called up for final passage until a fiscal impact statement is prepared and made available on the desk of each member of the House of Representatives or Senate at least one (1) day prior to the bill's being called up for final passage.
      2. An affirmative vote of two-thirds (2/3) of a quorum present and voting shall override such objection.
    1. If an objection is made without override, the presiding officer of the House of Representatives or Senate shall cause the bill to be referred to the Office of Economic and Tax Policy of the Bureau of Legislative Research for the preparation of a fiscal impact statement, which shall be filed with the presiding officer not later than five (5) days from the date of the request.
  3. Failure of the author of a bill to provide the fiscal impact statement required in this section shall not prohibit consideration of the bill in the committee to which it is referred or on the floor of the house in which the bill is called up for final passage, if no objection to it is made at the time such action is taken.

History. Acts 1995, No. 1253, § 3; 2009, No. 962, § 37.

Publisher's Notes. Acts 1995, No. 1253, § 3, is also codified as § 10-2-127(b) and (c).

Amendments. The 2009 amendment inserted present (a)(2) and redesignated the following subdivision as (a)(3); deleted “of the General Assembly” at the end of (a)(3); and made related changes.

Chapter 2 State Revenues — Receipts and Expenditures Generally

Research References

Am. Jur. 63C Am. Jur. 2d, Pub. Funds, § 1 et seq.

C.J.S. 81A C.J.S., States, § 340 et seq.

Subchapter 1 — General Provisions

Effective Dates. Acts 1913, No. 234, § 6: approved Mar. 29, 1913. Emergency clause provided: “This Act being necessary for the immediate preservation of the public peace, health and safety shall be in force from and after its passage.”

Acts 1923, No. 777, § 8: June 30, 1923. Emergency clause provided: “All laws and parts of laws in conflict herewith and especially sections 4504, 4505, and 4506 of Crawford and Moses' Digest are hereby repealed, and this act being necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, and same shall take effect and be in force June 30, 1923.”

Acts 1927, No. 186, § 4: effective on passage.

Acts 2001, No. 1453, § 49: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that proper and effective management requires that changes to the state's finance and accounting laws begin on the first day of the fiscal year and that if there is an extended recess of the General Assembly, the required ninety day period may extend past July 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

19-2-101. Receipts for all funds coming into State Treasury.

  1. It shall be the duty of the Secretary of State, the Insurance Commissioner, the Commissioner of State Lands, the Attorney General, the Bank Commissioner, and the Auditor of State to issue their receipts respectively for all moneys coming into the State Treasury through their departments, respectively, on account of:
    1. Fees of every kind and character;
    2. Sale of books, charters, and articles of incorporation;
    3. Commissions of notaries public, justices of the peace, and county, city, and town officers, in addition to nomination fees, etc.;
    4. Insurance taxes and fees;
    5. Jitney and chauffeur licenses;
    6. Affidavits of loss, license tags, deeds, patents, field notes, maps, and charts;
    7. Franchise taxes, back taxes, and sand and gravel taxes;
    8. All matters pertaining to the duties of the Attorney General when money belonging to the state is to be collected;
    9. Bank examination fees; and
    10. Any and all fees coming through the Bank Commissioner's office.
    1. Each of the departments is authorized to accept personal checks when tendered in payment of any of the items mentioned in subsection (a) of this section and issue their receipts, respectively, for them.
      1. The checks shall be endorsed by the heads of the respective departments to the Treasurer of State and paid into the State Treasury daily, if anything has been collected, with an itemized statement of all items for which payment was made.
      2. No officer endorsing these checks shall become personally liable by reason of the officer's endorsement in case the checks are rejected by the drawee.

History. Acts 1923, No. 777, §§ 1, 2; Pope's Dig., §§ 5562, 5563; A.S.A. 1947, §§ 13-601, 13-604.

19-2-102. Duplicate receipts given by Treasurer of State.

The Treasurer of State shall grant duplicate receipts under the seal of his or her office for all sums of money which shall be paid into the State Treasury. The person receiving the receipts shall deposit one (1) of them with the Auditor of State, who shall credit the person accordingly and charge the Treasurer of State with the amount.

History. Rev. Stat., ch. 18, § 23; C. & M. Dig., § 4494; Pope's Dig., § 5530; A.S.A. 1947, § 13-603.

19-2-103. Time for making payments.

  1. All payments for the expenses of the departments of the state government shall be due and payable in the normal course of business.
  2. All payments whatever of contingent expenses shall be due and payable as they may accrue.

History. Acts 1877, No. 38, § 3, p. 33; C. & M. Dig., § 4497; Pope's Dig., § 5533; A.S.A. 1947, § 13-616; Acts 2001, No. 1453, § 3.

19-2-104. Expenditures, contracts, or obligations in excess of appropriations prohibited.

    1. No officer, employee, or agent of the State of Arkansas, nor any board of regents or board of trustees, nor any other person or authority who may make expenditures of money appropriated for the different state institutions or who may direct the expenditure of such money so appropriated shall expend or direct the expenditure of moneys or funds in excess of the amount appropriated and becoming a part of any appropriation by executive approval for the particular purpose named in the act making the appropriations.
    2. No officer, employee, agent, person, board, or authority shall make any contract that will exceed the amount appropriated and becoming a part of any appropriation act by executive approval for the particular purpose named in the act making the appropriation.
    3. No officer, agent, person, board, or authority shall incur any obligation for any purpose in excess of the amount appropriated and becoming a part of any appropriation by executive approval for the particular purpose named in the act making the appropriation, except as provided.
  1. Any person violating a provision of this section shall be guilty of a violation and upon conviction shall be fined in any sum not less than fifty dollars ($50.00) nor more than two hundred dollars ($200).

History. Acts 1913, No. 234, §§ 1, 5; C. & M. Dig., §§ 2838, 2842, 9245, 9249; Pope's Dig., §§ 3562, 3566, 11931, 11935; A.S.A. 1947, §§ 13-625, 13-626; Acts 2005, No. 1994, § 101.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (b).

Cross References. Director of Department of Finance and Administration to prevent expenditure in excess of appropriation, § 19-1-212.

Research References

Ark. L. Rev.

Official Misconduct under the Arkansas Criminal Code, 30 Ark. L. Rev. 160.

19-2-105. Deficiencies in excess of appropriations unlawful.

  1. It shall be unlawful for the head or any subordinate in charge of any state department, board, bureau, or other state-maintained institution to cause, permit to occur, or allow to exist any deficiency in excess of regular appropriation made for maintenance of the department, board, bureau, or other state-maintained institution.
    1. Any person violating this section shall be deemed guilty of a misdemeanor.
    2. Upon conviction, an offender shall be fined in any sum not to exceed five hundred dollars ($500) or imprisoned not more than ninety (90) days, or both fined and imprisoned, and shall be discharged from office.

History. Acts 1927, No. 186, §§ 1, 3; Pope's Dig., §§ 3567, 3569; A.S.A. 1947, §§ 13-627, 13-628.

Subchapter 2 — Receipts Generally

Cross References. Penalty for payment of taxes, licenses, or fees with check returned unpaid, § 26-18-208.

Effective Dates. Acts 1923, No. 777, § 8: June 30, 1923. Emergency clause provided: “All laws and parts of laws in conflict herewith and especially sections 4504, 4505, and 4506 of Crawford and Moses' Digest are hereby repealed, and this act being necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, and same shall take effect and be in force June 30, 1923.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-2-201. Acceptance of checks.

The Treasurer of State is authorized and directed to accept checks for the remittance due the state.

History. Acts 1923, No. 777, § 3; Pope's Dig., § 5564; A.S.A. 1947, § 13-605.

19-2-202. Proceedings on bad checks.

  1. Where remittance is made by check to the Treasurer of State and the check is returned unpaid, it shall be the duty of the Treasurer of State to make a duplicate of the check and carry it as a cash item, delivering the original to the Attorney General for collection after adding a penalty of twenty-five percent (25%) to the amount of the check.
    1. It shall be the duty of the Attorney General to take such action as shall be deemed proper for the collection of a rejected check, together with twenty-five percent (25%) of the face amount of the check as penalty, for the punishment of the maker of that check under the criminal laws of this state.
    2. The penalty shall be credited to the same fund as was the original amount of the check delivered to the Attorney General by the Treasurer of State pursuant to subsection (a) of this section.
  2. If for any reason the Attorney General is unable to collect either the principal or penalty on a rejected check, as contemplated by this section, then, as soon as such fact is ascertained, it shall be the duty of the Treasurer of State to cancel the receipt for it, taking credit therefor, and notifying the Auditor of State of the cancellation; and the Auditor of State shall likewise credit the Treasurer of State with it.
  3. Any state official issuing a certificate of authority or making book entries affecting any transaction, payment for which was made with bad checks, is authorized and directed to cancel them upon receipt of the Attorney General's notice of inability to collect on such checks as specified in subsection (c) of this section.

History. Acts 1923, No. 777, §§ 4-7; Pope's Dig., §§ 5565-5568; A.S.A. 1947, §§ 13-606 — 13-609.

Case Notes

Tax Redemption Deed.

The Commissioner of State Lands was authorized to cancel tax redemption deed because of the worthlessness of a check given by the grantee in payment thereof, and absent evidence to the contrary, he is presumed to have complied with the terms of the statute authorizing such action and to have performed his duties according to law. Field v. Brown, 206 Ark. 545, 176 S.W.2d 155 (1943).

19-2-203. Receipts by Department of Finance and Administration — Additional penalty.

  1. If any person, firm, corporation, partnership, or business makes payment to the Department of Finance and Administration for any license or fees imposed by the laws of this state by means of a check, draft, or order drawn on any bank, person, firm, or corporation, and the check, draft, or order is returned by the bank, person, firm, or corporation without having been paid in full, then the Secretary of the Department of Finance and Administration is authorized and empowered to impose a penalty. The penalty shall be in the amount of either ten percent (10%) of the face amount of the check, draft, or order or twenty dollars ($20.00), whichever is greater, against the maker or drawer of the check, draft, or order.
  2. This penalty is cumulative to any other penalties provided by law.

History. Acts 1981, No. 853, § 1; A.S.A. 1947, § 13-607.1; Acts 1997, No. 702, § 2; 2019, No. 910, § 3445.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in the first sentence of (a).

19-2-204. Refusal to accept personal checks.

Effective January 1, 2000, no state agency, board, commission, or institution may refuse to accept personal checks unless and until it has filed with the Legislative Council a written statement justifying the agency's policy to not accept personal checks.

History. Acts 1999, No. 515, § 1.

Subchapter 3 — Accounts and Notes Receivable Abatement

Effective Dates. Acts 1983, No. 497, § 9: July 1, 1983. Emergency clause provided: “It has been found and determined by the Seventy-Fourth General Assembly that the provisions of this Act are necessary for the efficient and effective administration of accounting for resources of State agencies in accordance with accepted governmental accounting principles. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1983.”

Acts 1985, No. 908, § 4: Apr. 15, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that the collection of the accounts receivable due the State institutions is vital to maintaining the revenues for the operation of State government and should be diligently and actively pursued. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation and collection of the public funds shall be in full force and effect from and after its passage and approval.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-2-301. Title.

This subchapter may be known as the “Accounts and Notes Receivable Abatement Act for the State of Arkansas”.

History. Acts 1983, No. 497, § 1; A.S.A. 1947, § 13-367.

19-2-302. Purpose.

The purpose of this subchapter is to establish procedures for the various state agencies, authorities, boards, commissions, departments, and institutions of higher education to charge-off or cancel uncollectible moneys owed to them.

History. Acts 1983, No. 497, § 2; A.S.A. 1947, § 13-368.

19-2-303. Definitions.

As used in this subchapter:

  1. “Abatement” means a complete or partial cancellation of a tax levied, special assessment, service charge, student loan, note receivable, or other amounts for which asset recognition criteria have been met;
  2. “Accounts receivable” means an asset account upon the books of record reflecting amounts owing on open account from persons or organizations for taxes levied, special assessments, service charges, goods and services furnished by a state agency, or other amounts for which asset recognition criteria have been met but does not include amounts due from other state agencies;
  3. “Notes receivable” means an unconditional written promise, signed by the maker, to pay a certain sum in money on demand or at a fixed or determinable future time either to the bearer or to the order of a person designated therein;
  4. “Special assessment” means a compulsory levy made against certain properties or business entities to defray part or all of the cost of a specific improvement or service deemed to primarily benefit or regulate those upon whom the assessment is levied;
  5. “State agency” means a state agency, board, authority, commission, department, or institution of higher education created by or receiving an appropriation by the General Assembly; and
  6. “Tax” means a compulsory charge levied by the State of Arkansas for the purpose of financing services performed for the common benefit of its citizens.

History. Acts 1983, No. 497, § 3; A.S.A. 1947, § 13-369.

19-2-304. Recording of amounts due.

Each state agency shall record upon its books of record the amounts due it for delivery of goods and services, licenses, unpaid taxes, student loans, special assessments, accounts receivable, and notes receivable that are recognized by the state agency as due and payable or recognized as current-year income or as an asset that is due and payable upon a date ascertained.

History. Acts 1983, No. 497, § 4; A.S.A. 1947, § 13-370.

19-2-305. Referring of outstanding debts for collection.

  1. A state agency shall diligently and actively pursue the collection of the state agency’s accounts and notes receivable.
  2. Diligently and actively pursuing the collection of these accounts may include, but is not limited to:
    1. Contacting a debtor by phone or letter within a reasonable time after an account is deemed delinquent;
      1. Referring an account to a licensed collection agency or an attorney for collection with a remuneration not exceeding fifty percent (50%) for accounts of five hundred dollars ($500) or less and not exceeding thirty-three and one-third percent (331/3%) for accounts in excess of five hundred dollars ($500).
      2. If an agency is unable to procure the services of a collection agency or attorney for the collection of any account in excess of five hundred dollars ($500) for a fee of one-third (1/3) of the amount recovered as authorized in this subsection, the agency may report this fact to the Legislative Joint Auditing Committee, and the Legislative Joint Auditing Committee may authorize the agency to pay a higher fee for collecting the account, not to exceed fifty percent (50%);
    2. Pursuing setoff of debt against income tax refunds as allowed by §§ 26-36-301 — 26-36-320; or
    3. Pursuing all other available means of collection if deemed feasible and economically justifiable by the agency.

History. Acts 1983, No. 497, § 5; 1985, No. 908, § 1; A.S.A. 1947, § 13-371.

19-2-306. Abatement of debt.

  1. If after the state agency has pursued collection of the debt owed it as set out in this subchapter and the debt or partial debt is decreed to be uncollectible, then the debt shall be referred to the Chief Fiscal Officer of the State for abatement.
  2. The Chief Fiscal Officer of the State shall satisfy himself or herself that all efforts to collect the indebtedness have been fulfilled, and he or she may then, by written approval, declare the debt or remaining debt uncollectible and notify the state agency and Legislative Joint Auditing Committee of abatement of the debt.

History. Acts 1983, No. 497, § 6; A.S.A. 1947, § 13-372.

19-2-307. Rules.

The Secretary of the Department of Finance and Administration is authorized to promulgate such rules as deemed necessary to implement the provisions and intent of this subchapter.

History. Acts 1983, No. 497, § 7; A.S.A. 1947, § 13-373; Acts 2019, No. 315, § 1701; 2019, No. 910, § 3446.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “Rules” in the section heading; and deleted “and regulations” following “rules”.

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration”.

Subchapter 4 — Expenditures Generally

Publisher's Notes. Former §§ 19-2-40119-2-403, concerning restrictions on and increases in expenditures, were repealed by Acts 1987, No. 646, § 5. The sections were derived from the following sources:

19-2-401. Acts 1979, No. 618, § 3; A.S.A. 1947, § 13-643.

19-2-402. Acts 1979, No. 618, § 1; A.S.A. 1947, § 13-641.

19-2-403. Acts 1979, No. 618, § 2; 1983, No. 801, § 17; 1983, No. 881, § 1; A.S.A. 1947, § 13-642.

Effective Dates. Acts 1987, No. 245, § 6: July 1, 1987. Emergency clause provided: “It is hereby found and determined by the Seventy-Sixth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1987 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1987 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1987.”

Acts 1989 (1st Ex. Sess.), No. 210, § 6: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1989 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1989 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1989.”

Acts 1999, No. 236, § 5: Feb. 24, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that the requirement of saving 5% of the appropriation is not accomplishing savings and that the cost of administering the program is significant with little or no benefit. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

19-2-401 — 19-2-403. [Repealed.]

Publisher's Notes. Former §§ 19-2-40119-2-403, concerning exemptions, restrictions on expenditure of appropriations, and increase in expenditures by executive proclamation, were repealed by Acts 1999, No. 236, § 1. They were derived from the following sources:

19-2-401. Acts 1993, No. 494, § 3; 1997, No. 1362, § 44.

19-2-402. Acts 1993, No. 494, § 1; 1997, No. 1362, § 45.

19-2-403. Acts 1993, No. 494, § 2.

19-2-404. Emergency expenditures.

    1. In the event of riots, threatened riots, sabotage, public insurrection, threatened insurrection, storm, flood, famine, or other public calamity which jeopardizes the public peace, health, and safety of citizens of Arkansas that calls for immediate action, the Governor is delegated and authorized by the General Assembly to declare an emergency to exist and to issue a proclamation declaring an emergency to exist.
    2. Other requests for utilization of this appropriation shall be submitted for prior review by the Governor to a Governor's Emergency Fund Review Committee, meeting in committee, composed of the cochairs and co-vice chairs of the Legislative Joint Auditing Committee and the cochairs and co-vice chairs of the Legislative Council.
  1. A proclamation or request, as approved by the Governor or the Governor's Emergency Fund Review Committee, shall include:
    1. The nature and location of the emergency;
    2. The name of the department or agency which, in the Governor's opinion, is best able to alleviate or obviate the conditions which have arisen or are about to arise because of the emergency; and
    3. The amount of funds required for the emergency, such amount or so much thereof as shall have been set forth in each proclamation to be extended upon vouchers drawn by the disbursing agent of the department or agency named in the proclamation.
  2. The original of the proclamation shall be filed with the Secretary of State, and an executed counterpart of it shall be filed with the Auditor of State, the Treasurer of State, and the Department of Finance and Administration.
  3. Any expenditures made in accordance with the authorizations provided for in this section may be reimbursed to the Miscellaneous Revolving Fund by transfers authorized by the Chief Fiscal Officer of the State from funds or fund accounts supporting the benefiting agencies. However, in the case of the Governor's proclamations and emergencies of a nature where no specific state agency is the beneficiary, then the expenditures shall be borne by the Miscellaneous Revolving Fund.

History. Acts 1987, No. 245, §§ 1, 3; 1989 (1st Ex. Sess.), No. 210, § 1.

Publisher's Notes. Acts 1989 (1st Ex. Sess.), No. 210, § 2, contains the appropriation referred to in subdivision (a)(2).

Case Notes

Determination of Public Emergency.

What constituted a public emergency was to be determined by the Governor within the requirements of Acts 1961, No. 395, § 1, and any such emergency proclamation would have been subject to attack under the position that no emergency existed. Hooker v. Parkin, 235 Ark. 218, 357 S.W.2d 534 (1962) (decision under prior law).

Subchapter 5 — Canceled Checks

Effective Dates. Acts 1999, No. 648, § 13: Mar. 16, 1999. Emergency clause provided: “It is hereby found and determined that the information and documentation required by this act is essential for the proper functioning of state agencies, boards, commissions, institutions of higher education, counties, municipalities, school districts, educational cooperatives, improvement districts, and other public officials and public offices; that a delay in the effective date of this act could work irreparable harm upon the proper administration and provision of essential governmental programs and operations. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

19-2-501. Purpose.

The State of Arkansas and its political subdivisions have the responsibility to properly account for all financial transactions. In order to help fulfill this responsibility, the State of Arkansas and other public entities are required to maintain books and records of transactions. The State of Arkansas and its political subdivisions recognize that through the use of computers and electronic data, banking and the flow of information are continuing to change. With this change, it is important that the State of Arkansas and its political subdivisions continue to receive evidentiary information concerning financial transactions. The purpose of this subchapter is to permit public entities to accept photographic copies or digital images of financial transactions and to require financial institutions to furnish the needed documentation in a readable, meaningful, permanent format.

History. Acts 1999, No. 648, § 1.

19-2-502. Definition.

As used in this subchapter, “public entity” means state agencies, including all constitutional offices and agencies, boards, and commissions, state institutions of higher education, municipalities, counties, school districts, education service cooperatives, improvement districts, and other public officials or public offices. Public entities shall maintain records of all transactions with financial institutions.

History. Acts 1999, No. 648, § 2; 2007, No. 617, § 39.

Amendments. The 2007 amendment substituted “education service cooperatives” for “educational cooperatives.”

19-2-503. Eligibility to accept public funds.

In order for a financial institution to be eligible to be a depository of public funds, the financial institution must furnish the public entity documentation, as required in this subchapter, of transactions with or through that institution.

History. Acts 1999, No. 648, § 3.

19-2-504. Transaction summaries.

On a monthly basis, financial institutions shall furnish public entities with statements summarizing all transactions of the public entity. Unless the public entity and the financial institution have a written agreement to receive digital images or copies in compliance with the provisions of this subchapter, the financial institutions shall return all original canceled checks to the public entity along with the transaction summary or statement.

History. Acts 1999, No. 648, § 4.

19-2-505. Approval by Arkansas Legislative Audit.

  1. A financial institution desiring to provide public entities with images of canceled checks as provided in this subchapter shall provide a sample of imaged documents in one (1) or more of the following formats to Arkansas Legislative Audit for review:
    1. Stored on a CD-ROM or similar tangible digital media;
    2. Accessible through the internet; or
    3. On paper.
  2. Upon receipt of imaged documents submitted under subsection (a) of this section, Arkansas Legislative Audit shall immediately review and notify the financial institution whether or not the imaged documents are in compliance with this subchapter.

History. Acts 1999, No. 648, § 5; 2019, No. 255, § 1.

Amendments. The 2019 amendment inserted designations (a) and (b); added (a)(1) through (a)(3); in the introductory paragraph of (a), deleted “on paper or by digital media” following “checks”, and substituted “in one (1) or more of the following formats” for “or the digital media”; and in (b), inserted “of imaged documents submitted under subsection (a) of this section”, and deleted “or digital media” following the second occurrence of “documents”.

19-2-506. Digital images or copies of documentation.

  1. After a financial institution has received written notification from Arkansas Legislative Audit that the submitted samples of its imaged documents under § 19-2-505 comply with this subchapter and upon agreement with the public entity, the financial institution may provide the public entity canceled check images in the format and quality approved by Arkansas Legislative Audit.
  2. The canceled check images of financial transactions provided to the public entity by the financial institution under this subchapter shall be legible and show both the front and back images of the canceled checks.
    1. If a financial institution provides canceled check images on tangible digital media under this subchapter, the images shall be provided on a read-only CD-ROM or other agreed upon digital media that would provide a permanent and tamper-proof record.
      1. If particular software is needed to view or search the digital images provided under this subchapter, the financial institution shall provide the software to the public entity and, upon request, to Arkansas Legislative Audit.
      2. Software provided under subdivision (c)(2)(A) of this section shall make canceled check images clear and readable.
    2. Before delivery of a CD-ROM or other tangible digital media to a public entity, a financial institution shall perform random verification of the legibility of the contents of the data.
    1. If a financial institution provides canceled check images to a public entity through internet access to online banking documents under this subchapter, the financial institution may provide Arkansas Legislative Audit read-only internet access to the public entity's online banking documents.
    2. Read-only internet access granted under subdivision (d)(1) of this section shall permit viewing and copying of each public entity's bank statements, canceled check images, deposit slips, and other financial transaction documentation made available to the public entity.
      1. If particular software is needed to view or search images made available under this subsection, the financial institution shall provide the necessary software to the public entity and, upon request, to Arkansas Legislative Audit.
      2. Software provided under subdivision (d)(3)(A) of this section shall make canceled check images clear and readable.
    3. An online banking document made available to a public entity under this subsection shall be available for read-only internet access for at least five (5) years after the document is made available to the public entity online.
  3. If a financial institution provides canceled check images on paper under this subchapter, the images shall be of such clarity and size that the details may be read without the aid of a magnifying device.
    1. If a financial institution provides canceled check images under this subchapter, the financial institution shall implement one (1) of the following procedures to provide verification of the authenticity of the records retained by the public entity:
      1. A duplicate copy of the check images on paper and statements mailed to Arkansas Legislative Audit on a monthly basis;
      2. The use of an identifying mark unique to the financial institution on the paper images of checks sent to the public entity;
      3. The delivery of a duplicate copy of the check images stored on tangible digital media, conforming to the digital imaging specifications stated in this subchapter, to Arkansas Legislative Audit on a monthly basis;
      4. The provision to Arkansas Legislative Audit of read-only internet access to the public entity's online banking documents in accordance with the requirements of this subchapter; or
      5. Any other authenticating method approved by Arkansas Legislative Audit.
    2. A financial institution may elect which of the procedures listed in subdivision (f)(1) of this section it shall implement to provide authentication of images relating to the accounts of each public entity.
  4. A financial institution shall be able to, and, at the request of Arkansas Legislative Audit, shall provide duplicate copies of any checks and statements delivered to a public entity:
    1. With the same clarity and size as the imaged documents previously delivered; and
    2. In the format requested by Arkansas Legislative Audit if the format is currently available to the financial institution.

History. Acts 1999, No. 648, § 6; 2019, No. 255, § 1.

Amendments. The 2019 amendment rewrote the section.

19-2-507. Request of records by Legislative Auditor.

  1. Upon request by the Legislative Auditor, a financial institution shall provide a copy of a public entity's financial information directly to Arkansas Legislative Audit staff without delay or approval from the public entity.
  2. The financial institutions may provide the digital transaction statements and digital canceled check images to Arkansas Legislative Audit in a media format allowed under the provisions of this subchapter for public entities or other media mutually agreed upon by the financial institution and Arkansas Legislative Audit.
  3. No bank shall be liable for making available to Arkansas Legislative Audit staff any of the information required under the provisions of this subchapter.
  4. Any cost associated with providing this information to Arkansas Legislative Audit shall be borne by the public entity being audited or investigated.

History. Acts 1999, No. 648, § 7.

19-2-508. [Repealed.]

Publisher's Notes. This section, concerning compliance, was repealed by Acts 2009, No. 251, § 4. The section was derived from Acts 1999, No. 648, § 8.

19-2-509. Effect on other laws.

The provisions of this subchapter do not change, amend, or repeal any laws or rules regarding a financial institution's normal obligations and responsibilities to maintain customer financial records.

History. Acts 1999, No. 648, § 9; 2019, No. 315, § 1702.

Amendments. The 2019 amendment substituted “rules” for “regulations”.

Chapter 3 State Treasury Management

Research References

Am. Jur. 63C Am. Jur. 2d, Pub. Funds, § 1 et seq.

C.J.S. 81A C.J.S., States, § 340 et seq.

Subchapter 1 — General Provisions [Reserved]

19-3-101. [Repealed.]

Publisher's Notes. This section, concerning the State Board of Finance, was repealed by Acts 2013, No. 1088, § 5. The section was derived from Acts 1955, No. 338, § 1; 1965 (1st Ex. Sess.), No. 12, § 12; A.S.A. 1947, § 13-401.

Subchapter 2 — State Treasury Management Law

19-3-201 — 19-3-223. [Repealed.]

Publisher's Notes. This subchapter, concerning the State Treasury Management Law, was repealed by Acts 1997, No. 847, § 4. The subchapter was derived from the following sources:

19-3-201. Acts 1965 (1st Ex. Sess.), No. 12, § 1; A.S.A. 1947, § 13-421.

19-3-202. Acts 1965 (1st Ex. Sess.), No. 12, § 2; A.S.A. 1947, § 13-422.

19-3-203. Acts 1965 (1st Ex. Sess.), No. 12, § 3; A.S.A. 1947, § 13-423.

19-3-204. Acts 1965 (1st Ex. Sess.), No. 12, § 5; A.S.A. 1947, § 13-425.

19-3-205. Acts 1965 (1st Ex. Sess.), No. 12, § 6; A.S.A. 1947, § 13-426.

19-3-206. Acts 1965 (1st Ex. Sess.), No. 12, § 7; A.S.A. 1947, § 13-427.

19-3-207. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-208. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-209. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-210. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-211. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-212. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-213. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428; Acts 1993, No. 745, § 1.

19-3-214. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428; Acts 1993, No. 745, § 2.

19-3-215. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-216. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428; Acts 1993, No. 745, § 3.

19-3-217. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-218. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-219. Acts 1965 (1st Ex. Sess.), No. 12, § 9; 1968 (2nd Ex. Sess.), No. 5, § 1; 1969, No. 620, § 16; 1973, No. 121, § 9; 1980 (1st Ex. Sess.), No. 57, § 2; 1980 (1st Ex. Sess.), No. 65, § 2; 1985, No. 341, §§ 1, 2; A.S.A. 1947, §§ 13-429, 13-429.1; Acts 1993, No. 745, §§ 4, 5; 1993, No. 888, § 1; 1995, No. 1236, § 1.

19-3-220. Acts 1981, No. 161, § 2; A.S.A. 1947, § 13-429.2.

19-3-221. Acts 1981, No. 161, § 3; A.S.A. 1947, § 13-429.3.

19-3-222. Acts 1965 (1st Ex. Sess.), No. 12, § 10; 1973, No. 121, § 10; A.S.A. 1947, § 13-430.

19-3-223. Acts 1965 (1st Ex. Sess.), No. 12, § 11; A.S.A. 1947, § 13-431.

For present law, see § 19-3-501 et seq.

Subchapter 3 — Long-Term Investment

19-3-301 — 19-3-309. [Repealed.]

Publisher's Notes. This subchapter, concerning long-term investment, was repealed by Acts 1997, No. 847, § 4. The subchapter was derived from the following sources:

19-3-301. Acts 1973, No. 121, § 1; A.S.A. 1947, § 13-432.

19-3-302. Acts 1973, No. 121, § 2; A.S.A. 1947, § 13-433.

19-3-303. Acts 1973, No. 121, § 11; A.S.A. 1947, § 13-439.

19-3-304. Acts 1973, No. 121, § 7; A.S.A. 1947, § 13-438.

19-3-305. Acts 1973, No. 121, § 3; A.S.A. 1947, § 13-434.

19-3-306. Acts 1973, No. 121, § 12; A.S.A. 1947, § 13-440.

19-3-307. Acts 1973, No. 121, § 4; 1979, No. 4, § 1; 1979, No. 416, § 1; 1980 (1st Ex. Sess.), No. 57, § 1; 1980 (1st Ex. Sess.), No. 65, § 1; 1985, No. 342, § 1; A.S.A. 1947, § 13-435; Acts 1993, No. 745, § 6.

19-3-308. Acts 1973, No. 121, § 5; 1979, No. 416, § 2; A.S.A. 1947, § 13-436.

19-3-309. Acts 1973, No. 121, § 6; A.S.A. 1947, § 13-437.

For present law, see § 19-3-601 et seq.

Subchapter 4 — Temporary Loans to Local Governments

Effective Dates. Acts 1977 (1st Ex. Sess.), No. 15, § 5: Aug. 15, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that legislation being considered by the Seventy-First General Assembly to remove the penalty provisions for failure to pay property taxes in installments may result in substantial financial hardship to cities, counties, and school districts, and may adversely affect their cash flow or monies available for the normal operation of essential governmental and public school purposes; and that the immediate passage of this Act is necessary to establish a procedure for making temporary loans to such cities, counties, and school districts to maintain their cash flow levels. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

19-3-401. Legislative intent.

The General Assembly recognizes that legislation considered by the First Extraordinary Session of the Seventy-First General Assembly may remove the penalty requirements for failure to pay property taxes by installments and that this action may result in a reduction of property tax revenues available to cities, counties, and school districts, thereby imposing a financial hardship upon the cities, counties, and school districts during portions of their calendar or fiscal year. It is, therefore, the intent of this subchapter to authorize the State Board of Finance, in the manner provided in this subchapter, to make temporary loans to cities, counties, and school districts to assist in maintaining their average cash flow in the event there is a material reduction in their cash flow resulting from legislation enacted by the First Extraordinary Session of the Seventy-First General Assembly.

History. Acts 1977 (1st Ex. Sess.), No. 15, § 1; A.S.A. 1947, § 13-441.

19-3-402. Procedure for obtaining and repaying loans.

  1. The State Board of Finance is authorized to make temporary loans to cities, counties, and school districts from average daily balances in the State Treasury available to the board for investment purposes. For any city, county, or school district to be eligible to receive temporary loans under the provisions of this subchapter, the city, county, or school district shall prepare a schedule from each of the five (5) preceding calendar or fiscal years. This schedule shall reflect the average monthly cash flow derived from property tax sources and the proportion of property taxes available during each month as they relate to the aggregate amount of property taxes collected and available to the city, county, or school district during the calendar or fiscal year, and the city, county, or school district shall average such monthly cash flow percentages for the five-year period.
  2. If the board determines that the cash flow of the city, county, or school district has fallen below the monthly average percentage cash flow for property taxes available to the city, county, or school district for the prior five (5) fiscal years and that the current level of cash flow is not adequate to enable the city, county, or school district to maintain an adequate level of services, the board may make temporary loans to the city, county, or school district. These loans may be in an aggregate amount no greater than the difference between average monthly percentage cash flow of the city, county, or school district for the preceding five (5) years for such period and the actual percentage cash flow in the current tax year computed on the basis of taxes collected in relation to the estimated tax collections for the tax year.
    1. All these loans shall be repaid to the board upon their maturity, which shall, in no event, be beyond the last day of the calendar year in which the loan is made.
    2. In the event any city, county, or school district shall fail or refuse to pay any such loan in accordance with the repayment schedule agreed to by the board or as set forth in this section, the board shall certify this fact and the amount of the unpaid loan to the Treasurer of State. The Treasurer of State shall withhold it from the next moneys available for distribution to the city, county, or school district from state general revenues and shall transfer the amount from the County Aid Fund, the Municipal Aid Fund, or the Public School Fund, as the case may be, to the appropriate State Treasury account or source from which the loan was made.

History. Acts 1977 (1st Ex. Sess.), No. 15, § 2; A.S.A. 1947, § 13-442.

19-3-403. Rules.

The State Board of Finance may promulgate appropriate rules for the administration of this subchapter, including the establishment of the necessary forms and loan instruments to be used in connection with making loans under the provisions of this subchapter.

History. Acts 1977 (1st Ex. Sess.), No. 15, § 3; A.S.A. 1947, § 13-443; Acts 2019, No. 315, § 1703.

Amendments. The 2019 amendment deleted “and regulations” following “Rules” in the section heading; and deleted “and regulations” following “rules”.

Subchapter 5 — State Treasury Management Law

A.C.R.C. Notes. Acts 2013, No. 1088, § 4, provided: “Grace period.

“Upon application and for good cause the State Board of Finance may allow an entity that was a bank depository or investment depository on the effective date of this act until January 1, 2014, to comply with:

“(1) An eligibility requirement established after the effective date of this act; or

“(2) A requirement of § 19-3-501 et seq. established by this act.”

Effective Dates. Acts 1997, No. 847, § 5: May 31, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 becomes effective on June 1, 1997 and that this act should become effective prior to the effective date of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. Also, Act 89 of 1997 enabling the Arkansas Banking Code and the companion bill, Senate Bill 359 amending the Arkansas Banking Code to opt in interstate branching go into effect May 31, 1997. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after May 31, 1997.”

Acts 2001, No. 1453, § 49: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that proper and effective management requires that changes to the state's finance and accounting laws begin on the first day of the fiscal year and that if there is an extended recess of the General Assembly, the required ninety day period may extend past July 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2005, No. 873, § 2: Mar. 15, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that state fund investment limitations are detrimental to the economic growth of this state; that additional investment authority is needed to provide the Treasurer of State and the State Board of Finance with the flexibility to make sound and beneficial investment decisions; and that this act is immediately necessary to enable additional state funds to be invested as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2016 (3rd Ex. Sess.), No. 1, § 23: July 1, 2016, §§ 1-8, 13, 15, and 18-21. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that Arkansas bridges and roads are in need of repair and proper maintenance; that the repair and proper maintenance of Arkansas bridges and roads are necessary for the preservation of the public peace, health, and safety; that increased funding is essential to the repair and proper maintenance of Arkansas bridges and roads; that this act is designed to provide the necessary funding that is essential to the repair and proper maintenance of Arkansas bridges and roads, and this act is necessary because without this increased funding, the repair and proper maintenance of Arkansas bridges and roads may not be performed. Therefore, an emergency is declared to exist, and Sections 1-8, 13, 15, 18-21 of this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2016.”

Acts 2017, No. 291, § 3: June 30, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act amends the dates of the Treasurer of State's reporting requirements in an effort to achieve more accurate and efficient reporting; that the next reporting cycle begins at the beginning of the next fiscal year on July 1, 2017; that it is in the best interests of the state to have accurate and efficient reporting by the Treasurer of State; that the provisions of this act should be effective before the next billing cycle to allow the Treasurer of State to implement this act; and that this act is necessary because it will allow for the Treasurer of State to provide more accurate and efficient reporting in the next reporting cycle. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on June 30, 2017.”Acts 2017, No. 555, § 8: July 1, 2017. Emergency clause provided: “It is found and determined by the General Assembly that this act amends the investment and transfer authority of the Treasurer of State; that this act affects the ability of the Treasurer of State to invest and transfer state funds; and that this act should become effective as soon as possible to allow for implementation of the new provisions to benefit the State of Arkansas. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2017.”

19-3-501. Title.

This subchapter shall be known and may be cited as the “State Treasury Management Law”.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment substituted “shall be known and may be cited as” for “may be referred to and cited as”.

19-3-502. Definitions.

As used in this subchapter:

  1. “Bank” means:
    1. A state bank, a national bank, or an out-of-state state-chartered bank that has received a certificate of authority under § 23-48-1001; and
    2. A foreign bank organized under the laws of a territory of the United States, Puerto Rico, Guam, American Samoa, or the United States Virgin Islands if the deposits of the foreign bank are insured by the Federal Deposit Insurance Corporation;
  2. “Bank depository” means a bank or savings and loan association that accepts a deposit of funds from the State Treasury;
  3. “Capital base” means the sum of a bank's capital stock, surplus, and undivided profits, plus any additions and less any subtractions which the Bank Commissioner may by rule prescribe;
  4. “Cash Account” means the asset account in the State Treasury consisting of all cash:
    1. In the hands of the Treasurer of State; and
    2. On deposit in the name of the Treasurer of State in a bank depository;
  5. “Certificate of Deposit Account” means the asset account in the State Treasury consisting of all, but only, certificates of deposit acquired by the Treasurer of State through the State Treasury Certificate of Deposit Investment Program;
  6. “Fund account” means a specifically named liability account in the State Treasury to which moneys are credited upon receipt and charged upon withdrawal that:
    1. Is created or authorized by law; and
    2. Reflects the amount of money owed to an agency or instrumentality of the State of Arkansas;
  7. “Gross treasury fund balances” means the aggregate total amount of the balances standing to the credit of all funds on the records of the Treasurer of State;
  8. “Investment depository” means a person or entity that accepts money or securities from the State Treasury for investment purposes;
  9. “National bank” means a national banking association organized to carry on the business of banking under Title 12, Chapter 2, of the United States Code;
  10. “Safekeeping Account” means the account in the State Treasury administered by the Treasurer of State for the benefit of other government entities consisting of all securities received by the Treasurer of State from the administrators of the several state retirement systems and other trust accounts;
  11. “Savings and loan association” means a corporation carrying on the business of a savings and loan association or a building and loan association under a charter issued by this state or any federal savings association or federal savings bank that is chartered under federal law;
  12. “Securities Account” means the asset account in the State Treasury consisting of all securities held by the Treasurer of State through its investment of gross state fund balances;
    1. “Securities broker” means a person or entity that:
      1. Buys or sells an investment for the State Treasury; or
      2. Receives any form of compensation or remuneration in connection with the purchase or sale of an investment of State Treasury funds.
    2. “Securities broker” includes a stock broker, a securities broker, an investment adviser, and any other person or entity that facilitates or helps to facilitate a transaction concerning an investment of State Treasury funds;
  13. “State bank” means a state bank as defined in § 23-45-102;
  14. “State Treasury” means all moneys, securities, and gross treasury fund balances administered by the Treasurer of State;
  15. “Trust Deposit Account” means the asset account in the State Treasury consisting of all, but only, certificates of deposit administered by the Treasurer of State for the benefit of the several retirement systems and other trust fund accounts;
  16. “Trust fund account” means a specifically named liability account designated by law as a trust fund in the State Treasury to which moneys are credited upon receipt and debited upon withdrawal, representing the balance owed by the State Treasury to agencies and instrumentalities of the State of Arkansas; and
  17. “Trust Investment Account” means the asset account in the State Treasury consisting of all, but only, securities administered by the Treasurer of State for the benefit of the several retirement systems and other trust fund accounts.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2; 2019, No. 315, § 1704.

Amendments. The 2013 amendment rewrote the section.

The 2019 amendment substituted “rule” for “regulation” in (3).

19-3-503. State Treasury accounts.

The Treasurer of State may create and rename accounts to ensure the proper accounting and administration of the State Treasury.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment rewrote the section.

19-3-504. Record and report of financial transactions.

      1. The State Board of Finance shall:
        1. Establish the record-keeping requirements of the Treasurer of State for the State Treasury; and
        2. Require that:
          1. The liability accounts of the State Treasury be recorded in amounts and sufficient detail to allow the identification of the governmental entity to which funds are owed;
          2. The asset accounts of the State Treasury be recorded in amounts and sufficient detail to identify the type of assets owned; and
          3. All accounts of the State Treasury be recorded using a basis of accounting approved by the board that is consistent with generally accepted accounting principles.
      2. The record-keeping requirements under subdivision (a)(1)(A) of this section:
        1. May exceed the requirements of this section; and
        2. Shall include without limitation records showing:
          1. The identity of each fund and category of funds; and
          2. A comparison of:
            1. Liquidity requirements established by the board and the State Treasury's actual liquidity; and
            2. The target rate of investment return established by the board and the State Treasury's actual rate of investment return.
      1. Each fund account shall be listed separately on the records of the Treasurer of State under its major group heading.
      2. For each fund account, each group, and each major group, the records shall reflect each day:
          1. Summary financial transactions for the day and cumulative summary financial transactions for the current fiscal year.
          2. The summaries required by subdivision (a)(2)(B)(i)(a) of this section shall include:
            1. A statement of:
              1. Direct receipts;
              2. Transfer receipts;
              3. Disbursements by warrant redemption; and
              4. Disbursements by transfer; and
            2. The amount of uncollected checks legally charged off;
              1. Limit the items of summary financial information that may be included in the records or reports of the Treasurer of State; or
              2. Exclude other primary, subsidiary, or auxiliary records as may be required by law, kept by the Treasurer of State, or as may be required of the Treasurer of State by the Chief Fiscal Officer of the State in the performance of the duties of the Treasurer of State.
        1. The credit balance at the close of business; and
        2. The composition of gross treasury fund balances.
    1. Additionally, the records shall reflect in summary form the total principal amount of securities held in trust in the Safekeeping Account.
    2. The enumeration of requirements in this subsection does not:
    1. A daily and a monthly report of the information required by subsection (a) of this section shall be:
      1. Prepared by the Treasurer of State and delivered to the Chief Fiscal Officer of the State; and
      2. Open to public inspection during normal business hours.
    2. A report of the information required by subsection (a) of this section shall be delivered in electronic format annually to the Legislative Council, Arkansas Legislative Audit, and the Governor on:
      1. January 10 for the six-month period ending the immediately preceding December 31; and
      2. July 10 for the immediately preceding fiscal year.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2; 2017, No. 291, § 1.

Amendments. The 2013 amendment rewrote the section.

The 2017 amendment rewrote (b)(2).

19-3-505. Disposition of moneys received by Treasurer of State.

    1. The Treasurer of State shall issue receipts to depositors of moneys into the State Treasury.
    2. On the day of receipt or as soon as practical, the moneys shall be credited to the appropriate fund as provided by law.
    1. After credit to the appropriate funds, the moneys shall be:
      1. Commingled with all other moneys in the State Treasury; and
      2. Deposited into bank depositories to the credit of the account of the Treasurer of State or invested as prescribed in this subchapter.
    2. This subsection does not prohibit the Treasurer of State from keeping cash of the State Treasury in the Treasurer of State's office in reasonable amounts necessary for the transaction of the day-to-day business of the office with persons and firms other than bank depositories.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment rewrote the section.

19-3-506. Custodian of moneys and securities — Internal controls — Annual audit.

    1. The Treasurer of State shall:
      1. Be custodian of all moneys, securities, and certificates of deposit at any time held in the State Treasury; and
      2. Maintain all moneys and securities consistent with generally accepted accounting principles.
    2. However, control of the disposition of securities is vested in the respective administrators of the several trust accounts for whom the securities are held.
  1. To ensure the financial integrity of the State Treasury, the Treasurer of State shall:
    1. Establish and maintain effective internal controls over financial reporting and record keeping, including the monitoring of ongoing activities, and comply with the Arkansas Constitution and applicable laws, rules, contracts, and agreements;
    2. Establish and maintain effective internal controls to prevent and detect fraud;
    3. With respect to State Treasury funds or other public funds, notify Arkansas Legislative Audit of all known fraud or suspected fraud or all known or suspected illegal acts involving the management or other employees of the Treasurer of State, the State Board of Finance, a bank depository, an investment depository, or a securities broker;
    4. Inform Arkansas Legislative Audit and the Chief Fiscal Officer of the State of any known material violations of the Arkansas Constitution or applicable statutes, rules, contracts, or agreements;
    5. Prepare records and reports in accordance with guidelines and timelines established by the Chief Fiscal Officer of the State to permit incorporation into the state's financial statements and to permit the audit of the state's financial statements and the records, reports, and financial statements of the Treasurer of State in a timely manner; and
    6. Make all financial records and related information available to Arkansas Legislative Audit, including the identification of significant personal or financial relationships between a director, officer, or employee of a bank depository, investment depository, or securities broker and an officer or employee of the Treasurer of State or board.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2; 2017, No. 263, § 1.

Amendments. The 2013 amendment rewrote the section.

The 2017 amendment substituted “Arkansas Legislative Audit” for “the Division of Legislative Audit” and “State Board of Finance” for “board” in (b)(3).

19-3-507. Bank depositories generally.

  1. Subject to the conditions and limitations provided in §§ 19-3-508 — 19-3-517, a bank or savings and loan association may be designated as a bank depository.
    1. A bank or savings and loan association is not required to act as a bank depository.
    2. However, the acceptance of a deposit of State Treasury funds requires a bank depository to observe §§ 19-3-508 — 19-3-517.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment rewrote the section.

19-3-508. Deposits in ineligible institutions.

  1. The Treasurer of State shall not deposit State Treasury funds into an institution that is not eligible to be a bank depository under § 19-3-507 unless deposits in the institution are required to be made by other law or by resolution of a state board or commission duly adopted pursuant to the authority and requirement of other law.
  2. The prohibition of subsection (a) of this section does not apply to funds payable from the State Treasury that are required by paying agents to meet debt service requirements of bond obligations incurred by law.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment, in (a), substituted “shall not deposit State Treasury funds into an institution that is not eligible to be a bank depository” for “may not deposit any State Treasury funds in any institution not considered eligible to be a depositor”, and “the institution” for “such institutions”; and rewrote (b).

19-3-509. Maximum amount of deposits and investments — Protection of State Treasury funds.

  1. The maximum amount of moneys and securities from the State Treasury held by a bank depository shall not exceed an amount equal to the total amount of the capital base of the bank depository.
  2. An investment depository and a securities broker shall provide the Treasurer of State and State Board of Finance proof of:
    1. Securities investor protection coverage for each investment of State Treasury funds; and
    2. Compliance with fidelity bond requirements of the United States Securities and Exchange Commission.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment added “and investments — Protection of State Treasury funds” to the end of the section heading; rewrote (a); and added (b).

19-3-510. Types of accounts for deposits.

    1. Funds from the State Treasury deposited into a bank depository or an investment depository shall be credited to accounts in the name of the Treasurer of State.
    2. Except as provided in § 19-3-512, the Treasurer of State may establish accounts as demand deposit accounts, certificates of deposit, or other accounts.
  1. The certificate of deposit account in a bank depository or an investment depository shall consist of funds from the State Treasury deposited under the State Treasury Certificate of Deposit Investment Program and trust funds deposited for various trust funds.
  2. The demand deposit account in a bank depository or an investment depository shall consist of:
    1. All federal funds, as described in § 19-7-101 et seq.;
    2. Trust funds to the extent that the trust funds are not invested in securities and certificates of deposit; and
    3. State funds to the extent that the state funds are not invested in securities.
  3. Funds from the State Treasury shall not be deposited into a bank depository or an investment depository except under the terms of a written agreement entered into between the Treasurer of State and the bank depository or investment depository that complies with applicable state law and rules and federal law, rules, and regulations.

History. Acts 1997, No. 847, § 1; 2009, No. 251, § 5; 2013, No. 1088, § 2; 2019, No. 315, § 1705.

Amendments. The 2013 amendment rewrote the section.

The 2019 amendment inserted “law and rules” following “state” in (d).

19-3-511. Term of deposit — Interest.

  1. At a meeting called and held before the start of the term of a certificate of deposit, the State Board of Finance shall determine the interest rate to be paid on certificates of deposit invested through the State Treasury Certificate of Deposit Investment Program.
  2. The Treasurer of State and each bank depository shall enter into an agreement establishing the term or renewal term of the certificate of deposit.
    1. Notice of the date and time of the meeting shall be given by the Secretary of the State Board of Finance and published in a newspaper of statewide circulation at least five (5) days but no more than fifteen (15) days before the meeting.
    2. At the meeting a person desiring to be heard shall be given the opportunity to express his or her views on any matter under consideration by the board.
    3. After considering all views expressed and the views of the board members, the board shall fix the rate of interest to be used by the Treasurer of State and paid by bank depositories during the next term.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment rewrote the section.

19-3-512. Estimate and investment of funds not needed for immediate cash requirements.

    1. No less than quarterly, the State Board of Finance in conjunction with the Chief Fiscal Officer of the State shall determine the amount of funds from the State Treasury available for deposit by the Treasurer of State into the State Treasury Certificate of Deposit Investment Program.
    2. The board shall direct the investment of all moneys that exceed the cash requirements needed to satisfy outstanding warrants and other liquid obligations for the succeeding quarter.
    1. At least ten (10) days before making the determination required by subsection (a) of this section and after reviewing current holdings in the State Treasury and all available revenue forecasts, appropriations, expenditure budgets, year-to-date expenditure reports, prior year expenditure trends, and any other pertinent information, the Chief Fiscal Officer of the State shall advise the board of the estimated amount of cash reserves expected to be needed by the Treasurer of State to purchase warrants in the next fiscal quarter.
    2. The board shall direct the Treasurer of State:
      1. To purchase warrants in the next fiscal quarter; and
      2. In the type and amount for deposit and investment of all holdings exceeding cash reserves for warrant purposes.
  1. The Treasurer of State, acting ministerially, may do all things necessary to accomplish the purposes and intent of this section.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment substituted “and investment of funds not needed for immediate cash requirements” for “of deposits not needed for operations” in the section heading; rewrote (a)(1); and added (a)(2); inserted present (b) and redesignated former (b) as (c); and, in (c), substituted “may do all things” for “shall have the authority to take such action and do such things as shall be” and deleted “expressed” preceding “purposes”.

19-3-513. Interest income on deposits.

  1. Interest from time to time due by a bank depository on Cash Account demand deposit accounts and Certificate of Deposit Account certificates of deposit shall be paid to the Treasurer of State as directed by the Treasurer of State.
  2. The interest income shall be classified as trust fund income, and the net amount of the interest income shall be credited to the Securities Reserve Fund.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment, in (a), substituted “by a bank depository on Cash Account demand” for “by each depository on demand”, inserted “Certificate of Deposit Account” and substituted “paid to the Treasurer of State as directed by” for “paid and transmitted on each due date to and in the manner authorized and prescribed by”; and, in (b), substituted “The interest” for “All such interest” and “of the interest income” for “thereof”.

19-3-514. List of deposits.

    1. On or before the tenth day following the end of each calendar quarter, the Treasurer of State shall prepare a list of all bank depositories.
    2. For each bank depository, the list shall include the amounts of State Treasury funds on time deposit and on demand deposit on the last day of business of the calendar quarter.
  1. The list shall be maintained for public inspection at the Treasurer of State's office.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment redesignated (a) as (a)(1) and (2); in (a)(1), deleted “year” following “quarter” and inserted “bank” preceding “depositories”; and, in (a)(2), added “For each bank depository, the list shall include” at the beginning, deleted “in each such depository” preceding “on the last”, and substituted “calendar quarter” for “quarter year”.

19-3-515. Charges on deposits.

    1. The Treasurer of State, acting ministerially, may contract with a bank depository or investment depository to pay processing fees for handling funds of the State Treasury if it is deemed to be in the best interest of the State of Arkansas.
    2. The processing fees shall be paid by state warrant from appropriations to the Treasurer of State.
  1. Unless authorized by its contract with the Treasurer of State, a bank depository or investment depository shall not make any charge for handling funds of the State Treasury.
  2. A bank depository or investment depository shall not use compensating deposit balances to offset processing fees.
  3. A claim for a charge or processing fee in violation of this section is void.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment redesignated (a) as (a)(1); in (a)(1), substituted “may contract with a bank depository or investment depository” for “shall have the authority to enter into an agreement with any financial institution handling state funds” and “funds of the State Treasury” for “such funds”; added (a)(2); rewrote (b); and added (c) and (d).

19-3-516. Discontinuance as bank depository.

  1. A bank depository that refuses to cash upon presentation by the payee within thirty (30) days of issuance a state warrant of five hundred dollars ($500) or less drawn upon the State Treasury or a bank check of five hundred dollars ($500) or less issued by a state agency shall:
    1. Be discontinued immediately as a bank depository; and
    2. For a period of time determined by the State Board of Finance, be ineligible for reinstatement as a bank depository.
  2. This section does not prevent a bank depository from:
    1. Taking a reasonable time to make proper identification of the persons and signatures of payees named in warrants or checks; or
    2. Seeking indemnification for losses from cashing warrants or checks for persons other than the payees named in the warrants or checks.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment rewrote the section.

19-3-517. Effect of proper deposits.

The deposit of State Treasury funds in accordance with §§ 19-3-50719-3-516 relieves the Treasurer of State and the surety on the Treasurer of State's bond of liability for the loss of the funds by reason of the default or insolvency of a bank depository.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment deleted “the provisions of” preceding “§§ 19-3-507”, substituted “relieves” for “shall relieve”, deleted “any and all” preceding “liability”, substituted “the funds” for “such funds”, “a bank” for “any bank” and deleted “of State Treasury funds” following “depository”.

19-3-518. Investments in securities and bank certificates of deposit.

    1. Trust fund accounts in the State Treasury may be invested in:
      1. Certificates of deposit of banks and savings and loan associations; and
      2. Securities eligible under other law.
      1. The administrator of a trust fund account shall review, from time to time, the flow of moneys through the trust fund account in the State Treasury to determine the estimated surplus moneys in the trust fund account that exceed the immediate requirements of the trust fund account.
          1. After taking into consideration the amount of the estimated surplus moneys under subdivision (a)(2)(A) of this section, the administrator shall certify to the Treasurer of State the amount of surplus moneys and the period of time during which the surplus moneys are not required.
          2. The Treasurer of State shall invest the amount certified in certificates of deposit issued by eligible banks and savings and loan associations.
          3. If the Treasurer of State is unable to place the certified amount in certificates of deposit, then the remainder may be placed in securities with the administrator's approval.
          1. Moneys required for a purchase under this subdivision (a)(2)(B) shall be withdrawn from the Cash Account and paid to the bank depository issuing the certificate of deposit or the investment depository selling the securities.
            1. The principal amount of the certificate of deposit shall be debited to the Trust Deposit Account.
            2. The principal amount of a security shall be debited to the Trust Investment Account.
        1. The certificates of deposit shall be secured by the Treasurer of State in accordance with the collateralization and investment policies of the State Board of Finance.
          1. Interest on bank certificates of deposit shall be paid at competitive rates according to the investment policy established by the State Board of Finance.
          2. All interest income derived from certificates of deposit or securities shall be credited as trust fund income to the trust fund used to purchase a certificate of deposit or security.
      1. The Securities Reserve Fund shall be maintained on demand deposit in depository banks.
      2. This subsection does not apply to the Securities Reserve Fund.
      1. The State Board of Finance may direct that a portion of state funds in the State Treasury be invested in certificates of deposit in the State Treasury Certificate of Deposit Investment Program as provided in § 19-3-519.
      2. The remaining portion of state funds in the State Treasury may be invested in:
        1. Certificates of deposit;
        2. Direct obligations of the United States Government;
        3. Obligations of agencies and instrumentalities created and authorized by act of the United States Congress to issue securities or evidences of indebtedness, regardless of guarantee of repayment by the United States Government;
        4. Obligations in which the principal and interest are fully guaranteed by:
          1. The United States Government; or
          2. An agency or an instrumentality created by an act of the United States Congress and authorized by the United States Congress to issue the guarantee;
        5. Obligations in which the principal and interest are fully secured, insured, or covered by a commitment or agreement to purchase the obligation by:
          1. The United States Government; or
          2. An agency or instrumentality created by an act of the United States Congress and authorized by the United States Congress to issue the commitment or agreement;
        6. General obligations of the states of the United States and of the political subdivisions, municipalities, commonwealths, territories, or insular possessions of the states of the United States;
        7. Obligations issued by the State Board of Education under authority of the Arkansas Constitution or applicable statutes;
        8. Warrants of a political subdivision or municipality of the State of Arkansas having maturities not exceeding one (1) year;
        9. Prerefunded municipal bonds, if the principal and interest of the municipal bonds are fully secured by the principal and interest of a direct obligation of the United States Government;
        10. The sale of federal funds with a maturity of not more than one (1) business day;
        11. Demand, savings, or time deposits or accounts of a depository institution chartered by the United States, a state of the United States, or the District of Columbia if funds invested in the demand, savings, or time deposits or accounts are fully insured by a federal deposit insurance agency;
        12. Repurchase agreements that are fully collateralized by securities stated in subdivisions (b)(1)(B)(ii)-(v) of this section if the repurchase agreement provides for taking delivery of the collateral directly or through an authorized custodian;
        13. A securities or other interest in an open-end type investment company or investment trust registered under the Investment Company Act of 1940 and that is defined as a “money market fund” under 17 C.F.R. § 270.2a-7 if:
          1. The portfolio of the investment company or investment trust is limited principally to United States Government obligations and to repurchase agreements fully collateralized by United States Government obligations; and
          2. The investment company or investment trust takes delivery of the collateral either directly or through an authorized custodian; or
        14. As approved by the guidelines established by the State Treasury investment policy approved by the State Board of Finance, a corporate obligation with an investment grade rating of at least BBB, A2, P2, or an equivalent rating as indicated by at least two (2) nationally recognized statistical rating organizations.
        1. Moneys required for a purchase under subdivision (b)(1) of this section shall be withdrawn from the Cash Account and paid to the seller of the securities.
        2. The cost of the securities shall be debited to the Securities Account.
      1. The proceeds of the sale or redemption of securities withdrawn from the Securities Account shall be debited in the Cash Account in the State Treasury.
        1. For all purchases, sales, and redemptions of securities under this subsection, discounts and premiums shall be credited or charged, as appropriate, to the Securities Reserve Fund.
        2. Discounts and premiums that are increments and all interest received on securities held in the Securities Account shall be classified as trust fund income and credited to the Securities Reserve Fund by the Treasurer of State.
      1. All purchases and sales of securities by the Treasurer of State shall be made through securities brokers:
        1. Specifically approved by the State Board of Finance; or
        2. Meeting criteria established by the State Board of Finance.
      2. All purchases and sales of securities by the Treasurer of State shall be made using a competitive procedure that:
        1. Is approved by the State Board of Finance; and
        2. Has the goals of:
          1. Obtaining the optimal price and value for the securities; and
          2. Not showing preference toward any securities broker.
        1. However, the State Board of Finance may subscribe for obligations offered by the United States Department of the Treasury.
        2. An obligation offered by the United States Department of the Treasury held in the State Treasury may be exchanged for another obligation offered by the United States Department of the Treasury if an exchange privilege has been extended by the United States Department of the Treasury.
    1. [Repealed.]
      1. All or any part of the bonds of local industrial development corporations, authorized and issued under the Arkansas Industrial Development Act, § 15-4-101 et seq., and all or any part of the bonds of municipalities and counties, authorized and issued under the Municipalities and Counties Industrial Development Revenue Bond Law, § 14-164-201 et seq., at any time held in the Securities Account in the State Treasury, may be sold at public sale or at private sale as the State Board of Finance shall determine.
      2. However, in a private sale, the sales price of the bonds or obligations shall not be less than the amount paid for the bonds or obligations.
    2. The State Board of Finance shall provide ministerial authority to the Treasurer of State to take whatever action becomes necessary in regard to securities held in the Securities Account to provide the requisite amount of cash necessary in demand deposit accounts to carry out the business of the state or to correct any miscalculations that have arisen.
      1. A purchase, exchange, or receipt of an obligation by the State Treasury shall not cancel the obligation purchased, exchanged, or received.
      2. The obligation shall be held in trust for the use and benefit of the state fund used to purchase the obligation, subject only to the right of the State Board of Finance to sell or exchange the obligation if the best interest of the state is served.
      1. The State Board of Finance shall meet at fiscal quarters to evaluate, discuss, and review the advice of the Chief Fiscal Officer of the State under § 19-3-512 and authorize the deposit and investment of State Treasury funds to be made during the period before the next meeting of the State Board of Finance.
      2. The deposit and investment of funds and the purchase and sale of permissible securities may be made at any time it is advantageous to the State Treasury by the Treasurer of State under the guidelines in the State Treasury investment policy established by the State Board of Finance.
      1. In order to increase investment income with minimal risk, the Treasurer of State may loan securities held in the Securities Account if, at the time the loan is executed, at least one hundred two percent (102%) of the full market value of the security loaned is collateralized by cash or securities guaranteed by the United States Government or an agency of the United States Government.
      2. At all times during the term of the loan, the collateral shall equal or exceed one hundred percent (100%) of the full market value of all securities on loan.
      3. For purposes of this subdivision (b)(9), the full market value of the collateral shall be determined on a daily basis.
    1. The State Board of Finance may invest federal funds, as described in § 19-7-101 et seq., the same as state funds that are authorized by subsection (b) of this section.
    2. The proceeds of investing federal funds shall be used for the same purpose authorized for other moneys accruing to the benefit of the Securities Reserve Fund under § 19-3-521.
    1. The State Board of Finance may invest funds deposited into the State Treasury by state agencies, boards, and commissions that were previously held as cash funds in a bank depository or investment depository to enhance investment opportunities and earnings.
    2. The State Board of Finance may invest interest-bearing funds the same as state funds under subsection (b) of this section.
    3. The interest earned on investments under this subsection shall be credited under subdivision (d)(4) of this section to the interest-bearing fund.
    4. The State Board of Finance shall establish the method of computing the participants' rate of return and earning to determine the distribution to each participant.
    5. On the second business day that the State Treasury is open after the twenty-fifth day of the month, the Treasurer of State shall transfer to the participants of the fund interest earned on all State Treasury funds invested as authorized under this section during the preceding month less the proportionate share of any assessments for the expenses of administration.

History. Acts 1997, No. 847, § 1; 2001, No. 1453, § 25; 2005, No. 873, § 1; 2009, No. 251, § 6; 2013, No. 1088, § 2; 2017, No. 426, §§ 7-9; 2017, No. 555, §§ 2, 3; 2019, No. 882, §§ 1, 2.

Amendments. The 2013 amendment rewrote the section.

The 2017 amendment by No. 426 deleted (b)(1)(B)(xiv) (b) ; repealed (b)(4); and deleted “and all or any part of the obligations of development finance corporations authorized and issued under the Arkansas Development Finance Corporation Act, § 15-4-901 et seq.” preceding “at any time” in (b)(5)(A).

The 2017 amendment by No. 555 substituted “securities stated in subdivisions (b)(1)(B)(ii)-(v) of this section” for “direct obligations of the United States Government or the general obligations of a state or political subdivision of a state of the United States” in (b)(1)(B)(xii); added (d)(4); redesignated former (d)(4) as (d)(5); and rewrote (d)(5).

The 2019 amendment substituted “rating of at least BBB, A2, P2, or an equivalent rating” for “rating of BBB or higher” in (b)(1)(B)(xiv); substituted “through securities brokers” for “upon receipt of not less than three (3) quotation bids from securities brokers” in the introductory language of (b)(3)(A); inserted (b)(3)(B); and redesignated former (b)(3)(B) as (b)(3)(C).

U.S. Code. The Investment Company Act of 1940, referred to in this section, is codified as 15 U.S.C. §§ 80b-1 to 80b-21.

19-3-519. State Treasury Certificate of Deposit Investment Program — Definitions.

  1. The policy of the State Board of Finance to set aside an amount to be invested in certificates of deposit that mature no sooner than one hundred eighty (180) days shall be known as the “State Treasury Certificate of Deposit Investment Program”.
  2. The following institutions may participate in the program:
    1. National banks that have their principal offices in Arkansas or are legally operating branches in Arkansas;
    2. Banks chartered in the State of Arkansas;
    3. Banks chartered by other states that are legally operating branches in Arkansas;
    4. Savings and loan associations or savings banks chartered by the United States that have their principal offices in Arkansas or are legally operating branches in Arkansas; and
    5. Savings and loan associations chartered by the State of Arkansas.
    1. Institutions that have their principal offices in Arkansas shall designate a representative at the principal office responsible for transacting business with the Treasurer of State.
    2. Institutions that do not have their principal offices in Arkansas shall designate a principal branch and a representative at the principal branch responsible for transacting business with the Treasurer of State.
    1. Semiannually, or as required by the board, each participating institution shall compute and report to the Treasurer of State its Arkansas deposits, Arkansas loans, the loan-to-deposit ratio for Arkansas loans and Arkansas deposits, and its capital base.
    2. Each participating institution shall report to the board information required by the board to determine the institution's suitability as a bank depository.
  3. As used in this section:
    1. “Arkansas deposits” means deposits received by banks and credited to accounts whose account holders have Arkansas as their principal place of business or permanent home addresses; and
    2. “Arkansas loans” means the sum of:
      1. Loans made to individual borrowers residing in the State of Arkansas;
      2. Loans made to corporations or other legal entities doing business in Arkansas for which an address within Arkansas is used for transacting business;
      3. Bonds issued or loans made to the State of Arkansas or its instrumentalities;
      4. Bonds issued or loans made to political subdivisions of the State of Arkansas; and
      5. Bonds issued by Arkansas corporations.
  4. The board shall promulgate rules establishing the minimum capital requirements for a bank depository.
  5. The Treasurer of State shall establish procedures to be reviewed and approved by the board establishing guidelines for the deposit and allocation of certificates of deposit among participating institutions.
    1. Interest on funds invested under this section shall be paid by participating institutions at rates established by the board.
    2. The rates shall not exceed the maximum rate, if any, that banks are permitted to pay on time certificates of deposit for the same period of time by regulations of the Federal Reserve System or the Federal Deposit Insurance Corporation.
    1. Moneys required for a purchase under this section shall be withdrawn from the Cash Account and paid to the issuer of the certificate of deposit.
    2. The principal amount of the certificate of deposit shall be credited to the Certificate of Deposit Account.
  6. The certificates of deposit shall be secured as required by the board.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment rewrote the section.

19-3-520. Minimum balance to be maintained.

Since it is the intent of the General Assembly that the State Treasury have sufficient cash available at all times to redeem all state warrants presented for payment, the State Board of Finance shall immediately sell securities in the manner prescribed in § 19-3-518(b) when the cash balance maintained on demand deposit in bank depositories falls below the amount necessary to meet operating requirements, excluding trust funds.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment substituted “State Treasury” for “Treasurer of State”, deleted “any and” preceding “all state warrants”, substituted “shall” for “is authorized and directed to” and “when” for “whenever” preceding “the cash balance”.

19-3-521. Securities Reserve Fund.

    1. In addition to the purposes for which the Securities Reserve Fund may be used under this subchapter, the Securities Reserve Fund shall be used to absorb any losses in:
      1. Securities held in the Securities Account in the State Treasury; and
      2. The Treasurer of State's account in bank depositories.
      1. The balance in the Securities Reserve Fund shall always be available to absorb the losses stated in subdivision (a)(1) of this section.
      2. However, moneys in the Securities Reserve Fund in excess of one hundred thousand dollars ($100,000) shall be available at all times to the Chief Fiscal Officer of the State as authorized by § 19-5-905, there to be used as provided by law.
    1. If a loss is sustained in relation to securities held at any time in the Securities Account or in the Treasurer of State's account in any bank depository and the credit balance in the Securities Reserve Fund is insufficient to absorb the loss, the Chief Fiscal Officer of the State shall transfer moneys from the Budget Stabilization Trust Fund to the Securities Reserve Fund of an amount that, when added to the credit balance in the Securities Reserve Fund, equals the amount of the loss.
    2. It is the intent of the General Assembly that a loss shall not be sustained by an account used to make an investment or deposit.
    1. On a quarterly basis, interest earned on federal funds received under the State and Local Fiscal Assistance Act of 1972, 31 U.S.C. § 6701 et seq., shall be transferred at the direction of the Chief Fiscal Officer of the State from the Securities Reserve Fund to the federal funds established for the purpose of holding these moneys in trust.
    2. Interest to be transferred shall be a pro rata share of total earned interest based on the proportion of the balances of the total federal funds established for the purpose of holding the State and Local Fiscal Assistance Act of 1972, 31 U.S.C. § 6701 et seq., moneys in trust to the balances of all investments of the State Treasury.

History. Acts 1997, No. 847, § 1; 2009, No. 251, §§ 7, 8; 2013, No. 1088, § 2; 2016 (3rd Ex. Sess.), No. 1, § 4; 2017, No. 555, § 4.

A.C.R.C. Notes. Acts 2016 (3rd Ex. Sess.), No. 1, § 1, provided: “This act shall be known and may be cited as the ‘Arkansas Highway Improvement Plan of 2016’.”

Amendments. The 2009 amendment substituted “Budget Stabilization Trust Fund” for “State Budget Revolving Fund” in (a)(2) and (b)(1); in (a)(2), substituted “the Securities Reserve Fund” for “that fund” in the first sentence and for “this fund” in the second sentence; redesignated (b); and made minor stylistic changes.

The 2013 amendment deleted “several” preceding “purposes” in (a)(1); substituted “Securities” for “Relation to securities at any time” in (a)(1)(A); redesignated (a)(2) as (a)(2)(A) and (B); substituted “to absorb the losses stated in subdivision (a)(1) of this section” for “for such purposes” in (a)(2)(A); rewrote (b)(2); redesignated (c) as (c)(1) and (2); and made stylistic changes.

The 2016 (3rd Ex. Sess.) amendment substituted “as authorized by § 19-5-905” for “for transfer to the Budget Stabilization Trust Fund” in (a)(2)(B).

The 2017 amendment deleted “average daily” preceding “balances” twice in (c)(2).

19-3-522. Servicing state debt — Definition.

  1. Unless otherwise specifically provided by law, the Secretary of the State Board of Finance shall be disbursing officer of appropriations made for meeting the debt service requirements of the direct general obligation bonds of this state at any time outstanding.
  2. As used in this section, “debt service requirements” means the maturing principal of, interest on, and paying agents' fees in connection with the payment of the bonds.
  3. The secretary, without fail, shall cause notice of the call to be published not less than thirty (30) days before the first date upon which such bonds may be called, with publication to be by one (1) insertion in a newspaper published in each of the cities of Little Rock, Arkansas; St. Louis, Missouri; and in a financial newspaper published in the Borough of Manhattan, City of New York, State of New York.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment, in (b), substituted “As used in this section” for “The term” and deleted “as used in this section” preceding “means”; redesignated the last sentence of (b) as (c); and, in (c), deleted “shall” preceding “without fail” and inserted “shall” preceding “cause”.

19-3-523. Purchase of bonds by Treasurer of State.

  1. The Treasurer of State may purchase bonds from the State of Israel that are guaranteed and backed by the full faith and credit of the government of Israel as the sovereign debt of the State of Israel.
  2. The moneys that the Treasurer of State may use in the purchase of any bonds from the State of Israel shall be those funds available for investment under this subchapter.

History. Acts 2017, No. 644, § 2.

Subchapter 6 — State Treasury Money Management Trust

Effective Dates. Acts 2017, No. 296, § 4: Feb. 28, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that that this act amends the investment authority of the Treasurer of State and the ability of other participants to invest in the State Treasury Money Management Trust; that this act affects the ability of the Treasurer of State to invest state funds and take immediate advantage of investment opportunities to benefit the state and public entities of the state; and that this act is immediately necessary to allow for implementation of the new investment authority provisions to take full advantage of investment opportunities to benefit the State of Arkansas. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto”.

Acts 2019, No. 325, § 4: Mar. 6, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that under the current provisions of the Unclaimed Property Act, § 18-28-201 et seq., the Auditor of State may not deposit unclaimed property funds with the State Treasurer for investment purposes; and that the unclaimed property funds are currently held in the Unclaimed Property Proceeds Trust Fund accruing minute interest; that the authority to invest funds in the State Treasury Money Management Trust will generate a greater financial return to be used for the benefit of the state. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto”.

Cross References. Deposit of public funds, § 19-8-101 et seq.

Revenue Classification Law, § 19-6-101 et seq.

19-3-601. Title.

This subchapter may be cited as the “State Treasury Money Management Trust Act”.

History. Acts 1997, No. 1179, § 1.

19-3-602. Purpose.

The purpose of this subchapter is to create the State Treasury Money Management Trust administered by the Treasurer of State for the deposit of moneys in order to permit the joint investment of participants' money so as to enhance investment opportunities and earnings.

History. Acts 1997, No. 1179, § 2; 2017, No. 296, § 1.

Amendments. The 2017 amendment substituted “Money Management Trust” for “Money Trust Management Fund” and deleted “not currently needed” following “deposit of moneys”.

19-3-603. Authorized deposits.

An entity listed below may deposit money to the State Treasury Money Management Trust for the purpose of investment:

  1. State agency's cash funds as defined in § 19-4-801;
  2. Local governments:
    1. Any city, county, school district, or community college district of this state; and
    2. Any department, instrumentality, or agency of these entities;
  3. The Treasurer of State may invest in the State Treasury Money Management Trust to the extent State Treasury funds are not being utilized for certificates of deposit under the State Treasury Certificate of Deposit Investment Program or for trust certificates of deposit pursuant to the State Treasury Management Law, § 19-3-501 et seq.; and
  4. The Auditor of State may invest funds subject to the unclaimed property provisions of the Unclaimed Property Act, § 18-28-201 et seq., in the State Treasury Money Management Trust.

History. Acts 1997, No. 1179, § 4; 2017, No. 296, § 1; 2019, No. 325, § 3.

Amendments. The 2017 amendment rewrote the section heading; and substituted “Money Management Trust” for “Money Trust Management Fund” in the introductory language and in (3).

The 2019 amendment made a stylistic change in the introductory language and added (4).

19-3-604. Fund provisions.

  1. The investment policy and all other policies, documents, rules, and procedures established or approved by the State Board of Finance under § 19-3-701 et seq. apply to the administration of this subchapter by the Treasurer of State.
  2. The Treasurer of State may invest or deposit funds in the State Treasury Money Management Trust as authorized in § 19-3-518.
    1. Moneys deposited into the State Treasury Money Management Trust by participants other than the State Treasury are not and shall not become part of State Treasury funds.
    2. The State Treasury Money Management Trust shall operate as a segregated account for custodial, depository, and accounting purposes.
      1. A participant may deposit at will into and, up to the balance of the participant's account, obtain moneys upon demand from the State Treasury Money Management Trust.
      2. A demand for funds by a participant under this subdivision (c)(3) shall be made by notice as prescribed by the board.
  3. Each participant who elects to deposit money into the State Treasury Money Management Trust shall provide the account information required by the board, including without limitation the identity of any person authorized to conduct transactions on behalf of the participant.
  4. Any loss of principal or interest realized as the result of a participant's demand for withdrawal of funds shall be incurred by the participant requesting the withdrawal and deducted on the day the withdrawal is made.
    1. The Treasurer of State may:
      1. Assess reasonable charges against the account of a participant in the State Treasury Money Management Trust for reimbursement of administration and operational expenses; and
      2. Charge a reasonable fee for managing the State Treasury Money Management Trust.
    2. The board shall set any charge or fee imposed under this subsection.
    3. Charges and fees received under this subsection shall be deposited into the State Treasury in a fund for the benefit of the Treasurer of State.
  5. All interest and earnings received on the money of the State Treasury Money Management Trust shall be credited to the State Treasury Money Management Trust for distribution to the participants of the State Treasury Money Management Trust after any charges or fees due under subsection (f) of this section are deducted.
  6. After deducting any charges or fees due under subsection (f) of this section, on the second business day that the State Treasury is open after the twenty-fifth day of the month, the Treasurer of State shall distribute the monthly earnings of the State Treasury Money Management Trust during the preceding month.
  7. The board shall establish the method of computing a participant's rate of return, earnings, charges, fees, and expenses to determine the distribution for each participant.
  8. The monthly sum of a participant's daily earnings, after deducting administrative charges and fees under subsection (f) of this section, shall be credited to the participant's account and reinvested, unless otherwise instructed by the participant, on the distribution date stated in subsection (h) of this section.

History. Acts 1997, No. 1179, § 5; 2013, No. 1088, § 3; 2017, No. 296, § 1.

Amendments. The 2013 amendment rewrote (a).

The 2017 amendment rewrote the section.

19-3-605. Prudent investor rule.

The Treasurer of State shall apply the prudent investor rule while serving in a fiduciary capacity for State Treasury Money Management Trust participants. The prudent investor rule means that in making investments, the fiduciaries shall exercise the judgment and care under the prevailing circumstances that an institutional investor of ordinary prudence, discretion, and intelligence exercises in the management of large investments entrusted to it, not for speculation but for investment, considering the permanent disposition of funds, and the probable safety of capital as well as probable income.

History. Acts 1997, No. 1179, § 6; 2017, No. 296, § 1.

Amendments. The 2017 amendment substituted “Money Management Trust” for “Money Trust Management Fund”.

19-3-606. Loan of securities.

  1. In order to increase investment income with minimal risk, the Treasurer of State may loan securities held under this subchapter, but only if at the time the loan is executed at least one hundred two percent (102%) of the full market value of the security loaned is collateralized by cash or securities guaranteed by the United States Government or an agency of the United States Government.
  2. At all times during the term of the loan, the collateral shall be equal to not less than ninety-eight percent (98%) of the full market value calculated on the total value of all securities on loan.
  3. For purposes of this section, the value of the collateral shall be determined on a daily basis.

History. Acts 1997, No. 1179, § 7; 2017, No. 296, § 1; 2019, No. 388, § 1.

Amendments. The 2017 amendment substituted “under this section” for “by the State Treasury Money Trust Management Fund” in (a).

The 2019 amendment, in (a), substituted “subchapter” for “section”, and “of the United States Government” for “thereof”.

Subchapter 7 — State Board of Finance

Effective Dates. Acts 2017, No. 296, § 4: Feb. 28, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that that this act amends the investment authority of the Treasurer of State and the ability of other participants to invest in the State Treasury Money Management Trust; that this act affects the ability of the Treasurer of State to invest state funds and take immediate advantage of investment opportunities to benefit the state and public entities of the state; and that this act is immediately necessary to allow for implementation of the new investment authority provisions to take full advantage of investment opportunities to benefit the State of Arkansas. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-3-701. State Board of Finance — Creation — Members.

  1. The State Board of Finance is created.
  2. The board shall be composed of the following members:
    1. The Governor;
    2. The Treasurer of State;
    3. The Auditor of State;
    4. The Bank Commissioner;
    5. The Secretary of the Department of Finance and Administration;
    6. The Securities Commissioner;
    7. One (1) person with knowledge and experience in commercial banking;
    8. One (1) person who:
      1. Holds or has held a Series 7 licensure as a general securities representative; and
      2. Has at least five (5) years of experience as a general securities representative;
    9. One (1) certified public accountant who:
      1. Is licensed in Arkansas; and
      2. Has at least five (5) years of experience as a certified public accountant; and
    10. One (1) member of the general public.
  3. A board member listed in subdivisions (b)(7)-(10) of this section:
    1. Shall serve a four-year term and may be reappointed, except that the board member shall serve an initial term of either one (1) year, two (2) years, three (3) years, or four (4) years as determined by lot in order to establish staggered terms in which the term of one (1) of the four (4) board members expires each year;
    2. Shall be paid a stipend of one hundred dollars ($100) from funds appropriated to the Treasurer of State for participation in each board meeting;
    3. Shall not have a direct financial interest in a transaction between an investment depository or bank depository and the:
      1. Board; or
      2. Treasurer of State;
    4. Shall not be related within the second degree of consanguinity or affinity to a constitutional officer or a member of the General Assembly;
    5. Shall abstain from voting on an issue that affects the board member or the procedures, profits, or funding of a business or organization of which the board member is a member; and
    6. May be removed for cause by a majority vote of the board.
    1. A member listed in subdivisions (b)(7) and (8) of this section shall be appointed and may be reappointed by the President Pro Tempore of the Senate.
    2. A member listed in subdivisions (b)(9) and (10) of this section shall be appointed and may be reappointed by the Speaker of the House of Representatives.
  4. The Governor shall be Chair of the State Board of Finance, and the Treasurer of State shall be the secretary, executive officer, and disbursing agent of the board.

History. Acts 2013, No. 1088, § 1; 2019, No. 910, § 3447.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (b)(5).

19-3-702. Definitions.

As used in this subchapter:

  1. “Bank depository”, “investment depository”, “securities broker”, and “State Treasury” have the meanings provided in § 19-3-502; and
    1. “Direct financial interest” means the direct compensation or other remuneration to a person or a family member of a person that is attributable to an investment or a deposit of money or securities from the State Treasury.
    2. “Direct financial interest” does not include compensation from the investment or deposit of a person's own money or securities.

History. Acts 2013, No. 1088, § 1.

19-3-703. Meetings — Quorum — Staff.

    1. Meetings of the State Board of Finance shall be held:
      1. At least quarterly:
        1. Upon the call of the Governor or by any three (3) or more members; and
        2. Upon advance notice to each member; and
      2. At a place that is convenient for the board.
    2. The meetings shall be conducted in accordance with the Freedom of Information Act of 1967, § 25-19-101 et seq., and complete records of the proceedings shall be kept.
    1. Seven (7) members shall constitute a quorum for the transaction of business.
    2. The affirmative vote of a majority of members present is required to adopt a motion or resolution.
  1. The staff of an elected or appointed official of the board may provide any assistance requested by the board.

History. Acts 2013, No. 1088, § 1.

19-3-704. Powers and duties.

  1. In addition to any other function, power, or duty imposed by law, the State Board of Finance shall establish, maintain, and enforce all policies and procedures concerning the management and investment of funds in the State Treasury and the State Treasury Money Management Trust, including without limitation:
    1. Record keeping and reporting requirements that reflect:
      1. Daily, monthly, and year-to-date balances of all funds, accounts, and groups of accounts within the State Treasury; and
      2. The performance of all deposits and investments compared to the target rate of return established by the board;
    2. A collateralization policy;
    3. Eligibility requirements for a bank depository, an investment depository, a securities broker, and, before accepting an application to hire an investment consultant under subsection (c) of this section, an investment consultant;
    4. An investment policy;
    5. Liquidity requirements for the State Treasury; and
    6. Qualifications, ethical standards, a conflict of interest policy, and criminal background check requirements that are no less stringent than the requirements of § 19-3-705 for all employees of the board or Treasurer of State who handle State Treasury funds or participate in decisions concerning the deposit or investment of State Treasury funds.
    1. The board shall select the chief compliance officer within the Treasurer of State's office based upon nominations received from the Treasurer of State.
    2. The chief compliance officer shall:
      1. Be employed by the board;
      2. Work with and at the direction of the Treasurer of State consistent with the policies and directives of the board; and
      3. Serve at the pleasure of the board.
  2. The board may hire an investment consultant to examine the investment policies and investment practices for the State Treasury and make recommendations to the board, including without limitation recommendations concerning:
    1. An appropriate range for asset allocation;
    2. A target rate of return;
    3. The propriety of using money managers and, if desired, recommendations concerning money managers; and
    4. Adjustments to improve investment policies, investment allocations, or investment returns.
  3. The positions listed in subsections (b) and (c) of this section shall be funded by the appropriation for the Treasurer of State.
  4. The board may make, amend, adopt, and enforce rules and policies to regulate board procedure and execute board functions.

History. Acts 2013, No. 1088, § 1; 2017, No. 296, § 2; 2019, No. 882, § 3.

Amendments. The 2017 amendment substituted “Money Management Trust” for “Money Trust Management Fund” in the introductory language of (a).

The 2019 amendment substituted “compliance” for “investment” in (b)(1) and the introductory language of (b)(2).

19-3-705. Employees — Qualifications, ethical standards, and background checks.

  1. An employee of the State Board of Finance or Treasurer of State listed in § 19-3-704(b) or § 19-3-704(c) or who handles State Treasury funds or participates in decisions or making recommendations concerning the deposit or investment of State Treasury funds:
    1. Shall meet minimum standards of expertise and experience established by the board;
    2. Shall not have a direct financial interest in a bank depository, investment depository, or securities broker; and
    3. Shall file on or before January 31 with the board for the preceding calendar year the written statement of financial interest required by § 21-8-701(d).
      1. The board shall obtain a state and federal criminal background check to be conducted by the Identification Bureau of the Department of Arkansas State Police and the Federal Bureau of Investigation for:
        1. Each employee listed in § 19-3-704(b) or § 19-3-704(c); and
        2. An employee or prospective employee of the board or Treasurer of State who handles or will handle State Treasury funds or participates or will participate in making decisions or recommendations concerning the deposit or investment of State Treasury funds.
      2. The background check shall be obtained on or before:
        1. September 1, 2013, for an existing employee; and
        2. The start of employment for a prospective employee.
    1. The state and federal criminal background check shall conform to the applicable federal standards and shall include the taking of fingerprints.
    2. The employee or prospective employee shall sign a consent to the release of information for the state and federal criminal background check.
    3. The Treasurer of State shall be responsible for the payment of any fee associated with the state and federal criminal background check.
    4. Upon completion of the state and federal criminal background check, the Identification Bureau of the Department of Arkansas State Police shall forward to the Chief Fiscal Officer of the State for review by the board all releasable information obtained concerning the employee or prospective employee.
  2. The board or Treasurer of State shall not employ an individual who has:
    1. Been convicted of a felony or a gambling offense in a state or federal court of the United States;
    2. Been convicted of a crime involving moral turpitude;
    3. Entered into a plea agreement to avoid felony prosecution;
    4. Been or is currently subject to an administrative order by the State Bank Department or State Securities Department;
    5. Failed without justification to file the statement of financial interest required by this section; or
    6. A conflict of interest that violates the board's policy established under § 19-3-704.

History. Acts 2013, No. 1088, § 1.

Chapter 4 State Accounting and Budgetary Procedures

A.C.R.C. Notes. References to “this chapter” in subchapters 1-20 may not apply to §§ 19-4-307, 19-4-408, subchapter 21, and subchapter 22 which were enacted subsequently.

Research References

C.J.S. 81A C.J.S., States, § 340 et seq.

Subchapter 1 — General Provisions

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, in the enactment of the General Accounting Procedures Law of Arkansas, the Sixtieth General Assembly declared it to be the public policy that the State and all of its agencies be maintained in a sound financial basis, to provide for the adequate accounting for all fiscal transactions of the State, to provide for establishing rules, regulations and procedures for budget preparation, presentation, enactment, execution and defining powers and duties of the Chief Fiscal Officer and State Auditor and the State Treasurer in connection with the foregoing; and

“Whereas, in order to carry out the public policy, purposes, intent and provisions of the General Accounting Procedures Law of Arkansas and in order to accept, adapt and comply with the modern-day technological changes and innovations in budgetary, accounting, and fiscal procedures, it is necessary for the General Assembly to enact legislation providing for the same; and

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation to the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

“Whereas, it is the responsibility of the General Assembly to determine the programs, projects and services for which the State's revenues shall be expended and the priorities which should govern such expenditures; and

“Whereas, in order to discharge its responsibility the General Assembly and its interim committees, including the Legislative Council, has need of accurate data in order to make its determinations wisely; and

“Whereas, the General Assembly recognizes and accepts the principles, purposes and intent of the Revenue Stabilization Law of Arkansas and the General Accounting Procedures Law of Arkansas as they presently exist and further recognizes the validity of their provisions by virtue of Arkansas Supreme Court decisions; and

“Whereas, it is not the intention of the General Assembly to deviate from the purposes and intent of the Revenue Stabilization Law of Arkansas, but it is the intent of the General Assembly to strengthen the purpose of the Revenue Stabilization Law and the General Accounting Procedures Law of Arkansas by enacting the following legislation which embodies the holdings of prior Arkansas Supreme Court decisions affecting the General Accounting Procedures Law of Arkansas, now therefore … .”

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1999, No. 973, § 8: Mar. 30, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly, that funds provided by the General Assembly for the operations of the Department of Finance and Administration — Management Services Division are, due to unforeseen circumstances, insufficient for the Department of Finance and Administration — Management Services Division to continue to provide essential governmental services; that the provisions of this act will provide the necessary monies for the Department of Finance and Administration — Management Services Division to continue such services; and that a delay in the effective date of this Act could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-4-101. Title.

This chapter shall be referred to and may be cited as the “General Accounting and Budgetary Procedures Law”.

History. Acts 1973, No. 876, § 1; A.S.A. 1947, § 13-327.

Case Notes

Cited: Wells v. Heath, 274 Ark. 45, 622 S.W.2d 163 (1981).

19-4-102. Purpose.

  1. General Policy.
    1. It is the policy of the State of Arkansas to:
      1. Maintain on a sound financial basis the state and all of its agencies, boards, commissions, departments, and institutions, all referred to in this chapter as “agencies” unless otherwise necessary;
      2. Provide adequate accounting for all fiscal transactions; and
      3. Provide for uniformity in budget preparation, presentation, and execution.
    2. For these purposes, the general provisions of this chapter are intended to:
      1. Establish uniformity in operating and capital budget preparation, presentation, and execution by establishing certain duties, responsibilities, and functions of the executive and legislative branches of the state government;
      2. Prohibit deficit spending by establishing standards for the execution of budgets approved by the General Assembly;
      3. Provide methods of internal accounting control by establishing and supervising the accounting systems of state agencies;
      4. Establish an adequate classification and coding system for all revenue receipts and disbursements;
      5. Establish methods of voucher examination and approval for expenditures of funds deposited into the State Treasury and, if necessary, other depositories;
      6. Establish uniform procedures for the preparation of disbursing documents;
      7. Establish procedures for forecasting economic conditions, establish an adequate technique of revenue estimating, and provide for tax research and a method for standardization of statistics;
      8. Develop methods for improvement and economy in organization and administration of agencies;
      9. Authorize the promulgation of reasonable rules not inconsistent with applicable laws to achieve the purposes and intent of this chapter; and
      10. Further define the powers and duties of the Secretary of the Department of Finance and Administration, sometimes referred to as the “Chief Fiscal Officer of the State”, the Auditor of State, and the Treasurer of State in connection with general accounting, budgetary, and fiscal procedures.
  2. Comprehensive Budgeting and Financial Management System. It is also the purpose of this chapter to establish a comprehensive system of state budgeting and financial management which will further the capacity of the General Assembly to plan and finance the services which it determines the state should provide for its citizens and which will further the capacity of the Governor to make budgetary recommendations to the General Assembly and to execute the laws of this state. The system shall include procedures for:
    1. The orderly establishment, continuing review, and periodic revision of programs, financial goals, and policies of the state;
    2. The development, coordination, and review of long-range programs and their financing that will implement goals and policies authorized by the General Assembly and the Governor;
    3. The preparation, analysis, presentation, enactment, and execution of budgets that authorize specific programs, policies, and goals and that focus attention on state services and their costs;
    4. The evaluation of alternatives to existing programs, policies, and goals that would provide more economic, efficient, or effective state services; and
    5. An evaluation and reporting system which will provide measurements of the effectiveness of program performance.

History. Acts 1973, No. 876, § 2; A.S.A. 1947, § 13-328; Acts 2019, No. 315, § 1706; 2019, No. 910, § 3448.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (a)(2)(I).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(2)(J).

19-4-103. Penalty.

With respect to all matters for which penalties have not otherwise been provided in this act, any person who shall knowingly violate any of the provisions of this act shall be guilty of a violation and upon conviction shall be fined in any amount not to exceed one thousand dollars ($1,000).

History. Acts 1973, No. 876, § 29; A.S.A. 1947, § 13-355; Acts 2005, No. 1994, § 102.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor.”

Meaning of “this act”. Acts 1973, No. 876, codified as §§ 19-1-213, 19-1-214, 19-4-10119-4-105, 19-4-201 et seq.,19-4-301 — 19-4-306, 19-4-40119-4-406, 19-4-50119-4-507, 19-4-517 —19-4-525, 19-4-60119-4-604, 19-4-60719-4-609, 19-4-70119-4-711, 19-4-90119-4-905, 19-4-907, 19-4-1101, 19-4-110319-4-1109, 19-4-120119-4-1207, 19-4-1209, 19-4-1210, 19-4-140119-4-1405, 19-4-140719-4-1412, 19-4-150119-4-1503, 19-4-160119-4-1605, 19-4-1607, 19-4-1608, 19-4-161019-4-1614, 19-4-1801, 19-4-1802, 19-4-1806, 19-4-1807, 19-4-190119-4-1908, 19-4-200119-4-2004, 25-8-106.

19-4-104. Rules.

The Chief Fiscal Officer of the State is empowered to make, amend, and enforce such reasonable rules, not inconsistent with law, as he or she shall deem necessary and proper to effectively carry out the provisions of this chapter and the public policy as set forth in § 19-4-102. Rules promulgated shall be published in an administrative procedures manual and distributed to the various state agencies.

History. Acts 1973, No. 876, § 28; A.S.A. 1947, § 13-354; Acts 2019, No. 315, § 1707.

Amendments. The 2019 amendment deleted “and regulations” following “Rules” in the section heading; and deleted “and regulations” following “rules” twice.

19-4-105. Continuing studies and investigations — Duties of Secretary of the Department of Inspector General and Internal Audit Section — Exemption of internal audit documentation from Freedom of Information Act of 1967.

  1. The Secretary of the Department of Inspector General is directed to make continuing studies and investigations of the operation of state agencies and to make recommendations to the General Assembly, the Legislative Council, and the Governor about improvements which should be made in order to:
    1. Safeguard against excessive expenditures of appropriations and funds;
    2. Promote economy, efficiency, and control in the operation of state agencies; and
    3. Accomplish the purposes of this chapter as intended by the General Assembly.
  2. The Internal Audit Section created under the Department of Finance and Administration by Governor's Executive Order 99-08 and transferred to the Department of Inspector General by a cabinet-level department transfer under § 25-43-1002 shall conduct its audits using the suggested standards for the professional practice of internal auditing as adopted by the Institute of Internal Auditors.
  3. The Internal Audit Section shall:
    1. Review the financial and operating controls and the transactions of state agencies to determine the level of conformity with established laws, standards, rules, and procedures;
    2. Review the various functions within an enterprise to appraise the efficiency and economy of operations and the effectiveness with which those functions achieve the stated objectives, including without limitation a review of established internal control activities;
    3. Investigate reported occurrences of fraud, embezzlement, theft, waste, abuse, or mismanagement of state resources;
    4. Recommend controls to prevent occurrences of fraud, embezzlement, theft, waste, abuse, or mismanagement of state resources;
    5. Assist state agencies to resolve areas of concern;
    6. Assist state agencies in establishing appropriate internal controls that will prevent errors or irregularities;
    7. Provide objective analysis, appraisals, and recommendations concerning the activities it reviews; and
    8. Perform other functions as directed by the Governor or the secretary.
  4. After an audit is completed, the Internal Audit Section shall file a written final report concerning the actions and determinations made under this section with:
    1. The secretary;
    2. The Governor;
    3. The State Board of Finance; and
    4. Arkansas Legislative Audit.
  5. Employees of the Internal Audit Section shall:
    1. Be employed by the secretary as employees of the Department of Inspector General; and
    2. Serve at the pleasure of the secretary.
    1. All internal audit documentation, including notes, memoranda, preliminary drafts of audit reports, and other data gathered in the preparation of internal audit reports by the Internal Audit Section, are privileged and confidential and are exempt from the Freedom of Information Act of 1967, § 25-19-101 et seq., except as provided in subdivision (f)(2) of this section.
      1. The exemption shall not apply to completed internal audits of the Internal Audit Section after a final report of the internal audit has been presented to:
        1. The secretary;
        2. The Governor or the Governor's designee;
        3. The board; or
        4. Arkansas Legislative Audit.
      2. The final report and copies of any supporting documentation shall then be open to public inspection and copying, except for documents that are exempt from disclosure under other law.
    1. The Internal Audit Section shall conduct an annual project review and efficiency study of the Arkansas Department of Transportation to include without limitation a review of the processes, procedures, procurement processes, projects, appeals procedures and expenditures.
    2. The results of a study under this section shall be reported to the Legislative Council no later than October 1 of each year, with the first report to be submitted by October 1, 2021.

History. Acts 1973, No. 876, § 2; A.S.A. 1947, § 13-328; Acts 2001, No. 1083, § 1; 2015, No. 1283, § 1; 2019, No. 298, § 2; 2019, No. 315, § 1708; 2019, No. 910, § 5259.

A.C.R.C. Notes. Acts 2019, No. 298, § 1, provided: “Arkansas Department of Transportation — Legislative Council study.

“(a)(1) The Legislative Council or the Executive Subcommittee of the Legislative Council shall hire one (1) or more consultants to assist it in conducting a study of the processes and functioning of the Arkansas Department of Transportation, including without limitation the department's processes, procedures, procurement procedures, projects, expenditures, and appeals processes.

“(2) The purpose of the study is to examine and identify areas of potential improvement within the overall functioning of the department and to recommend legislation to the General Assembly for consideration in order to:

“(A) Maximize the department's use of taxpayer dollars;

“(B) Improve the efficiency and overall functioning of the department; and

“(C) Ensure responsiveness of the department to the needs of the State of Arkansas and its citizens with regard to improvement of the state highways and roads.

“(3) In order to achieve the purposes of the study as set forth in subdivision (a)(2) of this section, the Legislative Council shall:

“(A) Compare the procurement processes of the department with the requirements of the Arkansas Procurement Law, § 19-11-201, et seq.;

“(B) Study and consider the best practices for functioning of state highway departments through consideration of practices in surrounding or comparable states;

“(C) Audit the expenditures and procurement processes of the department in order to find ways to improve or create efficiencies in those areas; and

“(D) Consider and adopt recommended legislation based on the results of the study by the Legislative Council and its consultant.

“(4) The Director of State Highways and Transportation shall fully cooperate in the conduct of the study by providing:

“(A) Access to the Legislative Council, a consultant of the Legislative Council, and the Bureau of Legislative Research to any requested documents and records for purposes of the study; and

“(B) Timely responses to requests of the Legislative Council, a consultant of the Legislative Council, and the Bureau of Legislative Research.

“(b) On or before December 1, 2020, the Legislative Council shall file with the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives a final report of its activities, findings, and recommendations, including recommended legislation related to the study”.

Amendments. The 2015 amendment rewrote the section heading; inserted (b) through (e); redesignated former (b) as (f); deleted “created within the Department of Finance and Administration by Governor’s Executive Order 98-08” following “Internal Audit Section” in (f)(1); and, in (f)(2)(A), inserted the (i) and (ii) designations and added (iii) through (v).

The 2019 amendment by No. 298 added (g).

The 2019 amendment by No. 315 substituted “rules” for “regulations” in (c)(1).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Inspector General” for “Chief Fiscal Officer of the State” in the section heading, the introductory language of (a), in (d)(1), and (f)(2)(A)(i); deleted former (a)(3), and redesignated former (a)(4) as (a)(3); inserted “and transferred to the Department of Inspector General by a cabinet-level department transfer under § 25-43-1002” in (b); rewrote (c)(8); deleted (d)(5); rewrote (e); deleted (f)(2)(A)(v); and made stylistic changes.

19-4-106. Legislative staff consultation.

The Department of Finance and Administration shall consult with the Legislative Auditor and the director of the budget function of the Bureau of Legislative Research throughout each stage of planning and implementation for any new statewide accounting system. This required consultation and involvement is to ensure that those capabilities to provide the required services to members and committees of the General Assembly are incorporated into the system.

History. Acts 1999, No. 973, § 2.

Subchapter 2 — Duties and Responsibilities Generally

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, in the enactment of the General Accounting Procedures Law of Arkansas, the Sixtieth General Assembly declared it to be the public policy that the State and all of its agencies be maintained in a sound financial basis, to provide for the adequate accounting for all fiscal transactions of the State, to provide for establishing rules, regulations and procedures for budget preparation, presentation, enactment, execution and defining powers and duties of the Chief Fiscal Officer and State Auditor and the State Treasurer in connection with the foregoing; and

“Whereas, in order to carry out the public policy, purposes, intent and provisions of the General Accounting Procedures Law of Arkansas and in order to accept, adapt and comply with the modern-day technological changes and innovations in budgetary, accounting, and fiscal procedures, it is necessary for the General Assembly to enact legislation providing for the same; and

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation to the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

“Whereas, it is the responsibility of the General Assembly to determine the programs, projects and services for which the State's revenues shall be expended and the priorities which should govern such expenditures; and

“Whereas, in order to discharge its responsibility the General Assembly and its interim committees, including the Legislative Council, has need of accurate data in order to make its determinations wisely; and

“Whereas, the General Assembly recognizes and accepts the principles, purposes and intent of the Revenue Stabilization Law of Arkansas and the General Accounting Procedures Law of Arkansas as they presently exist and further recognizes the validity of their provisions by virtue of Arkansas Supreme Court decisions; and

“Whereas, it is not the intention of the General Assembly to deviate from the purposes and intent of the Revenue Stabilization Law of Arkansas, but it is the intent of the General Assembly to strengthen the purpose of the Revenue Stabilization Law and the General Accounting Procedures Law of Arkansas by enacting the following legislation which embodies the holdings of prior Arkansas Supreme Court decisions affecting the General Accounting Procedures Law of Arkansas, now therefore … .”

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1981, No. 741, § 8: Mar. 28, 1981. Emergency clause provided: “It is hereby found and determined by the Seventy-Third General Assembly that certain amendments to Act 876 of 1973, the General Accounting and Budgetary Procedures Law, are essential to the continued financial operations of State government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 365, § 15: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly that the clarification of certain fiscal transactions of the State is needed in order to more accurately reflect the condition of the State's assets at all times and to maintain the fiscal integrity of the State. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

Identical Acts 2009, Nos. 605 and 606, § 27: Mar. 25, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the people of the State of Arkansas overwhelmingly approved the establishment of lotteries at the 2008 General Election; that lotteries will provide funding for scholarships to the citizens of this state; that the failure to immediately implement this act will cause a reduction in lottery proceeds that will harm the educational and economic success of potential students eligible to receive scholarships under the act; and that the state lotteries should be implemented as soon as possible to effectuate the will of the citizens of this state and implement lottery-funded scholarships as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 218, § 34: Feb. 26, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the stability of the Arkansas Scholarship Lottery is critical to the success of the Arkansas Academic Challenge Scholarship Program; that changes to the operational structure of the lottery are needed to improve the creditability and function of the lottery; and that this act is immediately necessary to ensure that the transition of lottery administration is as undisruptive as possible. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

19-4-201. Authority of Governor.

  1. The Governor shall direct the execution of the state budget as approved by the General Assembly. The Governor or Governor-elect shall:
    1. Review the budget requests and estimates of resources;
    2. Evaluate long-range programs and consider possible alternatives to existing state agency programs, policies, and goals; and
    3. Formulate and recommend for consideration by the Legislative Council and the General Assembly a proposed comprehensive state budget of programs and proposed financing which shall include all estimated receipts and expenditures of the state government.
    1. Proposed expenditures shall not exceed estimated available resources. Should the Governor or Governor-elect propose increased taxes in order to finance all proposed programs, two (2) sets of budgets must be submitted to the Legislative Council and the General Assembly, one (1) set based on the resources available from the then-existing tax laws and another showing the additional expenditures proposed to be financed from recommended tax increases.
      1. Budget requests for administration and operation of the legislative branch, the judicial branch, the elective constitutional offices, the Arkansas Department of Transportation, the Office of the Arkansas Lottery, and the Arkansas State Game and Fish Commission shall be submitted directly to the Legislative Council without any recommendation by the Governor.
      2. Each budget request submitted under subdivision (b)(2)(A) of this section shall:
        1. Include all of the information required for other public entities under this chapter;
        2. Be in substantially the same format as budget requests for other public entities under this chapter; and
        3. Include a detailed listing of any unappropriated funds, including without limitation the sources of the funds, the fund balances, and the expenditures of the funds for the previous fiscal year.
  2. In order to carry out the provisions of this section, the Governor or Governor-elect shall:
    1. Have the power, and it shall be his or her duty, to provide for hearings, if required, with the administrative head or any other persons having knowledge thereof, of any agency submitting a budget request in order for him or her to make his or her determinations and recommendations; and
    2. Appear or appoint a designated representative to appear before the General Assembly or any committees or interim committees thereof to present his or her recommendations for the forthcoming budgetary period.

History. Acts 1973, No. 876, § 3; A.S.A. 1947, § 13-329; Acts 2009, No. 605, § 14; 2009, No. 606, § 14; 2015, No. 218, § 13; 2017, No. 707, § 41; 2019, No. 678, § 3.

A.C.R.C. Notes. Acts 2019, No. 678, § 1, provided: “Title. This act shall be known and may be cited as the ‘Government Financial Disclosure and Accountability Act of 2019’”.

Acts 2019, No. 678, § 2, provided: “Legislative intent.

“(a) It is the intent of the General Assembly:

“(1) To provide for additional transparency in the budgeting and expenditure procedures used by constitutional officers and agencies;

“(2) To require additional financial disclosures to better enable the General Assembly to responsibly appropriate state funds;

“(3) To ensure that the state and the public have the necessary information to determine whether state funds are being used in an appropriate and fiscally responsible manner;

“(4) That, to the extent this act conflicts with any provision of the Arkansas Constitution, the Arkansas Constitution applies; and

“(5) To require that cash funds have an appropriation authorized by the General Assembly and that budget requests submitted during budget hearings include the information necessary for the General Assembly to make informed appropriation decisions.

“(b) It is not the intent of the General Assembly to:

“(1) Make the constitutional officers and agencies state agencies for purposes of state accounting and budgetary procedures;

“(2) Require the constitutional officers and agencies to submit annual operations plans that are the same as the annual operations plans required for state agencies;

“(3) Apply the procurement laws in Arkansas Code, Title 19, Chapter 11, to the constitutional officers and agencies to the extent that the procurement laws do not already apply; or

“(4) Require legislative approval of any expenditure of an office or agency if such approval would conflict with the Arkansas Constitution”.

Amendments. The 2009 amendment by identical acts Nos. 605 and 606 inserted “the Arkansas Lottery Commission” in (b)(2), and made a related change.

The 2015 amendment substituted “Office of the Arkansas Lottery” for “Arkansas Lottery Commission” in (b)(2).

The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department” in (b)(2).

The 2019 amendment redesignated (b)(2) as (b)(2)(A) and added (b)(2)(B).

19-4-202. Authority of Legislative Council.

  1. Meetings.
    1. At any time they deem it advisable, the cochairs of the Legislative Council shall have the authority to call into meeting the membership of the Legislative Council for consideration of budget matters.
    2. For preliminary budget studies, the Legislative Council shall have the authority to call before it the Chief Fiscal Officer of the State, the Director of the Bureau of Legislative Research, the Legislative Auditor, and any constitutional officer or administrative head of any state agency for the purpose of making available to the Legislative Council any information it deems advisable.
    3. The Legislative Council shall have the power to visit and inspect any agency for the purpose of obtaining first-hand information as to the condition and needs of the agency and may appoint committees from its membership for the purpose of reporting upon these findings.
  2. Budget Estimates.
    1. The Legislative Council shall require from the Chief Fiscal Officer of the State, not later than sixty (60) days prior to the convening of the General Assembly, the budget estimates and recommendations prepared by him or her.
    2. From time to time when called upon by the Legislative Council, the Chief Fiscal Officer of the State or his or her representative shall appear before the Legislative Council or attend meetings of the Legislative Council when required to do so for the purpose of preparing or submitting additional information on budget matters.
  3. Assisting Governor-Elect.
    1. It shall be the duty and responsibility of the Chief Fiscal Officer of the State and any administrative head of any agency, when requested to do so, to lend any reasonable aid, assistance, or personnel and to supply any reports or information when required to the Governor-elect for the purpose of assisting him or her in the preparation of his or her budget recommendations to be submitted to the Legislative Council.
    2. The Legislative Council shall call upon the Governor-elect or any newly elected constitutional officer, or their designated representatives, for the purpose of submitting any final recommendations or modifications of the proposed budget requests.
  4. Recommendations.
    1. The Legislative Council, acting upon the facts submitted to it and from such other studies and hearings as the Legislative Council shall deem advisable, shall proceed to modify, revise, approve, or disallow the budget requests. The Legislative Council shall make its recommendations with respect to the approved items of the budget and publish them in a report to be made available to every member of the General Assembly when it convenes in regular session.
    2. The Legislative Council shall have the authority, in recommending the proposed state budget to the General Assembly, to recommend the form of the appropriation bills to be submitted and may draw or cause to be drawn the bills conforming to these recommendations for presentation to the General Assembly.

History. Acts 1973, No. 876, § 4; A.S.A. 1947, § 13-330.

Cross References. Budget briefings by Legislative Council, § 10-3-308.

19-4-203. Authority of General Assembly.

The General Assembly and the Joint Budget Committee shall:

  1. Consider the current programs and financial plan included in the budget requests and the proposed resources for financing recommended by the Governor or Governor-elect including proposed goals and policies, recommended budgets, revenue proposals, and long-range programs;
  2. Adopt or recommend programs and alternatives to the financial plan recommended by the Governor or Governor-elect as it deems appropriate;
  3. Adopt or recommend legislation to authorize implementation of a comprehensive program and financial plan;
  4. Provide for a postaudit of financial transactions, program performance, and execution of legislative policy decisions;
  5. Provide for hearings, if required, with the administrative head or any other persons having knowledge thereof of any state agency submitting a budget request, in order to make determinations and formulate recommendations;
  6. If found necessary, visit and inspect any agency; and
  7. Propose the form of appropriation bills and write or direct the writing thereof.

History. Acts 1973, No. 876, § 5; A.S.A. 1947, § 13-331.

19-4-204. Recommendations by Governor.

  1. Budgetary Programs and Financial Plans.
    1. The Governor or Governor-elect shall formulate the programs and financial plans to be recommended to the Legislative Council and the General Assembly after considering the state agency-proposed programs and financial plans and other programs and alternatives he or she deems appropriate.
    2. The program and financial plan submitted by him or her shall include:
      1. His or her goals and policies;
      2. Recommended plans to implement the goals and policies;
      3. Recommended budgets for each year for which an appropriation is being requested; and
      4. Recommended revenue measures to finance the budget.
  2. Presentation to General Assembly.
    1. The Governor or Governor-elect shall present the proposed comprehensive program and financial plan to the Legislative Council for their timely consideration and in a message to a joint session of the General Assembly. The message shall be accompanied by an explanatory report which summarizes recommended goals, policies, plans, and appropriations.
    2. The explanatory report shall be furnished to each member of the General Assembly and each agency. The report shall contain the following information:
      1. The coordinated programs, goals, and objectives that the Governor or Governor-elect recommends to guide the decisions on program plans and budget appropriations;
      2. The program and budget recommendations of the Governor or Governor-elect for each year of the succeeding biennium;
      3. A summary of state receipts in the previous fiscal year, an estimate for the current fiscal year, and an estimate for each year of the succeeding biennium;
      4. A summary of expenditures during the last fiscal year, those estimated for the current fiscal year, and those recommended by the Governor or Governor-elect for each year for which appropriations are requested; and
      5. Any additional information which will facilitate understanding the Governor's or Governor-elect's proposed program and financial plan by the General Assembly and the public.

History. Acts 1973, No. 876, § 7; A.S.A. 1947, § 13-333.

19-4-205. Legislative review.

The General Assembly, the Legislative Council, and the Joint Budget Committee shall consider the Governor's or Governor-elect's recommendations and determine the comprehensive program and financial plan to support the services to be provided the citizens of the state, while keeping authorized expenditures within the estimated receipts and other available resources.

History. Acts 1973, No. 876, § 8; A.S.A. 1947, § 13-334.

19-4-206. Conservation of appropriations in changes of administration.

  1. Proportionate Amounts. In those instances in which any constitutional or elective official of the State of Arkansas is due to retire from office and another constitutional official is to take his or her place, the appropriations and funds provided by the General Assembly for the operation of any such office shall be conserved so as to provide his or her successor in office with a proportionate amount of available appropriations and funds for the remainder of the fiscal year during which the change of office takes place. For the purpose of carrying out the provisions of this section it is provided that:
    1. No constitutional official shall cause, or cause to be incurred, any obligation or issue any voucher against the appropriations of his or her agency in excess of a true proportion which his or her time of service during the fiscal year of retirement bears to the fiscal year. For the purpose of establishing the time of service of any such official, the time of retirement shall be construed to be that established by the Arkansas Constitution and statutes of this state for the retirement of the constitutional and elective officials of this state;
      1. Within thirty (30) days after each general election, the Auditor of State shall notify all retiring constitutional officials that they will be required to file in his or her office a statement, duly sworn to, setting out:
        1. The total of all vouchers issued against the appropriations of the agency;
        2. A list of all outstanding obligations; and
        3. A detailed list of all proposed expenditures to be made prior to the time of retirement.
      2. In the event that the Auditor of State is retiring, the Chief Fiscal Officer of the State shall notify the Auditor of State to file the aforementioned statement required of the Auditor of State with the office of the Chief Fiscal Officer of the State; and
    2. The Auditor of State shall not issue any warrant in payment of the voucher of any agency coming under the provisions of this section in excess of the proportion provided for in this section. The Auditor of State shall be liable under his or her official bond for issuing any such warrant in excess of such proportion. However, in cases of calamity or emergency, the Governor may, by proclamation, authorize any agency to exceed the limitations of this section. Under such conditions the Auditor of State and the disbursing officer shall be relieved of any liability under this section if, in making the proclamation, the Governor states the reasons for the emergency and the probable amount of the excess obligations which the agency is authorized to incur.
  2. Purpose. It is the purpose of this section to provide for the conservation of appropriations for the normal operations of agencies, and the provisions of this section are not applicable to appropriations for improvements or to special appropriations.

History. Acts 1973, No. 876, § 17; 1981, No. 741, § 2; 1985, No. 365, § 8; A.S.A. 1947, § 13-343.

Subchapter 3 — Chief Fiscal Officer of the State

A.C.R.C. Notes. References to “this subchapter” in §§ 19-4-30119-4-306 may not apply to § 19-4-307 which was enacted subsequently.

Acts 2016, No. 266, § 20, provided: “EMPLOYEE COMPENSATION REPORT. The Department of Finance and Administration Office of Budget shall prepare and submit to the Arkansas Legislative Council or Joint Budget Committee a report reflecting the amount of appropriation and funding necessary for the Department of Correction to sufficiently budget for the expenditure of payments to employees for all Holiday Liability, Straight Time Liability, Overtime, and Hazardous Duty Compensation incurred, including the current balances of said liabilities. This report shall be included in the summary budget information manual submitted during the biennial budget process.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, in the enactment of the General Accounting Procedures Law of Arkansas, the Sixtieth General Assembly declared it to be the public policy that the State and all of its agencies be maintained in a sound financial basis, to provide for the adequate accounting for all fiscal transactions of the State, to provide for establishing rules, regulations and procedures for budget preparation, presentation, enactment, execution and defining powers and duties of the Chief Fiscal Officer and State Auditor and the State Treasurer in connection with the foregoing; and

“Whereas, in order to carry out the public policy, purposes, intent and provisions of the General Accounting Procedures Law of Arkansas and in order to accept, adapt and comply with the modern-day technological changes and innovations in budgetary, accounting, and fiscal procedures, it is necessary for the General Assembly to enact legislation providing for the same; and

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation to the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

“Whereas, it is the responsibility of the General Assembly to determine the programs, projects and services for which the State's revenues shall be expended and the priorities which should govern such expenditures; and

“Whereas, in order to discharge its responsibility the General Assembly and its interim committees, including the Legislative Council, has need of accurate data in order to make its determinations wisely; and

“Whereas, the General Assembly recognizes and accepts the principles, purposes and intent of the Revenue Stabilization Law of Arkansas and the General Accounting Procedures Law of Arkansas as they presently exist and further recognizes the validity of their provisions by virtue of Arkansas Supreme Court decisions; and

“Whereas, it is not the intention of the General Assembly to deviate from the purposes and intent of the Revenue Stabilization Law of Arkansas, but it is the intent of the General Assembly to strengthen the purpose of the Revenue Stabilization Law and the General Accounting Procedures Law of Arkansas by enacting the following legislation which embodies the holdings of prior Arkansas Supreme Court decisions affecting the General Accounting Procedures Law of Arkansas, now therefore … .”

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-4-301. Duties and responsibilities generally.

The Chief Fiscal Officer of the State shall carry out the following duties and responsibilities:

  1. Assist the Governor or Governor-elect in the preparation of the comprehensive program and financial plan, including the coordination and analysis of state agency programs, goals, and objectives;
  2. Develop procedures to produce the information needed for effective policy decision-making by the General Assembly and the Governor or Governor-elect;
  3. Assist agencies in developing their statement of goals and objectives, their preparation of program plans and budget requests, and their systems of evaluating and reporting of program performance;
  4. Provide the General Assembly or its interim committees with any information they may request;
  5. Between sessions of the General Assembly, keep the Legislative Council and any interim committees of the General Assembly that request this information informed of the actual expenditures of agencies as compared to their approved budgets and of the actual performance of these agencies as compared to that predicted in the program budget requests, along with the reasons for any deviations which exist; and
  6. Administer his or her responsibilities under the program budget provisions of this chapter so that the policy decisions and budget determinations of the General Assembly and Governor are effectively implemented.

History. Acts 1973, No. 876, § 6; A.S.A 1947, § 13-332.

19-4-302. Budget information forms.

To accomplish his or her duties and responsibilities, the Secretary of the Department of Finance and Administration, in cooperation with the Legislative Council, shall design budget information forms so that comparative data of the last fiscal year, the current fiscal year, and the next biennium are presented so that state agencies can best express budgetary and program information that will be most useful to the Governor or Governor-elect and the General Assembly in order to facilitate program formulation, execution, and accountability by:

  1. Focusing attention upon the general character and relative importance of the program to be accomplished or upon the service to be rendered and what the program or service will cost;
  2. Employing functional classifications, where practical to do so, in order to present budgets by broad program categories;
  3. Presenting budget requests by organizational units;
  4. Grouping expenditures and budget estimates by major objects of expenditures;
  5. Stating goals and objectives of agency programs;
  6. Presenting proposed plans to implement the goals and objectives, including proposed modification of existing program services and establishment of new program services, and the estimated resources required to implement the goals and objectives;
  7. Including a report of the receipts during the prior fiscal year, an estimate of the receipts during the current fiscal year, and an estimate for each year of the succeeding biennium;
  8. Presenting requested legislation required to implement the proposed programs and financial plans; and
  9. Supplying any other information necessary to carry out the purposes of this chapter.

History. Acts 1973, No. 876, § 6; A.S.A. 1947, § 13-332; Acts 2019, No. 910, § 3449.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in the introductory language.

19-4-303. Budget estimates.

The Secretary of the Department of Finance and Administration, in cooperation with the Legislative Council, shall:

  1. Prepare a budget calendar or time schedule so that the submission and presentation of budget estimates will be accomplished within the desired time limits; and
  2. Prepare a budget instructional manual to establish uniformity for presentation of budget estimates by state agencies.

History. Acts 1973, No. 876, § 6; A.S.A. 1947, § 13-332; Acts 2019, No. 910, § 3450.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in the introductory language.

19-4-304. Regular and fiscal session preparations.

  1. Immediately after July 1 of each even-numbered calendar year, or earlier if determined necessary, the Secretary of the Department of Finance and Administration shall:
    1. Issue budget information forms, budget estimating instructions, and a budget calendar which has been approved by the Legislative Council, plus a budget policy letter from the Governor containing some or all of the following:
      1. Establishing maximum limitations on expenditures for the year in which estimates are being requested;
      2. Setting out the policies which will determine the Governor's priorities in the allocation of available resources;
      3. Outlining the effects of economic changes pertaining to price levels, population changes, and pending federal legislation; and
      4. Containing a review of current fiscal conditions and a prognostication of fiscal conditions for the future;
      1. Visit and inspect the properties and facilities of any or all state agencies and request the administrative head or any employee of the agency to appear before him or her to explain any matters concerning the budgetary and program requirements of the agency.
      2. If any agency fails or refuses to furnish any information with respect to budget estimates or program formulation, as and when it shall be requested by the Chief Fiscal Officer of the State, then he or she shall have the authority to prepare and submit his or her own recommendations as to the budgetary or program requirements of the agency;
    2. Assist agencies in the preparation of their budget proposals. This assistance may include:
      1. Technical assistance;
      2. Organization of materials;
      3. Centrally collected accounting, budgeting, personnel, and purchasing information standards and guidelines;
      4. Population and other required data; and
      5. Any other assistance that will help the agencies produce the information necessary for efficient agency management and decision making by the General Assembly and the Governor or the Governor-elect;
    3. Analyze the budget estimates to evaluate and assess the priority and accuracy of agency requests in relation to policy and program objectives and the financial condition of the state and make recommendations for modifications and revision of the budget request if, in their opinion, the facts before them would justify such proposed revisions. The Chief Fiscal Officer of the State in making recommended changes shall not alter the original request unless requested to do so by the administrative head of the agency affected but shall report the original request, together with his or her own recommendations and the reasons therefor, to the Governor, so that all agency budget estimates may be made available to the Governor or Governor-elect, the Legislative Council, and the General Assembly for their consideration;
    4. Prepare an estimate of the general and special revenues for the next fiscal year, along with comparative data for the then-current fiscal year and past fiscal year; and
    5. Submit the budget studies, together with his or her recommendations, to the Legislative Council and to the Governor or Governor-elect for such further recommendations as the Governor or Governor-elect may care to make.
  2. The secretary shall submit the annual revenue forecast to the Legislative Council:
    1. By December 1 of the year preceding a fiscal session that is held in a year in which the preferential primary election will be held in May under § 7-7-203;
    2. By February 1 of a year preceding a fiscal session that is held in a year in which the preferential primary election is held in March under § 7-7-203; and
    3. No later than sixty (60) days before the start of a regular session.

History. Acts 1973, No. 876, § 6; A.S.A. 1947, § 13-332; Acts 2009, No. 962, § 38; 2015 (1st Ex. Sess.), No. 5, § 4; 2019, No. 545, § 9; 2019, No. 910, §§ 3451, 3452.

A.C.R.C. Notes. Acts 2015 (1st Ex. Sess.), No. 5, § 5, provided:

“(a) This act is cumulative of existing laws and shall not repeal but merely suspend any law in conflict with the act.

“(b) The provisions of this act are temporary and expire on December 31, 2016.

“(c) On and after December 31, 2016, the provisions of law suspended by this act shall be in full force and effect.

“(d) The expiration of this act shall not affect rights acquired under it or affect suits then pending.”

Amendments. The 2015 amendment by Acts 2015 (1st Ex. Sess.), No. 5, in (b)(1), substituted “February” for “December” and “year of” for “year preceding”.

The 2019 amendment by No. 545 added “that is held in a year in which the preferential primary election will be held in May under § 7-7-203” in (b)(1); added (b)(2); and redesignated former (b)(2) as (b)(3).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in the introductory language of (a); and substituted “secretary” for “director” in the introductory language of (b).

19-4-305. Preliminary budget report.

The Chief Fiscal Officer of the State shall prepare the described preliminary budget report so that it shall include the following:

  1. The budget requests as submitted by the legislative branch, the judicial branch, the elective constitutional officers, the Arkansas Department of Transportation, and the Arkansas State Game and Fish Commission;
  2. The budget requests of all other state agencies, as submitted by each agency, together with the Chief Fiscal Officer of the State's analysis of the budget estimates and the executive recommendations;
  3. A recapitulation and summary of all budget information as required in this subchapter and the recommendations of the Chief Fiscal Officer of the State; and
  4. A detailed statement of the revenues and other sources of income of the state government for the past complete fiscal year, the estimated revenues of the state under existing laws, and the Governor's proposals for revisions in any tax laws necessary to balance the budget.

History. Acts 1973, No. 876, § 6; A.S.A. 1947, § 13-332; Acts 2017, No. 707, § 42.

Amendments. The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department” in (1).

19-4-306. Review and control of budgets.

The Chief Fiscal Officer of the State, in cooperation with the Legislative Council, shall devise the necessary procedures, forms, and timetables to assure the same comprehensive review of all state agency requests for capital expenditures as outlined in this subchapter for operating budgets. In addition, the Chief Fiscal Officer of the State shall institute the necessary budgetary and accounting controls over those capital budgets approved by the General Assembly to assure full compliance with all applicable state laws.

History. Acts 1973, No. 876, § 6; A.S.A. 1947, § 13-332.

19-4-307. Employment classification information.

  1. At the same time a state agency submits a budget request for presession budget hearings of the Legislative Council and the Joint Budget Committee, the agency shall also submit the following information for each employment classification:
    1. The total number of persons currently employed;
    2. The number of white male employees;
    3. The number of white female employees;
    4. The total number of Caucasian employees;
    5. The number of black male employees;
    6. The number of black female employees;
    7. The number of other employees who are members of racial minorities; and
    8. The total number of minorities currently employed.
  2. An agency's budget request shall not be considered by the Legislative Council or Joint Budget Committee in a presession budget hearing unless the information required by this section is filed along with the budget request.

History. Acts 1993, No. 358, § 1.

A.C.R.C. Notes. References to “this chapter” in subchapters 1-20 may not apply to this section which was enacted subsequently.

References to “this subchapter” in §§ 19-4-30119-4-306 may not apply to this section which was enacted subsequently.

Subchapter 4 — Auditor of State and Treasurer of State

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, in the enactment of the General Accounting Procedures Law of Arkansas, the Sixtieth General Assembly declared it to be the public policy that the State and all of its agencies be maintained in a sound financial basis, to provide for the adequate accounting for all fiscal transactions of the State, to provide for establishing rules, regulations and procedures for budget preparation, presentation, enactment, execution and defining powers and duties of the Chief Fiscal Officer and State Auditor and the State Treasurer in connection with the foregoing; and

“Whereas, in order to carry out the public policy, purposes, intent and provisions of the General Accounting Procedures Law of Arkansas and in order to accept, adapt and comply with the modern-day technological changes and innovations in budgetary, accounting, and fiscal procedures, it is necessary for the General Assembly to enact legislation providing for the same; and

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation of the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

“Whereas, it is the responsibility of the General Assembly to determine the programs, projects and services for which the State's revenues shall be expended and the priorities which should govern such expenditures; and

“Whereas, in order to discharge its responsibility the General Assembly and its interim committees, including the Legislative Council, has need of accurate data in order to make its determinations wisely; and

“Whereas, the General Assembly recognizes and accepts the principles, purposes and intent of the Revenue Stabilization Law of Arkansas and the General Accounting Procedures Law of Arkansas as they presently exist and further recognizes the validity of their provisions by virtue of Arkansas Supreme Court decisions; and

“Whereas, it is not the intention of the General Assembly to deviate from the purposes and intent of the Revenue Stabilization Law of Arkansas, but it is the intent of the General Assembly to strengthen the purpose of the Revenue Stabilization Law and the General Accounting Procedures Law of Arkansas by enacting the following legislation which embodies the holdings of prior Arkansas Supreme Court decisions affecting the General Accounting Procedures Law of Arkansas, now therefore … .”

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1983, No. 305, § 3: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that the destruction of records provision of this Act should become operable at the beginning of the next fiscal year which is July 1, 1983, and that unless this emergency clause is adopted to provide such effective date its effective date will be unknown and in all probability would not be July 1, 1983. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect on and after July 1, 1983.”

Acts 1993, No. 540, § 9: Mar. 16, 1993. Emergency clause provided: “It is hereby found and determined by the Seventh-Ninth General Assembly that the effective operation of Arkansas public schools is dependent upon the immediate receipt of funds, and this Act will alleviate problems attendant to the delay in the receipt of funds. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2001, No. 1453, § 49: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that proper and effective management requires that changes to the state's finance and accounting laws begin on the first day of the fiscal year and that if there is an extended recess of the General Assembly, the required ninety day period may extend past July 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2007, No. 269, § 2: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the storage of original warrants for a prolonged period places a burden on the operations of the Auditor of State and that the provisions of this act will provide a more cost-efficient and effective method of storing warrants, which will correspondingly improve access to warrants. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2007.”

19-4-401. Duties generally.

Except as otherwise provided in this chapter, the offices of the Auditor of State and the Treasurer of State shall continue to perform the duties imposed by law upon these offices.

History. Acts 1973, No. 876, § 27; A.S.A. 1947, § 13-353.

19-4-402. Auditor of State as disbursing officer.

The Auditor of State shall act as disbursing officer for the appropriations made for:

  1. Circuit judges;
  2. Prosecuting attorneys;
  3. Retired circuit and chancery judges; and
  4. The Lieutenant Governor.

History. Acts 1973, No. 876, § 27; A.S.A. 1947, § 13-353; Acts 2005, No. 1962, § 78.

Amendments. The 2005 amendment deleted “and chancery” following “Circuit” in (1).

19-4-403. Issuance of warrants.

The Auditor of State shall issue his or her warrants in payment of the vouchers presented to him or her by the Chief Fiscal Officer of the State only after he or she shall have satisfied himself or herself that the provisions of this chapter have been complied with. For this purpose, the Auditor of State shall have the authority to conduct any further examination and preaudit of the vouchers which he or she may deem necessary. A single warrant may contain payments from multiple appropriations, classifications of appropriation, and funds.

History. Acts 1973, No. 876, § 27; A.S.A. 1947, § 13-353; Acts 2001, No. 1453, § 5.

19-4-404. Books, forms, and receipts.

  1. In order to provide for uniformity in fiscal procedure, the Auditor of State and the Treasurer of State are directed to establish and set up in their respective books such income, appropriation, disbursement, and fund accounts as shall be prescribed by the Chief Fiscal Officer of the State or as otherwise provided by law.
  2. The forms of all vouchers and other prescribed forms used in connection with the disbursement of funds in the State Treasury shall be prescribed by the Chief Fiscal Officer of the State, with the approval of the Auditor of State, or as otherwise provided by law.
  3. All forms of receipts and other prescribed forms used in connection with the recording of the receipts of the Treasurer of State shall be prescribed by the Chief Fiscal Officer of the State, with the approval of the Treasurer of State, or as otherwise provided by law.

History. Acts 1973, No. 876, § 27; A.S.A. 1947, § 13-353.

19-4-405. Examination of records.

  1. It is the duty of the Auditor of State to examine and verify the disbursement and redemption records of the Treasurer of State daily and compare them with the records in his or her own office and with the Auditor of State's redeemed warrants.
  2. As each redeemed warrant is examined and found to compare with the disbursement records, it shall be stamped over the signature of the Auditor of State. The stamp shall contain the words “VOID, STATE AUDITOR”, and shall be at least one-half inch by one and one-half inches (½" x 1½") in size.

History. Acts 1973, No. 876, § 27; A.S.A. 1947, § 13-353.

19-4-406. Storage of warrants.

    1. The Auditor of State shall place all redeemed warrants in a secure place or vault in the Auditor of State's office, subject to the inspection by any interested citizen.
      1. Except as provided in subdivision (a)(2)(B) of this section, the Auditor of State shall keep a warrant intact and without further alteration for a period of one (1) year from the close of the fiscal year in which the warrant was issued.
        1. If the Auditor of State makes an electronic copy of the warrant, the original warrant shall be kept for three (3) months.
        2. The electronic copy of the warrant shall be maintained for a period of ten (10) years from the close of the fiscal year in which the warrant was issued.
  1. If the Legislative Auditor or the State Historian requests retention of an original warrant or the electronic copy of a warrant in excess of the time periods provided under subsection (a) of this section, the warrant shall be retained by the Auditor of State for such period of time as required by the Legislative Auditor or the State Historian.
  2. If federal law or regulations require the retention of certain warrants for a period longer than the period prescribed in this section, warrants shall be retained for the period prescribed by the federal law or regulations.

History. Acts 1973, No. 876, § 27; 1983, No. 305, § 1; A.S.A. 1947, § 13-353; Acts 2007, No. 269, § 1; 2009, No. 251, § 9.

Amendments. The 2007 amendment added the (a)(1) and (a)(2) designations; rewrote (a)(2); and in (b), substituted “request retention of an original warrant or the electronic copy of a warrant in excess of the time periods provided under subsection (a) of this section” for “do not authorize the destruction.”

The 2009 amendment, in (b), substituted “or the” for “and” preceding “State Historian” in two places, substituted “the warrant” for “the warrants and vouchers,” and made a related change.

19-4-407. Electronic warrants transfer system.

  1. The Chief Fiscal Officer of the State, the Treasurer of State, and the Auditor of State may establish an electronic warrants transfer system directly into payee's accounts in financial institutions in payment of any account allowed against the state.
  2. The Chief Fiscal Officer of the State, the Treasurer of State, and the Auditor of State, by joint rules, shall establish the standards and procedures for administering the system, to include that the electronic warrants transfer shall be in such form that a single instrument shall serve as electronic warrants transfer.
  3. A single electronic warrants transfer may contain payments to multiple payees, appropriations, characters, and funds.

History. Acts 1991, No. 421, §§ 1-3.

19-4-408. Distributions to public school districts.

    1. The Chief Fiscal Officer of the State, the Treasurer of State, and the Auditor of State shall establish an electronic warrants transfer system to distribute certain funds directly to an account in a financial institution, as designated by the public school district's treasurer.
    2. The determination of the categories of funds to be distributed shall be made by the Commissioner of Education.
      1. The public school district shall accept distributions by the electronic warrants transfer system.
        1. A public school district with a district treasurer may choose to have funds first distributed to the county treasurer or directly to the school district treasurer.
        2. If a school district with a district treasurer chooses direct distribution of funds to the school district treasurer, the State of Arkansas shall forward all state and federal funds for the district to the district treasurer, whether they are in the form of state warrants or electronic warrants transfers.
        3. If a school district uses the county treasurer as its treasurer, the State of Arkansas shall forward all state and federal funds for the district to the county treasurer, whether they are in the form of state warrants or electronic warrants transfers.
  1. The Chief Fiscal Officer of the State, the Treasurer of State, and the Auditor of State, by joint rules, shall establish the standards and procedures for administering the system, to include that the electronic warrants transfer shall be in such form that a single instrument shall serve as electronic warrants transfer.
  2. A single electronic warrants transfer may contain payments to multiple public school districts, appropriations, characters, and funds.

History. Acts 1993, No. 540, §§ 1-5; 1995, No. 232, § 8.

A.C.R.C. Notes. References to “this chapter” in subchapters 1-20 may not apply to this section which was enacted subsequently.

Subchapter 5 — Financial Management System

Cross References. Procedures for administering unanticipated miscellaneous federal funds, § 19-7-501 et seq.

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, in the enactment of the General Accounting Procedures Law of Arkansas, the Sixtieth General Assembly declared it to be the public policy that the State and all of its agencies be maintained in a sound financial basis, to provide for the adequate accounting for all fiscal transactions of the State, to provide for establishing rules, regulations and procedures for budget preparation, presentation, enactment, execution and defining powers and duties of the Chief Fiscal Officer and State Auditor and the State Treasurer in connection with the foregoing; and

“Whereas, in order to carry out the public policy, purposes, intent and provisions of the General Accounting Procedures Law of Arkansas and in order to accept, adapt and comply with the modern-day technological changes and innovations in budgetary, accounting, and fiscal procedures, it is necessary for the General Assembly to enact legislation providing for the same; and

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation to the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

“Whereas, it is the responsibility of the General Assembly to determine the programs, projects and services for which the State's revenues shall be expended and the priorities which should govern such expenditures; and

“Whereas, in order to discharge its responsibility the General Assembly and its interim committees, including the Legislative Council, has need of accurate data in order to make its determinations wisely; and

“Whereas, the General Assembly recognizes and accepts the principles, purposes and intent of the Revenue Stabilization Law of Arkansas and the General Accounting Procedures Law of Arkansas as they presently exist and further recognizes the validity of their provisions by virtue of Arkansas Supreme Court decisions; and

“Whereas, it is not the intention of the General Assembly to deviate from the purposes and intent of the Revenue Stabilization Law of Arkansas, but it is the intent of the General Assembly to strengthen the purpose of the Revenue Stabilization Law and the General Accounting Procedures Law of Arkansas by enacting the following legislation which embodies the holdings of prior Arkansas Supreme Court decisions affecting the General Accounting Procedures Law of Arkansas, now therefore … .”

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this act being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1977, No. 486, § 6: Mar. 18, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly that certain general accounting and budgetary procedures are outdated and should be changed in order to properly exercise fiscal responsibility in administering the affairs of state government, and that the immediate passage of this Act is necessary to implement such changes. Therefore an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1977, No. 813, § 6: Mar. 28, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly that certain general accounting and budgetary procedures are outdated and should be changed in order to properly exercise fiscal responsibility in administering the affairs of state government, and that the immediate passage of this Act is necessary to implement such changes. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 833, § 12: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the aforementioned sections of the General Accounting and Budgetary Procedures Law of Arkansas requires amendment to conform with legislation, and for more effective operations of state government. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1981, No. 741, § 8: Mar. 28, 1981. Emergency clause provided: “It is hereby found and determined by the Seventy-Third General Assembly that certain amendments to Act 876 of 1973, the General Accounting and Budgetary Procedures Law, are essential to the continued financial operations of State government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 924, § 2: Mar. 30, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that it would be beneficial to the public colleges and universities and to the State Employees Health Insurance Program for colleges and universities to be permitted to participate in such program and that any delay in making such participation available to colleges and universities unnecessarily restricts management and financial planning for the future. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 702, § 3: Mar. 23, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that procedures are needed whereby the State Treasurer may allow for reconciling items which may occur in the normal course of business, and that the immediate passage of this Act is necessary to enable the State Treasurer to perform the duties of the said Office in a business-like manner. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 365, § 15: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly that the clarification of certain fiscal transactions of the State is needed in order to more accurately reflect the condition of the State's assets at all times and to maintain the fiscal integrity of the State. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

Acts 1987, No. 646, § 6: July 1, 1987. Emergency clause provided: “It is hereby found and determined by the Seventy-Sixth General Assembly, that the clarification of certain fiscal transactions of the State is needed in order to more accurately reflect the condition of the State's assets at all times and to maintain the fiscal integrity of the State. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1987.”

Acts 1997, No. 342, § 51: Mar. 5, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that previous General Assemblies have provided appropriations for the projects provided or enumerated in this act; that certain appropriations will expire before the adjournment of the General Assembly; and that if such appropriations expire, the projects and programs authorized herein will cease thereby depriving the citizens of the State of the benefits to be derived from such projects. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1997, No. 1211, § 40: July 1, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1997 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1997 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1997.”

Acts 1999, No. 1280, § 19: Apr. 9, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that provisions contained in this bill be enacted into law. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 221, § 7: Feb. 13, 2001. Emergency clause provided: “It is hereby found and determined by the Eighty-third General Assembly that the current incremental line-item system of budgeting is ineffective in evaluating agency performance; that to implement a replacement system in a reasonable time is a difficult task and that to delay the implementation could cause the inability to meet critical deadlines. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 1453, § 49: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that proper and effective management requires that changes to the state's finance and accounting laws begin on the first day of the fiscal year and that if there is an extended recess of the General Assembly, the required ninety day period may extend past July 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2005, No. 237, § 3[4]: Feb. 17, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that ability to automate the performance-based budgeting process was an important component of the Arkansas Administrative Statewide Information System; that SAP, the vendor contracted to provide the performance-based budgeting component of the Arkansas Administrative Statewide Information System, failed to deliver the component as required by contract; that the state was unable to automate the performance-based budgeting process; that, additionally, the performance-based budgeting model does not accurately reflect state agency goals and objectives; that the performance-based budgeting process is burdensome to state agencies; that state resources could be used more efficiently if performance-based budgeting is eliminated; and that the immediate elimination of performance-based budgeting will benefit the state agency appropriation process of the Eighty-fifth General Assembly. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 365, § 29: July 1, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the fiscal year for employees begins on July 1 of every year and that the implementation of the Uniform Classification and Compensation Act is necessary to ensure the continued services and operations of the state. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2017.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Case Notes

Cited: Wells v. Heath, 269 Ark. 473, 602 S.W.2d 665 (1980).

19-4-501. General requirements.

  1. In order to provide necessary financial information for the Governor, members and committees of the General Assembly, and other interested state agencies, the Chief Fiscal Officer of the State is directed to establish a comprehensive financial management system for appropriated and cash funds of agencies.
  2. The financial management system shall provide for an adequate control over receipts, expenditures, and balances to the end that information may always be currently available as to the financial condition of the state and its various subdivisions. The system shall:
    1. Include a modified accrual system embracing encumbrance accounting;
    2. Conform with generally accepted governmental accounting principles; and
    3. Provide a reporting system whereby actual expenditures are compared to those predicted in the agency's annual operations plan described in subchapter 6 of this chapter.
  3. In obtaining any necessary fiscal information, the Chief Fiscal Officer of the State shall have the authority to make an examination of the books and records of any agency to determine the financial condition of the agency and to report on it.

History. Acts 1973, No. 876, § 12; A.S.A. 1947, § 13-338.

19-4-502. Duties of Chief Fiscal Officer of the State generally.

The Chief Fiscal Officer of the State shall:

  1. Review postaudits of state agencies conducted by the Legislative Joint Auditing Committee and advise the Governor and the Attorney General or prosecuting attorney for legal action, if appropriate, of any improper or illegal practices;
  2. Assist the various agencies in complying with the recommendations of the Legislative Joint Auditing Committee for improving their accounting systems;
  3. Establish a uniform chart of accounts and issue an accounting procedures manual governing statewide accounting and reporting policies and procedures;
  4. Prepare analysis and evaluation reports of the financial management system and fiscal control procedures to determine compliance with generally accepted governmental accounting principles;
  5. Adapt the financial management system to meet the particular needs of each agency while maintaining the overall integrity of the system and comparability of coding and reporting for all agencies utilizing the system; and
  6. Design accounting and reporting forms for use by agencies in effecting proper fiscal control procedures.

History. Acts 1973, No. 876, § 12; 1985, No, 365, § 1; A.S.A. 1947, § 13-338.

19-4-503. Deposit of funds into State Treasury.

  1. The Chief Fiscal Officer of the State shall have the authority, upon request of a state agency having funds on deposit in a depository other than the State Treasury, to authorize the agency to deposit the moneys into the State Treasury.
  2. The Chief Fiscal Officer of the State shall determine the classification of the funds and shall designate or create the State Treasury fund into which the moneys are to be deposited.
  3. The appropriation acts which appropriated the cash moneys shall be construed to be in conformity with Arkansas Constitution, Article 5, § 29, and Arkansas Constitution, Article 16, § 12, for withdrawing moneys from the State Treasury.
  4. All moneys deposited into the State Treasury under the provisions of this section shall be deposited as nonrevenue receipts and shall not be subjected to the provisions of § 19-5-205(e) unless the source of the revenue is specifically classified in § 19-6-201 or § 19-6-301.
  5. If any moneys classified as trust funds under the provisions of this section earn interest, then that interest shall be credited to the trust fund.

History. Acts 1973, No. 876, § 12; 1977, No. 486, § 2; A.S.A. 1947, § 13-338.

19-4-504. Requisites of system.

The financial management system shall at all times:

  1. Reflect the unencumbered balances of all State Treasury funds, fund accounts, and accounts and appropriations payable from the State Treasury;
  2. Reflect the appropriations and allotments as approved by the General Assembly;
  3. Reflect the distribution and allocation of the state revenues under the Revenue Stabilization Law, § 19-5-101 et seq., and other revenue laws of the state; and
  4. Provide a record of the expenditures, disbursements, and receipts of all state agencies.

History. Acts 1973, No. 876, § 12; A.S.A. 1947, § 13-338.

19-4-505. State accounting system to conform to generally accepted accounting principles — Legislative intent.

It is the intent of the General Assembly that the state accounting system, as authorized in this subchapter, shall be established in conformity with generally accepted accounting principles as recognized by the Governmental Accounting Standards Board, the American Institute of Certified Public Accountants, the Financial Accounting Standards Board, and any successor governing boards. However, the Chief Fiscal Officer of the State shall consult the Legislative Joint Auditing Committee before proposing, adopting, or recommending compliance with any of the generally accepted accounting principles that conflict with law. It is further recognized that the state accounting system should comply with recognized principles of accounting for and reporting of public moneys in order to properly and fairly discharge to the taxpayers our responsibility of adequately accounting for their moneys.

History. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338; Acts 2001, No. 1453, § 6.

19-4-506. Accounting and reporting capabilities.

A governmental accounting system must make it possible both to:

  1. Present fairly and with full disclosure the financial position and results of financial operations of the funds and account groups of the governmental unit in conformity with generally accepted accounting principles; and
  2. Determine and demonstrate compliance with finance-related legal and contractual provisions.

History. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-507. Fund accounting systems.

Governmental accounting systems should be organized and operated on a fund basis. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special rules, restrictions, or limitations.

History. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338; Acts 2019, No. 315, § 1709.

Amendments. The 2019 amendment substituted “rules” for “regulations” in the second sentence.

19-4-508 — 19-4-516. [Repealed.]

Publisher's Notes. These sections, concerning types of funds, number of funds, accounting for fixed assets and long-term liabilities, valuation of fixed assets, depreciation of fixed assets, accrual basis in governmental accounting, budgeting, budgetary control, and budgetary reporting, transfer, revenue, expenditure, and expense account classifications, and common terminology and classification, were repealed by Acts 2001, No. 1453, § 7. These sections were derived from the following sources:

19-4-508. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-509. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-510. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-511. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-512. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-513. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-514. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-515. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-516. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-517. Interim and annual financial reports.

  1. Appropriate interim financial statements and reports of financial position, operating results, and other pertinent information should be prepared to facilitate management control of financial operations, legislative oversight, and where necessary or desired, for external reporting purposes.
  2. A comprehensive annual financial report covering all funds and account groups of the governmental unit, including appropriate combined, combining, and individual fund statements; notes to the financial statements; schedules; narrative explanations; and statistical tables should be prepared and published.
  3. General purpose financial statements may be issued separately from the comprehensive annual financial report. These statements should include the basic financial statements and notes to the financial statements that are essential to fair presentation of financial position and operating results and changes in financial position of proprietary funds and similar trust funds.

History. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-518. Design of system.

  1. The financial management system shall be designed to record assets, liabilities, net assets, revenues, expenditures, and other similar transactions in accordance with generally accepted accounting principles. The financial management system shall provide a suitable analysis of the operation, maintenance, and improvement of all state agencies and their functions. This system shall furnish a breakdown and itemization of all financial transactions in accordance with the appropriations and allotments of the General Assembly, federal grants, and bank funds of the agencies.
  2. The Chief Fiscal Officer of the State shall prepare a general ledger manual covering the system of classifying financial transactions and shall supply all agencies with a copy of this manual.

History. Acts 1973, No. 876, § 12; A.S.A. 1947, § 13-338; Acts 2001, No. 1453, § 8.

19-4-519. Appropriations code manual.

  1. After the General Assembly has enacted the various appropriation measures for the support and operation of state government and its agencies, the Chief Fiscal Officer of the State shall prepare a complete code manual setting out all of the appropriations of the General Assembly, the purpose of the appropriations and the funds, fund accounts, or accounts from which the appropriations are made and shall classify them in accordance with the titles and definitions as enumerated in this chapter.
  2. After establishing the appropriation items and classifying them under the provisions of this chapter in strict conformity to the intent and purposes of the appropriation acts and within the limitations of the revenues and funds available for these purposes, it shall then be unlawful for the Chief Fiscal Officer of the State or any disbursing officer of any state agency to transfer from an appropriation item, the purpose of which is defined under the provisions of this chapter, to any other appropriation item of a different classification and purpose as defined in this subchapter except when permitted by law.

History. Acts 1973, No. 876, § 12; A.S.A. 1947, § 13-338; Acts 2001, No. 221, § 4; 2003, No. 1463, § 8; 2005, No. 237, § 2.

Publisher's Notes. Acts 2005, No. 237 contained two sections designated as “Section 2.”

Amendments. The 2005 amendment repealed (c).

Cross References. Meeting by Joint Budget Committee and House Interim Budget Committee during the interim, § 10-3-509.

Review and approval of annual operations plans, § 19-4-607.

19-4-520. Classification of appropriations.

    1. For the purpose of establishing the proper accounts, for budgetary control, for accounting, and for other provisions of this chapter, the appropriations of the General Assembly shall be classified under one (1) or more of the classifications prescribed in §§ 19-4-521 — 19-4-525.
    2. The purposes for which these appropriations may be used are defined as prescribed in §§ 19-4-521 — 19-4-525, but not necessarily limited thereto.
  1. However, the state's financial management system may invoke additional budget control using features of the system that are in addition to the appropriations of the General Assembly.

History. Acts 1973, No. 876, § 12; 1977, No. 813, § 1; 1979, No. 833, §§ 1, 2; 1981, No. 741, § 1; 1981, No. 924, § 1; 1983, No. 628, § 1; 1985, No. 365, §§ 2, 3, 12; A.S.A. 1947, § 13-338; Acts 2001, No. 1453, § 9.

19-4-521. Personal services — Definition.

The personal services classification shall be for regular full-time, part-time, and extra-help employees, employer matching costs, employer special or extra compensation, overtime earnings, and other employee benefits that are legally authorized:

  1. Regular Salaries. This subclassification shall be applicable to all salaries and compensation, except as provided in this section, for state employees when the number of employees and maximum amounts of compensation are statutorily authorized as provided by Arkansas Constitution, Article 16, § 4, irrespective of the financial resources compensating such employees within this subclassification and when the method of salary disbursing of the institutions of higher education involves payment from state agency bank funds of the institution, subject to reimbursement to the institution for such amounts as are properly payable from funds in the State Treasury. However, the state's financial management system may include in the subclassification of regular salaries the following:
    1. Extra Salaries. This description includes all special remuneration received by state employees in addition to regular salary that is authorized by law. Any state agency which receives an appropriation for extra salaries may pay eligible employees at the following rates:
      1. Physicians who are certified by the American specialty boards, at a rate of pay not to exceed four thousand five hundred dollars ($4,500) per fiscal year;
      2. Physicians who are eligible to be certified by the American specialty boards, at a rate of pay not to exceed two thousand five hundred dollars ($2,500) per fiscal year; and
      3. Physicians certified in child psychiatry or forensic psychiatry, an additional two thousand five hundred dollars ($2,500) per fiscal year will be allowed with the total additional compensation not to exceed seven thousand dollars ($7,000) per fiscal year;
    2. Special Compensation. This description includes special remuneration when authorized by law for employee suggestion awards; and
    3. The payment of extra salaries and special compensation when authorized by law shall be considered to be in addition to the maximum amounts of compensation set by law for regular salaries;
  2. Extra Help.
    1. This subclassification shall be used for payment of all salaries and compensation of part-time or temporary employees, as authorized by law, who are employed one thousand five hundred (1,500) hours per fiscal year or less.
    2. This subclassification may be used to pay part-time or temporary employees who are employed for more than one thousand five hundred (1,500) hours per fiscal year if specific authorization is provided by law and if such use is within standards established by the Secretary of the Department of Finance and Administration.
    3. In no case shall any extra-help funds be used for the purposes of paying additional compensation to a full-time state employee.
    4. “State employee” means any employee occupying a regular salaried position for a state agency, board, commission, department, or institution of higher education;
  3. Overtime. This subclassification is applicable for payment of services performed in excess of normal hours of work during a specific time when specifically authorized by law; and
  4. Personal Services Matching.
    1. This subclassification shall represent the state agency's proportion of the amounts necessary to contribute the state agency's share or to match the deductions from the salaries of state employees for:
      1. Social Security;
      2. Retirement;
      3. Group employee insurance programs;
      4. Workers' compensation;
      5. Unemployment compensation contributions; and
      6. A state contribution for state employee retirees who are eligible to participate in the health and life insurance programs offered by the state as defined by § 21-5-411 and as authorized by the Chief Fiscal Officer of the State.
    2. The Chief Fiscal Officer of the State may make appropriate reclassifications of the state agency's appropriation for maintenance and general operation to effect the payment of personal services matching as described in this section.

History. Acts 1973, No. 876, § 12; 1977, No. 813, § 1; 1979, No. 833, §§ 1, 2; 1981, No. 741, § 1; 1981, No. 924, § 1; 1983, No. 628, § 1; 1985, No. 365, §§ 2, 3, 12; A.S.A. 1947, § 13-338; Acts 1987, No. 646, § 1; 1999, No. 1280, § 11; 2001, No. 1453, § 10; 2005, No. 251, § 2; 2017, No. 365, § 2; 2019, No. 910, § 3453.

Amendments. The 2005 amendment inserted “fiscal” preceding “year” throughout (1)(A) and (2); and inserted “per fiscal year” at the end of (1)(A)(iii).

The 2017 amendment substituted “one thousand five hundred (1,500)” for “one thousand (1,000)” in (2)(A) and (2)(B).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (2)(B).

19-4-522. Maintenance and general operation.

  1. The maintenance and general operation classification shall cover items of expense necessary for the proper and efficient operation of the state agency, authority, board, commission, department, or institution of higher education, except as otherwise classified in this subchapter.
  2. It is recognized that in those instances where the maintenance and general operation line-item classification is not subclassified, the state agency is authorized to expend moneys for operations in compliance with the intent of this subchapter.
  3. In the event an appropriation for maintenance and general operation authorized for a state agency, board, department, or institution is restricted in its use by budget classification as set out in subsection (d) of this section, transfers between such classifications may be made subject to the procedures set out as follows:
    1. In the event the amount of any of the budget classifications of maintenance and general operation in an agency's appropriation act are found by the administrative head of the agency to be inadequate, then the agency head may request, upon forms provided for such purpose by the Chief Fiscal Officer of the State, a modification of the amounts of the budget classification. In that event, he or she shall set out on the forms the particular classifications for which he or she is requesting an increase or decrease, the amounts thereof, and his or her reasons therefor. In no event shall the total amount of the budget exceed either the amount of the appropriation or the amount of the funds available, nor shall any transfer be made from the capital outlay or data processing subclassification unless specific authority for such transfers is provided by law, except for transfers from capital outlay to data processing when determined by the Division of Information Systems that data processing services for a state agency can be performed on a more cost-efficient basis by the division than through the purchase of data processing equipment by that state agency;
    2. In considering the proposed modification as prepared and submitted by each state agency, the Chief Fiscal Officer of the State shall make such studies as he or she deems necessary. If the requested transfer would, when added to other transfers previously approved during the fiscal year for the same classification with the same appropriation, result in a deviation of any kind in the affected classifications of less than five percent (5%) up to a maximum of two thousand five hundred dollars ($2,500) from the classifications established by law, the Chief Fiscal Officer of the State shall approve the requested transfer if in his or her opinion it is in the best interest of the state. If the requested transfer would, when added to other transfers previously approved during the fiscal year for the same classification within the same appropriation, result in a deviation of five percent (5%) or more, or more than two thousand five hundred dollars ($2,500), the Chief Fiscal Officer of the State shall submit the request, along with his or her recommendation, to the Legislative Council for its advice prior to approving the request; and
    3. In the event any state agency shall expend or obligate any approved budget in excess of the maximum classification, the Chief Fiscal Officer of the State shall study the reasons for such excess expenditures and shall take immediate steps to correct such excess spending as he or she deems necessary after notification of such actions has been sent to the Legislative Council.
  4. Maintenance and general operation may be further categorized into the following subclassifications and the expenses thereof to be used according to the subclassification:
    1. Operating Expenses. This subclassification shall entail the following, but not necessarily be limited thereto:
      1. Postage, telephone, and telegraph;
      2. Transportation of commodities or objects;
      3. Printing;
      4. State-owned motor vehicle expenses;
      5. Advertising;
      6. Minor and major repairs;
      7. Maintenance contracts;
      8. Utilities and fuel;
      9. Insurance premiums, surety and performance bonds, and association dues and memberships;
      10. Contractual services not otherwise classified;
      11. Consumable supplies, materials, and commodities;
      12. Books, publications, and newspapers;
      13. Court costs;
      14. Equipment not capitalized;
      15. Applicable petty cash reimbursements, laundry, and taxes;
      16. Travel, subsistence, meals, lodging, transportation of state employees or officials, and nonstate employees traveling on official business;
        1. Uniforms the agency requires its employees to wear as part of the job.
        2. Clothing items purchased for its employees and not required to be worn during working hours, or which are purchased for the promotion of the agency, shall not be subclassified as an operating expense;
      17. Such other items of operating expense as shall be provided by the appropriation act or under reasonable rules and procedures issued by the Chief Fiscal Officer of the State; and
      18. Debt service on equipment or measures required by a guaranteed energy cost savings contract executed under the Guaranteed Energy Cost Savings Act, § 19-11-1201 et seq., or an energy efficiency project financed under the State Entity Energy Efficiency Project Bond Act, § 15-5-1801 et seq.;
    2. Conference and Travel Expenses. This subclassification shall include:
      1. The costs of an employee attending a conference, seminar, or training program; and
      2. The costs of a state agency-sponsored or hosted conference, seminar, or training program where the expenses are not otherwise classified according to this section;
    3. Professional Fees. This subclassification shall include the expenses for contractual agreements entered into by the state agency with an individual, partnership, corporation, or anyone other than a state employee to provide a particular document, report, speech, study, or commodity other than those contractual agreements that by their nature would be classified elsewhere in this subchapter;
    4. Capital Outlay. This subclassification is to include the following expenses, but is not necessarily limited thereto by virtue of other classifications recognized by this subchapter:
      1. Purchase of land, buildings, equipment, furniture, and fixtures; and
      2. Contractual agreements, all of which are to be capitalized from the maintenance and general operation classification of appropriation; and
    5. Data Processing. This subclassification includes purchase of data processing services from the division, or others, and other expenses that are not necessarily classified elsewhere in this section by virtue of the appropriation based upon budgets presented for consideration.
  5. Notwithstanding this section or any other law to the contrary, state-supported colleges and universities may utilize maintenance and operation appropriations for the payment of moving expenses of employees, including new hires.

History. Acts 1973, No. 876, § 12; 1977, No. 813, § 1; 1979, No. 833, §§ 1, 2; 1981, No. 741, § 1; 1981, No. 924, § 1; 1983, No. 628, § 1; 1985, No. 365, §§ 2, 3, 12; A.S.A. 1947, § 13-338; Acts 1987, No. 646, § 2; 1997, No. 342, § 40; 1997, No. 1211, § 29; 2001, No. 163, § 1; 2001, No. 1453, § 11; 2013, No. 554, § 1; 2013, No. 1252, § 5; 2019, No. 315, § 1710; 2019, No. 910, §§ 6080, 6081.

A.C.R.C. Notes. Acts 2016, No. 38, § 4, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 38, § 5, provided:

“TRANSFERS OF APPROPRIATION. In the event the amount of any of the budget classifications of maintenance and general operation in this act are found by the administrative head of the agency to be inadequate, then the agency head may request, upon forms provided for such purpose by the Chief Fiscal Officer of the State, a modification of the amounts of the budget classification. In that event, he or she shall set out on the forms the particular classifications for which he or she is requesting an increase or decrease, the amounts thereof, and his or her reasons therefor. In no event shall the total amount of the budget exceed either the amount of the appropriation or the amount of the funds available, nor shall any transfer be made from the capital outlay or data processing subclassifications unless specific authority for such transfers is provided by law, except for transfers from capital outlay to data processing when determined by the Department of Information Systems that data processing services for a state agency can be performed on a more cost-efficient basis by the Department of Information Systems than through the purchase of data processing equipment by that state agency. In considering the proposed modification as prepared and submitted by each state agency, the Chief Fiscal Officer of the State shall make such studies as he or she deems necessary. The Chief Fiscal Officer of the State shall, after obtaining the approval of the Legislative Council or Joint Budget Committee, approve the requested transfer if in his or her opinion it is in the best interest of the state.

“The General Assembly has determined that the agency in this act could be operated more efficiently if some flexibility is given to that agency and that flexibility is being accomplished by providing authority to transfer between certain items of appropriation made by this act. Since the General Assembly has granted the agency broad powers under the transfer of appropriations, it is both necessary and appropriate that the General Assembly maintain oversight of the utilization of the transfers by requiring prior approval of the Legislative Council in the utilization of the transfer authority. Therefore, the requirement of approval by the Legislative Council is not a severable part of this section. If the requirement of approval by the Legislative Council is ruled unconstitutional by a court of competent jurisdiction, this entire section is void.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 123, § 7, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 125, § 3, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 127, § 4, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 127, § 5, provided:

“TRANSFERS OF APPROPRIATIONS. In the event the amount of any of the budget classifications of maintenance and general operation in this act are found by the administrative head of the agency to be inadequate, then the agency head may request, upon forms provided for such purpose by the Chief Fiscal Officer of the State, a modification of the amounts of the budget classification. In that event, he shall set out on the forms the particular classifications for which he is requesting an increase or decrease, the amounts thereof, and his reasons therefor. In no event shall the total amount of the budget exceed either the amount of the appropriation or the amount of the funds available, nor shall any transfer be made from the capital outlay or data processing subclassifications unless specific authority for such transfers is provided by law, except for transfers from capital outlay to data processing when determined by the Department of Information Systems that data processing services for a state agency can be performed on a more cost-efficient basis by the Department of Information Systems than through the purchase of data processing equipment by that state agency. In considering the proposed modification as prepared and submitted by each state agency, the Chief Fiscal Officer of the State shall make such studies as he deems necessary. The Chief Fiscal Officer of the State shall, after obtaining the approval of the Legislative Council, approve the requested transfer if in his opinion it is in the best interest of the state.

“The General Assembly has determined that the agency in this act could be operated more efficiently if some flexibility is given to that agency and that flexibility is being accomplished by providing authority to transfer between certain items of appropriation made by this act. Since the General Assembly has granted the agency broad powers under the transfer of appropriations, it is both necessary and appropriate that the General Assembly maintain oversight of the utilization of the transfers by requiring prior approval of the Legislative Council in the utilization of the transfer authority. Therefore, the requirement of approval by the Legislative Council is not a severable part of this section. If the requirement of approval by the Legislative Council is ruled unconstitutional by a court of competent jurisdiction, this entire section is void.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 134, § 4, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 191, § 9, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 191, § 10, provided:

“TRANSFERS OF APPROPRIATIONS. In the event the amount of any of the budget classifications of maintenance and general operation in this act are found by the administrative head of the agency to be inadequate, then the agency head may request, upon forms provided for such purpose by the Chief Fiscal Officer of the State, a modification of the amounts of the budget classification. In that event, he shall set out on the forms the particular classifications for which he is requesting an increase or decrease, the amounts thereof, and his reasons therefor. In no event shall the total amount of the budget exceed either the amount of the appropriation or the amount of the funds available, nor shall any transfer be made from the capital outlay or data processing subclassifications unless specific authority for such transfers is provided by law, except for transfers from capital outlay to data processing when determined by the Department of Information Systems that data processing services for a state agency can be performed on a more cost-efficient basis by the Department of Information Systems than through the purchase of data processing equipment by that state agency. In considering the proposed modification as prepared and submitted by each state agency, the Chief Fiscal Officer of the State shall make such studies as he deems necessary. The Chief Fiscal Officer of the State shall, after obtaining the approval of the Legislative Council, approve the requested transfer if in his opinion it is in the best interest of the state.

“Upon determination by the Director of the Department of Human Services that a Reallocation of Resources is necessary for the effective operation of the Medicaid Expansion Program Grants, the director, with the approval of the Governor, shall have the authority to request from the Chief Fiscal Officer of the State a transfer of Appropriation. This transfer authority applies only to Section 5 Medicaid Expansion Program Grants of this Act between Hospital and Medical Services Item (01) and Prescription Drugs Item (02). The limitation restrictions applicable to the Department Reallocation of Resources authority applies to this section.

“The General Assembly has determined that the agency in this act could be operated more efficiently if some flexibility is given to that agency and that flexibility is being accomplished by providing authority to transfer between certain items of appropriation made by this act. Since the General Assembly has granted the agency broad powers under the transfer of appropriations, it is both necessary and appropriate that the General Assembly maintain oversight of the utilization of the transfers by requiring prior approval of the Legislative Council in the utilization of the transfer authority. Therefore, the requirement of approval by the Legislative Council is not a severable part of this section. If the requirement of approval by the Legislative Council is ruled unconstitutional by a court of competent jurisdiction, this entire section is void.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 224, § 4, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 224, § 5, provided:

“TRANSFERS OF APPROPRIATIONS. In the event the amount of any of the budget classifications of maintenance and general operation in this act are found by the administrative head of the agency to be inadequate, then the agency head may request, upon forms provided for such purpose by the Chief Fiscal Officer of the State, a modification of the amounts of the budget classification. In that event, he shall set out on the forms the particular classifications for which he is requesting an increase or decrease, the amounts thereof, and his reasons therefor. In no event shall the total amount of the budget exceed either the amount of the appropriation or the amount of the funds available, nor shall any transfer be made from the capital outlay or data processing subclassifications unless specific authority for such transfers is provided by law, except for transfers from capital outlay to data processing when determined by the Department of Information Systems that data processing services for a state agency can be performed on a more cost-efficient basis by the Department of Information Systems than through the purchase of data processing equipment by that state agency. In considering the proposed modification as prepared and submitted by each state agency, the Chief Fiscal Officer of the State shall make such studies as he deems necessary. The Chief Fiscal Officer of the State shall, after obtaining the approval of the Legislative Council, approve the requested transfer if in his opinion it is in the best interest of the state.

“The General Assembly has determined that the agency in this act could be operated more efficiently if some flexibility is given to that agency and that flexibility is being accomplished by providing authority to transfer between certain items of appropriation made by this act. Since the General Assembly has granted the agency broad powers under the transfer of appropriations, it is both necessary and appropriate that the General Assembly maintain oversight of the utilization of the transfers by requiring prior approval of the Legislative Council in the utilization of the transfer authority. Therefore, the requirement of approval by the Legislative Council is not a severable part of this section. If the requirement of approval by the Legislative Council is ruled unconstitutional by a court of competent jurisdiction, this entire section is void.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2017, No. 120, § 7, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2017 through June 30, 2018.”

Acts 2017, No. 121, § 4, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2017 through June 30, 2018.”

Amendments. The 2013 amendment by No. 554 added (d)(1)(S).

The 2013 amendment by No. 1252 added “or an energy efficiency project financed under the State Entity Energy Efficiency Project Bond Act” to the end of (d)(1)(S).

The 2019 amendment by No. 315 deleted “regulations” following “rules” in (d)(1)(R).

The 2019 amendment by No. 910 substituted “Division of Information Systems” for “Department of Information Systems” twice in the last sentence of (c)(1) and in (d)(5).

Case Notes

Printing and Duplicating Equipment.

The exercise by the Department of Correction of an option to purchase certain printing and duplicating equipment based upon an appropriations law authorizing the expenditure of a greater amount on “maintenance and general operation” satisfied the requirements of Ark. Const., Art. 5, § 29, and Ark. Const., Art. 16, § 12, as to sufficient specificity since §§ 19-4-52019-4-525 place all appropriations under six separate headings, including “maintenance and general operation” and since this section further defines this classification to include equipment; thus, the purchase of equipment was a proper expenditure of funds appropriated for maintenance and general operation. Wells v. Heath, 274 Ark. 45, 622 S.W.2d 163 (1981).

19-4-523. Grants, assistance, and special aid.

This classification shall be applicable to all appropriations made by the General Assembly from state, federal, or other moneys for educational assistance, welfare grants, rehabilitation services, aid to counties and municipalities, and to all other special appropriations which have for their purpose the appropriating of state, federal, or other moneys for public benefits.

History. Acts 1973, No. 876, § 12; 1977, No. 813, § 1; 1979, No. 833, §§ 1, 2; 1981, No. 741, § 1; 1981, No. 924, § 1; 1983, No. 628, § 1; 1985, No. 365, §§ 2, 3, 12; A.S.A. 1947, § 13-338.

19-4-524. Construction and permanent improvements.

  1. The construction and permanent improvements classification shall be determined by the language of the appropriation acts which make available funds for construction and new improvements. For the purpose of classifying the expenditures under any such appropriation, all the necessary expenses in connection therewith shall be deemed to be part of the construction costs. Such items of expense shall be deemed to include, but are not necessarily limited to, the following:
    1. Advertising for bids;
    2. Architects, engineers, and other professional services in connection with the proposed projects; and
    3. The payment of estimates on the various contracts in connection with such construction programs. All construction and improvements of whatever nature shall be subject to the provisions of §§ 19-4-1401 — 19-4-1412 and to the rules promulgated by the Chief Fiscal Officer of the State. No state agency for which appropriations have been made by the General Assembly for construction or improvements shall make any contract or incur any indebtedness payable from such appropriations unless and until there are sufficient funds on hand, for the benefit of any agency, to pay for the proposed obligations under such contracts. However, any such agency shall have the power to accept and use grants and donations and to use its unobligated cash income or other funds available to it for the purpose of supplementing the appropriations for construction purposes. The appropriations and funds otherwise provided by the General Assembly for personal services, maintenance, and general operation of the agency shall not be used in connection with any proposed construction projects for which specific appropriations have been made by the General Assembly, except for minor repairs and maintenance.
  2. The restrictions of this section shall not apply to contracts approved by the State Highway Commission for construction of roads and bridges in the highway system.
  3. The Chief Fiscal Officer of the State is authorized to reclassify but not consolidate an agency's appropriation for construction to effect the payment of construction-related costs in the appropriate classification as described in this subchapter using the state's financial management system to invoke budget control.

History. Acts 1973, No. 876, § 12; 1977, No. 813, § 1; 1979, No. 833, §§ 1, 2; 1981, No. 741, § 1; 1981, No. 924, § 1; 1983, No. 628, § 1; 1985, No. 365, §§ 2, 3, 12; A.S.A. 1947, § 13-338; Acts 2001, No. 1453, § 12; 2019, No. 315, § 1711.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in the second sentence of (a)(3).

19-4-525. Special appropriations.

  1. All other appropriations made by the General Assembly which do not come under any of the classifications mentioned in this section shall be considered to be special appropriations and shall be used only for the specific purposes for which such appropriations are made. Except as otherwise provided by law, an agency receiving a special appropriation may not expend funds from any appropriation other than from the special appropriation for the special purpose covered by the special appropriation. However, the state's financial management system may invoke additional budget control using features of the system that are in addition to the appropriations of the General Assembly.
  2. In order to allow for full disclosure of investment transactions, to make available special reports on investment transactions, and to isolate investment expenditures from normal expenditures, the Chief Fiscal Officer of the State is authorized to establish separate appropriation codes for investments and to transfer to such appropriations from the investment line item as established in the agency appropriation acts.

History. Acts 1973, No. 876, § 12; 1977, No. 813, § 1; 1979, No. 833, §§ 1, 2; 1981, No. 741, § 1; 1981, No. 924, § 1; 1983, No. 628, § 1; 1985, No. 365, §§ 2, 3, 12; A.S.A. 1947, § 13-338; Acts 2001, No. 1453, § 13.

19-4-526. [Repealed.]

Publisher's Notes. This section, concerning budget classification transfers, was repealed by Acts 1995, No. 1296, § 68. The section was derived from Acts 1979, No. 164, §§ 1, 2; A.S.A. 1947, § 13-338.1.

19-4-527. Authority of Treasurer of State to use certain funding for operations.

  1. The Treasurer of State is authorized to utilize the funding for maintenance and general operations provided for in the Constitutional Officers Fund and State Central Services Fund to allow for reconciling items which may occur in the operations of the office.
  2. Policies and procedures for proper accounting of reconciling items shall be developed by the Treasurer of State with the advice and approval of the Legislative Joint Auditing Committee.

History. Acts 1983, No. 702, §§ 1, 2; A.S.A. 1947, § 13-338.4.

Cross References. Transfer of funds, § 19-5-106.

Subchapter 6 — Annual Operations Plans of State Agencies

Publisher's Notes. Acts 1973, No. 876, § 11, as amended by Acts 1977, No. 486, § 1, provided, in part, that the Chief Fiscal Officer of the State, after consultation with the Legislative Council, should develop a plan for the orderly implementation of the provisions of this subchapter by the various state agencies affected.

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, in the enactment of the General Accounting Procedures Law of Arkansas, the Sixtieth General Assembly declared it to be the public policy that the State and all of its agencies be maintained in a sound financial basis, to provide for the adequate accounting for all fiscal transactions of the State, to provide for establishing rules, regulations and procedures for budget preparation, presentation, enactment, execution and defining powers and duties of the Chief Fiscal Officer and State Auditor and the State Treasurer in connection with the foregoing; and

“Whereas, in order to carry out the public policy, purposes, intent and provisions of the General Accounting Procedures Law of Arkansas and in order to accept, adapt and comply with the modern-day technological changes and innovations in budgetary, accounting, and fiscal procedures, it is necessary for the General Assembly to enact legislation providing for the same; and

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation to the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

“Whereas, it is the responsibility of the General Assembly to determine the programs, projects and services for which the State's revenues shall be expended and the priorities which should govern such expenditures; and

“Whereas, in order to discharge its responsibility the General Assembly and its interim committees, including the Legislative Council, has need of accurate data in order to make its determinations wisely; and

“Whereas, the General Assembly recognizes and accepts the principles, purposes and intent of the Revenue Stabilization Law of Arkansas and the General Accounting Procedures Law of Arkansas as they presently exist and further recognizes the validity of their provisions by virtue of Arkansas Supreme Court decisions; and

“Whereas, it is not the intention of the General Assembly to deviate from the purposes and intent of the Revenue Stabilization Law of Arkansas, but it is the intent of the General Assembly to strengthen the purpose of the Revenue Stabilization Law and the General Accounting Procedures Law of Arkansas by enacting the following legislation which embodies the holdings of prior Arkansas Supreme Court decisions affecting the General Accounting Procedures Law of Arkansas, now therefore … .”

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1977, No. 486, § 6: Mar. 18, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly that certain general accounting and budgetary procedures are outdated and should be changed in order to properly exercise fiscal responsibility in administering the affairs of state government, and that the immediate passage of this Act is necessary to implement such changes. Therefore an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 183, § 4: Feb. 22, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that State agencies are devoting too much time and effort into the preparation of a multitude of reports; that the annual report required by § 19-4-609 is in many instances redundant to other reports and is itself not cost effective nor efficient; that Arkansas Code 19-4-609 requires each State agency to transmit an annual productivity report no later than August 1 of each year; and that this Act should go into effect immediately in order to alert each State agency that the report will not be required hereafter. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 1354, § 51: Apr. 14, 1997. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act affects the method of selection of alternate members of the Legislative Council and Legislative Joint Auditing Committee and that this act is immediately necessary for proper continuity and efficiency in State government. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 221, § 7: Feb. 13, 2001. Emergency clause provided: “It is hereby found and determined by the Eighty-third General Assembly that the current incremental line-item system of budgeting is ineffective in evaluating agency performance; that to implement a replacement system in a reasonable time is a difficult task and that to delay the implementation could cause the inability to meet critical deadlines. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 1453, § 49: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that proper and effective management requires that changes to the state's finance and accounting laws begin on the first day of the fiscal year and that if there is an extended recess of the General Assembly, the required ninety day period may extend past July 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2005, No. 237, § 3[4]: Feb. 17, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that ability to automate the performance-based budgeting process was an important component of the Arkansas Administrative Statewide Information System; that SAP, the vendor contracted to provide the performance-based budgeting component of the Arkansas Administrative Statewide Information System, failed to deliver the component as required by contract; that the state was unable to automate the performance-based budgeting process; that, additionally, the performance-based budgeting model does not accurately reflect state agency goals and objectives; that the performance-based budgeting process is burdensome to state agencies; that state resources could be used more efficiently if performance-based budgeting is eliminated; and that the immediate elimination of performance-based budgeting will benefit the state agency appropriation process of the Eighty-fifth General Assembly. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Identical Acts 2009, Nos. 605 and 606, § 27: Mar. 25, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the people of the State of Arkansas overwhelmingly approved the establishment of lotteries at the 2008 General Election; that lotteries will provide funding for scholarships to the citizens of this state; that the failure to immediately implement this act will cause a reduction in lottery proceeds that will harm the educational and economic success of potential students eligible to receive scholarships under the act; and that the state lotteries should be implemented as soon as possible to effectuate the will of the citizens of this state and implement lottery-funded scholarships as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 218, § 34: Feb. 26, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the stability of the Arkansas Scholarship Lottery is critical to the success of the Arkansas Academic Challenge Scholarship Program; that changes to the operational structure of the lottery are needed to improve the creditability and function of the lottery; and that this act is immediately necessary to ensure that the transition of lottery administration is as undisruptive as possible. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-4-601. Responsibility generally.

Except as limited by appropriations and funding by the General Assembly and other provisions of law, state agencies shall have the authority and responsibility to administer their programs as authorized by the General Assembly and shall be responsible for their proper management.

History. Acts 1973, No. 876, § 9; A.S.A. 1947, § 13-335.

19-4-602. Compliance and approval required.

  1. No state agency may increase the salaries of its employees, employ additional employees, expend money, or incur any obligations except in accordance with law and with a properly approved annual operations plan which includes a quarterly fiscal program.
  2. Appropriations subject to the provisions of this subchapter shall not be available for expenditures or encumbrance until the state agency has complied with the provisions of this subchapter.

History. Acts 1973, No. 876, § 9; A.S.A. 1947, § 13-335.

19-4-603. Exemptions generally.

Appropriations for retirement benefits, refunds, and Social Security requirements of the teacher and public employees retirement systems shall be excluded from the provisions of this subchapter.

History. Acts 1973, No. 876, § 11; A.S.A. 1947, § 13-337.

19-4-604. State-supported institutions of higher education.

  1. At least thirty (30) days prior to the commencing of each fiscal year, the Chief Fiscal Officer of the State shall make studies for the purpose of estimating the anticipated amounts of general revenues to be available for distributions under the provisions of the Revenue Stabilization Law, § 19-5-101 et seq., for the fiscal year. The Chief Fiscal Officer of the State shall compute the estimated amounts of general revenues to be available for allocation to the respective State Treasury accounts in accordance with their percentage distributions of general revenues under the provisions of the Revenue Stabilization Law, § 19-5-101 et seq.
  2. The Chief Fiscal Officer of the State shall certify to each of the respective state-supported institutions of higher education, at least thirty (30) days prior to the commencement of each fiscal year, the estimated amounts of general revenues to be available for distribution to the State Treasury account for their respective institutions. The Chief Fiscal Officer of the State shall include in each certification the quarterly allocations thereof that are estimated to be available for expenditures based upon these estimates.
  3. Upon receipt of the estimated amounts to be available for expenditure and after reviewing the quarterly allocation thereof as submitted by the Chief Fiscal Officer of the State, any such institution may request revisions in the proposed quarterly allotments as certified by the Chief Fiscal Officer of the State.
  4. The Chief Fiscal Officer of the State, with the advice and consent of the Division of Higher Education, shall approve requested revisions in the proposed quarterly allotments if he or she shall determine that:
    1. The proposed revisions in quarterly allotments do not exceed the aggregate of the estimated funds to be available from estimates of anticipated revenues and fund balances in the institution's account in the State Treasury for the fiscal year; and
    2. The revised quarterly allotments will not impose an undue hardship upon other allotments of revenues and other financial commitments to be met from the distributions of general revenues during the fiscal year.
  5. The Chief Fiscal Officer of the State shall periodically review the estimates of projected general revenue collections anticipated to be available during a fiscal year. The Chief Fiscal Officer of the State may make revisions in the amounts certified to the respective institutions of higher education based upon these estimates and may revise the quarterly amounts certified to each agency based upon the revised estimates.
  6. Institutions of higher education may, from time to time, request revisions in the quarterly allotments of moneys where needs of the institution require revisions thereof.
  7. Any unexpended balances remaining at the end of each fiscal year shall be transferred forward and made available for the support of the institutions of higher education for the following fiscal year.
  8. The budget execution provisions set forth in this section shall be applicable to all state-supported institutions of higher education, and except for the annual fiscal program requirements, the provisions of §§ 19-4-601, 19-4-602, and 19-4-607 — 19-4-609 shall not apply to these institutions; they shall be governed by the provisions of this section and by procedures established under authority of § 6-61-209.
  9. The division shall coordinate with the Chief Fiscal Officer of the State for administering the provisions of this section.

History. Acts 1973, No. 876, § 11; 1977, No. 486, § 1; A.S.A. 1947, § 13-337; Acts 1995, No. 1296, § 69; 2019, No. 910, §§ 2253, 2254.

Amendments. The 2019 amendment substituted “Division of Higher Education” for “Department of Higher Education” in the introductory language of (d) and in (i).

19-4-605, 19-4-606. [Repealed.]

Publisher's Notes. These sections, concerning strategic planning and performance budgeting and accountability system, were repealed by Acts 2005, No. 237, § 2[3], which contained two sections designated as “Section 2.” The repealed sections were derived from the following sources:

19-4-605. Acts 1973, No. 876, § 9; A.S.A. 1947, § 13-335; Acts 2001, No. 221, § 1; 2003, No. 1463, §§ 1, 9.

19-4-606. Acts 1973, No. 876, § 9; A.S.A. 1947, § 13-335; Acts 2001, No. 221, § 2; 2003, No. 1463, §§ 2-7, 10, 11.

19-4-607. Review and approval of annual operations plans.

  1. Each state agency other than the elected constitutional officers, the legislative branch and its staff offices, the judicial branch and its staff offices, the Arkansas Department of Transportation, the Office of the Arkansas Lottery, the state-supported institutions of higher education, and the Arkansas State Game and Fish Commission shall prepare an annual operations plan for the operation of each of its assigned programs for submission to the Chief Fiscal Officer of the State.
  2. The annual operations plan shall be prepared in the form and content determined by the Chief Fiscal Officer of the State and shall be transmitted to the Department of Finance and Administration on the date prescribed by the Chief Fiscal Officer of the State.
  3. In years when the General Assembly meets in regular session, the annual operations plan shall be prepared after adjournment of the regular session and shall take fully into consideration all applicable laws, including appropriations, and shall be submitted to the Department of Finance and Administration on a date set by the Chief Fiscal Officer of the State but prior to July 1 of that year.
  4. The Chief Fiscal Officer of the State shall:
    1. Review each annual operations plan to determine that:
      1. It is consistent with the policy decisions of the General Assembly and the Governor;
      2. Appropriations and funding have been provided by the General Assembly;
      3. It reflects proper planning and efficient management methods; and
      4. Appropriations and funding have been made for the planned purpose and will not be exhausted before the end of the fiscal year; and
        1. Approve the annual operations plan if he or she is satisfied that it meets all requirements.
        2. Otherwise, he or she shall require necessary revisions of the plan in whole or in part.
      1. However, nothing in this section shall be construed to allow the Chief Fiscal Officer of the State to substitute his or her individual judgment as to the operation or necessity of any program of any state agency for the judgment of the executive head or board or commission charged with the responsibility for the operation and control of that agency.
  5. Each annual operations plan shall indicate:
    1. The appropriation and funding provided by the General Assembly;
    2. A detailed budget by quarters; and
    3. Any other supporting or related information required by the Chief Fiscal Officer of the State or requested by a legislative interim committee, including the Legislative Council.

History. Acts 1973, No. 876, § 9; A.S.A. 1947, § 13-335; Acts 1997, No. 1354, § 36; 2001, No. 221, § 3; 2009, No. 605, § 15; 2009, No. 606, § 15; 2015, No. 218, § 14; 2017, No. 707, § 43.

Amendments. The 2009 amendment by identical acts Nos. 605 and 606 inserted “the Arkansas Lottery Commission” in (a), and made a related change.

The 2015 amendment substituted “Office of the Arkansas Lottery” for “Arkansas Lottery Commission” in (a).

The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department” in (a).

Cross References. Appropriations code manual, § 19-4-519.

Meeting by Joint Budget Committee and House Interim Budget Committee during the interim, § 10-3-509.

19-4-608. Fiscal controls.

In order to provide proper fiscal controls, the Chief Fiscal Officer of the State shall assure the implementation of the procedures set out in this section:

  1. The annual operations plan of each state agency shall contain a quarterly fiscal program indicating the proposed expenditures and anticipated resources for each quarter of the ensuing fiscal year. Anticipated resources shall be based upon forecasted resources estimated to be available by the Chief Fiscal Officer of the State. In the event a revision of forecasted resources is made during a fiscal year, those agencies affected by the revised forecast shall submit a new quarterly fiscal program based upon the revised forecast;
  2. The Chief Fiscal Officer of the State shall review and approve the quarterly fiscal program if he or she finds that the forecasted resources will be adequate for financing the proposed program during the fiscal year and for each quarter or other appropriate period within the fiscal year;
  3. In the event an agency incurs expenses at a level that would exceed the proposed expenditures in their quarterly fiscal program, the Chief Fiscal Officer of the State may require the submission of a revised quarterly fiscal program which reduces expenditures for the remainder of the fiscal year to a total which is within the level of the estimated resources available to the agency. Remaining appropriations will be unavailable to the agency until the revised program has been submitted and approved; and
  4. In case the Chief Fiscal Officer of the State determines that the estimated revenues or other sources of income for any agency will be less than was anticipated and that consequently the funds available for the remainder of the fiscal year will be less than the amount estimated, he or she shall reduce the amount of available appropriation to the level of expected revenue after notice to the agency.

History. Acts 1973, No. 876, § 9; A.S.A. 1947, § 13-335; Acts 2001, No. 1453, § 14.

19-4-609. Productivity reporting.

  1. Each state agency, other than the elected constitutional officers, shall institute and maintain a program to increase the productivity and cost effectiveness of the employees for which the state agency is responsible.
    1. On or before the twentieth day of each month, each executive, judicial, legislative, and other state agency shall provide to the Bureau of Legislative Research the following information as of the last day of the immediately preceding month:
      1. The number of appropriated positions, including without limitation all positions appropriated in a state agency's current appropriation act and any additional positions approved during the interim;
      2. The number of temporary transition pool positions created in the interim and active for the month;
        1. The number of full-time employees, including part-time employees in full-time positions.
        2. If two (2) or more part-time employees share a full-time position, only one (1) employee shall be included in the number;
      3. The number of vacant positions that are budgeted;
      4. The number of vacant positions that are unbudgeted;
      5. The number of appropriated extra-help positions, including without limitation all extra-help positions appropriated in a state agency's current appropriation act and any extra-help positions approved during the interim;
      6. The number of extra-help employees;
      7. The number of vacant extra-help positions;
      8. The total amount of overtime paid out during the month;
      9. The total amount of straight time paid out during the month;
      10. The total number of compensatory time hours taken during the month; and
      11. Any other information requested by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.
    2. On or before the twentieth day of each month, each institution of higher education shall provide to the Bureau of Legislative Research the following information as of the last day of the immediately preceding month:
      1. The number of appropriated full-time positions, including without limitation all full-time positions appropriated in an institution of higher education's current appropriation act and any additional full-time positions approved during the interim, including without limitation provisional, pool, and nine-month positions;
        1. The number of full-time employees regardless of funding source, including without limitation those in provisional, pool, and nine-month positions.
        2. Nine-month staff and faculty who are removed from the payroll but are still considered to be employed by the institution of higher education and are assumed to return the next semester shall be included in the number during the months that they are not on the payroll;
      2. The number of appropriated full-time positions that are vacant;
      3. The number of part-time and extra-help positions that are appropriated and any additional part-time and extra-help positions approved during the interim;
        1. The number of part-time and extra-help employees, including without limitation faculty and graduate assistants.
        2. Contract workers and students in work-study positions shall not be included in the number;
      4. The total amount of overtime paid out during the month;
      5. The total amount of straight time paid out during the month;
      6. The total number of compensatory time hours taken during the month; and
      7. Any other information requested by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.
    3. The information required under this section shall be compiled by each state agency and institution of higher education on forms developed by the Bureau of Legislative Research and submitted to the Legislative Council on a calendar-quarterly basis as two (2) separate reports:
      1. One (1) report containing an average for each state agency for the quarter; and
      2. One (1) report containing an average for each institution of higher education for the quarter.
    4. Each executive, judicial, legislative, and other state agency and each institution of higher education shall provide in the fourth quarter of each fiscal year a list of all positions vacant for at least one (1) year.

History. Acts 1973, No. 876, § 10; 1985, No. 110, § 1; A.S.A. 1947, § 13-336; Acts 1989, No. 183, § 1; 2005, No. 1686, § 1; 2015, No. 370, § 1.

Amendments. The 2005 amendment inserted “and each institution of higher education” in (b)(1); added present (b)(1)(F) and (b)(2); and redesignated former (b)(2) as present (b)(3).

The 2015 amendment rewrote (b).

Subchapter 7 — Expenditures Generally

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, in the enactment of the General Accounting Procedures Law of Arkansas, the Sixtieth General Assembly declared it to be the public policy that the State and all of its agencies be maintained in a sound financial basis, to provide for the adequate accounting for all fiscal transactions of the State, to provide for establishing rules, regulations and procedures for budget preparation, presentation, enactment, execution and defining powers and duties of the Chief Fiscal Officer and State Auditor and the State Treasurer in connection with the foregoing; and

“Whereas, in order to carry out the public policy, purposes, intent and provisions of the General Accounting Procedures Law of Arkansas and in order to accept, adapt and comply with the modern-day technological changes and innovations in budgetary, accounting, and fiscal procedures, it is necessary for the General Assembly to enact legislation providing for the same; and

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation to the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

“Whereas, it is the responsibility of the General Assembly to determine the programs, projects and services for which the State's revenues shall be expended and the priorities which should govern such expenditures; and

“Whereas, in order to discharge its responsibility the General Assembly and its interim committees, including the Legislative Council, has need of accurate data in order to make its determinations wisely; and

“Whereas, the General Assembly recognizes and accepts the principles, purposes and intent of the Revenue Stabilization Law of Arkansas and the General Accounting Procedures Law of Arkansas as they presently exist and further recognizes the validity of their provisions by virtue of Arkansas Supreme Court decisions; and

“Whereas, it is not the intention of the General Assembly to deviate from the purposes and intent of the Revenue Stabilization Law of Arkansas, but it is the intent of the General Assembly to strengthen the purpose of the Revenue Stabilization Law and the General Accounting Procedures Law of Arkansas by enacting the following legislation which embodies the holdings of prior Arkansas Supreme Court decisions affecting the General Accounting Procedures Law of Arkansas, now therefore … .”

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1977, No. 486, § 6: Mar. 18, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly that certain general accounting and budgetary procedures are outdated and should be changed in order to properly exercise fiscal responsibility in administering the affairs of state government, and that the immediate passage of this Act is necessary to implement such changes. Therefore an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 833, § 12: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the aforementioned sections of the General Accounting and Budgetary Procedures Law of Arkansas requires amendment to conform with legislation, and for more effective operations of state government. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1985, No. 365, § 15: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly that the clarification of certain fiscal transactions of the State is needed in order to more accurately reflect the condition of the State's assets at all times and to maintain the fiscal integrity of the State. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

Acts 2001, No. 1453, § 49: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that proper and effective management requires that changes to the state's finance and accounting laws begin on the first day of the fiscal year and that if there is an extended recess of the General Assembly, the required ninety day period may extend past July 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2005, No. 645, § 2: Mar. 3, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that in order to more effectively manage and administer state budgetary matters, the Chief Fiscal Officer of the State needs the flexibility to determine the fiscal year funds from which the payment is made for a pay period that begins in one (1) fiscal year and ends in the subsequent fiscal year; that positions that start during a pay period that covers two (2) fiscal years create budgetary and accounting issues; that the Chief Fiscal Officer needs the flexibility to determine the start date for these positions; and that this act is immediately necessary in order to provide for appropriate budgetary and accounting measures before the end of the current fiscal year. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-4-701. Fiscal periods of state.

  1. For the purpose of this chapter, relating to the appropriation and disbursement of funds, the fiscal year of the state shall commence on July 1 and shall end on June 30 of the following year; and the biennial period, or “biennium”, shall commence on July 1 following the adjournment of the regular session of the General Assembly and end on June 30 two (2) years thereafter.
    1. The definition of the fiscal year, for the purposes of this chapter, shall not be construed to affect special appropriations where no fiscal period is defined in the act making such special appropriation or affect the bond year for other fiscal transactions.
      1. In the case of special appropriations where the emergency clause has been adopted by the General Assembly and where no period of time is mentioned in the act making the appropriation, the appropriation shall be construed to be available for a two-year period from and after the effective date of the act.
      2. In the case of special appropriations where the emergency clause has not been adopted and where no period of time is mentioned in the act making the appropriation, the appropriation shall be construed to become available ninety (90) days after the adjournment of the General Assembly. It shall be available for a two-year period from and after the date the appropriation became available.

History. Acts 1973, No. 876, § 13; A.S.A. 1947, § 13-339.

Case Notes

Attorney's Fees.

Where attorney's fees were awarded against the state, a motion for an extension of time to pay fees was not granted where the state had funds to cover the fees owed and there were no state-law restrictions. Jeffers v. Clinton, 762 F. Supp. 257 (E.D. Ark. 1991).

19-4-702. Time limits for presenting vouchers.

      1. A state agency may pay carryover obligations of the state that were incurred on or before June 30 of the current fiscal year up to forty-five (45) days after the end of the current fiscal year.
      2. The carryover obligations must be supported by purchase documents with corresponding receipts for the goods or services that have been recorded as received in the state's financial management system by June 30 of the fiscal year previous to the fiscal year in which the carryover obligations are requested to be paid.
    1. The payments of the carryover obligations shall be charged against appropriations and fund cash balances of the fiscal year in which the obligations were incurred.
    2. Any payments for carryover obligations that are not supported by the documents as required in this subsection, or which are requested to be paid after forty-five (45) days following June 30 of the fiscal year previous to the fiscal year in which the carryover obligations are requested to be paid, shall be charged to the appropriations and fund cash balances of the then-current fiscal year.
  1. In the event such voucher or vouchers are approved for payment, the Auditor of State shall issue his or her warrants in payment of them not later than two (2) weeks following the receipt of the vouchers from the Department of Finance and Administration.
    1. In the event of a just claim against any state agency, when the claim is submitted too late for payment in the manner prescribed in this section and the state agency affected has an appropriation for the same purpose for the fiscal period following that period in which the claim was incurred, then the disbursing agent may draw his or her voucher in the payment of the claim against the new appropriation, but only in the event there were sufficient funds and appropriations for the prior year to cover the claim.
    2. Otherwise, the claim must be submitted to the Arkansas State Claims Commission for payment.
      1. In the event a biweekly pay period for personal services, as defined in §§ 19-4-521 and 19-4-1607, commences in the closing period of one (1) fiscal period and either ends in the following fiscal year or is paid in the following fiscal year, then the payment of the obligation may be made in whole from the appropriation for either fiscal period, as determined by the Chief Fiscal Officer of the State.
      2. However, in no event shall any obligation be incurred unless there are funds on hand or estimated to become available to meet the obligation when it becomes due.
      1. For purposes of wages and compensation, the Chief Fiscal Officer of the State may determine the starting date of authorized job classifications and positions to coincide with the payment of the obligation under subdivision (d)(1) of this section.
      2. However, the determination under subdivision (d)(2)(A) of this section shall not cause any state fiscal year to be charged with fewer than twenty-six (26) or more than twenty-seven (27) biweekly pay periods.
    1. All state agencies may carry over from the first fiscal year of any biennium to the second fiscal year of the biennium any unexpended appropriations and funds to the extent necessary to pay for items or commodities ordered at least ninety (90) days prior to the end of the first fiscal year but not received until after the end of the first fiscal year, if the purchase of such items and commodities is substantiated by a written contract resulting from the receipt of a formal bid.
      1. All state agencies may carry over from the first fiscal year of any biennium to the second fiscal year of the biennium any unexpended maintenance and operation appropriations and funds, as defined under § 19-4-522, to the extent necessary to pay for renovation and minor and major repairs under the jurisdiction of the Building Authority Division which were under contract at least ninety (90) days prior to the end of the first fiscal year but which will not be completed until after the end of the first fiscal year and are substantiated by written contracts.
      2. This carryover provision shall apply only to appropriations and funds involving maintenance and operations.
    2. This subsection shall be supplemental to any other authority granted any state agency by law to carry forward unexpended fund balances from one (1) fiscal year to another.

History. Acts 1973, No. 876, § 13; 1977, No. 486, § 3; 1979, No. 833, § 4; 1985, No. 365, § 4; A.S.A. 1947, § 13-339; Acts 2001, No. 71, § 1; 2001, No. 1453, § 15; 2005, No. 645, § 1; 2019, No. 910, § 6082.

Amendments. The 2005 amendment inserted the subdivision (1)(A) and (1)(B) designations in (d); in present (d)(1)(A), inserted “either” following “fiscal period and” and “or is paid in the following fiscal year”; and added (d)(2).

The 2019 amendment deleted “of the Department of Finance and Administration” following “Building Authority Division” in (e)(2)(A).

19-4-703. Redemption of warrants.

No warrant issued by the Auditor of State shall be payable by the Treasurer of State unless it shall have been presented for payment within the twelve (12) months immediately following the close of the fiscal year or other appropriate fiscal period against which appropriation the warrant was charged.

History. Acts 1973, No. 876, § 13; A.S.A. 1947, § 13-339.

19-4-704. No obligations without appropriations.

  1. No obligations will be paid from appropriated funds until the General Assembly shall have made an appropriation for that purpose; nor shall any state agency enter into any contract which would contemplate that payments under the contracts would be made beyond the expiration of the biennial period unless the General Assembly, prior to the expiration of the biennial period, makes an appropriation for that purpose, or in the case of multiyear contracts for commodities or services, a determination in writing has been made prior to use that:
    1. Estimated requirements cover the period of the contract and are reasonably firm and continuing; and
    2. Such a contract would serve the best interests of the state by encouraging effective competition or otherwise promoting economies in state procurement.
  2. In no event shall any obligations be incurred unless there are sufficient funds or an approved federal grant on hand, or estimated to become available, to meet the obligations when they become due.

History. Acts 1973, No. 876, § 13; 1985, No. 365, § 6; A.S.A. 1947, § 13-339.

19-4-705. Obligations limited to funds available.

  1. No state agency for which regular operating appropriations are made on a fiscal-year basis shall incur any obligations under the appropriations unless there are funds on hand or an approved federal grant, or estimated to become available, during the fiscal year for the payment of the obligation; nor shall any agency create any obligation in one (1) fiscal year which will make it necessary to use the revenues of the following fiscal year in order to meet the obligation except in the case of multiyear contracts for commodities or services and as provided in § 19-4-707.
  2. In the event an agency had bank funds which are not required by law to be deposited into the State Treasury, the agency shall have the authority to create additional obligations to the extent of the bank funds on hand, or which are estimated to become available during the fiscal period. However, the agency shall not create any obligations, in the aggregate, which would make the total of such obligations exceed the total of all funds available to the agency during the fiscal period, except in the case of multiyear contracts for commodities or services and as provided in § 19-4-707.

History. Acts 1973, No. 876, § 13; 1985, No. 365, § 6; A.S.A. 1947, § 13-339.

19-4-706. Interest and carrying charges.

State agencies, including exempt agencies, may enter into contracts which contemplate the payment of interest, late charges, but only when such late charges are incurred sixty (60) days after payment is due, or carrying charges under such rules as may be promulgated by the State Procurement Director.

History. Acts 1973, No. 876, § 25; 1985, No. 365, § 13; A.S.A. 1947, § 13-351; Acts 1997, No. 1066, § 1; 2019, No. 315, § 1712.

Amendments. The 2019 amendment substituted “rules” for “regulations”.

19-4-707. Obligations for improvements.

Notwithstanding the fact that no disbursements may be made during any fiscal period in excess of the appropriations made available by the General Assembly for the fiscal period, it is provided that contracts for improvements including major repairs, alterations, and construction of new buildings and facilities may be let to the extent of the appropriations made available for those purposes for the biennial period. However, no such contracts may be let in amounts exceeding the probable funds available or which are estimated to become available during the period.

History. Acts 1973, No. 876, § 13; A.S.A. 1947, § 13-339.

19-4-708. Depletion of agency funds.

In the event any state agency shall incur obligations in such manner that the funds allocated or belonging to the agency are depleted and the agency is unable to pay all of its outstanding commitments without incurring a deficit, then the Chief Fiscal Officer of the State may suspend all exemptions under the Arkansas Procurement Law, § 19-11-201 et seq., with respect to the agency. Under these circumstances, the Chief Fiscal Officer of the State may notify the agency that all future obligations of any kind whatsoever must be approved by the Chief Fiscal Officer of the State before they become valid obligations against the funds of the agency.

History. Acts 1973, No. 876, § 13; A.S.A. 1947, § 13-339.

19-4-709. Statement of financial condition.

  1. The Chief Fiscal Officer of the State may require, from time to time as he or she shall deem necessary, a statement from any state agency setting out the prospective funds which are estimated to become available and a statement of the outstanding obligations and of the proposed expenditures of that agency for the remainder of the fiscal period.
  2. If, in the Chief Fiscal Officer of the State's judgment, any agency has incurred or is about to incur a deficit, the Chief Fiscal Officer of the State shall call upon the agency to stop incurring obligations, under penalty of its disbursing bond.

History. Acts 1973, No. 876, § 13; A.S.A. 1947, § 13-339.

19-4-710. Interagency transfers — Definition.

  1. To prevent the duplication of recording expenditures and revenues resulting from interagency transactions, the Chief Fiscal Officer of the State, after securing the approval of the proposed procedures by the Legislative Auditor, may provide for an interagency transfer of moneys or recognize a journal entry to charge the expenditure to the disbursing agency without creating a warrant and to identify the cash receipt by the receiving agency.
  2. Budget manuals prepared for the General Assembly for the biennial state budget shall identify the original revenue source of interagency transfers of funds.
  3. As used in this section, “interagency transfer” means:
    1. The purchase of services or commodities by one (1) state agency from another state agency, or within a state agency; or
    2. Other transfers of funds under § 19-5-106 or other provision of law.

History. Acts 1973, No. 876, § 13; 1977, No. 486, § 3; 1979, No. 833, § 4; 1985, No. 365, § 5; A.S.A. 1947, § 13-339; Acts 2001, No. 1453, § 16; 2005, No. 1172, § 1.

Amendments. The 2005 amendment inserted present (b); redesignated former (b) as present (c); inserted the subdivision (1) designation in present (c) and made related changes; in present (c), deleted “The phrase ‘interagency transfers’” from the beginning and substituted “‘interagency transfer’ means” for “is defined and limited to the”; and added (c)(2).

19-4-711. Transfer of responsibilities.

In the event that a state agency or its responsibilities, or a part of its responsibilities, is transferred by law within a biennium to another agency, the Chief Fiscal Officer of the State shall transfer all or part of the line-item appropriations, personnel positions, and moneys necessary to accomplish the transfer of responsibilities, subject to the same restrictions and procedures applicable to the original appropriations and funds from which transferred.

History. Acts 1973, No. 876, § 13; 1977, No. 486, § 3; 1979, No. 833, § 4; 1985 No. 365, § 5; A.S.A. 1947, § 13-339.

Subchapter 8 — Expenditure of Cash Funds

Effective Dates. Acts 1977, No. 713, § 20: Mar. 24, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly that various divisions of the Department of Correction are in dire need of appropriation in order to help maintain normal operations and preserve the health and safety of the citizens of Arkansas. It is therefore resolved that an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1991, No. 21, § 6: Feb. 1, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly, that certain provisions of previous enactments of the Arkansas General Assembly providing for the preexpenditure voucher examination and approval of cash funds of the various State Agencies were not incorporated into the Arkansas Code of 1987 Annotated; that such provisions are vitally necessary in order to ensure that the expenditure of Cash Funds are processed in such a manner as to protect the financial integrity of the State; and that this Act will restore such previous enactments of law. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 1000, § 30: July 2, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that the laws of this State concerning the insurance matters covered in this Omnibus Act are inadequate for the protection of the public. Further, the laws of this State as to Small Employer Health Insurance are not consistent with federal laws, particularly the Health Insurance Portability and Accountability Act of 1996 of the U.S. Congress; and the immediate passage of this Act is necessary in order to provide for the protection of the public. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in effect from and after July 2, 1997. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 1453, § 49: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that proper and effective management requires that changes to the state's finance and accounting laws begin on the first day of the fiscal year and that if there is an extended recess of the General Assembly, the required ninety day period may extend past July 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2003, No. 656, § 10: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that proper and effective management requires that changes to the finance and accounting laws of the state begin on the first day of the fiscal year; that the changes being made are important to the financial well being of the state particularly during the difficult financial climate the state is currently facing; and that this act is immediately necessary to allow for the finance and accounting changes to go into effect on the first day of the fiscal year for the proper and effective management of this state. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2003.”

Identical Acts 2009, Nos. 605 and 606, § 27: Mar. 25, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the people of the State of Arkansas overwhelmingly approved the establishment of lotteries at the 2008 General Election; that lotteries will provide funding for scholarships to the citizens of this state; that the failure to immediately implement this act will cause a reduction in lottery proceeds that will harm the educational and economic success of potential students eligible to receive scholarships under the act; and that the state lotteries should be implemented as soon as possible to effectuate the will of the citizens of this state and implement lottery-funded scholarships as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, No. 1405, § 57: Apr. 9, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the people of the State of Arkansas overwhelmingly approved the establishment of lotteries at the 2008 General Election; that the Eighty-seventh General Assembly adopted Acts 605 and 606 of 2009 that implemented lotteries and made corresponding revisions to the Arkansas Academic Challenge Scholarship Program; that this bill amends provisions of Acts 605 and 606 of 2009 pertaining to lotteries and the Arkansas Academic Challenge Scholarship Program; and that the failure to immediately implement this act will cause a reduction in lottery proceeds that will harm the educational and economic success of potential students eligible to receive scholarships under the act. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 218, § 34: Feb. 26, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the stability of the Arkansas Scholarship Lottery is critical to the success of the Arkansas Academic Challenge Scholarship Program; that changes to the operational structure of the lottery are needed to improve the creditability and function of the lottery; and that this act is immediately necessary to ensure that the transition of lottery administration is as undisruptive as possible. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 296, § 4: Feb. 28, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that that this act amends the investment authority of the Treasurer of State and the ability of other participants to invest in the State Treasury Money Management Trust; that this act affects the ability of the Treasurer of State to invest state funds and take immediate advantage of investment opportunities to benefit the state and public entities of the state; and that this act is immediately necessary to allow for implementation of the new investment authority provisions to take full advantage of investment opportunities to benefit the State of Arkansas. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-4-801. Definitions.

As used in this subchapter:

  1. “Cash funds” means all moneys, negotiable instruments, certificates of indebtedness, stocks, and bonds held by or owned by any state agency which are not on deposit with or in the trust of the Treasurer of State; and
    1. “State agency” means all boards, commissions, departments, agencies, institutions, offices or officers, state-supported institutions of higher education, and any other office or unit of government of the State of Arkansas created or established pursuant to law or pursuant to any action of the Governor, functioning under appropriation made by the General Assembly or functioning as a representative of the state without appropriation of the General Assembly.
    2. “State agency” shall not include the:
      1. Governor;
      2. Secretary of State;
      3. Attorney General;
      4. Treasurer of State;
      5. Auditor of State;
      6. Commissioner of State Lands;
      7. Supreme Court and its justices;
      8. Circuit courts and circuit judges;
      9. Prosecuting attorneys;
      10. Arkansas State Game and Fish Commission;
      11. Arkansas Department of Transportation;
        1. Office of the Arkansas Lottery.
        2. However, the office shall be considered a state agency for the purposes of § 19-4-810 et seq.;
      12. General Assembly; and
      13. Respective staffs of the officers and agencies listed in this subdivision (2)(B).

History. Acts 1975, No. 5, §§ 1, 2; A.S.A. 1947, §§ 13-356, 13-357; Acts 2005, No. 1962, § 79; 2009, No. 605, § 16; 2009, No. 606, § 16; 2009, No. 1405, § 25; 2015, No. 218, § 15; 2017, No. 707, § 44.

Amendments. The 2015 amendment substituted “Office of the Arkansas Lottery” for “Arkansas Lottery Commission” in (2)(B)(xii) (a) ; and, in (2)(B)(xii) (b) , substituted “office” for the “Arkansas Lottery Commission” and substituted “et seq.” for “— 19-4-816”.

The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department” in (2)(B)(xi).

Cross References. Debt service accounts, § 12-27-122.

Case Notes

Cited: Hadley v. North Ark. Cmty. Tech. College, 76 F.3d 1437 (8th Cir. 1996).

19-4-802. Authorization of General Assembly.

  1. Cash funds of the various state agencies as defined in § 19-4-801 shall be budgeted and proposed expenditures approved by enactments of the General Assembly.
  2. The General Assembly shall budget, approve, and appropriate expenditures of cash funds by the enactment of separate appropriation bills setting forth the purpose for which the moneys are to be expended and the dollar amount to be expended for such purpose.
  3. State agencies as defined in § 19-4-801 shall be required to submit such budgetary information as may be requested by the Legislative Council and shall undertake whatever budgetary procedures the Legislative Council may establish for the appropriation of cash funds.
  4. State agencies as defined in § 19-4-801 shall be required to post all financial transactions of cash funds in the state's financial management system in accordance with procedures established by the Chief Fiscal Officer of the State.

History. Acts 1975, No. 5, § 4; A.S.A. 1947, § 13-359; 2001, No. 1453, § 17.

19-4-803. Exemptions.

  1. The following are exempt from this subchapter:
    1. Funds required by the terms of a bond indenture to be held by paying agents for the payment of interest and principal on such bonds;
    2. Petty cash funds held by the various state agencies;
    3. Memorials, endowments, bequests, gifts, and donations made to any state agency other than for normal operation of the agency;
    4. Canteen funds of state agencies other than institutions of higher education, wherein the profits earned are used for the benefit of the people served by that agency through the purchase of services or goods other than normal salary or maintenance expenses of the agency;
    5. The Benefit Fund of the Division of Workforce Services;
    6. The Revenue Bond Guaranty Reserve Account of the Arkansas Economic Development Council;
    7. The Illegal Drug Purchase Account and the Confidential Accounts of the Division of Arkansas State Police;
    8. Patient funds, when the institution is acting in a trust capacity or when the funds are utilized for patient activities other than normal agency-provided services;
    9. The State Treasury Money Management Trust; and
    10. Any other funds determined by the Chief Fiscal Officer of the State or the General Assembly, to be held in trust and on deposit in a financial institution other than the State Treasury.
  2. The Division of Correction Plasma Center is exempt from provisions of this subchapter.
  3. The Arkansas Comprehensive Health Insurance Pool, created under the Comprehensive Health Insurance Pool Act, § 23-79-501 et seq., and its board of directors, and the Arkansas Property and Casualty Insurance Guaranty Fund and its advisory association, referenced under the Arkansas Property and Casualty Insurance Guaranty Act, § 23-90-101 et seq., and the Arkansas Life and Health Insurance Guaranty Association and its board of directors, referenced under the Arkansas Life and Health Insurance Guaranty Association Act, § 23-96-101 et seq., are hereby exempt from the provisions of this subchapter.
  4. The Tobacco Settlement Cash Holding Fund administered by the State Board of Finance shall be exempt from the provisions of this subchapter.

History. Acts 1975, No. 5, § 7; 1975, No. 265, § 1; 1977, No. 713, § 14; A.S.A. 1947, §§ 13-356.1, 13-362; Acts 1997, No. 540, § 39; 1997, No. 1000, § 17; 1997, No. 1179, § 3; Init. Meas. 2000, No. 1, § 19; Acts 2009, No. 251, § 10; 2013, No. 1146, § 1; 2017, No. 296, § 3; 2019, No. 910, §§ 974, 975.

Amendments. The 2013 amendment repealed former (b).

The 2017 amendment substituted “Money Management Trust” for “Money Trust Management Fund” in (a)(9).

The 2019 amendment substituted “Division of Workforce Services” for “Department of Workforce Services” in (a)(5); and substituted “Division of Correction Plasma Center” for “Department of Correction Plasma Center” in (b).

Case Notes

Cited: Hadley v. North Ark. Cmty. Tech. College, 76 F.3d 1437 (8th Cir. 1996).

19-4-804. [Repealed.]

Publisher's Notes. This section, concerning the duties of the Pre-Audit section, was repealed by Acts 2001, No. 1453, § 18. The section was derived from Acts 1975, No. 5, § 6; A.S.A. 1947, § 13-361.

19-4-805. Investment of fund balances.

  1. The state-supported institutions of higher education shall have the right to determine the depositories and the nature of investments of any of their cash funds which are not currently needed for operating purposes. In making these determinations, these institutions shall seek to obtain the highest possible rate of return for their investments.
  2. All cash fund agencies other than the state-supported institutions of higher education shall request and abide by the recommendations of the State Board of Finance as to the best investment decisions for any idle cash balances.

History. Acts 1975, No. 5, §§ 8, 9; A.S.A. 1947, §§ 13-363, 13-364.

19-4-806. Petty cash accounts.

  1. State agencies operating under the provisions of this subchapter are authorized to establish petty cash accounts. These accounts must be approved by the Chief Fiscal Officer of the State and only minor expenditures or emergency purchases shall be made therefrom.
  2. State-supported institutions of higher education and other agencies that can demonstrate the need for large petty cash accounts during brief periods of time, such as student registration periods, are authorized short-term petty cash accounts.

History. Acts 1975, No. 5, § 10; A.S.A. 1947, § 13-365; Acts 2003, No. 656, § 1.

19-4-807 — 19-4-809. [Repealed.]

Publisher's Notes. These sections, concerning reporting cash fund transactions, funds not on deposit in State Treasury, and expenditures subject to voucher examination and approval, were repealed by Acts 2001, No. 1453, § 19. These sections were derived from the following sources:

19-4-807. Acts 1971, No. 277, §§ 1, 2; A.S.A. 1947, §§ 13-309.2, 13-309.3.

19-4-808. Acts 1969, No. 620, § 14; A.S.A. 1947, § 13-309.1.

19-4-809. Acts 1991, No. 21, § 1.

19-4-810. Voucher examination and approval — Responsibilities of state agency executive administrators.

  1. Responsibilities of State Agency Executive Administrator. It shall be the responsibility of each executive head of a state agency handling cash funds to establish adequate internal administrative procedures and controls to ensure prompt and accurate payment of obligations to be liquidated from such funds in order to promote good public relations and to take advantage of all available discounts.
  2. It shall also be the responsibility of the state agency executive head to establish a system of pre-audit within his or her agency to ensure that checks and vouchers, before being released by the state agency, are prepared in accordance with all applicable purchasing and fiscal laws on the subject by performing the following functions. He or she shall determine that:
    1. Services, materials, supplies, and equipment received comply with specifications indicated on purchase documents;
    2. Quantities received, as being indicated on the invoice, agree with those shown on the receiving report;
    3. Unit prices agree with those indicated on the purchase documents;
    4. The extensions and footings of the invoice are correct;
    5. The voucher or check is prepared in sufficient time to take advantage of all available discounts being offered;
    6. Sufficient legislative authorization for expenditures and funds is available for payment of the obligation; and
    7. The obligation was incurred in conformity with all purchasing and fiscal laws applicable to state agencies operating out of the State Treasury.

History. Acts 1991, No. 21, § 1.

19-4-811, 19-4-812. [Repealed.]

Publisher's Notes. These sections, concerning voucher examination and approval, were repealed by Acts 2001, No. 1453, § 20. These sections were derived from the following sources:

19-4-811. Acts 1991, No. 21, § 1.

19-4-812. Acts 1991, No. 21, § 1.

19-4-813. Erroneous or improper payments.

The responsibility for recovery of erroneous or improper payments shall be with the state agency head, the bonded disbursing officer, or his or her designated bonded assistant; and the Chief Fiscal Officer of the State shall not be liable under his or her surety bond for any erroneous or improper payments so made.

History. Acts 1991, No. 21, § 1.

19-4-814. Supporting documentation.

Requirements for supporting documentation for disbursements shall be determined as follows:

  1. In connection with purchasing procedures, the Chief Fiscal Officer of the State shall prescribe and define the necessary documents and other evidence which shall be retained by the agency for the purpose of determining whether the proper purchasing procedures have been complied with;
  2. In all instances where the evidences of indebtedness are represented by vendor's invoices, the agency shall retain in the permanent file of the business office of the agency the original invoice and corresponding documentation of actual payment in accordance with procedures established by the Chief Fiscal Officer of the State;
  3. In connection with printing contracts, provided by the Arkansas Constitution and laws of this state, the supporting documentation shall be those prescribed by the Auditor of State or by the Department of Finance and Administration, as appropriate;
  4. In connection with the laws or rules governing travel, where individuals are reimbursed for expenses incurred for travel in connection with their official duties, the supporting papers shall be the forms or statements of such expenses prescribed by the Chief Fiscal Officer of the State. In the case of per diem or other expenses established by law, the disbursing officer shall attach to the voucher issued in payment of such allowances a citation of his or her authority for making such payments;
  5. Any indebtedness or expense incurred in connection with an approved resolution of any state board or commission shall be made a part of the permanent minutes of such board or commission, and copies of such resolution or minutes authorizing any indebtedness or expense shall be attached to the voucher issued in payment of any such indebtedness or expense; and
  6. In instances where the General Assembly has authorized grants to public schools, public welfare recipients, counties, municipalities, and for other purposes specifically provided by law, for payments made to individuals under retirement systems, and for income tax refunds, the Chief Fiscal Officer of the State shall prescribe the forms of the vouchers to be used and the procedure to be followed in making such payments.

History. Acts 1991, No. 21, § 1; 2001, No. 1453, § 21; 2019, No. 315, § 1713.

Amendments. The 2019 amendment substituted “rules” for “regulations” in the first sentence of (4).

19-4-815. Original of supporting documentation to be retained by the agency.

  1. The original evidences of indebtedness, including documents prepared in connection with purchasing procedure, and all other original contracts, invoices, statements, receipts, petty cash tickets, bank statements, cancelled checks drawn upon bank accounts, and other original supporting papers shall be retained in the permanent file of the business office of each state agency, or attached to the office copy of the agency's voucher, and such documents shall be kept in a safe place subject to audit and shall not be destroyed until authorization is given for their destruction by the Legislative Auditor.
  2. With the approval of the Legislative Auditor of the state, a state agency may retain evidences to satisfy record retention policies of indebtedness and other contracts, invoices, statements, receipts, petty cash tickets, bank statements, cancelled checks drawn upon bank accounts, and other supporting papers by microform or a form of stored images in a computer system or other form of computer technology in lieu of retaining the originals of such documents.

History. Acts 1991, No. 21, § 1; 1997, No. 541, § 1; 2001, No. 1453, § 22.

19-4-816. Contracts for procurement of commodities and services.

Each state agency which is authorized by law or under the purchasing procedures of this state to enter into contract for the procurement of property, commodities, or services shall keep on file in its respective place of business a copy of such contract for public inspection or audit and shall make a copy of any such contract available to the Chief Fiscal Officer of the State when so required by him or her.

History. Acts 1991, No. 21, § 1; 2001, No. 1453, § 23.

19-4-817. Constitutional officers and agencies.

  1. Beginning with fiscal year 2021, cash funds of the following constitutional officers and departments shall be budgeted and proposed expenditures approved by enactments of the General Assembly:
    1. The Governor;
    2. The Secretary of State;
    3. The Attorney General;
    4. The Treasurer of State;
    5. The Auditor of State;
    6. The Commissioner of State Lands;
    7. The Supreme Court and its justices;
    8. The Arkansas State Game and Fish Commission;
    9. The Arkansas Department of Transportation;
    10. The General Assembly; and
    11. The respective staffs of the officers listed in this subsection.
  2. The General Assembly shall budget, approve, and appropriate expenditures of cash funds by the enactment of separate appropriation bills setting forth the purpose for which the moneys are to be expended and the dollar amount to be expended for that purpose.
  3. The constitutional officers and agencies listed in subsection (a) of this section shall submit any budgetary information requested by the Legislative Council and shall undertake whatever budgetary procedures the Legislative Council may establish for the appropriation of cash funds.
  4. The constitutional officers and agencies listed in subsection (a) of this section shall not be charged a service charge under § 19-5-206 when complying with this section.
  5. This section does not provide the General Assembly with the authority to approve expenditures of the Arkansas State Game and Fish Commission or the Arkansas Department of Transportation, which shall be subject only to review and appropriation by the General Assembly.

History. Acts 2019, No. 678, § 4.

A.C.R.C. Notes. Acts 2019, No. 678, § 1, provided: “Title. This act shall be known and may be cited as the ‘Government Financial Disclosure and Accountability Act of 2019’”.

Acts 2019, No. 678, § 2, provided: “Legislative intent.

“(a) It is the intent of the General Assembly:

“(1) To provide for additional transparency in the budgeting and expenditure procedures used by constitutional officers and agencies;

“(2) To require additional financial disclosures to better enable the General Assembly to responsibly appropriate state funds;

“(3) To ensure that the state and the public have the necessary information to determine whether state funds are being used in an appropriate and fiscally responsible manner;

“(4) That, to the extent this act conflicts with any provision of the Arkansas Constitution, the Arkansas Constitution applies; and

“(5) To require that cash funds have an appropriation authorized by the General Assembly and that budget requests submitted during budget hearings include the information necessary for the General Assembly to make informed appropriation decisions.

“(b) It is not the intent of the General Assembly to:

“(1) Make the constitutional officers and agencies state agencies for purposes of state accounting and budgetary procedures;

“(2) Require the constitutional officers and agencies to submit annual operations plans that are the same as the annual operations plans required for state agencies;

“(3) Apply the procurement laws in Arkansas Code, Title 19, Chapter 11, to the constitutional officers and agencies to the extent that the procurement laws do not already apply; or

“(4) Require legislative approval of any expenditure of an office or agency if such approval would conflict with the Arkansas Constitution”.

Subchapter 9 — Travel Rules

Cross References. Use and disposition of state motor vehicles, § 22-8-101 et seq.

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, in the enactment of the General Accounting Procedures Law of Arkansas, the Sixtieth General Assembly declared it to be the public policy that the State and all of its agencies be maintained in a sound financial basis, to provide for the adequate accounting for all fiscal transactions of the State, to provide for establishing rules, regulations and procedures for budget preparation, presentation, enactment, execution and defining powers and duties of the Chief Fiscal Officer and State Auditor and the State Treasurer in connection with the foregoing; and

“Whereas, in order to carry out the public policy, purposes, intent and provisions of the General Accounting Procedures Law of Arkansas and in order to accept, adapt and comply with the modern-day technological changes and innovations in budgetary, accounting, and fiscal procedures, it is necessary for the General Assembly to enact legislation providing for the same; and

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation to the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

“Whereas, it is the responsibility of the General Assembly to determine the programs, projects and services for which the State's revenues shall be expended and the priorities which should govern such expenditures; and

“Whereas, in order to discharge its responsibility the General Assembly and its interim committees, including the Legislative Council, has need of accurate data in order to make its determinations wisely; and

“Whereas, the General Assembly recognizes and accepts the principles, purposes and intent of the Revenue Stabilization Law of Arkansas and the General Accounting Procedures Law of Arkansas as they presently exist and further recognizes the validity of their provisions by virtue of Arkansas Supreme Court decisions; and

“Whereas, it is not the intention of the General Assembly to deviate from the purposes and intent of the Revenue Stabilization Law of Arkansas, but it is the intent of the General Assembly to strengthen the purpose of the Revenue Stabilization Law and the General Accounting Procedures Law of Arkansas by enacting the following legislation which embodies the holdings of prior Arkansas Supreme Court decisions affecting the General Accounting Procedures Law of Arkansas, now therefore … .”

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1974 (1st Ex. Sess.), No. 16, § 3: July 3, 1974. Emergency clause provided: “It has been found and determined by the Sixty-Ninth General Assembly, meeting in Extraordinary Session, that due to inflationary price increases, State employees traveling on official business for the State are not being adequately reimbursed for their travel expenses, consequently, State employees are subsidizing the State from their salary, that the immediate passage of this Act is necessary in order to adequately reimburse State employees traveling in behalf of the State. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 890, § 3: Apr. 16, 1979. Emergency clause provided: “It is hereby found and determined by the Seventy-Second General Assembly that the reimbursement provided for state employees is inadequate and that revisions are needed immediately so that the employees are not unjustly penalized. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after the effective date of its passage and approval.”

Acts 1981, No. 741, § 8: Mar. 28, 1981. Emergency clause provided: “It is hereby found and determined by the Seventy-Third General Assembly that certain amendments to Act 876 of 1973, the General Accounting and Budgetary Procedures Law, are essential to the continued financial operations of State government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 490, § 3: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly that essential services exist which are better facilitated by the use of passenger motor vehicles by various State Agencies; there also exists the need to provide such services in the most efficient manner possible; and by limiting in this Act the maximum number of passenger motor vehicles allowed for State agencies, both purposes will be accomplished; and the July 1, 1983, effective date of this Act is necessary in order to coincide with appropriations made for the various State Agencies, Authorities, Boards, Commission, Departments and Institutions of Higher Education for such purposes as provided in this Act. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1983.”

Acts 1985, No. 365, § 15: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly that the clarification of certain fiscal transactions of the State is needed in order to more accurately reflect the condition of the State's assets at all times and to maintain the fiscal integrity of the State. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

Acts 1985, No. 649, § 46: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1985 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1985 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

Acts 1985, No. 888, § 26: July 1, 1985, except §§ 18, 20, and 21, effective Apr. 15, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly that the amendments to the Revenue Stabilization Law are essential to the continued operation of State government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1985. Provided, however, that Sections 18, 20 and 21 of this Act shall become effective from and after the passage and approval of this Act.”

Acts 1987, No. 81, § 3: Feb. 19, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that a number of State employees are required to travel to and from their residences in a State-owned motor vehicle; that in those instances the employees should not be required to reimburse the State for the use of those motor vehicles; that the present law does require them to reimburse the State $0.15 per mile for each mile in excess of ten (10) miles; that the present law is inequitable and unfair; that this Act eliminates the inequity and the inequity will continue until this Act goes into effect. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 790, § 5: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1989 is essential to the operation of the agency for which the appropriations in this Act are provided; and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1989 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1989.”

Acts 1989 (1st Ex. Sess.), No. 252, § 13: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1989 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1989 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1989.”

Acts 1991, No. 1222, § 6: Apr. 10, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly, that due to the increased cost of travel, the rate of reimbursement for use of privately owned motor vehicles needs to be increased; that due to the increase in the cost of meals and lodging borne by employees of the State of Arkansas, the per diem needs to be increased. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1997, No. 795, § 6: July 1, 1997. Emergency clause provided: “It is found and determined by the Eighty-First General Assembly that the appropriate reimbursement of travel expenses borne by employees of the State of Arkansas should be provided for and that the provisions of this Act are necessary for proper fiscal administration. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1997.”

Acts 1999, No. 1398, § 37: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1999 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1999 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1999.”

Acts 2001, No. 739, § 4: Became law without the Governor's signature. Noted July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that various changes in law are needed for the institutions of higher education including the authorization of additional positions due to additional funds received other than general revenue for various programs and additional vehicles to maintain efficient operations of campuses. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2001, No. 1453, § 49: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that proper and effective management requires that changes to the state's finance and accounting laws begin on the first day of the fiscal year and that if there is an extended recess of the General Assembly, the required ninety day period may extend past July 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2001, No. 1669, § 38: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2001 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2001 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2001.”

Acts 2005, No. 1869, § 29: July 1, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas, that changes in law are needed for the institutions of higher education including the authorization of additional vehicles to maintain efficient operations of campuses. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2005.”

Acts 2005, No. 2123, § 38: July 1, 2005. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2005 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2005 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2005.”

Acts 2007, No. 711, § 2: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that various changes in law are needed for the institutions of higher education, including the authorization of additional vehicles to maintain efficient operations of campuses; and that this act is necessary because the use of the vehicles is to begin at the onset of fiscal year 2008. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2007.”

Acts 2007, No. 1255, § 42: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2007 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2007 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2007.”

Acts 2013, No. 949, § 8: July 1, 2013. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2013 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2013 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2013.”

Acts 2013, No. 1393, § 9: July 1, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 2013 have been made by the Eighty-Ninth General Assembly. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2013.”

Acts 2015, No. 1271, § 10: Apr. 8, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that institutions of higher education need additional vehicles to maintain efficient operation of the institutions; that the number of vehicles authorized under current law is insufficient; and that this act is immediately necessary to ensure that an institution of higher education may access the number of vehicles that the institution determines is necessary for efficient operation of the campus. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2016, No. 140, § 17: July 1, 2016. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2016 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2016 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2016.”

Acts 2016, No. 141, § 15: July 1, 2016. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2016 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2016 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2016.”

Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 128: July 1, 2016.

Acts 2017, No. 178, § 11: July 1, 2017. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2017 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2017 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2017.”

Acts 2017, No. 179, § 13: July 1, 2017. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2017 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2017 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2017.”

Acts 2019, No. 204, § 5: July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the name change proposed under this act is to enable students interested in the Texarkana campus of the community college to have their ACT testing information sent directly to Texarkana and not to the Hope campus of the community college or to an institution in Texas; that there is confusion regarding where a student should send his or her ACT scores because Texarkana is not currently part of the campus's formal name; and that this act is necessary in order to change the name of the community college in time for the next fiscal year. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Acts 2019, No. 942, § 10: July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that changes to the maximum number of motor vehicles authorized for certain institutions of higher education are necessary to maintain the efficient operations of the institutions of higher education; and that the changes in the maximum number of motor vehicles authorized for these institutions of higher education should take effect at the beginning of a fiscal year to maximize the effectiveness and efficiency of the changes in the law. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-4-901. Rules generally.

The Chief Fiscal Officer of the State shall promulgate rules with respect to travel and travel allowances and prescribe the forms and procedures for reporting, approving, and paying such travel allowances for all officers and employees of the state government or for other persons who are authorized to carry out official duties in connection with the business of the state.

History. Acts 1973, No. 876, § 16; A.S.A. 1947, § 13-342; Acts 2019, No. 315, § 1714.

Amendments. The 2019 amendment deleted “and regulations” following “Rules” in the section heading; and deleted “and regulations” following “rules”.

19-4-902. Authorization for travel.

    1. The responsibility for authorizing travel, or any expenses in connection therewith, shall be placed upon the board or commission in charge or upon the administrative head of each state agency.
    2. No travel expenses shall be authorized or allowed without the approval of the board, commission, or administrative head of any agency.
  1. It shall be the responsibility of the administrative head of any agency to keep on file in the place of business of the agency, subject to audit, copies of all supporting documents and required receipts for expenses incurred in connection with the travel authorizations and allowances for persons traveling in behalf of the agency.

History. Acts 1973, No. 876, § 16; A.S.A. 1947, § 13-342; Acts 2001, No. 1453, § 24.

19-4-903. Standard reimbursements and special authorizations — Definitions.

    1. Except for special authorization by the Chief Fiscal Officer of the State, reimbursement for meals and lodging while traveling on official business of the state shall not exceed the maximum rates as prescribed by the Federal Travel Directory published by the United States General Services Administration.
    2. Requests for special authorization shall be limited to those rare occasions where unusual circumstances may cause the existing rates to be inadequate and shall be set out in writing in such detail as shall be required in the state travel procedures and shall be executed in behalf of each individual traveler for each special authorized occasion. Provided however, that requests for special authorization by employees of institutions of higher education shall be subject to the approval of the chief executive officer of the institution and not the Department of Finance and Administration.
    3. Under such emergency conditions as shall be determined by the Governor, the limitations of this subsection with respect to meals and lodging may be waived or modified.
    1. As used in this subsection, “state-owned motor vehicle” means a motor vehicle purchased or leased by:
      1. The State of Arkansas;
      2. The office of a constitutional officer of the State of Arkansas;
      3. A constitutionally independent agency or commission; and
      4. A state-supported institution of higher education.
      1. Unless otherwise provided by law, reimbursement for the use of privately owned motor vehicles while traveling on official business for the state shall not exceed the allowable rate of the Internal Revenue Service per mile for business use of privately owned motor vehicles.
      2. A state agency director may authorize reimbursement for travel expenses for meals, lodging, and private automobile or airplane usage at amounts less than that established under the authority of this section.
      3. The Chief Fiscal Officer of the State by rule may establish procedures and the rate for reimbursing individuals for the use of privately owned airplanes while traveling on official business for the state.
        1. Any employee of the State of Arkansas who utilizes, but whose job does not require the state employee to utilize, a state-owned motor vehicle for transportation to or from his or her permanent residence from or to his or her official station on a daily basis shall reimburse the fund from which the operating expenses of the state-owned motor vehicle are paid at the same rate authorized by the state agency director of the agency employing the state employee for reimbursements for private automobile usage under subdivision (b)(2)(B) of this section.
        2. As used in subdivision (b)(3)(A)(i) of this section, “state employee”:
          1. Means an employee of a state agency, board, commission, department, or state-supported institution of higher education; and
          2. Includes a constitutional officer and an employee of a constitutional officer.
      1. All state-owned motor vehicles or state-leased motor vehicles shall be for official business use only.
  1. The Chief Fiscal Officer of the State shall promulgate rules to implement the provisions of this subchapter.

History. Acts 1973, No. 876, § 16; 1974 (1st Ex. Sess.), No. 16, § 1; 1977, No. 462, § 1; 1979, No. 890, § 1; 1985, No. 365, § 7; A.S.A. 1947, § 13-342; Acts 1987, No. 81, § 1; 1991, No. 1222, §§ 1, 2; 1997, No. 795, § 1; 2011, No. 1021, § 1; 2019, No. 315, §§ 1715, 1716.

Amendments. The 2011 amendment inserted present (b)(1) and redesignated former (b)(1) and (2) as present (b)(2) and (3); in (b)(3)(A)(i), inserted “state” preceding “employee to utilize” and “state-owned” preceding “motor vehicle”, and substituted “same rate authorized by the state agency director of the agency employing the state employee for reimbursements for private automobile usage under subdivision (b)(2)(B) of this section” for “rate of fifteen cents (15¢) per mile for each mile, or portion thereof, in excess of ten (10) miles each way”; added (b)(3)(A)(ii); and substituted “motor vehicles or state-leased motor vehicles” for “or leased vehicles” in (b)(3)(B).

The 2019 amendment substituted “rule” for “regulation” in (b)(2)(C); and deleted “and regulations” following “rules” in (c).

19-4-904. Exempt persons and agencies.

    1. The limitations of this subchapter relating to travel rules shall not be applicable to:
      1. Except as provided in § 19-4-903(b), the constitutional or elective officials and their employees; or
      2. Official guests of the state.
    2. The provisions of this subchapter shall not be used to supersede or set aside the provisions of law providing for fixed allowances, established amounts for per diem, or to special travel privileges provided by law for specific purposes when the allowances exceed those authorized in this subchapter.
    1. Personal reimbursement will not be allowed to any state official, state employee, or any other person traveling on official business for expenses covering personal entertainment, flowers, valet service, laundry and cleaning, or other personal expenses, as those expenses shall be defined in the state travel rules. All such persons shall be required to submit their travel reimbursement requests upon forms prescribed by the Department of Finance and Administration, itemized in such detail as shall be necessary to carry out the purposes and intent of this section.
    2. The tip reimbursement amount shall not exceed fifteen percent (15%) of the meal amount expended.
    3. The total reimbursement for meals and tips shall not exceed the maximum rates prescribed by the Financial Management Guide published by the Office of Accounting of the Department of Finance and Administration.
  1. The cost of meals, lodging, and mileage of state employees who are designated by a supervisor or agency director to attend official or special board meetings or other functions recognized as being in the performance of their official duties may be paid either as reimbursement to the employee or on direct billing, in the case of meals and lodging, subject to approval of the superior.
  2. It is recognized that within the state-supported institutions of higher education there exists an obligatory inherent cost of providing travel expenses for a group or number of students who, when accompanied by those who instruct the students in the fundamentals of a competitive sport and direct team strategy, must travel and be recognized as a cohesive unit representing not only their institution, but exemplifying the State of Arkansas in their behavior, attitudes, interests, presentation, and conduct. In these circumstances the payment of group travel expenses, including those of students and employees, may be authorized as follows:
    1. Meals and lodging;
    2. Transportation;
    3. Entertainment, within reasonable limits, to ease the pressure on students of their objectives;
    4. Costs of group activities, including gratuities, laundry, cleaning, and favors; and
    5. Other personal expenses to be paid only from auxiliary funds not inconsistent with standards, rules, or prohibitions established by recognized national or state governing associations pertaining to the respective students and employees and the institutions they are representing.

History. Acts 1973, No. 876, § 16; 1981, No. 741, § 3; 1985, No. 365, § 7; A.S.A. 1947, § 13-342; Acts 1997, No. 250, § 174; 2007, No. 715, § 1; 2011, No. 1021, § 2; 2019, No. 315, §§ 1717–1719.

Amendments. The 2007 amendment deleted “tips” following “entertainment” in present (b)(1), and added (b)(2) and (3).

The 2011 amendment rewrote (a).

The 2019 amendment substituted “rules” for “regulations” in the introductory language of (a)(1) and the first sentence of (b)(1); and deleted “regulations” following “rules” in (d)(5).

Case Notes

Cited: Clark v. State, 308 Ark. 84, 308 Ark. 453, 824 S.W.2d 345 (1992).

19-4-905. State-owned motor vehicles generally.

  1. All state-owned motor vehicles which are purchased under the authority of the Chief Fiscal Officer of the State shall be licensed in such manner so as to identify each vehicle as state property.
  2. The Chief Fiscal Officer of the State shall provide a special license plate suitable for all state-owned motor vehicles and shall establish procedures for the purpose of supplying information on all state-owned motor vehicles, both those which are purchased and those which are sold, traded in, or otherwise disposed of.
  3. The Chief Fiscal Officer of the State shall make rules for obtaining the required license plates and for returning the plates when the vehicles are disposed of and shall notify all state agencies of procedures to be followed.
  4. Each agency shall be required to pay the regular license fee for the special state property license plate in the manner prescribed by the Department of Finance and Administration.
  5. In the event the best interests of the state would be served by not displaying a special tag, such as in police work, an exception to the provisions of this section may be obtained only upon the written approval of the Governor.

History. Acts 1973, No. 876, § 16; A.S.A. 1947, § 13-342; Acts 2019, No. 315, § 1720.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (c).

19-4-906. Motor vehicle restrictions and authorizations — Definition.

    1. None of the funds appropriated for the various state agencies, authorities, boards, commissions, departments, and institutions of higher education listed in this section shall be used to purchase, lease for over thirty (30) days, operate, repair, or provide services for more than the maximum number of passenger motor vehicles as stated in this section, except in an emergency as proclaimed by the Governor.
    2. As used in this section, “passenger motor vehicles” means vehicles licensed for highway use, including without limitation automobiles, trucks, and vans, that do not require a commercial driver's license to operate.
    3. Mileage reimbursement for employees' utilization of their personal automobiles is not included in this restriction.
    1. The General Assembly recognizes that, in some cases, motor vehicles are donated to educational institutions and agencies primarily for use in automotive repair and maintenance courses and in instructional programs for truck operators and that such motor vehicles are not normally used for other purposes by the institutions and agencies and should not be included in the maximum number of authorized passenger vehicles prescribed for such institutions and agencies in this section.
      1. Therefore, motor vehicles donated to educational institutions and agencies primarily for use in programs of instruction in automotive maintenance and repair, in operator training, and in related instructional programs shall not be included for the purpose of determining the number of vehicles authorized for any such institutions or agencies.
      2. The provisions of this section shall not be applicable to these motor vehicles.
    1. The Department of Human Services is exempt from the provisions of this section.
    2. The Department of Human Services may purchase vehicles utilizing federal funds and the appropriate state matching funds required.

Item No. Agency, Authority, Board, Commission, or Institution of Higher Education Maximum Authorized Number of Passenger Motor Vehicles in any Year (001) Arkansas Abstracters' Board 0 (002) Administrative Office of the Courts 3 (003) Adv. Council for Vo-Tech Education [abolished] 2 (004) Arkansas State Board of Chiropractic Examiners 0 (005) Arkansas Board of Hearing Instrument Dispensers 0 (006) Arkansas Board of Podiatric Medicine 0 (007) Building Authority Division 22 (008) Arkansas Bureau of Standards 34 (009) Arkansas Cemetery Board [abolished] 0 (010) Arkansas Code Revision Commission 0 (011) Arkansas Commission on Law Enforcement Standards of Training 15 (012) Arkansas Crime Information Center 11 (013) Division of Aeronautics 1 (014) Division of Emergency Management 15 (015) Division of Environmental Quality 57 (016) Arkansas Development Finance Authority 3 (017) Arkansas Economic Development Council 31 (018) Arkansas Fire Protection Licensing Board 0 (019) Arkansas Forestry Commission 396 (020) Arkansas Geological Survey 18 (021) Arkansas State Archives 3 (022) Arkansas Livestock and Poultry Commission 81 (023) Arkansas Manufactured Home Commission 3 (024) Arkansas Motor Vehicle Commission 5 (025) Arkansas Natural Resources Commission 8 (026) Arkansas Northeastern College 26 (027) Arkansas Psychology Board 0 (028) Arkansas Public Employees' Retirement System 5 (029) Arkansas Public Service Commission 27 (030) Arkansas Real Estate Commission 3 (031) Arkansas School for Mathematics, Sciences, and the Arts 14 (032) Arkansas School for the Blind 8 (033) Arkansas School for the Deaf 14 (034) Arkansas Science and Technology Authority [abolished] 1 (035) Arkansas Social Work Licensing Board 0 (036) Arkansas Soybean Promotion Board 0 (037) Arkansas Spinal Cord Commission 3 (038) Arkansas State Board of Architects, Landscape Architects, and Interior Designers 0 (039) Arkansas State Board of Dental Examiners 1 (040) Arkansas State Board of Landscape Architects [abolished] 0 (041) Arkansas State Board of Massage Therapy [abolished] 0 (042) Arkansas State Board of Nursing 1 (043) Arkansas State Board of Pharmacy 1 (044) Arkansas State Board of Public Accountancy 0 (045) Arkansas State Board of Registration for Foresters 0 (046) Arkansas State Board of Registration for Professional Soil Classifiers 0 (047) Arkansas State Board of Sanitarians 0 (048) Arkansas State Department of Health Building Commission [abolished] 0 (049) Arkansas State Game and Fish Commission 500 (050) Arkansas Department of Transportation 43 (051) Arkansas Department of Transportation 2,300 (052) Arkansas Department of Transportation — (NOAA) 0 (053) Arkansas State Highway Employees' Retirement System 0 (054) Arkansas State Library 29 (055) Arkansas State Medical Board 0 (056) Division of Arkansas State Police 725 (057) Arkansas State University 131 (058) Arkansas State University — Beebe 32 (059) Arkansas State University — Mountain Home 12 (060) Arkansas State University — Newport 26 (061) Arkansas State University system 9 (062) Arkansas Student Loan Authority [abolished] 2 (063) Arkansas Teacher Retirement System 4 (064) Arkansas Tech University 70 (065) Arkansas Waterways Commission 1 (066) Black River Technical College 14 (067) Board of Corrections 6 (068) Board of Examiners in Speech-Language Pathology and Audiology 0 (069) Burial Association Board [abolished] 2 (070) Commission on Water Well Construction 2 (071) Contractors Licensing Board 1 (072) Cossatot Community College of the University of Arkansas 20 (073) Division of Arkansas Heritage 11 (074) Department of Correction 254 (075) Department of Education 10 (076) Department of Finance and Administration — Alcoholic Beverage Control Division 22 (077) Department of Finance and Administration — Alcoholic Beverage Control Division — Administration Division 1 (078) Department of Finance and Administration — Management Services Division 44 (079) Department of Finance and Administration — Racing Division 1 (080) Department of Finance and Administration — Revenue Division 168 (081) Department of Health 111 (082) Division of Higher Education 2 (083) Department of Human Services 444 (084) Division of Information Systems 7 (085) Department of Labor 9 (086) Department of Parks, Heritage, and Tourism 187 (087) Division of Workforce Services 27 (088) Dept. of Education — National Migrant Student Record Transfer System [abolished] 1 (089) Dept. of Education — Vo-Tech Division 22 (090) Dept. of Education — Vo-Tech Schools 280 (091) Dept. of Veterans Affairs and the veterans’ homes 11 (092) Disabled Veterans Service Office 0 (093) East Arkansas Community College 28 (094) Arkansas Educational Television Commission 14 (095) Health Services Permit Agency 1 (096) Henderson State University 45 (097) Liquefied Petroleum Gas Board 4 (098) Arkansas State University Mid-South 20 (099) National Park College 17 (100) North Arkansas College 30 (101) Northwest Arkansas Community College 22 (102) Office of the Prosecutor Coordinator 0 (103) Oil and Gas Commission 17 (104) College of The Ouachitas 10 (105) Ozarka College 12 (106) Phillips Community College of the University of Arkansas 27 (107) University of Arkansas — Pulaski Technical College 25 (108) Arkansas Revenue Department Building Commission 0 (109) University of Arkansas Community College at Rich Mountain 15 (110) SAU-Tech — Camden 15 (111) SAU-Tech — Arkansas Environmental Training Academy 6 (112) SAU-Tech — Arkansas Fire Training Academy 22 (113) South Arkansas Community College 20 (114) Southeast Arkansas College 10 (115) Southern Arkansas University — Magnolia 50 (116) State Athletic Commission 0 (117) State Bank Department 22 (118) State Board of Barber Examiners 0 (119) State Board of Collection Agencies 0 (120) Cosmetology Technical Advisory Committee 0 (121) State Board of Embalmers and Funeral Directors [abolished] 0 (122) State Board of Licensure for Professional Engineers and Professional Surveyors 0 (123) State Crime Laboratory 15 (124) State Department for Social Security Administration Disability Determination 3 (125) State Insurance Department 6 (126) Department of the Military 20 (127) State Plant Board 30 (128) State Securities Department 5 (129) University of Arkansas at Fayetteville 299 (130) University of Arkansas at Fort Smith 39 (131) University of Arkansas at Little Rock 75 (132) University of Arkansas at Monticello 64 (133) University of Arkansas at Pine Bluff 75 (134) University of Arkansas Community College at Batesville 10 (135) University of Arkansas Community College at Hope-Texarkana 20 (136) University of Arkansas Community College at Morrilton 16 (137) University of Arkansas for Medical Sciences 110 (138) University of Central Arkansas 100 (139) Arkansas Veterans' Child Welfare Service 0 (140) Veterinary Medical Examining Board 0 (141) War Memorial Stadium Commission 3 (142) Workers' Compensation Commission 25 (143) Division of Agriculture of the University of Arkansas 326

Click to view table.

History. Acts 1983, No. 490, §§ 1, 2; 1985, No. 649, § 44; 1985, No. 888, §§ 22, 23; A.S.A. 1947, §§ 13-342.1, 13-342.3; Acts 1987, No. 921, § 19; 1989, No. 790, § 1; 1989 (1st Ex. Sess.), No. 252, § 9; 1993, No. 447, § 9; 1997, No. 540, § 40; 1997, No. 948, § 3; 1999, No. 646, § 56; 1999, No. 1164, § 156; 1999, No. 1398, § 28; 2001, No. 739, §§ 2, 3; 2001 No. 1669, § 29; 2001, No. 1800, § 2; 2005, No. 1869, §§ 1-28; 2005, No. 2123, § 31; 2007, No. 186, § 3; 2007, No. 711, § 1; 2007, No. 1255, § 35; 2009, No. 1334, § 34; 2013, No. 949 § 5; 2013, No. 1393, § 1; 2015, No. 1271, §§ 1-9; 2016, No. 140, § 10; 2016, No. 141, § 10; 2016 (3rd Ex. Sess.), No. 2, § 123; 2016 (3rd Ex. Sess.), No. 3, § 123; 2017, No. 178, § 6; 2017, No. 179, § 8; 2017, No. 422, §§ 1, 2; 2017, No. 707, § 45; 2019, No. 204, § 2; 2019, No. 942, §§ 1-9.

A.C.R.C. Notes. As the result of an apparent markup error, the amendment of this section by Acts 2009, No. 1334, § 34, made it appear as if Item No. (119) of subsection (a) was being changed to Item No. (137) of subsection (a). However, the 2009 amendment had no effect on Item No. (119) of subsection (a) and instead changed the maximum authorized number of passenger motor vehicles in any year in Item No. (137) of subsection (a) from 94 to 99.

Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 1, provided:

“(a) The General Assembly finds:

“(1) State government provides vital functions that impact the lives of Arkansas citizens on a daily basis;

“(2) While these functions are important, it is equally important to ensure that state government operates efficiently and effectively to eliminate unnecessary spending of tax dollars and provide timely and quality services to Arkansas citizens; and

“(3) Issues such as the administrative organization of a governmental entity, the appointment structure of a governmental entity's governing board, and extraneous duties assigned to governmental entities hamper the operation of state government and result in unnecessary expenses and delays in the provision of state services.

“(b) It is the intent of this act to amend provisions of law applicable to certain agencies, task forces, committees, and commission to promote efficiency and effectiveness in the operations of state government as a whole.”

Amendments. The 2005 amendment by No. 1869, in (a), substituted “50” for “40” in (010), “9” for “7” in (061), “45” for “35” in (070), “563” for “463” in (115), “75” for “50” in (116), “64” for “47” in (117), “49” for “44” in (118), “73” for “65” in (119), “75” for “48” in (120), “16” for “10” in (128); rewrote (066), (079), (081), (086), (098), and (126); and added (130) through (141).

The 2005 amendment by No. 2123 substituted “73” for “65” in (119).

The 2009 amendment substituted “99” for “94” in (a)(137).

The 2013 amendment by No. 949 substituted “39” for “29” in (a)(130).

The 2013 amendment by No. 1393 substituted “College of The Ouachitas” for “Ouachita Technical College” in (a)(104).

The 2015 amendment, in the table in (a), increased the numbers in column “Maximum Authorized Number of Passenger Motor Vehicles in any Year” for item numbers (058), (059), (060), (064), (066), (093), (098), (099), (100), (111), (114), (129), and (137).

The 2016 amendment by No. 140 substituted “Arkansas State University Mid-South” for “Mid-South Community College” in (a)(098).

The 2016 amendment by No. 141 substituted “National Park College” for “National Park Community College” in (a)(099).

The 2016 (3rd Ex. Sess.) amendment by identical acts Nos. 2 and 3 substituted “State Archives” for “History Commission, Department of Parks and Tourism” in (a)(021).

The 2017 amendment by No. 178 inserted “University of Arkansas” at the beginning of (a)(107).

The 2017 amendment by No. 179 substituted “University of Arkansas Community College at Rich Mountain” for “Rich Mountain Community College” in (a)(109).

The 2017 amendment by No. 422 redesignated former (a) as (a)(1) through (a)(3); in (a)(1), substituted “listed in this section” for “listed below” and “as stated” for “as set out”; in (a)(2), substituted “As used in this section, ‘passenger motor vehicles’ means vehicles” for “Passenger motor vehicles are defined as those” and “without limitation” for “but not limited to”, and added “that do not require a commercial driver's license to operate”; substituted “is not” for “shall not be deemed to be” in (a)(3); substituted “500” for “400” in (a)(049); and made related stylistic changes.

The 2017 amendment by No. 707 substituted “Department of Transportation” for “State Highway and Transportation Department” in (a)(050), (a)(051) and (a)(052).

The 2019 amendment by No. 204 substituted “University of Arkansas Community College at Hope-Texarkana” for “University of Arkansas Community College at Hope” in (a)(135).

The 2019 amendment by No. 942 substituted “26” for “21” in (a)(060); substituted “28” for “13” in (a)(093); substituted “20” for “15” in (a)(098); substituted “22” for “20” in (a)(101); substituted “15” for “12” in (a)(109); substituted “50” for “46” in (a)(115); substituted “299” for “605” in (a)(129); substituted “110” for “105” in (a)(137); and added (a)(143).

19-4-907. Motor vehicle records.

The Chief Fiscal Officer of the State may direct all state agencies to maintain records with respect to all state-owned motor vehicles and may require that the agencies file reports on the vehicles covering the operating costs thereof.

History. Acts 1973, No. 876, § 16; A.S.A. 1947, § 13-342.

Subchapter 10 — Oil Company Credit Cards

Effective Dates. Acts 1979, No. 676, § 9: Apr. 2, 1979. Emergency clause provided: “It is hereby determined by the Arkansas General Assembly that in order to provide for the proper accounting of services received by the State of Arkansas through the use of credit cards that the use of credit cards be restricted to oil company credit cards solely. Therefore an emergency is hereby declared to exist and that this Act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after the date of its passage and approval.”

Acts 2001, No. 1453, § 49: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that proper and effective management requires that changes to the state's finance and accounting laws begin on the first day of the fiscal year and that if there is an extended recess of the General Assembly, the required ninety day period may extend past July 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2003, No. 656, § 10: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that proper and effective management requires that changes to the finance and accounting laws of the state begin on the first day of the fiscal year; that the changes being made are important to the financial well being of the state particularly during the difficult financial climate the state is currently facing; and that this act is immediately necessary to allow for the finance and accounting changes to go into effect on the first day of the fiscal year for the proper and effective management of this state. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2003.”

19-4-1001. Definition.

As used in this subchapter, the term “credit cards” means only those credit cards issued to state agencies, boards, or commissions for which the state agencies, boards, or commissions assume responsibility for payment.

History. Acts 1979, No. 676, § 1; A.S.A 1947, § 12-2378; Acts 2003, No. 656, § 2.

19-4-1002. Daily allowances, etc., not affected.

This subchapter in no way changes the maximum daily allowance for meals and lodging authorized in this chapter for an individual traveling on official state business within or beyond the borders of this state, nor does it change any special authorizations, exemptions, or limitations set forth in this chapter.

History. Acts 1979, No. 676, § 2; A.S.A. 1947, § 12-2378.1.

19-4-1003. [Repealed.]

Publisher's Notes. This section, concerning eligibility for the use of oil company credit cards by state employees, was repealed by Acts 2003, No. 656, § 3. The section was derived from Acts 1979, No. 676, § 3; A.S.A. 1947, § 12-2378.2.

19-4-1004. [Repealed.]

Publisher's Notes. This section, concerning requests for the use of oil company credit cards by state employees, was repealed by Acts 2003, No. 656, § 4. The section was derived from Acts 1979, No. 676, § 5; A.S.A. 1947, § 12-2378.4.

19-4-1005. Responsibility for use.

  1. The responsibility for ensuring that only authorized expenditures are paid for by use of state credit cards for which the state agency assumes responsibility for payment and the collection for any unauthorized expenditures which may occur rests with the board, commission, or administrative head in charge of the agency.
  2. The Chief Fiscal Officer of the State shall not be liable for any unauthorized expenditures through the use of state credit cards for which the state agency assumes liability for payment.

History. Acts 1979, No. 676, § 5; A.S.A. 1947, § 12-2378.4; Acts 2003, No. 656, § 5.

19-4-1006. Rules — Records.

The Chief Fiscal Officer of the State shall:

  1. Promulgate rules with respect to obtaining and utilizing credit cards in payment of products and services;
  2. Prescribe the procedures for reporting, approving, and paying for products and services purchased with credit cards; and
  3. Prescribe the necessary records to be maintained and the supporting documentation to be provided with each voucher presented for payment of charges resulting from the use of credit cards.

History. Acts 1979, No. 676, § 4; A.S.A. 1947, § 12-2378.3; Acts 2009, No. 251, § 11.

Amendments. The 2009 amendment deleted “and regulations” in the section heading; deleted “state-owned oil company” preceding “credit cards” in (2); added “resulting from the use of credit cards” in (3); and made related and minor stylistic changes.

19-4-1007. No use of other credit cards.

  1. If it is determined by the Chief Fiscal Officer of the State to be essential to enable an agency, board, or commission to effectively carry out its responsibilities, the Chief Fiscal Officer of the State may authorize an agency, board, or commission, or certain employees thereof, to use state credit cards for which the state agency assumes liability for payment, under rules as may be prescribed by the Chief Fiscal Officer of the State.
  2. No credit cards shall be used except those approved by the Chief Fiscal Officer of the State.

History. Acts 1979, No. 676, § 6; A.S.A 1947, § 12-2378.5; Acts 2003, No. 656, § 6; 2019, No. 315, § 1721.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (a).

19-4-1008. Revolving funds for expenses.

    1. The Chief Fiscal Officer of the State is authorized to promulgate appropriate rules authorizing state agencies, boards, commissions, and institutions of higher education to establish revolving funds which shall be within such limitations as the Chief Fiscal Officer of the State may prescribe or to make advances of expense funds for authorized travel by officials and employees of state agencies, boards, commissions, and institutions of higher education whose travel is in conjunction with institutionally sponsored events or programs. The advanced funds shall be reimbursed by the individual borrowing the funds from moneys to the individual upon filing an authorized expense account in connection with the travel.
    2. These funds shall be used to make advances of expense funds for authorized travel by officials and employees of state agencies, boards, commissions, and institutions of higher education whose travel is in conjunction with institutionally sponsored events or programs.
    3. These funds shall be reimbursed by the individual borrowing the funds from moneys to the individual upon filing his or her authorized expense account in connection with his or her travel.
  1. The rules may authorize the state agency, board, commission, or institution of higher education to require the employee to file an agreement authorizing the agency to recover any amounts advanced for travel expense purposes from the amounts claimed and allowed the employee or student as reimbursement for actual expenses incurred, to recover them from the next or future salary payments to the employee, or add them to the receivables account of the student.

History. Acts 1979, No. 676, § 6; A.S.A. 1947, § 12-2378.5; Acts 1995, No. 1258, § 1; 2001, No. 1453, § 26; 2019, No. 315, §§ 1722, 1723.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in the first sentence of (a)(1); and substituted “rules” for “regulations” in (b).

Subchapter 11 — Approval of Expenditures

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, in the enactment of the General Accounting Procedures Law of Arkansas, the Sixtieth General Assembly declared it to be the public policy that the State and all of its agencies be maintained in a sound financial basis, to provide for the adequate accounting for all fiscal transactions of the State, to provide for establishing rules, regulations and procedures for budget preparation, presentation, enactment, execution and defining powers and duties of the Chief Fiscal Officer and State Auditor and the State Treasurer in connection with the foregoing; and

“Whereas, in order to carry out the public policy, purposes, intent and provisions of the General Accounting Procedures Law of Arkansas and in order to accept, adapt and comply with the modern-day technological changes and innovations in budgetary, accounting, and fiscal procedures, it is necessary for the General Assembly to enact legislation providing for the same; and

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation to the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

“Whereas, it is the responsibility of the General Assembly to determine the programs, projects and services for which the State's revenues shall be expended and the priorities which should govern such expenditures; and

“Whereas, in order to discharge its responsibility the General Assembly and its interim committees, including the Legislative Council, has need of accurate data in order to make its determinations wisely; and

“Whereas, the General Assembly recognizes and accepts the principles, purposes and intent of the Revenue Stabilization Law of Arkansas and the General Accounting Procedures Law of Arkansas as they presently exist and further recognizes the validity of their provisions by virtue of Arkansas Supreme Court decisions; and

“Whereas, it is not the intention of the General Assembly to deviate from the purposes and intent of the Revenue Stabilization Law of Arkansas, but it is the intent of the General Assembly to strengthen the purpose of the Revenue Stabilization Law and the General Accounting Procedures Law of Arkansas by enacting the following legislation which embodies the holdings of prior Arkansas Supreme Court decisions affecting the General Accounting Procedures Law of Arkansas, now therefore … .”

Acts 1997, No. 14 contained a preamble which read:

“WHEREAS, the public employees retirement system is not able to maximize interest earnings capability under the current system of processing vouchers for retirees; and

“WHEREAS, it is the intent of this act to allow the public employees retirement system to process retiree benefit vouchers in a manner which will improve the interest earnings capability of their funds; and

“WHEREAS, the acceptable proposed method of financing public employees retirement funds will require the auditor of state to issue paper or electronic warrants for retiree benefits without regard to balances in the state treasury funds, but the state treasurer shall have sufficient balances on hand in order to redeem these warrants.”

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1977, No. 486, § 6: Mar. 18, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly that certain general accounting and budgetary procedures are outdated and should be changed in order to properly exercise fiscal responsibility in administering the affairs of state government, and that the immediate passage of this Act is necessary to implement such changes. Therefore an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 623, § 3: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that there is an immediate need to establish a more responsive and responsible State government and to establish executive authority in those areas in which executive responsibility presently lies, with a consequent saving of unnecessary administrative expenses for the taxpayers. Therefore, an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1979, No. 833, § 12: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the aforementioned sections of the General Accounting and Budgetary Procedures Law of Arkansas requires amendment to conform with legislation, and for more effective operations of state government. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1985, No. 324, § 6: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1985 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1985 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

Acts 1989, No. 402, § 7: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly that current State accounting and budgetary procedures cause considerable expense to and place undo restrictions on Institutions of Higher Education; that the recovery of general revenue fund balances from the Vocational-Technical Schools and the State Scholarship Assistance Grants Program restrict educational opportunities for the citizens of this State; and that the provisions of this Act will remedy such situations. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1989.”

Acts 1991, No. 21, § 6: Feb. 1, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly, that certain provisions of previous enactments of the Arkansas General Assembly providing for the preexpenditure voucher examination and approval of cash funds of the various State Agencies were not incorporated into the Arkansas Code of 1987 Annotated; that such provisions are vitally necessary in order to ensure that the expenditure of Cash Funds are processed in such a manner as to protect the financial integrity of the State; and that this Act will restore such previous enactments of law. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 860, § 10: Mar. 27, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly that no appropriation has been provided by the General Assembly for the implementation of amendment 74 to the Arkansas Constitution and that the distribution of the property taxes to be received by the State Treasurer must begin as soon as possible so that local school districts are not harmed. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1999, No. 714, § 5: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that the effective fiscal administration of the retirement systems covered by this act will be aided by the implementation of the act; and that for the effective administration of this act, it should become effective at the same time as the beginning of the State's fiscal year. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 1999.”

Acts 2001, No. 1453, § 49: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that proper and effective management requires that changes to the state's finance and accounting laws begin on the first day of the fiscal year and that if there is an extended recess of the General Assembly, the required ninety day period may extend past July 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2003, No. 656, § 10: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that proper and effective management requires that changes to the finance and accounting laws of the state begin on the first day of the fiscal year; that the changes being made are important to the financial well being of the state particularly during the difficult financial climate the state is currently facing; and that this act is immediately necessary to allow for the finance and accounting changes to go into effect on the first day of the fiscal year for the proper and effective management of this state. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2003.”

Acts 2005, No. 1149, § 2: Mar. 18, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the vouchers written on the Arkansas District Judge Retirement System should be paid at the time of presentment upon certification of the Chief Fiscal Officer of the State that funds are available; and that the expenses of the Arkansas District Judge Retirement System are a just expense of the state that must be paid. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2007, No. 177, § 15: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this bill affects the structure of the Arkansas District Judge Retirement System and the Arkansas Public Employees' Retirement System and the ideal time to make revisions to the retirement systems is at the beginning of the state's fiscal year. Therefore, an emergency is declared to exist and this act being necessary for the preservation of public peace, health, and safety shall become effective on July 1, 2007.”

19-4-1101. Examination and approval required.

  1. The expenditure of all funds deposited into the State Treasury shall be subject to examination and approval in the manner provided for by this subchapter before the proposed expenditure is approved for payment from such funds.
  2. Funds of state agencies which are not required by law to be deposited into the State Treasury shall be subject to the procedures as required by § 19-4-801 et seq.
  3. The Legislative Auditor shall have authority, in connection with any examination of the fiscal activities of any agency, to audit any of the funds of the agency.

History. Acts 1973, No. 876, § 15; 1979, No. 833, §§ 6, 7; A.S.A. 1947, § 13-341; Acts 1991, No. 21, § 2; 2001, No. 1453, § 27.

19-4-1102. [Repealed.]

Publisher's Notes. This section, concerning exemption from the preexpenditure voucher examination, was repealed by Acts 2001, No. 1453, § 28. The section was derived from Acts 1979, No. 623, § 1; A.S.A. 1947, § 13-341.1; Acts 1989, No. 402, § 1.

19-4-1103. Responsibilities of agency heads.

  1. It shall be the responsibility of each executive head of a state agency to establish adequate internal administrative procedures and controls to ensure prompt and accurate payment of obligations in order to promote good public relations and to take advantage of all available discounts. It shall also be the responsibility of each executive head of a state agency to establish adequate administrative procedures to ensure that all financial transactions of the agency are posted in the state's financial management system in accordance with procedures established by the Chief Fiscal Officer of the State.
  2. It shall also be the responsibility of the agency head to establish a system of pre-audit within his or her agency to ensure that checks and vouchers, before being released by the agency, are prepared in accordance with all applicable purchasing and fiscal laws and rules by performing the following functions. He or she shall determine that:
    1. Services, materials, supplies, and equipment received comply with specifications indicated on purchase documents;
    2. Quantities received, as being indicated on the invoice, agree with those shown on the receiving report;
    3. Unit prices agree with those indicated on the purchase documents;
    4. The extensions and footings of the invoice are correct;
    5. The voucher or check is prepared in sufficient time to take advantage of all available discounts being offered;
    6. Sufficient appropriation and funds are available for payment of the obligation; and
    7. The obligation was incurred in conformity with all purchasing and fiscal laws.
  3. It shall also be the responsibility of the agency head to establish that:
    1. Every voucher for a proposed disbursement is approved by the bonded disbursing officer of the agency issuing the voucher or by his or her authorized agent;
    2. An appropriation has been made to cover the proposed disbursement and that there is sufficient balance remaining in the appropriation account and in the fund against which it is drawn to ensure that the voucher can be converted into a valid warrant;
    3. The proposed disbursement has been drawn on the proper voucher form and the name and address of the disbursing agency and the name and address of the vendor or payee is properly identified on the voucher form;
    4. The proposed voucher is prepared in accordance with the established general accounting procedures relating to appropriation titles and codes and the proposed transactions are identified and classified in accordance with the administrative rules on the subject; and
    5. The voucher for the proposed disbursement is accompanied by proper supporting documentation, as evidence that the indebtedness has been incurred and that the amount for which the voucher is written corresponds with such evidence.

History. Acts 1973, No. 876, § 15; 1979, No. 833, §§ 6, 7; A.S.A. 1947, § 13-341; Acts 2001, No. 1453, § 29; 2019, No. 315, §§ 1724, 1725.

Amendments. The 2019 amendment substituted “fiscal laws and rules” for “fiscal laws, rules, and regulations” in the first sentence of the introductory language of (b); and substituted “rules” for “regulations” in (c)(4).

19-4-1104. Duty to examine and approve.

It shall be the duty of the Chief Fiscal Officer of the State to design the state's financial management system to provide reasonable assurances that financial transactions conform to the provisions of law and rules. He or she shall not be required to pass upon the propriety of any financial transaction if it is found to conform to the provisions of this subchapter. However, the Chief Fiscal Officer of the State may perform examinations of transactions to determine the propriety of the transactions in conformity with applicable laws and rules.

History. Acts 1973, No. 876, § 15; A.S.A. 1947, § 13-341; Acts 2001, No. 1453, § 30; 2019, No. 315, § 1726.

Amendments. The 2019 amendment substituted “rules” for “regulations” in the first and last sentences.

19-4-1105. Examination and approval generally.

Before any voucher for the disbursement of funds in the State Treasury is presented to the Auditor of State for the issuance of his or her warrant thereon, it shall be recorded in the state's financial management system in accordance with procedures established by the Chief Fiscal Officer of the State. The Auditor of State shall have the authority to perform an examination, under the procedures established in this section, as he or she deems advisable before issuing his or her warrant in the payment of the voucher.

History. Acts 1973, No. 876, § 15; 1985, No. 324, § 2; A.S.A. 1947, § 13-341; Acts 2001, No. 1453, § 31.

Cross References. Arkansas State Highway Employees' Retirement System Fund, § 19-5-918.

19-4-1106. Erroneous or improper payments.

The responsibility for recovery of erroneous or improper payments shall be with the state agency head or the bonded disbursing officer, or his or her designated bonded assistant; the Chief Fiscal Officer of the State, the Auditor of State, or the Treasurer of State shall not be liable under their surety bonds for any erroneous or improper payments so made.

History. Acts 1973, No. 876, § 15; A.S.A. 1947, § 13-341.

19-4-1107. Supporting documents generally.

Supporting documents for the disbursement of state funds shall include the following:

  1. In connection with purchasing procedure, the Chief Fiscal Officer of the State shall prescribe and define the necessary documents and other evidence which shall be for the purpose of determining whether the proper purchasing procedures have been complied with;
    1. In all instances when the evidences of indebtedness are represented by vendors' invoices, the agency shall retain in the permanent file of the business office of the agency the original invoice and corresponding documentation in accordance with procedures established by the Chief Fiscal Officer of the State.
    2. In those instances when the daily transactions with vendors are numerous, such as in the case of retail service station purchases, the Chief Fiscal Officer of the State may prescribe the use of monthly statements from the vendors as supporting documents for the vouchers;
  2. In connection with printing contracts provided for by the Arkansas Constitution and laws of this state, the supporting documents shall be those prescribed by the Auditor of State or by the Department of Finance and Administration as appropriate;
    1. In connection with the laws or rules governing travel, when individuals are reimbursed for expenses incurred for travel in connection with their official duties, the supporting papers shall be the forms or statements of such expenses prescribed by the Chief Fiscal Officer of the State.
    2. In the case of per diem or other expenses established by law, the disbursing officer shall attach to the vouchers issued in payment of such allowances a citation of his or her authority for making such payments;
    1. Any indebtedness or expense incurred in connection with an approved resolution of any state board or commission shall be made a part of the permanent minutes of the board or commission.
    2. Copies of the resolution or minutes authorizing any indebtedness or expense shall be attached to the vouchers issued in payment of any indebtedness or expense; and
      1. The Chief Fiscal Officer of the State shall prescribe the forms of the vouchers to be used and the procedure to be followed in making payments in instances when the General Assembly has authorized grants:
        1. To public schools, public welfare recipients, counties, and municipalities;
        2. For other purposes specifically provided for by law;
        3. For payments made to individuals under retirement systems; and
        4. For income tax refunds.
      2. The Chief Fiscal Officer of the State may review all disbursements to determine that the disbursements are issued in accordance with their respective appropriations and that there are sufficient funds to cover all the payments.
    1. In the case of vouchers written upon the Public School Fund for state equalization aid, the Auditor of State shall process warrants to pay the vouchers upon certification by the Chief Fiscal Officer of the State that funds are available from general revenues available for distribution or from other sources for the benefit of the Public School Fund with which to pay the warrants when they are presented for payment.
    2. In the case of payments made to welfare recipients under the welfare laws of this state, the approved list of welfare recipients may be certified directly to the Auditor of State, who shall approve the issuance of warrants upon certification by the Chief Fiscal Officer of the State that funds are available from general revenues available for distribution or from other sources for the benefit of the Department of Human Services Grants Fund Account of the Department of Human Services Fund with which to pay the warrants when they shall be presented for payment.
    3. In the case of vouchers written upon the Arkansas Public Employees’ Retirement System, the Arkansas Local Police and Fire Retirement System, the State Police Retirement System, the Arkansas Judicial Retirement System, and the Arkansas Teacher Retirement System funds for retiree benefits, the Auditor of State shall process paper or electronic warrants to pay the vouchers upon certification by the Chief Fiscal Officer of the State that funds are available from the Arkansas Public Employees' Retirement System, the Arkansas Local Police and Fire Retirement System, the State Police Retirement System, the Arkansas Judicial Retirement System, and the Arkansas Teacher Retirement System funds with which to pay the warrants when they shall be presented for payment.
    4. In the case of vouchers written upon the Uniform Tax Rate Trust Fund, the Auditor of State shall process warrants to pay the vouchers upon certification by the Chief Fiscal Officer of the State that funds are available for the benefit of the Uniform Tax Rate Trust Fund with which to pay the warrants when they shall be presented for payment.
    5. In the case of vouchers written upon specific funds receiving federal funding, according to the Cash Management Improvement Act of 1990, Pub. L. No. 101-453, Oct. 24, 1990, 104 Stat. 1058, agreement, the Auditor of State shall process warrants and the Treasurer of State shall redeem the warrants presented for payment upon notification by the Chief Fiscal Officer of the State that the state agency director has certified to the Chief Fiscal Officer of the State that:
      1. A federal fund transfer request has been completed and accepted by the federal funding source; and
      2. Federal funds will be transferred for the benefit of the state fund to pay the warrants.

History. Acts 1973, No. 876, § 15; 1977, No. 486, § 4; A.S.A. 1947, § 13-341; Acts 1997, No. 14, § 1; 1997, No. 860, § 4; 1999, No. 391, § 38; 1999, No. 714, § 1; 2001, No. 1453, § 32; 2003, No. 656, § 7; 2005, No. 1149, § 1; 2007, No. 177, § 5; 2019, No. 315, § 1727.

Amendments. The 2005 amendment inserted “the Arkansas District Judge Retirement System” twice in (6)(D).

The 2007 amendment deleted “the Arkansas District Judge Retirement System” following “the Arkansas Judicial Retirement System Fund” and following “the Arkansas Judicial Retirement System” in (6)(D).

The 2019 amendment substituted “rules” for “regulations” in (4)(A).

U.S. Code. The Cash Management Improvement Act of 1990, Pub. L. 101-453, Oct. 24, 1990, 104 Stat. 1058, referred to in this section, is codified as 31 U.S.C. §§ 6501, 6503, and 3335.

19-4-1108. Retention of documents.

  1. The original evidences of indebtedness, including documents prepared in connection with purchasing procedure, and all original contracts, invoices, statements, receipts, petty cash tickets, bank statements, cancelled checks drawn upon bank accounts, and other original supporting papers shall be retained in the permanent file of the business office of each state agency. These documents shall be kept in a safe place subject to audit and shall not be destroyed until authorization is given for their destruction by the Legislative Auditor.
  2. With the approval of the Legislative Auditor, a state agency may retain evidences, to satisfy record retention policies, of indebtedness and other contracts, invoices, statements, receipts, petty cash tickets, bank statements, cancelled checks drawn upon bank accounts, and other supporting papers by microform or a form of stored images in a computer system or other form of computer technology in lieu of retaining the originals of such documents.

History. Acts 1973, No. 876, § 15; A.S.A. 1947, § 13-341; Acts 1997, No. 541, § 2; 2001, No. 1453, § 33.

19-4-1109. Procurement contracts.

Each state agency which is authorized by law or under the purchasing procedures of this state to enter into contracts for the procurement of property, commodities, or services shall keep on file in their respective places of business copies of these contracts for public inspection or audit and shall make a copy of any such contract available to the Chief Fiscal Officer of the State when so required by him or her.

History. Acts 1973, No. 876, § 15; A.S.A. 1947, § 13-341; Acts 2001, No. 1453, § 34.

Subchapter 12 — Disbursement of Public Funds

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, in the enactment of the General Accounting Procedures Law of Arkansas, the Sixtieth General Assembly declared it to be the public policy that the State and all of its agencies be maintained in a sound financial basis, to provide for the adequate accounting for all fiscal transactions of the State, to provide for establishing rules, regulations and procedures for budget preparation, presentation, enactment, execution and defining powers and duties of the Chief Fiscal Officer and State Auditor and the State Treasurer in connection with the foregoing; and

“Whereas, in order to carry out the public policy, purposes, intent and provisions of the General Accounting Procedures Law of Arkansas and in order to accept, adapt and comply with the modern-day technological changes and innovations in budgetary, accounting, and fiscal procedures, it is necessary for the General Assembly to enact legislation providing for the same; and

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation to the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

“Whereas, it is the responsibility of the General Assembly to determine the programs, projects and services for which the State's revenues shall be expended and the priorities which should govern such expenditures; and

“Whereas, in order to discharge its responsibility the General Assembly and its interim committees, including the Legislative Council, has need of accurate data in order to make its determinations wisely; and

“Whereas, the General Assembly recognizes and accepts the principles, purposes and intent of the Revenue Stabilization Law of Arkansas and the General Accounting Procedures Law of Arkansas as they presently exist and further recognizes the validity of their provisions by virtue of Arkansas Supreme Court decisions; and

“Whereas, it is not the intention of the General Assembly to deviate from the purposes and intent of the Revenue Stabilization Law of Arkansas, but it is the intent of the General Assembly to strengthen the purpose of the Revenue Stabilization Law and the General Accounting Procedures Law of Arkansas by enacting the following legislation which embodies the holdings of prior Arkansas Supreme Court decisions affecting the General Accounting Procedures Law of Arkansas, now therefore … .”

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1979, No. 833, § 12: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the aforementioned sections of the General Accounting and Budgetary Procedures Law of Arkansas requires amendment to conform with legislation, and for more effective operations of state government. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1993, No. 1073, § 35: July 1, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly that the distribution of general revenues and the creation of the various funds and fund accounts are essential to be in force at the beginning of the state fiscal year and that in the event that the General Assembly extends beyond the sixty day limit, the effective date of this act would not begin at that time creating confusion and not permitting the agencies to implement those programs as approved by the General Assembly. Therefore an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1993.”

Acts 2001, No. 1453, § 49: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that proper and effective management requires that changes to the state's finance and accounting laws begin on the first day of the fiscal year and that if there is an extended recess of the General Assembly, the required ninety day period may extend past July 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

19-4-1201. Disbursing officers.

  1. For the purpose of compliance with the provisions of this subchapter, the following shall be designated as disbursing officers:
    1. The executive head of each state department;
    2. The executive head, or superintendent, of each state institution; and
    3. The executive secretary of each board or commission having such an officer.
  2. The board having charge of any institution may designate any other full-time employee to act instead of the executive head, and the executive head of any other agency may designate any other full-time employee to act in his or her stead.
  3. All these disbursing officers shall be required to furnish bond to the state in the manner provided by law.

History. Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340.

A.C.R.C. Notes. The operation of this section was suspended by adoption of a self-insured fidelity bond program for state officers, officials, and employees, effective July 20, 1987, pursuant to § 21-2-701 et seq. The subsection may again become effective upon cessation of coverage under that program. See § 21-2-703.

19-4-1202. Designation of disburser.

  1. In the event appropriations are made available to a state agency or to a nongovernmental agency or activity and no disbursing officer is provided for by law, the Chief Fiscal Officer of the State and the Auditor of State shall designate a person to act as disbursing officer and fix the amount of bond for such purposes.
  2. In the event that the General Assembly enacts legislation that provides for more than one (1) disbursing officer from a fund or fund account and there are insufficient funds available to finance all appropriations made therein, the Chief Fiscal Officer of the State shall certify the amount of funds and appropriations to be made available for each disbursing officer.

History. Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340; Acts 1993, No. 1073, § 17.

19-4-1203. Disbursing agents.

In the event the executive head of any state agency shall designate some full-time employee to act as his or her agent in the disbursement of funds under his or her control, then that agent may act without furnishing additional bond if the executive head of that agency shall notify the Chief Fiscal Officer of the State and the Auditor of State in writing of such designation.

History. Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340; Acts 2001, No. 1453, § 35.

19-4-1204. Bond required.

  1. The disbursement of any funds in the State Treasury, of federal funds granted to the state or any state agency, of bank funds of any state agency, of trust funds of any state agency, or of any other special funds belonging to any state agency shall be done only by a bonded official or bonded employee in the manner prescribed by law.
  2. Each disbursing officer or disbursing agent shall be required to furnish bond in the penal sum required by law or, in the absence of any law on the subject, in an amount fixed by the Chief Fiscal Officer of the State and the Auditor of State with a corporate surety company authorized to do business in this state and conditioned upon the faithful performance of his or her duties and for the proper accounting for all funds received and disbursed by him or her.

History. Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340.

A.C.R.C. Notes. The operation of subsection (b) of this section was suspended by adoption of a self-insured fidelity bond program for state officers, officials, and employees, effective July 20, 1987, pursuant to § 21-2-701 et seq. The subsection may again become effective upon cessation of coverage under that program. See § 21-2-703.

19-4-1205. Signature or facsimile.

The original copy of all checks drawn in connection with the disbursement of public funds for which the disbursing officer is responsible shall bear the manual signature of the disbursing officer or his or her authorized agent, or may contain or bear a mechanically produced facsimile signature of the disbursing officer or his or her authorized agent. Where the Chief Fiscal Officer of the State has determined that the executive head of a state agency has established adequate internal administrative procedures and controls pursuant to law, which determination shall be made only after the Chief Fiscal Officer of the State shall have consulted with the Legislative Auditor, he or she may grant an exemption from manual signatures to allow for a computer-produced digitized signature of the disbursing officer or his or her authorized agent.

History. Acts 1973, No. 876, § 14; 1979, No. 833, § 5; A.S.A. 1947, § 13-340; Acts 1997, No. 1087, § 1; 2001, No. 1453, § 36.

19-4-1206. Duties generally.

  1. The bonded disbursing officer for each state agency or the bonded disbursing officer for any regular or special fund provided for by the General Assembly shall be responsible and held accountable for the proper expenditure of the funds under his or her control.
  2. It shall be the responsibility and duty of each disbursing officer or agent to:
    1. Keep advised as to the availability of the appropriations and funds for which he or she is the disbursing officer and be informed as to the legality of and authority for any obligations which may be incurred before any disbursements are made;
    2. Keep advised as to the laws or administrative rules relating to general accounting procedures and restrictions for the disbursement of funds; and
    3. Certify that:
      1. Any disbursements which he or she may make are in accordance with the terms of any applicable contracts, purchasing procedure, or other authority;
      2. The services have been performed or the goods received; and
      3. The vendor or payee is entitled to the amount set forth in the check or voucher.

History. Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340; Acts 2019, No. 315, § 1728.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (b)(2).

19-4-1207. Duty to monitor finances.

It shall be the duty and responsibility of the head of the agency for which appropriations are authorized and of the agency's disbursing officer to:

  1. Be cognizant at all times of the resources available, including applicable fund balances, revenues, and other income, for financing the appropriations authorized by the General Assembly;
  2. See that no obligations shall be incurred which cannot be lawfully discharged from funds appropriated or available from other sources when they become due and payable; and
  3. Not operate the agency during any fiscal year from the then-current fiscal year's available resources at a level of operations that would require for the succeeding fiscal year funds in addition to those already authorized by the General Assembly.

History. Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340; Acts 2001, No. 1453, § 37.

19-4-1208. [Repealed.]

Publisher's Notes. This section, concerning quarterly allotment procedure, was repealed by Acts 2001, No. 1453, § 38. The section was derived from Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340.

19-4-1209. Compliance with other laws.

The disbursement of funds authorized by the General Assembly shall be limited to the appropriations and the funds made available for the support of such appropriations. The restrictions of the Arkansas Procurement Law, § 19-11-201 et seq., the Uniform Classification and Compensation Act, § 21-5-201 et seq., the Revenue Stabilization Law, § 19-5-101 et seq., and rules promulgated by the Department of Finance and Administration authorized by law shall be strictly complied with in the disbursement of the funds.

History. Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340; Acts 2019, No. 315, § 1729.

Amendments. The 2019 amendment substituted “rules” for “regulations” in the second sentence.

19-4-1210. Revenues insufficient to meet appropriations.

  1. The disbursements of funds shall be subject to the controls of the procedures authorized by this subchapter, other acts of the General Assembly, and rules established by the Department of Finance and Administration.
  2. In the event that during any fiscal year the governmental revenues available to the state or a state agency are not sufficient to cover the appropriations made by the General Assembly from such revenues, then:
    1. The bonded disbursing officer for each agency shall be responsible and held accountable for the incurring of any obligations and disbursements of any funds in behalf of the agency for which he or she acts as disbursing officer. It shall be his or her duty to keep advised as to the amount of governmental revenues available for the operation of his or her agency. Each such disbursing officer is prohibited from incurring any obligations in excess of the funds made available by this chapter and other laws providing revenues for any such agency, and all such disbursing officers shall be subject to the restrictions and limitations of this chapter;
    2. The Chief Fiscal Officer of the State shall exercise the powers of his or her office to enforce the fiscal laws of the state to prohibit deficit spending and to promulgate rules which will require that all agencies comply with such fiscal laws. He or she may require, whenever he or she deems necessary, a financial report from any agency. If any such financial report or any other available information of any agency which has appropriated funds or an agency which has both state and bank funds shall reveal that the agency is in financial distress, then he or she may direct that all of the funds of the agency, including any bank funds, shall be subject to approval under the provisions of this chapter;
    3. If during any year it is determined that the proposed disbursements exceed the amount approved for that year, then, upon direction of the Chief Fiscal Officer of the State, necessary reductions in proposed disbursements shall be made;
    4. If, in accomplishing the necessary reductions in disbursements, it shall be required to reduce the salaries of employees, the reductions shall be made in proportion to existing salaries, and the reductions shall be made in the salaries of all employees, including administrators and directors;
    5. The Chief Fiscal Officer of the State is directed to withhold all distributions of special and general revenues as prescribed in this chapter and in the Revenue Stabilization Law, § 19-5-101 et seq., at any time that a state agency fails to comply with the restrictive provisions of this chapter; and
    6. It is provided that the creditors of any agency shall have first consideration in connection with disbursement of the funds of the agency. If the funds of any agency become depleted to an extent that the creditors cannot be paid from funds on hand or which will become available during the same fiscal year, the Chief Fiscal Officer of the State shall direct the agency to stop incurring obligations until the funds on hand and the funds estimated to become available are sufficient to meet all such obligations.

History. Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340; Acts 2001, No. 1453, § 39; 2019, No. 315, §§ 1730, 1731.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (a) and the first sentence of (b)(2).

Subchapter 13 — Monitoring for Deficit Spending

Effective Dates. Acts 1983, No. 781, § 7: Mar. 24, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that due to the decline in projected revenue collections, and in view of the economic recession that has drastically reduced the growth in revenues required for the operation of essential services of government, that immediate steps must be taken to invoke rigid fiscal restraints to assure that essential governmental services and programs are operated on an orderly basis without creating circumstances that would make it necessary to discontinue or severely curtail the level of essential services of government during prolonged periods of time, and that the immediate passage of this Act is necessary to accomplish such purposes. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 2001, No. 1453, § 49: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that proper and effective management requires that changes to the state's finance and accounting laws begin on the first day of the fiscal year and that if there is an extended recess of the General Assembly, the required ninety day period may extend past July 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Identical Acts 2009, Nos. 605 and 606, § 27: Mar. 25, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the people of the State of Arkansas overwhelmingly approved the establishment of lotteries at the 2008 General Election; that lotteries will provide funding for scholarships to the citizens of this state; that the failure to immediately implement this act will cause a reduction in lottery proceeds that will harm the educational and economic success of potential students eligible to receive scholarships under the act; and that the state lotteries should be implemented as soon as possible to effectuate the will of the citizens of this state and implement lottery-funded scholarships as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 218, § 34: Feb. 26, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the stability of the Arkansas Scholarship Lottery is critical to the success of the Arkansas Academic Challenge Scholarship Program; that changes to the operational structure of the lottery are needed to improve the creditability and function of the lottery; and that this act is immediately necessary to ensure that the transition of lottery administration is as undisruptive as possible. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

19-4-1301. Legislative intent and purpose.

  1. This subchapter is intended to be an addition to the provisions of the General Accounting and Budgetary Procedures Law, § 19-4-101 et seq., and other fiscal laws of this state. This subchapter is enacted for the purpose of imposing additional duties and responsibilities upon the Chief Fiscal Officer of the State to monitor state expenditures and financial obligations in order to assure that all state agencies, programs, and services plan and use the funds provided or made available for the support of the essential services of government within their respective jurisdictions. This monitoring shall be done without incurring obligations or commitments which would exhaust the available funds within a time frame of less than twelve (12) months or which would create deficits.
  2. The General Assembly is cognizant of the economic recession that has reduced the growth of state revenues that are available for the operation of many of the programmed commitments or expansions of services of government. By this subchapter the General Assembly intends to strengthen the responsibilities and duties of the Chief Fiscal Officer of the State to provide for the planned and orderly, yet rigid, enforcement of the various laws of this state designed to protect against deficit spending.
  3. It is further the intent and purpose of this subchapter to mandate that all public officials, administrators, and employees charged with the responsibility of administering and disbursing state funds be held strictly accountable for the administration of the programs under their jurisdiction. Those officials, administrators, and employees shall periodically reevaluate and modify, if necessary, the various programs and services under their respective jurisdiction to assure the orderly providing of the greatest possible level of essential services and programs on a regular twelve-month basis, within the limitation of the funds available.
  4. The General Assembly further recognizes that many agencies may have to evaluate and curtail projected or planned program expansions. Many agencies may also have to exercise options to reduce the levels of existing services or program commitments to keep the projected expenditures for such programs or services within the limitations of funds estimated to be available therefor, as provided in this subchapter. It is the intention of the General Assembly that each state agency review its ongoing obligations and services and make the necessary adjustments to provide the greatest possible level of essential services commensurate with the funds available on a year-round, twelve-month basis.

History. Acts 1983, No. 781, § 1; A.S.A. 1947, § 13-374.

Cross References. Fiscal duties of Department of Finance and Administration, § 19-1-201 et seq.

19-4-1302. Provisions supplemental.

This subchapter is intended to be supplemental and in addition to the fiscal laws of this state and shall repeal only such laws and parts of laws as are specifically in conflict with it.

History. Acts 1983, No. 781, § 5; A.S.A. 1947, § 13-378.

19-4-1303. Exemptions.

Funds disbursed by the Arkansas Department of Transportation, the Arkansas State Game and Fish Commission, and the Office of the Arkansas Lottery and the funds appropriated in the general appropriation bill provided for in Arkansas Constitution, Article 5, § 30, shall be exempt from this subchapter.

History. Acts 1983, No. 781, § 6; A.S.A. 1947, § 13-379; Acts 2009, No. 605, § 17; 2009, No. 606, § 17; 2015, No. 218, § 16; 2017, No. 707, § 46.

Amendments. The 2009 amendment by identical acts Nos. 605 and 606 inserted “and the Arkansas Lottery Commission.”

The 2015 amendment substituted “Office of the Arkansas Lottery” for “Arkansas Lottery Commission”.

The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department”.

19-4-1304. Failure to conform to directives and mandates.

  1. If a state agency shall fail or refuse to conform to the directives and mandates of the Chief Fiscal Officer of the State to restrict or curtail its financial obligations or program commitments as intended by this subchapter, the agency head or members of the board or commission responsible therefor may be guilty of misfeasance in office or employment and may be removed from office by appropriate legal proceedings.
  2. The fact that it may be necessary for an agency to reduce existing levels of services in order to conform to orders or directives of the Chief Fiscal Officer of the State, as intended by this subchapter, shall not be lawful justification for failure to conform thereto.

History. Acts 1983, No. 781, § 3; A.S.A. 1947, § 13-376.

19-4-1305. Failure to perform duties.

If the Chief Fiscal Officer of the State fails to perform his or her duties as mandated under the provisions of this subchapter and within the time limitations set forth in it, he or she shall be guilty of misfeasance of his or her office and may be removed from office in the manner provided by law.

History. Acts 1983, No. 781, § 4; A.S.A. 1947, § 13-377.

19-4-1306. Procedures for monitoring agency expenditures and fiscal operations.

  1. In addition to the powers and duties provided under this chapter and other fiscal laws of the state, the Chief Fiscal Officer of the State shall invoke additional procedures to assure that all state agencies are operated on a planned and orderly basis of essential services within the limitations of funds available.
  2. In furtherance of the purposes of this subchapter, the Chief Fiscal Officer of the State shall institute the following additional procedures and controls:
    1. At least thirty (30) days prior to the commencement of each fiscal year, the Chief Fiscal Officer of the State shall make studies for the purpose of estimating the anticipated amount of general and special revenues to be made available for distribution under the provisions of the Revenue Stabilization Law, § 19-5-101 et seq., and for the support of agencies which derive their support from special revenues, for such fiscal year or such fiscal quarter, or for any calendar month if he or she deems it necessary. In addition, the Chief Fiscal Officer of the State shall compute the estimated amount of general revenues that will be available for distribution to the respective State Treasury accounts in accordance with the respective percentage distributions of general revenues authorized under the provisions of the Revenue Stabilization Law, § 19-5-101 et seq. It shall be the duty of each agency head responsible for administering special revenues or federal funds to notify the Chief Fiscal Officer of the State of any unusual events which would adversely affect the estimate of the moneys received upon which the agency is operating. Such notification shall be given immediately upon knowing of the existence of such events by agency heads;
    2. Upon completion of revenue estimates for each fiscal year or each fiscal quarter, or monthly if deemed necessary, the Chief Fiscal Officer of the State shall prepare schedules reflecting the estimated amount of general revenues to be available for distribution to the State Treasury funds and accounts for each of the agencies which share in the distribution of general revenue funds of the state, either in whole or in part. In addition, the Chief Fiscal Officer of the State may require the preparation of estimates from the administering agency or prepare estimates of the anticipated amount of special revenues to be available for distribution to those agencies which receive support from special revenues, from both general and special revenues, or from cash funds or other sources;
    3. After preparing the estimates and schedules for each fiscal year, fiscal quarter, or month, the Chief Fiscal Officer of the State shall review the annual operations budgets of each agency. The Chief Fiscal Officer of the State shall institute such controls as he or she deems necessary to modify or restrict the level of approved expenditures that may be incurred by each agency to assure that sufficient funds will be available to maintain a minimum level of essential services and programs by each agency without undue interruption or curtailment of the level of programs and essential services provided for any extended period during each fiscal year or which might create circumstances that would institute deficit spending to meet the obligations or services in excess of the funds available for the support thereof, as provided by law; and
    4. If the Chief Fiscal Officer of the State, in reviewing the annual operations budgets of any state agency, determines that the level of operations thereof or the projected commitment thereof is being operated in a manner that would impose serious curtailment of essential services or would create circumstances of deficit spending, then he or she shall immediately notify the head of the agency responsible for the operation of such services as to the curtailments and controls that should be instituted to bring the level of operations or services within the necessary fiscal restraints recommended by the Chief Fiscal Officer of the State.
  3. A copy of each directive issued pursuant to subdivision (b)(4) of this section shall be furnished to the Governor, to the Legislative Council, and to the Legislative Joint Auditing Committee.

History. Acts 1983, No. 781, § 2; A.S.A. 1947, § 13-375; Acts 2001, No. 1453, § 40.

Subchapter 14 — Construction of Buildings and Facilities

Cross References. Award of contracts for repairing, altering, or erecting buildings or other structures, § 22-9-201 et seq.

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, in the enactment of the General Accounting Procedures Law of Arkansas, the Sixtieth General Assembly declared it to be the public policy that the State and all of its agencies be maintained in a sound financial basis, to provide for the adequate accounting for all fiscal transactions of the State, to provide for establishing rules, regulations and procedures for budget preparation, presentation, enactment, execution and defining powers and duties of the Chief Fiscal Officer and State Auditor and the State Treasurer in connection with the foregoing; and

“Whereas, in order to carry out the public policy, purposes, intent and provisions of the General Accounting Procedures Law of Arkansas and in order to accept, adapt and comply with the modern-day technological changes and innovations in budgetary, accounting, and fiscal procedures, it is necessary for the General Assembly to enact legislation providing for the same; and

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation to the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

“Whereas, it is the responsibility of the General Assembly to determine the programs, projects and services for which the State's revenues shall be expended and the priorities which should govern such expenditures; and

“Whereas, in order to discharge its responsibility the General Assembly and its interim committees, including the Legislative Council, has need of accurate data in order to make its determinations wisely; and

“Whereas, the General Assembly recognizes and accepts the principles, purposes and intent of the Revenue Stabilization Law of Arkansas and the General Accounting Procedures Law of Arkansas as they presently exist and further recognizes the validity of their provisions by virtue of Arkansas Supreme Court decisions; and

“Whereas, it is not the intention of the General Assembly to deviate from the purposes and intent of the Revenue Stabilization Law of Arkansas, but it is the intent of the General Assembly to strengthen the purpose of the Revenue Stabilization Law and the General Accounting Procedures Law of Arkansas by enacting the following legislation which embodies the holdings of prior Arkansas Supreme Court decisions affecting the General Accounting Procedures Law of Arkansas, now therefore … .”

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1977, No. 813, § 6: Mar. 28, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly that certain general accounting and budgetary procedures are outdated and should be changed in order to properly exercise fiscal responsibility in administering the affairs of state government, and that the immediate passage of this Act is necessary to implement such changes. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 833, § 12: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the aforementioned sections of the General Accounting and Budgetary Procedures Law of Arkansas requires amendment to conform with legislation, and for more effective operations of state government. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1985, No. 365, § 15: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly that the clarification of certain fiscal transactions of the State is needed in order to more accurately reflect the condition of the State's assets at all times and to maintain the fiscal integrity of the State. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

Acts 1987, No. 758, § 6: Apr. 7, 1987. Emergency clause provided: “It is hereby found and declared that because of the large volume of proposed construction by taxing agencies and the confusion that now exists on a large scale concerning the handling of Bidding Procedures, to the detriment of contractors, subcontractors, the taxing agencies and the public, that the clarification made by this act is immediately needed to eliminate said confusion and resulting harmful effects on the public peace, health, safety and welfare. By reason thereof, an emergency is declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in force and after its passage and approval.”

Acts 1997, No. 961, § 5: Mar. 31, 1997. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that present laws relating to construction of projects by public institutions of higher education may, where substantial private funding of such projects is provided, create unnecessary delay in the review and implementation of such projects to the potential detriment of the public institution of higher education resulting in increased cost of the project and discouragement of donors of private funds to support such projects. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 214, § 5: Feb. 12, 2001. Emergency clause provided: “It is found and determined by the General Assembly that an inconsistency in the laws regarding bid bonds exist and causes confusion for contractors of the state for public works projects. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 1453, § 49: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that proper and effective management requires that changes to the state's finance and accounting laws begin on the first day of the fiscal year and that if there is an extended recess of the General Assembly, the required ninety day period may extend past July 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2001, No. 1626, § 2: Apr. 16, 2001. Emergency clause provided: “It is found and determined by the General Assembly that a more efficient management of funds available to state agencies and institutions of higher education may be accomplished by allowing solicitation, award and contracting for certain construction projects to be conducted in a manner which assures the timely, quality completion of the projects within the budget available; and that this legislation should take effect immediately to permit state agencies and public institutions of higher education utilizing the capital improvement project process and delivery method set forth in this legislation for the benefit of the agencies and institutions of higher education. Therefore, in order to further the operational efficiencies of state agencies and public institutions of higher education in construction of capital improvement projects, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2005, No. 859, § 4: Mar. 15, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that requirements in plans and specifications which require bidders and suppliers to hold membership in certain professional organizations limit the number of eligible bidders and suppliers for projects; that by requiring bidders and suppliers to hold membership in professional organizations, an entity may increase the possibility of certain bidders and suppliers receiving projects, which is an inequitable outcome; and that the state of Arkansas and its citizens will benefit from enhanced competition for bidders and suppliers on public construction projects. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Identical Acts 2009, Nos. 605 and 606, § 27: Mar. 25, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the people of the State of Arkansas overwhelmingly approved the establishment of lotteries at the 2008 General Election; that lotteries will provide funding for scholarships to the citizens of this state; that the failure to immediately implement this act will cause a reduction in lottery proceeds that will harm the educational and economic success of potential students eligible to receive scholarships under the act; and that the state lotteries should be implemented as soon as possible to effectuate the will of the citizens of this state and implement lottery-funded scholarships as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, No. 1405, § 57: Apr. 9, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the people of the State of Arkansas overwhelmingly approved the establishment of lotteries at the 2008 General Election; that the Eighty-seventh General Assembly adopted Acts 605 and 606 of 2009 that implemented lotteries and made corresponding revisions to the Arkansas Academic Challenge Scholarship Program; that this bill amends provisions of Acts 605 and 606 of 2009 pertaining to lotteries and the Arkansas Academic Challenge Scholarship Program; and that the failure to immediately implement this act will cause a reduction in lottery proceeds that will harm the educational and economic success of potential students eligible to receive scholarships under the act. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 218, § 34: Feb. 26, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the stability of the Arkansas Scholarship Lottery is critical to the success of the Arkansas Academic Challenge Scholarship Program; that changes to the operational structure of the lottery are needed to improve the creditability and function of the lottery; and that this act is immediately necessary to ensure that the transition of lottery administration is as undisruptive as possible. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 153: July 1, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Arkansas Building Authority, the Arkansas Science and Technology Authority, the Department of Rural Services, and the Division of Land Surveys of the Arkansas Agriculture Department are inefficiently structured; that this inefficient structuring causes an excessive and unnecessary cost to the taxpayers of the this state; and that this act is essential to alleviating that financial burden. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2015.”

Acts 2019, No. 82, § 23: July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the General Improvement Fund should no longer be utilized; that the Development and Enhancement Fund is necessary to complete unfinished state projects; and that this act is necessary to address infrastructure needs and unanticipated needs of the State of Arkansas. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-4-1401. Notice required.

In all instances wherein the state has any interest whatsoever in construction work requiring bids, the notice provisions of §§ 22-9-20122-9-204 shall be strictly complied with and observed. Nothing in this subchapter shall be construed to amend or repeal these statutes, except those emergency procedures provided by §§ 22-9-20122-9-204.

History. Acts 1973, No. 876, § 22; A.S.A. 1947, § 13-348; Acts 1999, No. 776, § 3.

19-4-1402. Contracts to be filed.

  1. Executed counterparts of all contracts entered into by any state agency with respect to proposed projects for new improvements or major repairs or additions to existing buildings and facilities shall be approved by and filed with the Building Authority Division before the issuance of any vouchers making payments under the contract, unless the contract is exempted from the jurisdiction of the Building Authority Division by a law or a rule promulgated under the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
    1. The boards of trustees of the University of Arkansas, Arkansas State University, University of Central Arkansas, Henderson State University, Arkansas Tech University, and Southern Arkansas University, respectively, are exempt from the requirements of this section requiring the filing of the contracts with the Building Authority Division.
    2. The governing boards of all other public institutions of higher education shall be exempt from the requirement for approval and filing of the contracts with the Building Authority Division:
      1. Upon approval of the Division of Higher Education; and
      2. If, prior to granting approval, the Division of Higher Education shall have reviewed and approved policies and procedures adopted by the governing boards of the public institutions of higher education with respect to bidding and construction of capital improvement projects.
    3. Nothing in this section shall prevent a public institution of higher education exempt under this subsection from entering into an agreement with the Building Authority Division to file its contracts with the Building Authority Division.
    1. All contracts for new improvements or major repairs or additions to existing buildings and facilities under this subchapter shall include a project disclosure statement prepared by the agency, board, commission, or public institution of higher education.
    2. The disclosure statement shall provide the estimated timeline, scope, and cost of the total project.
    3. The disclosure statement shall not be construed as authorizing any:
      1. Additional work which is beyond the scope of the bid documents; or
      2. Payment exceeding the contract amount.
  2. Nothing in this section shall prohibit any agency, board, commission, or public institution of higher education from executing contract amendments.

History. Acts 1973, No. 876, § 22; 1977, No. 813, § 2; A.S.A. 1947, § 13-348; Acts 1997, No. 294, § 1; 2001, No. 214, § 1; 2001, No. 961, § 3; 2005, No. 2186, § 1; 2009, No. 193, §§ 1, 2; 2015 (1st Ex. Sess.), No. 7, § 10; 2015 (1st Ex. Sess.), No. 8, § 10; 2019, No. 910, § 2255.

A.C.R.C. Notes. Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 1, provided: “Transfer of the Arkansas Building Authority to the Department of Finance and Administration.

“(a)(1) The Arkansas Building Authority is transferred to the Department of Finance and Administration by a type 2 transfer under § 25-2-105.

“(2) For the purposes of this act, the Department of Finance and Administration shall be considered a principal department established by Acts 1971, No. 38.

“(b) All authority, powers, duties, functions, records, personnel, property, unexpended balances of appropriations, allocations, and other funds, including the functions of budgeting or purchasing, are transferred to the Department of Finance and Administration, except as specified by this act.

“(c) All powers, duties, and functions, including rulemaking, regulation, and licensing, promulgation of rules, rates, regulations, and standards, and the rendering of findings, orders, and adjudications are transferred to the Director of the Department of Finance and Administration.

“(d) The members of the Arkansas Building Authority Council, and their successors, shall continue to be selected in the manner and serve for the terms provided by the statutes applicable to the council except as specified in this act.

“(e) The Arkansas Code Revision Commission shall make appropriate name changes in the Arkansas Code to implement this act.”

Amendments. The 2005 amendment substituted “the Arkansas Building Authority” for “Arkansas State Building Services” in (a)(1); substituted “the authority” for “Arkansas State Building Services” in (a)(1) and throughout (b); redesignated former (b)(2)(A) as present (b)(2) and made related changes; in (b)(2)(B), substituted “If” for “Provided, that,” deleted “such” preceding “approval” and inserted “of the institutions”; rewrote (b)(3); and added (c) and (d).

The 2009 amendment inserted “approved by and” in (a), inserted “the requirement for approval and” in (b)(2); and made minor stylistic changes.

The 2015 amendment by Acts 2015 (1st Ex. Sess.), Nos. 7 and 8 substituted “division” for “authority” throughout the section; and substituted “Building Authority Division of the Department of Finance and Administration” for “Arkansas Building Authority” in (a).

The 2019 amendment substituted “Building Authority Division” for “division” in (a), (b)(1), (b)(2), and twice in (b)(3); deleted “of the Department of Finance and Administration” following “Building Authority Division” in (a); and substituted “Division of Higher Education” for “Department of Higher Education” in (b)(2)(A) and (B).

19-4-1403. Agencies exempted.

The provisions of this subchapter shall not be applicable to the State Highway Commission and the Arkansas Department of Transportation.

History. Acts 1973, No. 876, § 22; 1977, No. 813, § 2; A.S.A. 1947, § 13-348; Acts 2017, No. 707, § 47.

Amendments. The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department”.

19-4-1404. Forces employed.

  1. Whenever any agency of the state shall determine to construct any buildings and facilities or to make any repairs or additions to existing buildings and facilities and there are funds available for these purposes, then the agency shall have the authority to undertake any such project by the employment and use of its own forces, or by contract, or in part by its own forces and in part by contract, all as in its opinion shall be in the best interest of the state. For this purpose, the agency may employ architects.
  2. The provisions of this section shall not apply to any city, town, county, or school district within this state.

History. Acts 1973, No. 876, § 22; A.S.A. 1947, § 13-348.

19-4-1405. Bidding procedure — Definition.

      1. After a state agency has caused the preparation and has approved plans and specifications, it shall then proceed to advertise for bids for the contemplated work by the publication of notice one (1) time each week for not less than two (2) consecutive weeks for projects over the amount of fifty thousand dollars ($50,000), and shall proceed to advertise for bids one (1) time each week for not less than one (1) week for projects more than the quote bid and less than or equal to fifty thousand dollars ($50,000).
        1. This notice shall be published in a newspaper of general circulation published in the county in which the proposed improvements are to be made or in a trade journal reaching the construction industry.
        2. The last insertion shall be not less than one (1) week prior to the date on which the bids are to be received.
    1. The notice shall:
      1. Provide for the receipt of sealed bids;
      2. Set forth the time and place in which the bids will be received;
      3. Specify from whom copies of the plans and specifications and a draft of the proposed contract may be obtained for examination;
      4. Contain the amount of the bid security; and
      5. Contain such other information and requirements as, in the opinion of the state agency, may be necessary or desirable.
    1. On the date and time fixed in the notice, the state agency shall open, tabulate, and compare bids, and award the contract to the lowest responsible bidder.
    2. However, the state agency shall have the right to reject any or all bids and to waive any formalities.
    1. The successful bidder shall be required to furnish bonds to the State of Arkansas, with corporate guaranty or indemnity sureties on the bonds.
      1. The bonds shall be both for the completion of the construction free of all liens and encumbrances, in an amount fixed by the Building Authority Division, and for the protection of the state agency and its members against all liability for injury to persons or damage to, or loss of, property arising, or claimed to have arisen, in the course of the work project, within limits fixed by the division.
      2. However, for projects undertaken by public institutions of higher education, the bonds shall be in an amount and within limits fixed by the governing board of the public institution of higher education.
      1. Every bid submitted on state agency construction contracts for projects over the amount stated in § 22-9-203 is void unless accompanied by a cashier's check drawn upon a bank or trust company doing business in this state or by a corporate bid bond and the agent's power of attorney as his or her authority.
      2. Bid security is not required for projects under or equal to the amount stated in § 22-9-203.
    1. The bid security shall indemnify the public against failure of the contractor to execute and deliver the contract and necessary bonds for faithful performance of the contract.
    2. The bid security shall provide that the contractor or surety must pay the damage, loss, cost, and expense subject to the amount of the bid security directly arising out of the contractor's default in failing to execute and deliver the contract and bonds.
    3. Liability under this bid security shall be limited to five percent (5%) of the amount of the bid.
      1. When it is obvious from examination of the bid document that it was the intent of a bidder to submit a responsive bid and because of a scrivener's error, the bid, if accepted, would create a serious financial loss to the bidder, the Secretary of the Department of Transformation and Shared Services may relieve the bidder from responsibility under his or her bond and may reject the bid.
      2. However, for projects undertaken by public institutions of higher education exempt from review and approval of the division, the chief executive officer of the public institution of higher education or his or her designee may relieve the bidder from responsibility under his or her bond and may reject his or her bid in the same manner and within the same period as allowed by the division.
    1. As used in this section, “scrivener's error” means:
      1. An error in the calculation of a bid which can be documented by clear and convincing written evidence and which can be clearly shown by objective evidence drawn from inspection of the original work papers, documents, or materials used in the preparation of the bid sought to be withdrawn; and
      2. In the case of a bid sought to be withdrawn, the bid was submitted in good faith and the mistake was due to a calculation or clerical error, an inadvertent omission, or a typographical error as opposed to an error in judgment.
      1. To receive relief under subdivision (e)(1) of this section, the bidder must serve written notice to the secretary or to the chief executive officer or his or her designee of a public institution of higher education exempt from review and approval of the division any time after the bid opening, but no later than seventy-two (72) hours after receiving the intent to award, excluding Saturdays, Sundays, and holidays.
      2. Failure to make a withdrawal request within seventy-two (72) hours shall constitute a waiver by the bidder of the bidder's right to claim that the mistake in his or her bid was a scrivener's error.
    2. In the event the secretary or the chief executive officer or his or her designee of a public institution of higher education exempt from review and approval of the division has relieved the bidder from responsibility under his or her bond, action on the remaining bids should be considered as though the withdrawn bid had not been received.
    1. A state agency shall not require in plans or specifications that a bidder or supplier:
      1. Hold membership in any professional or industry associations, societies, trade groups, or similar organizations;
      2. Possess certification from any professional or industry associations, societies, trade groups, or similar organizations as steel building fabricators; or
      3. Be endorsed by any professional or industry associations, societies, trade groups, or similar organizations.
    2. However, plans and specifications may include or reference standards adopted by professional or industry associations, societies, trade groups, or similar organizations.

History. Acts 1973, No. 876, § 22; 1985, No. 365, § 11; A.S.A. 1947, § 13-348; Acts 1987, No. 758, § 1; 1995, No. 1319, § 1; 1997, No. 1193, § 2; 1999, No. 219, § 2; 2001, No. 214, §§ 2, 3; 2001, No. 961, §§ 4, 5; 2003, No. 364, §§ 4, 19; 2005, No. 859, § 1; 2009, No. 193, §§ 3, 4; 2019, No. 658, § 2; 2019, No. 910, §§ 3454-3456, 6083.

Amendments. The 2005 amendment added (f).

The 2009 amendment substituted “security” for “bond” in (a)(2)(D) and (d)(1)(B).

The 2019 amendment by No. 658 substituted “stated in § 22-9-203” for “of twenty thousand dollars ($20,000)” in (d)(1)(A) and (d)(1)(B); and made stylistic changes.

The 2019 amendment by No. 910 deleted “of the Department of Finance and Administration” following “Building Authority Division” in (c)(2)(A); substituted “Secretary of the Department of Transformation and Shared Services” for “Director of the Department of Finance and Administration” in (e)(1)(A); and substituted “secretary” for “director” in (e)(3)(A) and (e)(4).

19-4-1406. [Repealed.]

Publisher's Notes. This section, concerning concurrence by architects on the construction of buildings and facilities, was repealed by Acts 2003, No. 364, § 5. The section was derived from Acts 1973, No. 876, § 22; 1977, No. 813, § 3; A.S.A. 1947, § 13-348.

19-4-1407. Method of financing.

  1. Before any state agency shall enter into any contract of employment with an architect or take any other affirmative action toward the construction or financing of any project as provided in this subchapter, it shall submit to the Chief Fiscal Officer of the State, in writing, a summary statement setting forth:
    1. A general description of the proposed project;
    2. Its estimated overall costs; and
    3. The method it proposes to use to finance its cost, which is to be a method of financing that must be approved by the Governor.
  2. After examining the method of financing and making such investigation as he or she shall deem necessary or advisable, the Chief Fiscal Officer of the State shall notify the agency, in writing, of his or her and the Governor's approval or disapproval of the method of financing the project. In the event of disapproval by the Chief Fiscal Officer of the State and the Governor, the agency may submit an alternate plan of financing the project. In any event, no affirmative action shall be taken by the agency unless and until a method of financing shall be approved by the Governor and the Chief Fiscal Officer of the State. The Chief Fiscal Officer of the State shall have no authority to pass upon the need for any such construction, such authority being vested solely in the agency.
  3. The method of financing as required by this subchapter shall include estimated dates for commencing and completing the project. After the contracts for the project have been awarded, then the method of financing shall be amended to include the estimated dates of completion in accordance with the awarded contracts.

History. Acts 1973, No. 876, § 22; 1975, No. 985, § 1; A.S.A. 1947, § 13-348.

19-4-1408. Matching funds.

  1. In the event funds provided by the state for projects regulated in this subchapter are subject to matching provisions, the Chief Fiscal Officer of the State shall require in the proposed method of financing that all of the funds or approved grants available for the proposed project, including state, federal, and agency funds, shall be considered in connection with preliminary planning and the awarding of contracts in connection with the project.
  2. In those instances where construction projects utilize funds other than those deposited into the State Treasury, the Chief Fiscal Officer of the State shall prescribe the procedure for payments from all other funds made available to the agency.

History. Acts 1973, No. 876, § 22; A.S.A. 1947, § 13-348; Acts 2001, No. 1453, § 41.

19-4-1409. Use of other funds.

  1. No state agency for which appropriations have been made by the General Assembly for construction and improvements shall make any contract or incur any indebtedness payable from those appropriations unless and until there are sufficient funds on hand or, in the case of federal grants, until the grant has received final approval from the granting federal agency for the benefit of the state agency to pay for the proposed obligations under the contracts. However, any agency shall have the power to accept and use grants and donations and to use its unobligated cash income and other funds available to it for the purpose of supplementing appropriations for construction purposes.
  2. The appropriations and funds otherwise provided by the General Assembly for personal services, maintenance, and general operation of the agency shall not be used in connection with any proposed construction projects for which specific appropriations have been made by the General Assembly.

History. Acts 1973, No. 876, § 22; A.S.A. 1947, § 13-348.

19-4-1410. Completion of contracts.

Upon completion of each contract awarded for the fulfillment of a project authorized by the General Assembly:

  1. The affected state agency shall notify the Department of Finance and Administration of the culmination of the contract;
  2. No further expenditures or obligations will be incurred; and
  3. The unexpended and unobligated funds shall be impounded.

History. Acts 1973, No. 876, § 22; 1975, No. 985, § 1; A.S.A. 1947, § 13-348.

19-4-1411. Processing of payments.

    1. When a contractor submits a properly prepared request for payment of work completed on state construction projects and the request for payment conforms with the provisions of the contract award and laws of the State of Arkansas, the following maximum time is allowed for the processing of the payment requests by the various parties involved, excluding time required for transmittal from one (1) party to another:
      1. A design professional — five (5) working days;
      2. A state agency or institution of higher education exempt from review and approval by the Building Authority Division — five (5) working days, including preparation of a voucher and submission for payment; and
      3. The Department of Finance and Administration — five (5) working days.
    2. Should payment be contested by any of the parties listed in this subsection, it shall be the responsibility of the parties contesting the payment, within the time specified for processing payment, to notify the contractor involved that payment has been contested and reasons therefor.
    3. Should any of the parties listed in this subsection fail to properly process uncontested requests for payments within the time limits specified following date of receipt, a penalty of eight percent (8%) per annum of the amount of the request for payment shall be assessed against the parties responsible for the delay.
    1. The Chief Fiscal Officer of the State shall establish procedures for monitoring payments to contractors. When it has been determined that payment processing has exceeded the time limits established in this section, the Chief Fiscal Officer of the State shall cause an investigation to be made for the purpose of determining the responsible parties and the amount of penalty to be paid.
    2. Penalties assessed for failure to comply with the provisions in this section shall be paid to the contractor by the parties responsible in accordance with procedures established by the Chief Fiscal Officer of the State.

History. Acts 1973, No. 876, § 22; 1977, No. 813, § 3; 1979, No. 833, § 9; A.S.A. 1947, § 13-348; Acts 2001, No. 214, § 4; 2001, No. 961, § 6; 2003, No. 364, § 6; 2019, No. 910, § 6084.

Amendments. The 2019 amendment deleted “of the Department of Finance and Administration” following “Building Authority Division” in (a)(1)(B).

19-4-1412. Fund balances.

  1. If, after the expiration date of the second biennial period for which funds have been appropriated for the benefit of any specific capital improvement project, there remains a balance of funds or appropriations, then such fund balances as may remain in the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund, for the benefit of the capital improvement project shall be reallocated for the benefit of proposed new or existing capital improvement projects of the various state agencies as may be enacted.
  2. Nothing in this section shall be construed as to limit the authority of the General Assembly to appropriate funds for the benefit of any proposed new or existing capital improvement project of the various state agencies.

History. Acts 1973, No. 876, § 22; 1977, No. 641, § 1; A.S.A. 1947, § 13-348; Acts 2019, No. 82, § 7.

A.C.R.C. Notes. Acts 2019, No. 82, § 1, provided: “Legislative intent.

It is the intent of the General Assembly that the creation of the Development and Enhancement Fund is necessary to provide a mechanism to disburse funds for:

“(1) Various construction and improvement projects;

“(2) Unforeseen needs;

“(3) Funding deficiencies; and

“(4) The completion of projects previously funded by the General Assembly”.

Amendments. The 2019 amendment inserted “or its successor fund or fund accounts, including the Development and Enhancement Fund” in (a).

19-4-1413. Projects constructed with private funds.

  1. In the event funds from private sources are provided to a public institution of higher education for projects which exceed five million dollars ($5,000,000) regulated in this subchapter sufficient to finance at least eighty percent (80%) of the estimated cost of the proposed project, excluding the cost of land, the provisions of this subchapter and of all other provisions of the Arkansas Code governing construction of public facilities, including, but not limited to, the provisions of §§ 22-9-101 and 22-9-103 and §§ 22-9-201 — 22-9-212, shall not be applicable to such projects, subject to the following:
        1. The governing board of the public institution of higher education shall have adopted a resolution and procedure setting forth the method by which the architect, engineer, construction manager, contractor, and major subcontractors are to be selected for the project.
        2. The procedure shall include by appropriate public notice and solicitation the opportunity for qualified, licensed professionals to submit proposals and shall assure the design and completion of the project in an expeditious manner while adhering to high standards of design and construction quality.
        3. Such procedures shall require a payment and performance bond in an amount determined by the governing board and shall provide for the manner in which the construction shall be managed and supervised.
      1. In selecting a contractor and other professionals for the projects, the governing board shall consider the experience of the person or firm in constructing similar projects, the record of the person or firm in timely completion of such projects, and other similar matters to assure that the person or firm will complete the project within the time and to the specifications set by the governing board;
      1. Before the public institution of higher education shall enter into a contract with an architect, engineer, construction manager, or contractor for the design, construction, or financing of any project financed from private funds as provided in this section, it shall submit to the Chief Fiscal Officer of the State and the Legislative Council, in writing, a summary statement setting forth a general description of the proposed project, its estimated overall cost, and the method proposed to finance the cost, including a description of the sources and amount of private funds.
      2. The Chief Fiscal Officer of the State may forward a copy of this statement to the Building Authority Division, the Secretary of the Department of Transformation and Shared Services, and the Governor for information; and
    1. To enable a public institution of higher education to qualify under this subsection, the private funds shall be paid to the public institution of higher education or to a fund or foundation for the benefit of the public institution of higher education, and such funds may be represented in whole or in part by a written pledge or commitment from a donor, provided that the public institution of higher education shall assure itself of the financial stability of such donor to fulfill the pledge or commitment.
  2. Notwithstanding anything in this section to the contrary, the provisions of § 19-4-1405(f), § 22-9-301 et seq. [repealed], §§ 22-9-401 — 22-9-404, § 22-9-501 et seq., § 22-9-601 et seq., and § 22-9-701 et seq. shall remain in full force and effect and shall not be affected by this section.

History. Acts 1997, No. 961, § 1; 2005, No. 859, § 2; 2019, No. 910, § 6085.

Amendments. The 2005 amendment inserted “§ 19-4-1405(f)” in (b).

The 2019 amendment substituted “the Secretary of the Department of Transformation and Shared Services” for “of the Department of Finance and Administration” in (a)(2)(B).

Case Notes

Constitutionality.

Arkansas Constitution, Art. 19, § 16, applied only to county contracts. Therefore, this section and § 19-4-1415, which allowed for state contracts to be let without competitive bidding in certain circumstances, were not unconstitutional under § 16. Gatzke v. Weiss, 375 Ark. 207, 289 S.W.3d 455 (2008).

19-4-1414. [Repealed.]

Publisher's Notes. This section, concerning performance-based efficiency contracts, was repealed by Acts 2005, No. 1761, § 2. The section was derived from Acts 2001, No. 1547, § 1.

19-4-1415. Projects exceeding five million dollars.

  1. In the event funds from any sources are provided to state agencies for projects which exceed five million dollars ($5,000,000), excluding the cost of land, the provisions of this subchapter and all other provisions of the Arkansas Code governing construction of public facilities, including, but not limited to, the provisions of § 22-9-201 et seq., at the election of state agencies or the institutions of higher education set forth in subdivision (b)(5) of this section shall not be applicable to the projects if the selection and contracting process set forth in this section is followed.
    1. No contract for projects between the state agency and the construction manager, general contractor, architect, or engineer shall be entered into without first obtaining approval of the Building Authority Division and review by the Legislative Council.
    2. The division shall have involvement in the selection and contract process from the project inception.
    3. There shall be separate contracts for design and construction services.
    4. The division shall have the authority to promulgate rules pertaining to the process for awarding and overseeing the contracts.
    5. The Board of Trustees of the University of Arkansas and the Board of Trustees of Arkansas State University shall be exempt from review and approval by the division and any rules promulgated by it, provided that the Board of Trustees of the University of Arkansas and the Board of Trustees of Arkansas State University have adopted policies and procedures involving the awarding and oversight of the contracts for design and construction services.
    6. All procedures pertaining to the contracts shall provide, to the extent practicable, substantial uniformity between these institutions with respect to the policies and procedures to be followed.
    1. For all projects contemplated or contracted for, the division shall:
      1. Review and approve the advertisement as stated in subsection (d) of this section, the scope of work, the site selection, funding review, and, to the extent available, all project drawings, plans, and specifications prior to any solicitation of proposals for the project;
      2. Conduct on-site observations of the construction project on a regular basis and maintain project records; and
        1. Review and approve all contract amendments.
        2. State agencies shall submit a summary of all contract amendments to the Legislative Council.
      1. The institutions of higher education stated in subdivision (b)(5) of this section shall perform all duties and responsibilities stated in subdivision (c)(1) of this section under policies and procedures adopted by their governing boards.
      2. They shall submit a summary of all contract amendments to the Legislative Council.
    1. The selection procedures for the construction manager, general contractor, architect, or engineer shall provide for solicitation for qualified, licensed professionals to submit proposals.
    2. The procedures shall assure the design and completion of the project in an expeditious manner while adhering to high standards of design and construction quality.
    3. The state agency and each institution of higher education stated in subdivision (b)(5) of this section shall:
      1. Publish notice of its intention to receive written proposals three (3) consecutive days in a newspaper of statewide distribution;
      2. Allow a minimum of ten (10) working days for the professionals to send letters or resumes in response to newspaper advertisement; and
      3. Provide additional means of notification, if any, as the state agency or institution of higher education stated in subdivision (b)(5) of this section shall determine is appropriate.
      1. A preselection committee, which shall be composed of no more than three (3) members from the state agency and two (2) members from the division, shall review the proposals.
      2. A preselection committee for institutions of higher education stated in subdivision (b)(5) of this section shall consist of at least three (3) members as determined by each of the institutions, and the members may be from the division.
      3. The preselection committee shall select a maximum of five (5) applicants and schedule interviews.
      4. The state agency or an institution of higher education as stated in subdivision (b)(5) of this section shall notify the finalists of their status.
      1. The final selection committee shall be composed of the three (3) members from the state agency on the preselection committee.
      2. The final interviews shall be held at the time and date as designated by the final selection committee.
      3. Representatives of the division may attend the final selection meeting, but shall not vote in the final selection process.
      4. The final selection committee for institutions of higher education stated in subdivision (b)(5) of this section shall consist of at least three (3) members as determined by each of the institutions.
      5. Members of a preselection committee may also serve as members of the final selection committee of the institutions.
      6. In selecting a general contractor, construction manager, architect, or engineer, the state agency or institution of higher education as stated in subdivision (b)(5) of this section shall consider its established criteria which shall include, but are not limited to, the following:
        1. The experience of the professional or professionals in similar projects;
        2. The record of the professional or professionals in timely completion of the projects with high quality workmanship; and
        3. Other similar matters to determine that the professional or professionals will complete the project within the time and budget and to the specifications set by the state agency or institution of higher education as stated in subdivision (b)(5) of this section.
      1. The final selection committee shall select or make a formal recommendation to its governing body of the professional or professionals which it determines to be in the best interest of the state.
      2. Contracts for architectural, engineering, and land surveying professional consultant services shall be negotiated on the basis of demonstrated competence and qualifications for the type of services required and at fair and reasonable prices without the use of competitive bidding, and no rule shall inhibit the agency's authority to negotiate fees for the services.
      3. The final selection committee for the institutions of higher education as stated in subdivision (b)(5) of this section shall make a recommendation to its governing board or appropriate committee thereof of the professional or professionals which it determines to be in the best interest of the institution, and the governing board shall make the final decision and authorize the contract or contracts to be negotiated and awarded, unless it has delegated the action to a committee of the board.
    1. Construction contracts for the projects shall not be entered into without a payment and performance bond in the amount of the contract and any amendments thereto and shall provide for the manner in which the construction shall be managed and supervised.
    2. All project architects and engineers shall be properly licensed in accordance with the Arkansas State Board of Architects, Landscape Architects, and Interior Designers and the State Board of Licensure for Professional Engineers and Professional Surveyors.
    3. The construction manager or general contractor shall be properly licensed by the Contractors Licensing Board.
      1. All subcontractors on the project shall be properly licensed by the Contractors Licensing Board.
      2. Any person who is not considered a contractor under § 17-25-101 et seq. may continue to perform subcontracting work under the provisions of this subchapter.
    1. To enable a state agency or an institution of higher education as stated in subdivision (b)(5) of this section to qualify under this section, the funds shall be paid to or for the benefit of the state agency or institution of higher education, or to a fund or foundation for the benefit of the state agency or institution of higher education.
    2. The funds may be represented in whole or in part by a written pledge or commitment from a donor, provided that the state agency or institution of higher education shall assure itself of the financial stability of the donor to fulfill the pledge or commitment.
  2. All projects constructed pursuant to this section, to the extent applicable, shall be in accordance and compliance with:
    1. Section 17-38-101 et seq., regulating plumbers;
    2. Section 17-33-101 et seq., regulating the heating, ventilation, air conditioning, and refrigeration industry;
    3. The Fire Prevention Act, § 12-13-101 et seq.;
    4. Section 12-80-101 et seq., regarding earthquake resistant design for public structures;
    5. Americans with Disabilities Act Accessibility Guidelines, 28 C.F.R. Part 36, Appx. A, adopted by the division; and
      1. The minimum standards of the division and criteria pertaining to projects constructed under this section.
        1. However, institutions of higher education as stated in subdivision (b)(5) of this section shall be exempt from these standards and criteria, provided that the institutions shall have adopted policies and procedures involving the awarding and oversight of contracts for projects under this section.
        2. It is the intention of this section that all procedures adopted by these institutions pertaining to the contracts shall provide, to the extent practicable, substantial uniformity between these institutions with respect to the policies and procedures to be followed.
        3. Notwithstanding anything in this subsection to the contrary, the provisions of § 19-4-1405(f), §§ 19-4-1413, 19-11-801, 22-9-101, 22-9-103, 22-9-104, 22-9-212, 22-9-213, § 22-9-301 et seq. [repealed], § 22-9-401 et seq., § 22-9-501 et seq., § 22-9-601 et seq., and § 22-9-701 et seq. shall remain in full force and effect and shall not be affected by this section.

History. Acts 2001, No. 1626, § 1; 2003, No. 364, § 7; 2003, No. 1315, § 2; 2005, No. 859, § 3; 2009, No. 193, § 5; 2009, No. 605, § 18; 2009, No. 606, § 18; 2009, No. 1405, § 26; 2015, No. 218, § 17; 2015 (1st Ex. Sess.), No. 7, §§ 11-13; 2015 (1st Ex. Sess.), No. 8, §§ 11-13; 2019, No. 315, §§ 1732, 1733; 2019, No. 910, § 6086.

A.C.R.C. Notes. Acts 2010, No. 256, § 7, provided: “CONSTRUCTION. The Board of Trustees of Henderson State University shall be included as an exempt institution related to projects exceeding five million dollars ($5,000,000) provided that the institution shall have adopted policies and procedures involving the awarding and oversight of the contracts for design and construction services in compliance with State Law.”

Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 1, provided: “Transfer of the Arkansas Building Authority to the Department of Finance and Administration.

“(a)(1) The Arkansas Building Authority is transferred to the Department of Finance and Administration by a type 2 transfer under § 25-2-105.

“(2) For the purposes of this act, the Department of Finance and Administration shall be considered a principal department established by Acts 1971, No. 38.

“(b) All authority, powers, duties, functions, records, personnel, property, unexpended balances of appropriations, allocations, and other funds, including the functions of budgeting or purchasing, are transferred to the Department of Finance and Administration, except as specified by this act.

“(c) All powers, duties, and functions, including rulemaking, regulation, and licensing, promulgation of rules, rates, regulations, and standards, and the rendering of findings, orders, and adjudications are transferred to the Director of the Department of Finance and Administration.

“(d) The members of the Arkansas Building Authority Council, and their successors, shall continue to be selected in the manner and serve for the terms provided by the statutes applicable to the council except as specified in this act.

“(e) The Arkansas Code Revision Commission shall make appropriate name changes in the Arkansas Code to implement this act.”

Amendments. The 2003 amendment by No. 364 substituted “Arkansas Building Authority” or “the authority” for “Arkansas State Building Services” throughout the section; rewrote (c)(1)(B); and deleted “and payments” from the end of (c)(1)(C)(i).

The 2003 amendment by No. 1315 substituted “architectural, engineering, and land surveying professional consultant services” for “professional services” in (e)(3)(B).

The 2005 amendment inserted “§ 19-4-1405(f)” in (h)(6)(B)(iii).

The 2009 amendment by No. 193 inserted “22-9-212” in (h)(6)(B)(iii).

The 2009 amendment by identical acts Nos. 605 and 606 inserted “and the Arkansas Lottery Commission” in (b)(5), and made a related change.

The 2009 amendment by No. 1405 substituted “Board of Trustees of the University of Arkansas, the Board of Trustees of Arkansas State University, and the Arkansas Lottery Commission” for “institutions shall” in (b)(5).

The 2015 amendment by No. 218 deleted “and the Arkansas Lottery Commission” twice in (b)(5).

The 2015 amendment by Acts 2015 (1st Ex. Sess.), Nos. 7 and 8 substituted “division” for “authority” throughout the section; and substituted “Building Authority Division of the Department of Finance and Administration” for “Arkansas Building Authority” in (b)(1).

The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (b)(4); substituted “rules” for “regulations” in (b)(5); and deleted “or regulation” following “rule” in (e)(3)(B).

The 2019 amendment by No. 910 deleted “of the Department of Finance and Administration” following “Building Authority Division” in (b)(1).

Case Notes

Constitutionality.

Arkansas Constitution, Art. 19, § 16, applied only to county contracts. Therefore, Ark. Code Ann. § 19-4-1413 and this section, which allowed for state contracts to be let without competitive bidding in certain circumstances, were not unconstitutional under § 16. Gatzke v. Weiss, 375 Ark. 207, 289 S.W.3d 455 (2008).

19-4-1416. Job order contracting — Definitions.

  1. As used in this section:
    1. “Job order contracting” means the acquisition of contracting services using a selection method that requires contractors to submit qualifications and prices based on wage rates inclusive of fringes and burden, plus a pricing matrix for markups on materials and subcontractors; and
      1. “On-call contracting” means the ability of the state agency or institution of higher education to continue to call upon the successful bidder to conduct additional construction services as required by the state agency or institution of higher education.
      2. The contractor shall be required to bid all subcontractor work, and the state agency or the institution of higher education shall receive and open the bids with the contractor present at the bid opening date.
  2. The state agency or the institution of higher education may supply all materials for the work with no additional markup if the materials may be purchased off state contracts at a lesser price than the contractor would be able to procure.
      1. After a state agency or institution of higher education has prepared appropriate scope documents and achieved appropriate reviews, it shall advertise for bids and award and file contracts for the contemplated work as identified in §§ 19-4-1401 — 19-4-1405.
      2. Additional work may be awarded based upon the initial bid within the fiscal year.
      1. The bidder may not submit a multiplier representing estimated cost inflation as part of the formal bid process.
      2. The bid will represent the fixed price amount for the fiscal year.
    1. The most qualified bidder offering the best value for the state agency or the institution of higher education shall be selected to perform the construction services identified in the construction specifications.
    1. Job order contracting bid awards:
      1. Shall not extend beyond one (1) fiscal year; and
      2. Shall not exceed:
        1. Seven hundred fifty thousand dollars ($750,000) per construction job for the first year of the contract for state agencies and institutions of higher education with education and general appropriations beginning in the 2009 fiscal year and each fiscal year thereafter equal or exceeding ten million dollars ($10,000,000); and
        2. One hundred thousand dollars ($100,000) per construction job for state agencies or institutions of higher education with education and general appropriations beginning in the 2009 fiscal year and each fiscal year thereafter of less than ten million dollars ($10,000,000).
    2. However, reasonable extensions may be granted at the beginning of each new fiscal year not to exceed a total of four (4) years, if:
      1. The price remains mutually agreeable to the state agency or the institution of higher education and the contractor; and
      2. The quality of the work is satisfactory to the state agency or the institution of higher education.
    3. On or before the four-year threshold, the state agency or the institution of higher education shall bid the construction service to assure competitive opportunities and lowest cost circumstances.
    1. Executed counterparts of a contract entered into by a state agency with respect to job order projects shall be approved by and filed with the Building Authority Division before the issuance of any vouchers making payments under the contract.
      1. The boards of trustees of the University of Arkansas, Arkansas State University, University of Central Arkansas, Henderson State University, Arkansas Tech University, and Southern Arkansas University are exempt from the requirements of this section regarding the approval and filing of the contracts with the Building Authority Division.
        1. With the exception of those boards of trustees listed in subdivision (e)(2)(A) of this section, the governing board of a public institution of higher education is exempt from filing the contracts with the Building Authority Division if it receives the approval of the Division of Higher Education.
        2. Before granting approval, the Division of Higher Education shall review and approve the policies and procedures regarding bidding and construction of capital improvement projects as adopted by the governing board of the public institution of higher education.
    2. A public institution of higher education that is exempt under this section may enter into an agreement with the Building Authority Division to file its contracts with the Building Authority Division.

History. Acts 2003, No. 1476, § 1; 2009, No. 193, § 6; 2009, No. 206, § 1; 2013, No. 526, § 1; Acts 2019, No. 910, § 2256.

Amendments. The 2009 amendment by No. 193 added (e) and made minor stylistic changes.

The 2009 amendment by No. 206, in (d), redesignated (d)(1), substituted “Four hundred thousand dollars ($400,000)” for “three hundred thousand dollars ($300,000)” in (d)(1)(B)(i), substituted “beginning in the 2009 fiscal year and each fiscal year thereafter” for “for the 2003 fiscal year” in (d)(1)(B)(i) and (d)(1)(B)(ii), inserted “state” in (d)(1)(B)(ii) and (d)(3), and made related and stylistic changes.

The 2013 amendment substituted “Seven hundred fifty thousand dollars ($750,000)” for “Four hundred thousand dollars ($400,000)” in (d)(1)(B)(i).

The 2019 amendment substituted “Building Authority Division” for “division” in (e)(2)(A), (e)(2)(B)(i), and twice in (e)(3); deleted “of the Department of Finance and Administration” following “Building Authority Division” in (e)(1); substituted “Division of Higher Education” for “Department of Higher Education” in (e)(2)(B)(i); and substituted “Division of Higher Education” for “department” in (e)(2)(B)(ii).

Subchapter 15 — Property and Equipment Inventory

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, in the enactment of the General Accounting Procedures Law of Arkansas, the Sixtieth General Assembly declared it to be the public policy that the State and all of its agencies be maintained in a sound financial basis, to provide for the adequate accounting for all fiscal transactions of the State, to provide for establishing rules, regulations and procedures for budget preparation, presentation, enactment, execution and defining powers and duties of the Chief Fiscal Officer and State Auditor and the State Treasurer in connection with the foregoing; and

“Whereas, in order to carry out the public policy, purposes, intent and provisions of the General Accounting Procedures Law of Arkansas and in order to accept, adapt and comply with the modern-day technological changes and innovations in budgetary, accounting, and fiscal procedures, it is necessary for the General Assembly to enact legislation providing for the same; and

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation to the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

“Whereas, it is the responsibility of the General Assembly to determine the programs, projects and services for which the State's revenues shall be expended and the priorities which should govern such expenditures; and

“Whereas, in order to discharge its responsibility the General Assembly and its interim committees, including the Legislative Council, has need of accurate data in order to make its determinations wisely; and

“Whereas, the General Assembly recognizes and accepts the principles, purposes and intent of the Revenue Stabilization Law of Arkansas and the General Accounting Procedures Law of Arkansas as they presently exist and further recognizes the validity of their provisions by virtue of Arkansas Supreme Court decisions; and

“Whereas, it is not the intention of the General Assembly to deviate from the purposes and intent of the Revenue Stabilization Law of Arkansas, but it is the intent of the General Assembly to strengthen the purpose of the Revenue Stabilization Law and the General Accounting Procedures Law of Arkansas by enacting the following legislation which embodies the holdings of prior Arkansas Supreme Court decisions affecting the General Accounting Procedures Law of Arkansas, now therefore … .”

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

19-4-1501. Uniform system of perpetual inventory.

The Chief Fiscal Officer of the State shall prescribe and establish a uniform system of perpetual inventory for property and equipment with a central control being established and maintained in the department. In connection therewith, the Chief Fiscal Officer of the State shall:

  1. Prescribe the procedure of accounting and reporting for the sale, trade-in, exchange, discarding, junking, or other disposal of property and equipment and the system for receiving credit for lost, stolen, or damaged property and equipment. All state agencies shall be required to report promptly, upon forms approved by the Chief Fiscal Officer of the State, all such property or equipment disposed of, lost, or damaged;
  2. Require that the addition and disposition of all new property or equipment added, including purchase, trade-in, exchange, or transfer, or by constructing or making such property or equipment, shall be promptly reported upon such forms and in such detail as shall be required; and
  3. By rule, distinguish between items of equipment, and consumable supplies or goods, and such minor tools, materials, and parts as shall be deemed by him or her to be expendable within a reasonable period of time. He or she may also prescribe that minor equipment costing less than some minimum amount shall not be included in the perpetual inventory.

History. Acts 1973, No. 876, § 26; A.S.A. 1947, § 13-352; Acts 2001, No. 1453, § 42; 2019, No. 315, § 1734.

Amendments. The 2019 amendment substituted “rule” for “regulation” in the first sentence of (3).

19-4-1502. Duty to keep record.

It shall be the responsibility of the executive head of each state agency to keep and maintain a record of all property of the agency, belonging to the State of Arkansas. The executive head of each agency shall be held accountable for all state property under his or her control and shall be responsible for keeping and maintaining a record of all the property.

History. Acts 1973, No. 876, § 26; A.S.A. 1947, § 13-352.

19-4-1503. Transfer or sale.

The Chief Fiscal Officer of the State, in order to expedite the necessary work of any state agency or to eliminate duplication and promote economy and efficiency, may do the following:

  1. Transfer property and equipment, including furniture, fixtures, and any and all kinds of office equipment and supplies from one (1) agency to another if the property or equipment of the agency from which the transfer is made is not needed by the agency at the time of the transfer; or
  2. Sell surplus property and equipment of any agency at a reasonable fair value thereof as authorized by § 25-8-106.

History. Acts 1973, No. 876, § 26; A.S.A. 1947, § 13-352.

Subchapter 16 — Salaries and Payroll Disbursement

A.C.R.C. Notes. Acts 2016, No. 251, § 73, provided: “TRANSFER PROCEDURES — PER DIEM MATCHING. If there is not sufficient appropriation, from funds deposited in the State Treasury or Cash Accounts of an agency, for personal services, or personal services matching for any state agency for the period ending June 30, 2017, for State agencies that process payroll through the Arkansas Administrative Statewide Information System for federal and state tax reporting as necessary to comply with the payment of stipends under United States Internal Revenue Code (IRC), 2001-Code-Vol, Sec 3401 and Treasury Regulations § 31.3401(c)-1(a) and § 1.1402(c)-2(b), and others which govern the reporting of income and payment of withholding and matching taxes for personal services, the agency shall request a transfer from appropriation provided for Personal Services and Personal Services Matching in the appropriation for Various State Agencies — U.S. IRC and Treasury Regulations herein, from the Chief Fiscal Officer of the State, stating clearly the amounts required for each item. Upon approval of the Chief Fiscal Officer of the State, the State Auditor shall be notified as to the amount and the purposes for which the appropriation is to be made and such appropriation as needed shall be established upon the books of the Department of Finance and Administration and the State Auditor. Provided, however, that in the event the total amount of transfer requested in any fiscal year exceeds Ten Thousand Dollars ($10,000), the Chief Fiscal Officer of the State shall seek prior review by the Arkansas Legislative Council or Joint Budget Committee before the transfer shall be made.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 251, § 74, provided: “POSITION ESTABLISHMENT. The Chief Fiscal Officer of the State shall have the authority to establish such positions as necessary for State agencies to process payroll through the Arkansas Administrative Statewide Information System for federal and state tax reporting purposes as necessary to comply with the United States Internal Revenue Code (IRC), 2001-Code-Vol, Sec 3401 and Treasury Regulations § 31.3401(c)-1(a) and § 1.1402(c)-2(b), and others which govern the reporting of income and payment of withholding and matching taxes for personal services. The positions established shall not be considered as part of the total number of authorized positions for an agency and shall only be considered as placeholders for payments to individuals who are board or commission members or elected officials of the State that do not otherwise receive salaries or wages as defined in § 19-4-521 for their personal services. Further, none of the positions established under this section shall imply eligibility for state retirement or state health insurance benefits. The establishment of such positions shall not exceed 250 positions in any fiscal year.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Publisher's Notes. Some sections of this subchapter are duplicated in § 21-5-101 et seq.

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, in the enactment of the General Accounting Procedures Law of Arkansas, the Sixtieth General Assembly declared it to be the public policy that the State and all of its agencies be maintained in a sound financial basis, to provide for the adequate accounting for all fiscal transactions of the State, to provide for establishing rules, regulations and procedures for budget preparation, presentation, enactment, execution and defining powers and duties of the Chief Fiscal Officer and State Auditor and the State Treasurer in connection with the foregoing; and

“Whereas, in order to carry out the public policy, purposes, intent and provisions of the General Accounting Procedures Law of Arkansas and in order to accept, adapt and comply with the modern-day technological changes and innovations in budgetary, accounting, and fiscal procedures, it is necessary for the General Assembly to enact legislation providing for the same; and

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation to the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

“Whereas, it is the responsibility of the General Assembly to determine the programs, projects and services for which the State's revenues shall be expended and the priorities which should govern such expenditures; and

“Whereas, in order to discharge its responsibility the General Assembly and its interim committees, including the Legislative Council, has need of accurate data in order to make its determinations wisely; and

“Whereas, the General Assembly recognizes and accepts the principles, purposes and intent of the Revenue Stabilization Law of Arkansas and the General Accounting Procedures Law of Arkansas as they presently exist and further recognizes the validity of their provisions by virtue of Arkansas Supreme Court decisions; and

“Whereas, it is not the intention of the General Assembly to deviate from the purposes and intent of the Revenue Stabilization Law of Arkansas, but it is the intent of the General Assembly to strengthen the purpose of the Revenue Stabilization Law and the General Accounting Procedures Law of Arkansas by enacting the following legislation which embodies the holdings of prior Arkansas Supreme Court decisions affecting the General Accounting Procedures Law of Arkansas, now therefore … .”

Effective Dates. Acts 1969, No. 199, § 11: July 1, 1969.

Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1975, No. 881, § 2: Apr. 4, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that under the present law relating to payroll deductions by State agencies, there is no specific authority for payroll deductions for dues to the Arkansas Public Employee Association, Incorporated, that it is in the best interest of the State, public employees, and the citizens of the State generally that State employers be permitted to make payroll deductions for such dues when requested to do so by the employee; that this Act is designed to accomplish this purpose and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1975, No. 980, § 5: Apr. 9, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that clarification of the General Accounting and Budgetary Procedures Law is necessary to enable State agencies to make payments to terminating employees with respect to unpaid annual or hospital leave, and to clarify that said payments, together with other salary adjustments occasioned by the bi-monthly payroll period shall not constitute a violation of the maximum annual salary requirements as provided by law and by the Constitution, and that the immediate passage of this Act is necessary to accomplish said purpose. Therefore, an emergency is hereby declared to exist, and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1976 (1st Ex. Sess.), No. 1, § 4: Sept. 10, 1976. Emergency clause provided: “It is hereby found and determined by the General Assembly that a recent U. S. Supreme Court decision has cast doubt on the legality of the payment of overtime to certain State employees of those agencies, commissions and institutions who were required to pay overtime to employees by reason of the 1966 Amendments to the Federal Fair Labor Standards Act. The General Assembly finds that the proper functioning of said agencies, commissions and institutions for the remainder of the 1975-77 biennium requires that overtime payments continue to be made as authorized herein. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1977, No. 813, § 6: Mar. 28, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly that certain general accounting and budgetary procedures are outdated and should be changed in order to properly exercise fiscal responsibility in administering the affairs of state government, and that the immediate passage of this Act is necessary to implement such changes. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 578, § 3: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 486 of 1977, as amended, and Section 5 of Act 5 of 1975, except payrolls from the pre-expenditure procedures applicable to vouchers, and that an implementing authorization under which State institutions of higher learning may be approved to disburse payrolls in accordance with law, and thereafter seek reimbursement from the State Treasury for the portion thereof properly chargeable to State Treasury funds is needed, and will result in substantial savings and administrative costs associated with handling payrolls; that the effectiveness of this Act on July 1, 1979 is essential to the operation of institutions of higher learning and that in the event of an extension of the Regular Session the delay in the effective date of this Act beyond July 1, 1979 could work irreparable harm upon the proper administration and providing of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1980 (1st Ex. Sess.), No. 36, § 2: Jan. 25, 1980. Emergency clause provided: “It is hereby found and determined by the General Assembly that amendment of existing law is immediately necessary to prevent breach on the part of the State of a wage provision in a contract negotiated between the Federal Health, Education, and Welfare Department and the University of Arkansas Medical Science Department for work to be done at the National Center for Toxicological Research at Pine Bluff, Arkansas. Therefore, an emergency is declared to exist and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1980 (1st Ex. Sess.), No. 62, § 2: Feb. 4, 1980. Emergency clause provided: “It is hereby found and determined by the General Assembly that amendment of existing law is immediately necessary to prevent breach on the part of the State of a wage provision in a contract negotiated between the Federal Health, Education, and Welfare Department and the University of Arkansas Medical Science Department for work to be done at the National Center for Toxicological Research at Pine Bluff, Arkansas. Therefore, an emergency is declared to exist and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 251, § 3: Feb. 27, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that under the present law relating to payroll deductions by State agencies, there is no specific authority for payroll deduction for Van-Pool Riders Fees due to the Arkansas State Employees Association, Incorporated; that it is in the best interest of the State, State employees and the citizens of the State generally the State employers be permitted to make payroll deduction for such riders fees when requested to do so by the employee; that this Act is designed to accomplish this purpose and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 741, § 8: Mar. 28, 1981. Emergency clause provided: “It is hereby found and determined by the Seventy-Third General Assembly that certain amendments to Act 876 of 1973, the General Accounting and Budgetary Procedures Law, are essential to the continued financial operations of State government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 637, § 3: Mar. 27, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly, that clarification of the General Accounting and Budgetary Procedures Law is necessary to provide authorization for the processing of the bi-weekly twenty-seven (27) payroll periods that occur as a result of the conversion from a bi-monthly to a bi-weekly payroll system. The bi-weekly twenty-seven (27) pay periods shall not constitute a violation of the maximum annual salary requirements as provided by law and by the Constitution, and that the immediate passage of this Act is necessary to accomplish said purposes. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 820, § 3: Apr. 4, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly, that due to the recent Supreme Court ruling changing the method of compensation for overtime work that Act 876 of 1973 must be amended to enable the State and the Chief Fiscal Officer of the State to comply with the Federal Fair Labor Standards Act; that this Act is designed to accomplish this purpose and should be effective immediately. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 646, § 6: July 1, 1987. Emergency clause provided: “It is hereby found and determined by the Seventy-Sixth General Assembly, that the clarification of certain fiscal transactions of the State is needed in order to more accurately reflect the condition of the State's assets at all times and to maintain the fiscal integrity of the State. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1987.”

Acts 1989, No. 629, § 18: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly that the amendments to the Revenue Stabilization Law are essential to the continued operation of State government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1989.”

Acts 1989, No. 688, § 4: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that those provisions of the General Accounting and Budgetary Procedures Law that apply to institutions of higher education except personal services matching from the pre-expenditure procedures applicable to vouchers, and that an implementing authorization under which State institutions of higher learning may by approved to disburse personal services matching in accordance with law, and thereafter seek reimbursement from the State Treasury for the portion thereof properly chargeable to State Treasury funds is needed, and will result in substantial savings and administrative costs associated with handling personal services matching; that the effectiveness of this act on July 1, 1989 is essential to the operation of institutions of higher learning and that in the event of an extension of the Regular Session the delay in the effective date of this act be beyond July 1, 1989 could work irreparable harm upon the proper administration and providing of essential governmental programs. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1989.”

Acts 1995, No. 176, § 5: Feb. 6, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly meeting in regular session, that a delay in the effective date of this Act beyond July 1, 1995 could result in the loss of state general revenue. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2001, No. 1453, § 49: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that proper and effective management requires that changes to the state's finance and accounting laws begin on the first day of the fiscal year and that if there is an extended recess of the General Assembly, the required ninety day period may extend past July 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2003, No. 656, § 10: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that proper and effective management requires that changes to the finance and accounting laws of the state begin on the first day of the fiscal year; that the changes being made are important to the financial well being of the state particularly during the difficult financial climate the state is currently facing; and that this act is immediately necessary to allow for the finance and accounting changes to go into effect on the first day of the fiscal year for the proper and effective management of this state. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2003.”

Identical Acts 2009, Nos. 605 and 606, § 27: Mar. 25, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the people of the State of Arkansas overwhelmingly approved the establishment of lotteries at the 2008 General Election; that lotteries will provide funding for scholarships to the citizens of this state; that the failure to immediately implement this act will cause a reduction in lottery proceeds that will harm the educational and economic success of potential students eligible to receive scholarships under the act; and that the state lotteries should be implemented as soon as possible to effectuate the will of the citizens of this state and implement lottery-funded scholarships as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 218, § 34: Feb. 26, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the stability of the Arkansas Scholarship Lottery is critical to the success of the Arkansas Academic Challenge Scholarship Program; that changes to the operational structure of the lottery are needed to improve the creditability and function of the lottery; and that this act is immediately necessary to ensure that the transition of lottery administration is as undisruptive as possible. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 365, § 29: July 1, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the fiscal year for employees begins on July 1 of every year and that the implementation of the Uniform Classification and Compensation Act is necessary to ensure the continued services and operations of the state. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2017.”

Acts 2017, No. 599, § 5: July 1, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the fiscal year for employees of institutions of higher education begins annually on July 1; and that the implementation of the Higher Education Uniform Classification and Compensation Act is necessary to ensure the continued services and operations of the state. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2017.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-4-1601. Regular Salary Procedures and Restrictions Act.

  1. This section and § 21-5-101 shall be known as and may be cited as the “Regular Salary Procedures and Restrictions Act”.
  2. Arkansas Constitution, Article 16, § 4, provides: “Except as provided in Arkansas Constitution, Article 19, § 31, the General Assembly shall fix the salaries and fees of all officers in the State; and no greater salary or fee than that fixed by law shall be paid to any officer, employee, or other person, or at any rate other than par value; and the number and salaries of the clerks and employees of the different departments of the State shall be fixed by law.” Therefore, the following provisions shall be applicable to all authorized regular salary positions in appropriation acts unless specific exception is made otherwise by law:
    1. For any position authorized by the General Assembly for the benefit of any department, agency, board, commission, institution, or program for which the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq., are to be applicable, it is declared to be the intent of the General Assembly that the Uniform Classification and Compensation Act, § 21-5-201 et seq., shall govern with respect to:
      1. The entrance pay level;
      2. The procedures by which salary increases may be granted; and
      3. The maximum pay level that may be paid for the grade assigned each employee under the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq.;
    2. For any position authorized by the General Assembly for the benefit of any department, agency, board, commission, institution, or program for which a maximum pay level is set out in dollars, it is the intent of the General Assembly that the position is to be paid at a rate of pay not to exceed the maximum established for the position during any one (1) fiscal year and that the maximum pay level authorized is for full-time employment;
      1. For all positions authorized by the General Assembly for any department, agency, board, commission, institution, or program, it is the intent of the General Assembly that in determining the annual salaries of these employees, the administrative head of the department, agency, board, commission, institution, or program shall take into consideration ability of the employee and length of service.
      2. It is not the intent of the General Assembly that the maximum pay level as authorized in the appropriation act, or any increases established for the various grades under the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq., be paid unless the qualifications are complied with and then only within the limitations of the appropriations and funds available for this purpose.
      3. An employee authorized by the General Assembly shall not receive from appropriated or cash funds, either from state, federal, or other sources, compensation in an amount greater than that established by the General Assembly as the maximum pay level for the employee unless specific provisions are made therefor by law; and
    3. An employee of the State of Arkansas shall not be paid any additional cash allowances, including without limitation uniform allowance, clothing allowance, motor vehicle depreciation or replacement allowance, fixed transportation allowance, and meals and lodging allowance, other than for reimbursement for costs actually incurred by the employee unless the allowances are specifically set out by law as to eligibility of employees to receive the allowances, and the maximum amount of the allowances is established by law for each employee or for each class of employee eligible to receive the allowances.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349; Acts 2017, No. 365, § 3; 2019, No. 388, § 2.

Amendments. The 2017 amendment substituted “pay level” for “annual salary” and “annual salaries” throughout (b); substituted “pay level” for “salary step” in (b)(1)(A); substituted “The procedures by which salary” for “The frequency with which step” in (b)(1)(B); and substituted “step increases” for “any increases” in (b)(3)(B).

The 2019 amendment inserted “and § 21-5-101” in (a); in the introductory language of (b), substituted “Except as provided in Arkansas Constitution, Article 19, § 31” for “that”, substituted “State, and” for “state, that”, and deleted “that” preceding “the number”; in (b)(1), (b)(2), and twice in (b)(3)(A), inserted “department” and inserted “board, commission, institution”; substituted “the Uniform Classification and Compensation Act, § 21-5-201 et seq.” for “these statutes” in (b)(1)(C); added “and that the maximum pay level authorized is for full-time employment” in (b)(2); in (b)(3)(C) and (b)(4), substituted “An” for “No”, and inserted “not”; and, in (b)(4), substituted “without limitation” for “but not limited to”, substituted “the allowances” for “allowance” following “receive”, and substituted “is established” for “are established”; and made stylistic changes.

Cross References. State Health Department employees, reimbursement for automobile insurance, § 21-5-102.

Research References

Ark. L. Rev.

Ross E. Simpson, Case Note: “The Previous Pay is Under Further Review”: Payment Problems Arising from O'Bannon v. NCAA, 68 Ark. L. Rev. 1117 (2016).

Case Notes

In General.

Neither full-time or part-time state-salaried public defenders are eligible for additional compensation by the court for work done on appeal. Boston v. State, 341 Ark. 370, 16 S.W.3d 239 (2000) (decided under prior law).

Compensation of Public Defender.

The Regular Salary Procedures and Restrictions Act prohibits the public defender from receiving compensation from the State in an amount greater than that established by the General Assembly as the maximum annual salary for the state-salaried public defender. Rushing v. State, 340 Ark. 84, 8 S.W.3d 489 (2000) (decided under prior law), superseded by statute as stated in, Williams v. State, 347 Ark. 233, 60 S.W.3d 485 (2001), superseded by statute as stated in, Mills v. State, 347 Ark. 695, 66 S.W.3d 643 (2002), superseded by statute as stated in, Newman v. State, 350 Ark. 53, 84 S.W.3d 43 (2002).

19-4-1602. Payroll deductions.

  1. Deductions from the payrolls of state employees, both regular and extra help, are authorized only for the following purposes:
    1. Withholding taxes;
    2. Social Security contributions;
    3. Contributions to any state retirement system or approved plan of deferred compensation;
      1. Group or individual hospital, medical, and life insurance deductions.
      2. However, any payroll deductions through the Arkansas state mechanized payroll system for state employees for coverages other than the state-authorized plan shall be approved by the State and Public School Life and Health Insurance Board;
    4. Payments to state employees' credit unions;
    5. Value of maintenance perquisites;
    6. Payment of union dues, when requested in writing by state employees;
    7. Purchase of United States Government savings bonds;
    8. Arkansas State Employees Association dues, when requested in writing by those state employees;
    9. Fees for participation in the State Employees Benefit Corporation, when requested in writing by those state employees;
    10. Contributions to a major federated fund-raising organization, when authorized by those state employees;
    11. Arkansas State Police Association dues, when authorized in writing by those state employees;
    12. Fraternal Order of Police dues, when requested in writing by those state employees;
    13. Central Arkansas State Troopers Coalition dues, when authorized in writing by those state employees;
    14. Arkansas Rehabilitation Association dues, when authorized in writing by those state employees;
    15. Correctional Peace Officers Foundation dues, when authorized in writing by those state employees;
    16. Department of Correction Employees Association dues, when requested in writing by those employees;
    17. American Association of University Professors dues, when requested in writing by those employees;
    18. Arkansas Association of Correctional Employees Trust dues, when requested in writing by those employees;
    19. Division of Correction Bus Pool dues, when requested in writing by those employees;
      1. Arkansas Tax-Deferred Tuition Savings Program under the Arkansas Tax-Deferred Tuition Savings Program Act, § 6-84-101 et seq., or a tax-deferred savings program established by another state under 26 U.S.C. § 529, as it existed on January 1, 2007.
      2. The tax-deferred savings plan must be in existence at the time the payroll deduction request is made.
      3. The state employee shall provide information on his or her Arkansas Tax-Deferred Tuition Savings Program account to the Department of Finance and Administration so that the payroll deduction can be credited to the appropriate account; and
    20. For such other purposes as are specifically authorized by law but not enumerated in this subsection.
  2. If a state employee authorizes in writing the payroll deduction of dues of any union or professional association representing the employee, the agency shall deduct the dues from the payroll of the employee and remit the dues to the organization.
  3. Deductions authorized by this section shall be made in compliance with rules and procedures established by the Secretary of the Department of Transformation and Shared Services.

History. Acts 1973, No. 876, § 23; 1975, No. 881, § 1; 1981, No. 251, § 1; 1983, No. 164, § 1; A.S.A. 1947, § 13-349; Acts 1987, No. 18, § 1; 1987, No. 646, § 3; 1989, No. 506, § 1; 1995, No. 1122, § 1; 1997, No. 747, § 1; 2001, No. 166, § 1; 2003, No. 1795, § 1; 2009, No. 368, § 1; 2011, No. 702, § 1; 2015, No. 1053, § 1; 2019, No. 315, § 1735; 2019, No. 910, §§ 976, 6087.

Publisher's Notes. Acts 1983, No. 164, § 2, provided that the act was intended to comply with Arkansas State Highway Employees' Local 1315 v. Smith, 257 Ark. 174, 515 S.W.2d 208 (1974), and in no way superseded or reversed such decision.

Amendments. The 2009 amendment, in (a), made a minor stylistic change in (a)(17), inserted (a)(19) and (a)(20), redesignated the subsequent subdivision accordingly, and made related changes.

The 2011 amendment inserted present (21) and redesignated former (21) as (22).

The 2015 amendment inserted “or individual” in (a)(4)(A).

The 2019 amendment by No. 315 deleted “regulations” following “rules” in (c).

The 2019 amendment by No. 910 substituted “Division of Correction” for “Department of Correction” in (a)(20); and substituted “Secretary of the Department of Transformation and Shared Services” for “Chief Fiscal Officer of the State” in (c).

Case Notes

Purpose.

The entire payroll deduction provision of this section was enacted for the protection of state employees against payroll deductions except for the purposes therein enumerated. Arkansas State Highway Employees Local 1315 v. Smith, 257 Ark. 174, 515 S.W.2d 208 (1974).

Union Dues.

The provisions of this section permitting deductions from the payrolls of state employees for the payment of union dues when requested in writing by state employees is permissive rather than mandatory and thus enforcement is not subject to the remedy of mandamus. Arkansas State Highway Employees Local 1315 v. Smith, 257 Ark. 174, 515 S.W.2d 208 (1974).

Although the failure of the state highway department to continue withholding union dues from the wages of union members could impair the effectiveness of the union, such action by the department was not prohibited by the first amendment. Arkansas State Hwy. Employees Local 1315 v. Kell, 628 F.2d 1099 (8th Cir. 1980).

Where the state highway department had concluded that the withholding of union dues constituted an added clerical and office expense which did not benefit the taxpayers, the program of constructing and maintaining highways, nor those employees who did not desire to belong to the union, the department's refusal to continue withholding union dues did not constitute discriminatory conduct in violation of the equal protection clause, even though the department continued to withhold items other than union dues. Arkansas State Hwy. Employees Local 1315 v. Kell, 628 F.2d 1099 (8th Cir. 1980).

Inasmuch as the limitations of this section are permissive rather than mandatory, a union acquired no property right subject to due process in the state highway department's withholding of union dues from wages of union members. Arkansas State Hwy. Employees Local 1315 v. Kell, 628 F.2d 1099 (8th Cir. 1980).

19-4-1603. Procedures for position control.

  1. The Secretary of the Department of Transformation and Shared Services shall establish procedures for exercising position control applicable to those state agencies subject to the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq.
  2. Exercising position control shall be interpreted as follows:
    1. The secretary shall assign a position control number to each line-item position authorized for the applicable agencies;
    2. The secretary shall establish reporting procedures so that agencies shall provide complete reports to the Department of Finance and Administration on the use of all authorized positions; and
    3. The secretary may restrict an agency's use of authorized positions only after finding that the agency is in financial difficulty and after invoking the fiscal controls provided in § 19-4-701 et seq. and § 19-4-1201 et seq.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349; Acts 2019, No. 910, § 6088.

Amendments. The 2019 amendment substituted “Secretary of the Department of Transformation and Shared Services” for “Chief Fiscal Officer of the State” throughout the section.

19-4-1604. Salary from two agencies.

  1. Except as provided in subsections (b) and (c) of this section, no person drawing a salary or other compensation from one state agency shall be paid salary or compensation, other than actual expenses, from any other state agency except upon written certification to and approval by the Secretary of the Department of Transformation and Shared Services and by the head of each state agency, stating that:
    1. The work performed for the other state agency does not interfere with the proper and required performance of the person's duties; and
    2. The combined salary payments from the state agencies do not exceed the larger maximum annual salary of the line-item position authorized for either state agency from which the employee is being paid.
    1. This section does not prohibit a state employee from contracting to temporarily teach as adjunct faculty at a state-supported institution of higher education and thereby receive combined salary payments from the two (2) state agencies in excess of the larger maximum annual salary of the line-item position authorized from either state agency.
      1. This section does not prohibit a part-time or job-share public defender from receiving compensation from an appellate court for work performed in connection with an indigent client's appeal to the Supreme Court or the Court of Appeals.
      2. A person employed as a full-time public defender who is not provided a state-funded secretary may also seek compensation for appellate work from the Supreme Court or the Court of Appeals.
    2. This section does not allow an employee to be on paid sick leave with a state agency and to be paid a salary or compensation from another state agency.
  2. A person drawing a salary or other compensation from a state agency or institution of higher education shall not be paid a salary or compensation from another institution of higher education except upon the written certification to and approval by the Director of the Division of Higher Education that the:
    1. Work performed for the other state agency or institution of higher education does not interfere with the proper and required performance of the person's duties; and
    2. Combined salary payments from the state agency and institution of higher education do not exceed the larger maximum annual salary of the line-item position authorized for either the agency or institution of higher education from which the employee is being paid.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349; Acts 1995, No. 403, § 1; 2001, No. 1370, § 1; 2005, No. 1189, § 1; 2017, No. 599, § 2; 2019, No. 910, §§ 2257, 6089, 6090.

Amendments. The 2005 amendment added (b)(3).

The 2017 amendment substituted “subsections (b) and (c)” for “subsection (b)” in (a); substituted “indigent client's” for “indigent's” in (b)(2)(A); and added (c).

The 2019 amendment substituted “Secretary of the Department of Transformation and Shared Services” for “Chief Fiscal Officer of the State” in (a); and substituted “Division of Higher Education” for “Department of Higher Education in (c).

Case Notes

In General.

Neither full-time or part-time state-salaried public defenders are eligible for additional compensation by the court for work done on appeal. Boston v. State, 341 Ark. 370, 16 S.W.3d 239 (2000) (decided under prior law).

Appellate court denied public defender's motion to withdraw from representation as he failed to include in his motion information about whether his secretary was state-funded; counsel was free to refile his motion at a later date with that information. Williams v. State, 347 Ark. 233, 60 S.W.3d 485 (2001).

Supreme court denied public defender's motion to withdraw as counsel in defendant's appeal where the attorney failed to provide, as required by statute, information regarding whether he had a state-funded secretary. Mills v. State, 347 Ark. 695, 66 S.W.3d 643 (2002).

Where defendant's trial attorney, a state-salaried, full-time public defender, stated that he did have a full-time, state-funded secretary which prevented him from receiving compensation for appellate work, his new motion to withdraw as attorney on appeal was granted for good cause shown. Newman v. State, 350 Ark. 265, 85 S.W.3d 883 (2002).

Public Defender.

Court denied public defender's motion to be relieved as counsel on appeal because subdivision (b)(2)(A) of this section did not prohibit a part-time or job-share public defender from receiving compensation from an appellate court for work performed in connection with an indigent's appeal to the Arkansas Supreme Court or the Arkansas Court of Appeals. Tice v. State, 365 Ark. 410, 230 S.W.3d 557 (2006).

Court granted public defender's motion to be relieved as appellate counsel where the public defender's motion stated that he was provided with a full-time, state-funded secretary and, thus, he was not entitled to compensation. Tryon v. State, 367 Ark. 192, 238 S.W.3d 614 (2006).

Public defender was permitted to withdraw as counsel on defendant's appeal as the public defender could not seek compensation for his appellate work because he was provided with a state-funded secretary. Stone v. State, 367 Ark. 614, 242 S.W.3d 223 (2006).

Public defender was permitted to withdraw as the attorney in defendant's appeal because he was provided with a state-funded secretary and, thus, could not seek compensation for his appellate court work. White v. State, 367 Ark. 616, 242 S.W.3d 222 (2006).

Where the public defender's motion to withdraw as defense counsel on appeal did not state whether she was provided a state-funded secretary, the state supreme court could not determine whether she qualified for relief from defendant's representation in light of subdivision (b)(2)(B) of this section. The attorney was permitted to resubmit her motion. Motes v. State, 368 Ark. 600, 247 S.W.3d 814 (2007).

Supreme court denied counsel's request to withdraw as counsel for appellant because subsection (a) of this section indicated that counsel was eligible, as a part-time public defender, to receive compensation for his appellate work. It was irrelevant that the public defender's office employed one and one-half state-funded secretaries, as counsel's status as a part-time public defender made him eligible for compensation for his appellate work. Flowers v. State, 370 Ark. 115, 257 S.W.3d 532 (2007).

Withdrawal.

State supreme court granted the attorney's motion to withdraw because under new state laws the full-time, state-salaried public defender would not be eligible for compensation for any work done on defendant's criminal appeal. Jordan v. State, 354 Ark. 27, 120 S.W.3d 99 (2003).

Public defender who filed a motion to be relieved as counsel for a defendant in a criminal appeal was required to provide information about whether he had a state-funded secretary before the court could grant his motion. Walters v. State, 354 Ark. 403, 125 S.W.3d 818 (2003).

Granting of the attorney's motion to withdraw as defendant's attorney on his appeal was appropriate because the attorney was provided with a full-time, state-funded secretary who maintained his office operations; thus, he would not have been able to seek compensation for his work. Mejia v. State, 366 Ark. 348, 235 S.W.3d 519 (2006).

Appellate court affirmed defendant's attorney's motion to withdraw from representation of defendant pursuant to subdivision (b)(2)(B) of this section as the attorney had been provided with a full-time state-funded secretary and, thus, he would not have been able to seek compensation for his work. Jones v. State, 367 Ark. 476, 241 S.W.3d 268 (2006).

Attorney's motion to be relieved as counsel was granted because the attorney was not eligible for compensation on appeal under subdivision (b)(2)(B) of this section, because the attorney was a full-time, state-salaried public defender with a full-time, state funded secretary. Sanders v. State, 369 Ark. 423, 255 S.W.3d 444 (2007).

Defendant's motion for belated appeal was granted where, pursuant to Ark. R. App. P. Crim. 16(a), counsel had not been relieved by the trial court and was obligated to perfect the appeal and lodge the record in the appellate court; under subdivision (b)(2)(B) of this section, counsel was permitted to withdraw as attorney. Wann v. State, 369 Ark. 426, 255 S.W.3d 473 (2007).

Public defender's motion to be relieved as counsel for defendant in an appeal was granted because the public defender was provided with a full-time, state-funded secretary; because the public defender had a state-funded secretary, under subdivision (b)(2)(B) of this section, the public defender could not seek compensation from the appellate court for work on defendant's case. Mishion v. State, 369 Ark. 482, 255 S.W.3d 868 (2007).

Court denied appellate counsel's motion to withdraw on the basis that counsel was ineligible for compensation for any services performed on appeal because under subdivision (b)(2)(A) of this section, counsel was eligible to receive compensation for the appellate work; it was irrelevant that the public defender's office employed two state-salaried secretaries. Calhoun v. State, 370 Ark. 367, 259 S.W.3d 455 (2007).

On appeal of defendant's conviction for capital murder, the public defender was entitled to be relieved as counsel because he was ineligible to receive compensation for his work on appeal under subdivision (b)(2)(B) of this section. Page v. State, 373 Ark. 193, 282 S.W.3d 813 (2008).

—Withdrawal permitted.

Motion to withdraw as counsel of record in defendant's appeal of a conviction for first-degree murder was granted where a full-time state-salaried public defender who represented defendant at trial certified that he was supplied with a full-time state-salaried secretary. Johnson v. State, 352 Ark. 313, 100 S.W.3d 739 (2003).

Public defender's motion to be relieved as counsel for an indigent defendant on appeal was granted and another attorney was appointed to represent defendant where the public defender had a full-time, state-funded secretary and, thus, was ineligible for compensation for his work on appeal under subdivision (b)(2)(B) of this section. Hall v. State, 359 Ark. 203, 195 S.W.3d 897 (2004).

Pursuant to subdivision (b)(2)(B) of this section, where a full-time public defender was provided with a state-funded secretary, he could not seek compensation for appellate work; thus, his motion to withdraw as attorney from defendant's appeal was granted. Booker v. State, 363 Ark. 204, 212 S.W.3d 4 (2005).

Defendant's appointed attorney was permitted to withdraw as defendant's appellate counsel pursuant to subdivision (b)(2)(B) of this section as he was ineligible for compensation for his appellate work due to the fact that he was provided with a full-time, state-funded secretary. Wilson v. State, 363 Ark. 211, 212 S.W.3d 2 (2005).

Cited: Walters v. State, 355 Ark. 128, 132 S.W.3d 218 (2003); Kelley v. State, 2010 Ark. 229 (2010).

19-4-1605. Payment from multiple funds.

In those instances where a state agency has approved line-items for salaries which are payable from more than one (1) fund, the Chief Fiscal Officer of the State shall be authorized to establish a paying account on his or her books and on the books of the Treasurer of State and Auditor of State from which all such salaries may be paid, with provisions for reimbursing the paying account by directing the transfer of the necessary funds and appropriations on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349.

19-4-1606. Review of payroll required.

  1. The Department of Transformation and Shared Services shall review the payroll of state agencies covered by the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq., with respect to the salaries of all employees of affected state agencies. This review shall determine the correctness of each payroll with respect to each position to assure compliance with the compensation plan and to assure that no position is being paid, during any payroll period, an amount greater than authorized in the compensation plan or the amount authorized for the position in the appropriation act applicable to the agency.
  2. Any proposed rate of pay for an employee found not to be in accordance with the provisions of the compensation act and the appropriation act governing the agency shall be changed to the appropriate rate of pay by the state agency covered by the provisions of the compensation act before the department shall approve it for payment.
  3. No payment of salary of any employee of any state agency affected by the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq., shall be made without the certification of correctness by the department based on its review duties as provided in this section.
  4. The department is authorized to develop and implement rules and procedures to accomplish the purposes authorized in this section.

History. Acts 1969, No. 199, § 8; A.S.A. 1947, § 12-3208; Acts 2001, No. 1453, § 43; 2019, No. 910, § 6091.

Amendments. The 2019 amendment substituted “Department of Transformation and Shared Services” for “Department of Finance and Administration” in the first sentence of (a).

19-4-1607. Monthly, biweekly, weekly, and hourly salaries.

    1. Except for those state agencies which operate principally on a scholastic year, or on a part-time basis, or where such salaries or personal services are specifically established for a period less than one (1) year, all salaries established by the General Assembly shall be considered to be a maximum amount to be paid for a twelve-month payroll period. No greater amount than that established for the maximum annual salary of any state official or employee shall be paid to such employee during any such twelve-month payroll period, nor shall more than one-twelfth (1/12) of such annual salary be paid to any such employee during any calendar month unless authorized in this subchapter.
    2. The limitations set out in this section may be converted to biweekly or weekly increments of one-twenty-sixth (1/26) or one-fifty-second (1/52) of the maximum annual salary.
    3. For complying with federal requirements, upon approval of the Secretary of the Department of Transformation and Shared Services in consultation with the Chief Fiscal Officer of the State, the maximum annual salaries may be converted to hourly rates of pay for positions established on the basis of twelve (12) months or less if authorized by law.
  1. The remuneration paid to an employee of the state may exceed the maximum annual salary as authorized by the General Assembly as follows, and the following shall not be construed as payment for services or as salary as contemplated by Arkansas Constitution, Article 16, § 4:
    1. Overtime payments as authorized by law;
    2. Payment of a lump sum to a terminating employee, to include lump-sum payments of sick leave balances upon retirement as provided by law;
    3. Payment for overlapping pay periods at the end of a fiscal year as defined or authorized by law;
    4. Payment for the biweekly twenty-seven (27) pay periods;
    5. Payment for career service recognition as authorized by law; and
    6. Payment in accordance with special language salary provisions in individual agency appropriation acts.

History. Acts 1973, No. 876, § 23; 1975, No. 980, § 1; 1980 (1st Ex. Sess.), No. 36, § 1; 1980 (1st Ex. Sess.), No. 62, § 1; 1985, No. 637, § 1; A.S.A. 1947, § 13-349; Acts 2001, No. 1453, § 44; 2017, No. 365, § 4; 2019, No. 910, § 6092.

Amendments. The 2017 amendment deleted former (b)(6); redesignated former (b)(7) as present (b)(6); and made a related change.

The 2019 amendment inserted “Secretary of the Department of Transformation and Shared Services in consultation with the” in (a)(3).

Case Notes

Lump Sum Termination Payment.

A retiring state police officer was not entitled to include a lump sum termination payment equivalent to one month of accrued unused annual leave in computing his retirement pay, since § 24-6-201(8) contemplates using 36 months rather than 37 months in calculating retirement pay and since subdivision (b)(2) of this section specifically prohibits using the payment of a lump sum termination sum from being construed as a salary, in order to prevent a distinction in retirement benefits between an officer who took a vacation and an officer who did not. Board of Trustees v. Halsell, 271 Ark. 815, 610 S.W.2d 881 (1981).

19-4-1608. Personal services less than 12 months.

In the event an appropriation is made for the payment of personal services, when it has been established by law on the basis of a scholastic year or for some other period less than twelve (12) months, then any person so employed may be paid from bank funds for the remainder of the year if his or her services are required by the state agency.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349.

19-4-1609. State-supported institutions of higher education.

    1. Pursuant to administrative procedures established by the Chief Fiscal Officer of the State, each state-supported institution of higher education may request a salary and personal services matching, or a maintenance and general operations expense disbursement procedure, or both. This procedure shall be requested, in writing from the executive head, communicated to the Chief Fiscal Officer of the State by which, effective at a date in accordance with the request, each payroll for all its salaries payable to employees, or a maintenance and general operations expense of the institution and personal services matching for employees of the institution, or both, may be disbursed by the institution and paid from state agency bank funds of the institution, subject to reimbursement and correction of reporting as provided in this section.
      1. The Chief Fiscal Officer of the State may approve such salary and personal services matching, or a maintenance and general operations expense disbursement procedure, or both, for such reimbursement if he or she determines that each institution has complied with all administrative procedures established by the Chief Fiscal Officer of the State.
        1. The Chief Fiscal Officer of the State may revoke any such approval by transmitting a thirty-day notice to the executive head of the institution when the Chief Fiscal Officer of the State finds that internal administrative procedures and controls of the institution are not adequate.
        2. The Legislative Joint Auditing Committee shall advise the Chief Fiscal Officer of the State and keep him or her informed regarding any of its findings which may be relevant to such determination regarding these institutions.
    1. Upon completion of salary and personal services matching, or a maintenance and general operations expense disbursement, or both, by the institution, the disbursing officer or other appropriate official of the institution shall examine the payroll or a maintenance and general operations expense, or both, as disbursed for such amounts as are properly payable from State Treasury funds.
    2. At such time as the disbursing officer or other appropriate official of the institution examines the payroll, or a maintenance and general operations expense for determining the reimbursable amount, or both, he or she shall also review it in order to discover any erroneous or improper payments as provided by law. The liability for those payments shall be with the executive head of that institution and its bonded disbursing officer, or his or her designated bonded assistant.
  1. All salaries and personal services matching, or a maintenance and general operations expense, or both, shall be subject to the restrictions and controls provided by law and the administrative procedures of the Chief Fiscal Officer of the State.

History. Acts 1979, No. 578, § 1; A.S.A. 1947, § 13-349.2; Acts 1989, No. 688, § 1; 1997, No. 758, § 1; 2001, No. 1453, § 45.

Cross References. Overtime pay for employees of institutions of higher education, § 6-63-308.

Case Notes

Construction.

This section provides nothing more than a means for the payment of certain judgments against the State, and does not create a waiver of the State's immunity from suit in her own courts. Cross v. Ark. Livestock & Poultry Comm'n, 328 Ark. 255, 943 S.W.2d 230 (1997).

19-4-1610. Retroactive pay prohibited.

    1. In the event that a state employee is being paid less than the maximum provided for by law, and thereafter the head of the agency provides for an increase in the rate of pay for the employee, the rate of pay shall not exceed one-twelfth (1/12) of the annual maximum amount of the salary position on which he or she is placed, for the remainder of the annual period.
    2. Payments under subdivision (a)(1) of this section shall not be made for a preceding fiscal year.
    1. No increase in the rate of pay, either by paying the full amount of the maximum salary or by placing an employee in a position calling for a greater salary, shall be construed as authorizing the payment of any retroactive salary to the employee.
    2. Payments under subdivision (b)(1) of this section shall not be made for a preceding fiscal year.
    1. Salary payments made to correct an administrative error shall not be considered retroactive pay, nor shall such payment be construed as exceeding the employee's maximum authorized pay.
    2. Payments under subdivision (c)(1) of this section may be made for a preceding fiscal year if:
      1. Requested within twelve (12) months of the end of the preceding fiscal year; and
      2. Upon the consent of the Secretary of the Department of Transformation and Shared Services in consultation with the Chief Fiscal Officer of the State.

History. Acts 1973, No. 876, § 23; 1981, No. 741, § 4; A.S.A. 1947, § 13-349; Acts 1989, No. 629, § 10; 2003, No. 656, § 8; 2019, No. 910, § 6093.

Amendments. The 2019 amendment inserted “Secretary of the Department of Transformation and Shared Services in consultation with the” in (c)(2)(B).

19-4-1611. Supplemental payments prohibited.

In the event the General Assembly shall have established by law the maximum annual salaries for certain positions for any state agency and shall have appropriated for those positions, no greater salary than that established by law shall be paid to any person occupying the position by making supplemental payments from agency bank funds. However, the salaries may be paid partly from state-appropriated funds and partly from agency bank funds, but the aggregate of the payments shall not exceed the maximum annual salary rate, where it is established by law.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349.

19-4-1612. Overtime pay.

  1. It is the policy of the State of Arkansas that overtime pay for state employees is the least desirable method of compensation for overtime work.
    1. All state departments, agencies, boards, commissions, and institutions may pay overtime to their employees, under the rules and regulations set out by the federal Fair Labor Standards Act of 1938.
      1. The Secretary of the Department of Transformation and Shared Services will specify those specific employees or groups of employees other than employees of the Arkansas Department of Transportation eligible to receive overtime compensation, the circumstances under which overtime pay is to be allowed, and other matters the secretary finds appropriate and necessary to comply with the federal Fair Labor Standards Act of 1938 as regards the payment of overtime compensation.
      2. The Director of State Highways and Transportation shall make these determinations as to employees of the Arkansas Department of Transportation.
  2. The rules authorized by this section shall not go into effect until the secretary, or the Arkansas Department of Transportation as to its employees, has sought the advice of the Legislative Council.
  3. In the event that the federal Fair Labor Standards Act of 1938 is held, for whatever reason, to be nonapplicable to state employment, then any state department, agency, board, commission, or institution may pay overtime to its employees only if the General Assembly has given authorization by an appropriation.

History. Acts 1973, No. 876, § 23; 1976 (1st Ex. Sess.), No. 1, § 1; 1977, No. 118, § 1; 1985, No. 820, § 1; A.S.A. 1947, § 13-349; Acts 2009, No. 605, § 19; 2009, No. 606, § 19; 2015, No. 218, § 18; 2017, No. 707, § 48; 2019, No. 910, §§ 6094, 6095.

Amendments. The 2009 amendment by identical acts Nos. 605 and 606 inserted “and the Arkansas Lottery Commission” in (b)(2)(A), and inserted (b)(2)(C).

The 2015 amendment deleted “and the Arkansas Lottery Commission” preceding “eligible” in (b)(2)(A); and deleted (b)(2)(C).

The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department” in (b)(2)(A), (b)(2)(B) and (c); in (b)(2)(A), substituted “other matters” for “such other matters which”, and substituted “finds” for “may deem”; and deleted “and regulations” following “rules” in (c).

The 2019 amendment substituted “Secretary of the Department of Transformation and Shared Services” for “Chief Fiscal Officer of the State” twice in (b)(2)(A) and in (c).

U.S. Code. The federal Fair Labor Standards Act of 1938, referred to in this section, is codified as 29 U.S.C. § 201 et seq.

19-4-1613. Lump-sum terminal pay.

  1. Upon termination, resignation, retirement, death, or other action by which a person ceases to be an active employee of a state agency, the amount due the employee or his or her estate, including any accrued unpaid annual or holiday leave which is due in accordance with the policies of the state agency and lump-sum payments of sick leave balances upon retirement as provided by law, may, and should, be included in the final pay to the employee or his or her estate for the employee's active work, even though the final payment of salary or wages may exceed one-twenty-sixth (1/26) or other fractional amount based upon days, weeks, or months of the employee's annual authorized compensation at the date active employment ceases.
  2. No employee receiving the additional compensation shall return to state employment until the number of days for which he or she received additional compensation has expired.
  3. Payment of the additional compensation shall not be considered as exceeding the maximum for a position so authorized.
  4. If an employee receives compensation for unused sick leave at retirement pursuant to § 21-4-501 and returns to state employment, the employee shall not be required to wait until the expiration of the number of days for which he or she received additional compensation before returning to state employment or to repay the amount of the compensation.

History. Acts 1973, No. 876, § 23; 1975, No. 980, § 2; A.S.A. 1947, § 13-349; Acts 2001, No. 1453, § 46; 2005, No. 1188, § 1.

Amendments. The 2005 amendment added (d).

19-4-1614. Judicial awards under federal laws.

  1. In the event an employee of the State of Arkansas, or the authorized agent of the employee, files suit against the State of Arkansas in a court of competent jurisdiction for relief under the provisions of Title VII of the federal Civil Rights Act of 1964, as amended, or the federal Civil Rights Act of 1866, or the federal Civil Rights Act of 1871, or the Fourteenth Amendment to the United States Constitution, and the court finds for the employee and in so finding awards wages or salaries for personal services rendered in addition to wages or salaries already paid or due, the additional wages or salaries shall be paid from the regular salary appropriation from which the employee is normally paid. If it is found, however, that such payment will impair the regular salary appropriation, the Chief Fiscal Officer of the State shall transfer the necessary appropriation from the maintenance and general operations appropriation of the employing agency to the regular salary appropriation in order that the additional wages or salaries shall be paid.
  2. Any liquidated damages awarded by the court, pursuant to the federal laws cited in subsection (a) of this section, are to be paid in the same manner as the additional wages or salaries provided for in subsection (a) of this section.
  3. When notified that a state employee has filed suit or is in any other manner claiming redress under the provisions of the federal laws cited in subsection (a) of this section, the Chief Fiscal Officer of the State may investigate the circumstances surrounding the claim. If, based on the evidence and facts found during the investigation, the Chief Fiscal Officer of the State determines or has reason to believe that the court would sustain the employee's claim and find for the employee and in so doing award wages or salaries in addition to those paid or due for the employee's personal service rendered, then the Chief Fiscal Officer of the State shall, with the advice of the Legislative Council or the Joint Budget Committee, authorize payment of the additional wages or salaries as provided in subsection (a) of this section.

History. Acts 1973, No. 876, § 23; 1977, No. 813, § 4; A.S.A. 1947, § 13-349.

U.S. Code. Title VII of the federal Civil Rights Act of 1964, referred to in this section, is codified as 42 U.S.C. §§ 2000e – 2000e-17.

The federal Civil Rights Acts of 1866, referred to in this section, is codified as 42 U.S.C. §§ 1981 – 1982.

The federal Civil Rights Acts of 1871, referred to in this section, is codified as 42 U.S.C. §§ 1983, 1985, 1986.

Case Notes

Construction.

This section provides nothing more than a means for the payment of certain judgments against the State, and does not create a waiver of the State's immunity from suit in her own courts. Cross v. Ark. Livestock & Poultry Comm'n, 328 Ark. 255, 943 S.W.2d 230 (1997).

19-4-1615. Awards from State Claims Commission.

  1. In the event a state employee is awarded a claim by the Arkansas State Claims Commission for wages or salaries for personal services rendered for a state agency, such award shall be processed through the state mechanized payroll system.
  2. The award shall be paid from the regular salaries and personal services matching appropriation from which the employee is normally paid.

History. Acts 1995, No. 176, § 1.

Subchapter 17 — Professional and Consultant Services

19-4-1701 — 19-4-1717. [Repealed.]

Publisher's Notes. This subchapter, concerning professional and service contracts, was repealed by Acts 2003, No. 1315, § 3. The subchapter was derived from the following sources:

19-4-1701. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; 1979, No. 833, § 10; A.S.A. 1947, § 13-346; Acts 1991, No. 1221, § 1; 2001, No. 1232, § 1.

19-4-1702. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; A.S.A. 1947, § 13-346.

19-4-1703. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; A.S.A. 1947, § 13-346.

19-4-1704. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; A.S.A. 1947, § 13-346.

19-4-1705. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; A.S.A. 1947, § 13-346; Acts 1989, No. 37, § 1; 2001, No. 1568, § 2; 2001, No. 1612, § 37.

19-4-1706. Acts 1973, No. 876, § 20; 1977, No. 833, § 10; A.S.A. 1947, § 13-346.

19-4-1707. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; 1985, No. 365, § 9; A.S.A. 1947, § 13-346.

19-4-1708. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; A.S.A. 1947, § 13-346.

19-4-1709. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; 1985, No. 365, § 10; A.S.A. 1947, § 13-346; Acts 1997, No. 1088, § 1.

19-4-1710. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; A.S.A. 1947, § 13-346; Acts 1989, No. 402, § 3; 1997, No. 1088, § 2.

19-4-1711. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; A.S.A. 1947, § 13-346; 2001, No. 1453, § 47.

19-4-1712. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; A.S.A. 1947, § 13-346.

19-4-1713. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; A.S.A. 1947, § 13-346.

19-4-1714. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; A.S.A. 1947, § 13-346.

19-4-1715. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; A.S.A. 1947, § 13-346.

19-4-1716. Acts 1993, No. 1255 §§ 1-3; 1997; No. 179, § 17; 1997, No. 312, § 14; 1997, No. 1354, § 37.

19-4-1717. Acts 2001, No. 1762, § 1.

Subchapter 18 — Reimbursements, Collections, and Refunds

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, in the enactment of the General Accounting Procedures Law of Arkansas, the Sixtieth General Assembly declared it to be the public policy that the State and all of its agencies be maintained in a sound financial basis, to provide for the adequate accounting for all fiscal transactions of the State, to provide for establishing rules, regulations and procedures for budget preparation, presentation, enactment, execution and defining powers and duties of the Chief Fiscal Officer and State Auditor and the State Treasurer in connection with the foregoing; and

“Whereas, in order to carry out the public policy, purposes, intent and provisions of the General Accounting Procedures Law of Arkansas and in order to accept, adapt and comply with the modern-day technological changes and innovations in budgetary, accounting, and fiscal procedures, it is necessary for the General Assembly to enact legislation providing for the same; and

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation to the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

“Whereas, it is the responsibility of the General Assembly to determine the programs, projects and services for which the State's revenues shall be expended and the priorities which should govern such expenditures; and

“Whereas, in order to discharge its responsibility the General Assembly and its interim committees, including the Legislative Council, has need of accurate data in order to make its determinations wisely; and

“Whereas, the General Assembly recognizes and accepts the principles, purposes and intent of the Revenue Stabilization Law of Arkansas and the General Accounting Procedures Law of Arkansas as they presently exist and further recognizes the validity of their provisions by virtue of Arkansas Supreme Court decisions; and

“Whereas, it is not the intention of the General Assembly to deviate from the purposes and intent of the Revenue Stabilization Law of Arkansas, but it is the intent of the General Assembly to strengthen the purpose of the Revenue Stabilization Law and the General Accounting Procedures Law of Arkansas by enacting the following legislation which embodies the holdings of prior Arkansas Supreme Court decisions affecting the General Accounting Procedures Law of Arkansas, now therefore … .”

Effective Dates. Acts 1971, No. 585, § 34: approved Apr. 6, 1971. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that in order to establish an orderly procedure which will insure the monthly and quarterly distribution of funds for the necessary services and operations of the state government, as provided for in this act, it is necessary that the provisions of this act become effective immediately; that under the provisions of this act seriously needed improvements for many of our public institutions are contemplated, and only the provisions of this act will provide such funds which will be adequate to alleviate this situation; and that only the provisions of this act will correct many of our financial difficulties, and which otherwise may deprive the citizens of this state from receiving the benefits for which the operation of state government contemplates. Therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage.”

Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1975, No. 72, § 5: July 1, 1975. Emergency clause provided: “It is hereby found and determined by the Seventieth General Assembly that the Constitution of the State of Arkansas prohibits the appropriations of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1975 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1975 could work irreparable harm upon the proper administration and providing of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1975.”

Acts 1975 (Extended Sess., 1976), No. 1110, § 3: Jan. 30, 1976. Emergency clause provided: “It is hereby found and determined by the Seventieth General Assembly, meeting in Extended Session, that refunds for overpayment of salaries of State employees should be credited as refunds to expenditures on the books of the Treasurer and that such refunds should also be credited to the appropriation accounts on the books of the various fiscal officers of the State thereby accruing greater benefits and effectiveness to the various agencies, boards and commissions of the State. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1977, No. 437, § 4: July 1, 1977. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management of state finances requires that the provisions of this Act be implemented at the commencement of the next biennium and this Act is necessary for the proper management of the financial affairs of the state, therefore an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1977.”

Acts 1979, No. 833, § 12: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the aforementioned sections of the General Accounting and Budgetary Procedures Law of Arkansas requires amendment to conform with legislation, and for more effective operations of state government. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1987, No. 873, § 3: Apr. 13, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1110 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-4-1801. Reimbursements and refunds generally.

  1. The Chief Fiscal Officer of the State shall prescribe the method of handling refunds and reimbursements to the state for moneys previously paid out or due the state. If no properly classified appropriation account exists on the books of the Chief Fiscal Officer of the State and the Auditor of State for which the respective refund is applicable, the Chief Fiscal Officer of the State is authorized to establish such appropriation account on the books of the Chief Fiscal Officer of the State, the Auditor of State, and the various fiscal officers.
  2. No such refunds shall cause a transfer of appropriation on the books of the Chief Fiscal Officer of the State, the Auditor of State, and the various fiscal officers except for:
    1. Proceeds received from insurance policies for casualty losses by state agencies;
    2. Proceeds received from vendors on account of overpayment of obligations remitted by state agencies;
    3. Refunds to state agencies for cash advances or over-allocations made to state and local agencies for subgrants;
    4. Refunds to state agencies for the erroneous payment or overpayment of salaries to state employees;
    5. Proceeds derived from the maturity or redemption of investments;
    6. Reimbursements to institutions of higher education for cash fund expenditures for salaries that are properly chargeable to funds in the State Treasury;
    7. Federal reimbursements of expenses paid in advance by the state on behalf of the federal government; and
    8. Reimbursements by vendors or their agents for warranties, product rebates, and service adjustments.

History. Acts 1973, No. 876, § 24; 1975 (Extended Sess., 1976), No. 1110, § 1; 1977, No. 437, § 2; 1979, No. 833, § 8; A.S.A. 1947, § 13-350; reen. Acts 1987, No. 873, § 1; 2007, No. 716, § 2.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 873, § 1. Acts 1987, No. 834, provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Amendments. The 2007 amendment added (b)(7) and (8) and made related changes.

19-4-1802. Petty cash imprest funds.

  1. Petty cash imprest funds for any state agency shall be approved by the Chief Fiscal Officer of the State only in the case of actual need for such funds in connection with the daily operations of the agency and shall be subject to such limitations with respect to amount and use of the funds as shall be prescribed by him or her.
  2. The petty cash imprest funds shall not be used to circumvent purchasing rules, nor for the purpose of reimbursing individuals for travel expenses.

History. Acts 1973, No. 876, § 24; A.S.A. 1947, § 13-350; Acts 2019, No. 315, § 1736.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (b).

19-4-1803. Collections generally.

All fines, fees, penalties, court costs, taxes, and other collections which, by the laws of this state, are to be remitted directly to the Treasurer of State for credit in the State Treasury to an account of an agency of this state shall be remitted directly to the agency to whose account they are to be credited. Upon receipt, the agency shall transmit them to the Treasurer of State who shall credit them in the State Treasury to the account of the agency.

History. Acts 1961, No. 250, § 1; A.S.A. 1947, § 13-505.1.

19-4-1804. Geological publications income.

Charges, income, receipts, or revenue derived from the sale of publications by the Arkansas Geological Survey shall be deposited into the State Treasury as a refund to expenditures.

History. Acts 1971, No. 585, § 19; A.S.A. 1947, § 13-549.

Publisher's Notes. As originally enacted, this section also referred to “geological activity of the Department of Commerce.” However, Acts 1983, No. 691, § 17, abolished this department.

19-4-1805. Deposits for highway employees retirement.

All moneys received in the State Treasury for deposit into the State Highway Employees' Retirement System Fund that are derived from the sale or redemption of stocks, bonds, or other securities, other than interest, are to be classified and handled on the books of the Treasurer of State, the Auditor of State, and the Department of Finance and Administration as a refund to expenditures.

History. Acts 1975, No. 72, § 4.

Cross References. Arkansas State Highway Employees' Retirement System Fund, § 19-5-918.

19-4-1806. Grants, aids, and donations.

All state agencies are authorized to accept grants, aids, and donations and to enter into contracts to accept grants, aids, and donations. Following procedures prescribed by the Chief Fiscal Officer of the State, funds received from grants, aids, and donations may be deposited, disbursed, budgeted, and regulated.

History. Acts 1973, No. 876, § 19; A.S.A. 1947, § 13-345.

19-4-1807. Federal funds generally.

  1. In the event the United States Congress shall appropriate funds for the benefit of the state or any state agency or in the event any federal funds shall be paid to the state or any agency thereof for the purpose of reimbursing the state for funds previously paid out, and in the event any such federal funds are deposited into the State Treasury and there is no law providing for the depositing of such moneys in a state fund or appropriating them from a state fund, taking into consideration the provisions and requirements of the miscellaneous federal grant appropriation, then the Chief Fiscal Officer of the State shall have the authority to direct the State Treasury to establish funds, fund accounts, or accounts on the books of the various fiscal officers of the state for the purpose of handling and disbursing these federal funds.
  2. Any such federal funds shall be handled only in accordance with the purpose for which the funds were granted to, or paid over to, the state or any agency thereof. All such federal funds shall be subject to the procedures prescribed by the Chief Fiscal Officer of the State for the disbursement of funds.

History. Acts 1973, No. 876, § 24; A.S.A. 1947, § 13-350.

Cross References. Procedures for administering unanticipated miscellaneous federal funds, § 19-7-501 et seq.

19-4-1808. Federal funds for vocational schools.

Reimbursements of federal funds to the Division of Career and Technical Education Fund Account shall be construed to be income of the fiscal year in which the reimbursements were received.

History. Acts 1969, No. 620, § 15; A.S.A. 1947, § 13-513.2; Acts 2019, No. 910, § 2258.

Amendments. The 2019 amendment substituted “Division of Career and Technical Education Fund Account” for “Department of Career Education Fund Account”.

Subchapter 19 — Federal Grants and Aids

Cross References. Grant application review — indirect cost reimbursements, § 19-7-601 et seq.

Procedures for administering unanticipated miscellaneous federal funds, § 19-7-501 et seq.

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, in the enactment of the General Accounting Procedures Law of Arkansas, the Sixtieth General Assembly declared it to be the public policy that the State and all of its agencies be maintained in a sound financial basis, to provide for the adequate accounting for all fiscal transactions of the State, to provide for establishing rules, regulations and procedures for budget preparation, presentation, enactment, execution and defining powers and duties of the Chief Fiscal Officer and State Auditor and the State Treasurer in connection with the foregoing; and

“Whereas, in order to carry out the public policy, purposes, intent and provisions of the General Accounting Procedures Law of Arkansas and in order to accept, adapt and comply with the modern-day technological changes and innovations in budgetary, accounting, and fiscal procedures, it is necessary for the General Assembly to enact legislation providing for the same; and

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation to the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

“Whereas, it is the responsibility of the General Assembly to determine the programs, projects and services for which the State's revenues shall be expended and the priorities which should govern such expenditures; and

“Whereas, in order to discharge its responsibility the General Assembly and its interim committees, including the Legislative Council, has need of accurate data in order to make its determinations wisely; and

“Whereas, the General Assembly recognizes and accepts the principles, purposes and intent of the Revenue Stabilization Law of Arkansas and the General Accounting Procedures Law of Arkansas as they presently exist and further recognizes the validity of their provisions by virtue of Arkansas Supreme Court decisions; and

“Whereas, it is not the intention of the General Assembly to deviate from the purposes and intent of the Revenue Stabilization Law of Arkansas, but it is the intent of the General Assembly to strengthen the purpose of the Revenue Stabilization Law and the General Accounting Procedures Law of Arkansas by enacting the following legislation which embodies the holdings of prior Arkansas Supreme Court decisions affecting the General Accounting Procedures Law of Arkansas, now therefore … .”

Acts 1981, No. 572 contained a preamble which read:

“Whereas, the Office of Management and Budget in conjunction with the Department of Health and Human Services is implementing a new process of transferring federal moneys to the various states for financing certain federally subsidized programs; and

“Whereas, the federally announced financing methodology is intended to reduce the available moneys for program administration, thereby shortening the period of time that federal moneys are needed for program financing; and

“Whereas, it is their intent to reduce the federal cash flow of moneys to, hopefully, prevent borrowing of moneys by the U.S. Treasury Department; and

“Whereas, the acceptable proposed method of financing these programs will require the Auditor of the State to issue warrants for the expenditures of federal moneys without regard to balances in the State Treasurey funds of the specified programs, but, the State Treasurer shall have sufficient balances on hand in the various affected funds in order to redeem warrants;

“Therefore, it is the intent of the General Assembly to amend the General Accounting and Budgetary Procedures Law of the State of Arkansas to allow implementation of an alternative method of financing certain Federal programs as required by the Office of Management and Budget and the Department of Health and Human Services; Now therefore … .”

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1981, No. 572, § 4: July 1, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that various Federal Programs may require changes in their method of funding; that this Act is intended to provide for this Federal requirement and in order to do so it is essential that this Act become effective on July 1, 1981; that unless an emergency is declared, an extension of the 1981 regular session of the General Assembly could delay the effective date of this Act beyond July 1, 1981. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1981.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-4-1901. Submission of requests.

  1. Requests for federal funds for grants, aids, reimbursement, and direct or indirect cost reimbursement plans, other than research grants, originated by a state agency other than a state institution of higher education shall be submitted to the Department of Finance and Administration prior to their submission to the granting source.
  2. Excepting the provisions of § 19-4-1907, the remainder of this subchapter shall not be applicable to state institutions of higher education.

History. Acts 1973, No. 876, § 21; A.S.A. 1947, § 13-347; Acts 1989, No. 37, § 2.

19-4-1902. Preliminary or informal proposals.

Preliminary or informal proposals which do not commit personnel, space, facilities, or state funds may be submitted directly to the granting source. However, when the grant requested, if approved, would result in the commitment of state personnel, space, facilities, equipment, or funds, or the program to be proposed by the state agency with the resources from the federal grant has not received specific legislative authorization through an appropriation or specific enabling legislation, the requesting agency shall notify, in writing, the Secretary of the Department of Finance and Administration that such preliminary or informal proposal is being made and shall briefly describe it.

History. Acts 1973, No. 876, § 21; A.S.A. 1947, § 13-347; Acts 2019, No. 910, § 3457.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration”.

19-4-1903. Evaluation report.

Each request submitted to the Department of Finance and Administration shall be accompanied with an evaluation report prepared by the state agency that includes information as follows, but not necessarily limited thereto:

  1. A description of the purpose of the program;
  2. An explanation of the relationship of the program or plan to the agency's total program and why the program is needed;
  3. Its priority in the total program;
  4. A statement whether similar programs are being conducted, if known, or could be conducted in or by other agencies;
  5. An explanation of the effects of this program and the state's obligation, if any, to continue the program, and the level of continuance, in the event federal funds are curtailed;
  6. A statement of how the agency's programs and objectives would be affected if the request is not approved; and
  7. The amount of overhead payment anticipated from federal funds, and its adequacy, to reimburse the agency and central state services for actual indirect costs reimbursements.

History. Acts 1973, No. 876, § 21; A.S.A. 1947, § 13-347.

19-4-1904. Receipt of funds.

  1. When any federal funds, grants, aids, or reimbursements, including unsolicited funds, are received by a state agency, the Department of Finance and Administration shall be notified on forms to be prescribed by the Secretary of the Department of Finance and Administration.
  2. The department shall prescribe procedures for quarterly reporting information relative to grants, aids, reimbursement, and direct or indirect cost reimbursement plans, and research grants and aids for the institutions of higher education.

History. Acts 1973, No., 876, § 21; A.S.A. 1947, § 13-347; Acts 1989, No. 37, § 3; 2019, No. 910, § 3458.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a).

19-4-1905. Research grants.

The Department of Finance and Administration shall prescribe procedures for reporting information relative to federal research grants and aids for the colleges and universities.

History. Acts 1973, No. 876, § 21; A.S.A. 1947, § 13-347.

19-4-1906. Letters of credit — Definitions.

  1. As used in this subchapter, unless the context otherwise requires:
    1. “Checks-paid letter of credit” means a system which requires state warrants to be issued without federal moneys on deposit in the State Treasury. The federal share of the warrants would only become available to the Treasurer of State on the day the warrants are presented for redemption. A receipt would be processed and credited to the proper fund before the warrants are redeemed;
    2. “Delay-of-drawdown letter of credit” means a system which requires the Auditor of State to issue warrants without federal moneys on deposit in the State Treasury for specific programs primarily financed by federal moneys. Moneys are drawn upon the letter of credit and deposited with the Treasurer of State based on an agreement with the United States Government establishing warrant redemption patterns. Deposits are made each day based on estimates of the amount of warrants to be redeemed each day. In the event that warrants are presented for redemption on a given day in excess of the amount deposited into the State Treasury, an additional amount of moneys may be requested on a letter of credit and deposited with the Treasurer of State to enable proper warrant redemption and to prevent deficit spending; and
    3. “Federal letter of credit” means an instrument certified by an authorized official of a grantor agency which authorizes a grantee to draw funds needed for immediate disbursement in accordance with the provisions of Treasury Circular 1075.
    1. Upon approval of the Chief Fiscal Officer of the State and under procedures prescribed by the Chief Fiscal Officer of the State, letters of credit, either individually or under a single, unified, checks-paid, or delay-of-drawdown system may be included and accounted for on the books of record of the Auditor of State, Chief Fiscal Officer of the State, and applicable state agency as deferred federal revenues to be treated as an asset comparable to “cash on hand”. In connection therewith, the Chief Fiscal Officer of the State may direct the creation and establishment of a revolving paying account on the books of records of the applicable state's accounting records. Furthermore, upon implementation of a checks-paid or delay-of-drawdown system, the affected agency may issue vouchers, the Department of Finance and Administration may approve vouchers for payment, and the Auditor of State may issue warrants for federal programs without regard to federal fund or paying account balances on deposit in the State Treasury.
      1. In no event shall the Treasurer of State redeem any warrants without sufficient fund balances on deposit equal to the total amount of warrants presented for redemption.
      2. In no event shall the implementation of a checks-paid or delay-of-drawdown letter of credit system be construed as deficit spending.
      3. The Chief Fiscal Officer of the State, after consulting with the Auditor of State and the Treasurer of State, may prescribe such rules as necessary to implement a checks-paid or delay-of-drawdown letter of credit system.
    2. No agency shall implement a checks-paid or delay-of-drawdown letter of credit system except upon approval of the Chief Fiscal Officer of the State and upon advice of the Legislative Council.

History. Acts 1973, No. 876, § 21; 1981, No. 572, § 1; A.S.A. 1947, § 13-347; Acts 2019, No. 315, § 1737.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (b)(2)(C).

19-4-1907. Quarterly reports.

  1. The Secretary of the Department of Finance and Administration shall file quarterly reports with the Legislative Council itemizing and summarizing all contracts or agreements entered into by the Governor with the United States Government, or any agencies or instrumentalities thereof, whereby the State of Arkansas is to participate in any program involving the expenditure of federal funds. These reports shall be filed, whether or not state funds are obligated in connection therewith, with respect to new federal programs or expansions of existing federal programs which were not in existence or which were not implemented by state participation, at the time of the adjournment of the regular session of the General Assembly and entered into prior to the convening of the next regular session of the General Assembly.
  2. The report shall list, with respect to each such contract or agreement:
    1. A brief statement of the purposes of the agreement;
    2. The amount of federal funds to be expended thereunder;
    3. The amount of any state matching funds required in connection with such program, if any;
    4. The name of the agency that will administer the program; and
    5. Such additional information as will enable the members of the Legislative Council to determine the nature and purposes of the agreement.

History. Acts 1973, No. 876, § 21; A.S.A. 1947, § 13-347; Acts 2019, No. 910, § 3459.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in the first sentence of (a).

19-4-1908. Review and continuance of programs.

  1. The Legislative Council shall review the quarterly reports filed by the Secretary of the Department of Finance and Administration as required in this subchapter. The Legislative Council shall submit such findings and recommendations to each succeeding regular session of the General Assembly for enabling legislation to implement, restrict, or prohibit the state's participation in any such new federal program or expanded federal program which was implemented by contract or agreement entered into by the Governor subsequent to the adjournment of the preceding session of the General Assembly.
  2. In the event the next regular session of the General Assembly shall fail to prohibit or restrict the state's participation in any new or expanded program implemented by contract or agreement signed by the Governor with the United States Government during the interim since the immediately preceding regular session of the General Assembly, then the state may continue to participate in the federal program. On the other hand, if the General Assembly shall restrict or prohibit the state's participation in any new or expanded federal program implemented by contract or agreement subsequent to the last regular session, then it shall be unlawful for the state to continue to participate in or to expend any state funds in connection with any such program. All contracts or agreements entered into by the Governor or any agency of the state acting under authority of the Governor shall be void and the state's participation therein shall cease upon the adjournment of the General Assembly, or at such later date if a later date for the termination of the state's participation therein has been prescribed by law.

History. Acts 1973, No. 876, § 21; A.S.A. 1947, § 13-347; Acts 2019, No. 910, § 3460.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in the first sentence of (a).

Subchapter 20 — Losses and Recoveries

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, in the enactment of the General Accounting Procedures Law of Arkansas, the Sixtieth General Assembly declared it to be the public policy that the State and all of its agencies be maintained in a sound financial basis, to provide for the adequate accounting for all fiscal transactions of the State, to provide for establishing rules, regulations and procedures for budget preparation, presentation, enactment, execution and defining powers and duties of the Chief Fiscal Officer and State Auditor and the State Treasurer in connection with the foregoing; and

“Whereas, in order to carry out the public policy, purposes, intent and provisions of the General Accounting Procedures Law of Arkansas and in order to accept, adapt and comply with the modern-day technological changes and innovations in budgetary, accounting, and fiscal procedures, it is necessary for the General Assembly to enact legislation providing for the same; and

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation to the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

“Whereas, it is the responsibility of the General Assembly to determine the programs, projects and services for which the State's revenues shall be expended and the priorities which should govern such expenditures; and

“Whereas, in order to discharge its responsibility the General Assembly and its interim committees, including the Legislative Council, has need of accurate data in order to make its determinations wisely; and

“Whereas, the General Assembly recognizes and accepts the principles, purposes and intent of the Revenue Stabilization Law of Arkansas and the General Accounting Procedures Law of Arkansas as they presently exist and further recognizes the validity of their provisions by virtue of Arkansas Supreme Court decisions; and

“Whereas, it is not the intention of the General Assembly to deviate from the purposes and intent of the Revenue Stabilization Law of Arkansas, but it is the intent of the General Assembly to strengthen the purpose of the Revenue Stabilization Law and the General Accounting Procedures Law of Arkansas by enacting the following legislation which embodies the holdings of prior Arkansas Supreme Court decisions affecting the General Accounting Procedures Law of Arkansas, now therefore … .”

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

19-4-2001. Notice and proof of loss.

It shall be the duty of the Chief Fiscal Officer of the State to give notice and make proof of loss to, and demand payment of, the surety of any bond executed by any state officer or employee in which the audit report by the Legislative Joint Auditing Committee of the records and accounts shows that such officer or employee and his or her surety may in any way be liable.

History. Acts 1973, No. 876, § 18; A.S.A. 1947, § 13-344.

19-4-2002. Payment of loss.

  1. Within a reasonable time after the Chief Fiscal Officer of the State has given notice and made proof of loss and demand for payment as prescribed in this subchapter, the surety shall make payment to the Chief Fiscal Officer of the State of the amount so found to be due. The Chief Fiscal Officer of the State shall forthwith transmit the amounts so received to the Treasurer of State with instructions to credit it to the fund, fund accounts, or accounts entitled to such funds.
  2. If the amounts so recovered are funds that are not required by law to be deposited into the State Treasury, then the funds shall be transmitted by the Chief Fiscal Officer of the State to the agency to which the recovered funds belong, with instructions to credit it to the accounts entitled to such funds.

History. Acts 1973, No. 876, § 18; A.S.A. 1947, § 13-344.

19-4-2003. Legal action.

In the event any surety shall fail or refuse to pay over the amounts so found to be due, the Chief Fiscal Officer of the State shall give notice of the failure or refusal to the Attorney General. The Attorney General shall immediately take such legal action as shall be necessary to collect the amount so found to be due from the officer or employee and his or her surety.

History. Acts 1973, No. 876, § 18; A.S.A. 1947, § 13-344.

19-4-2004. Auditor's testimony.

  1. In all criminal or civil actions brought as the result of the findings set forth in an audit report, the auditors making the audit shall give testimony upon request of the proper officers of the court and otherwise make their services available in the prosecution of any action.
  2. Auditors shall not be entitled to witness fees for giving testimony.

History. Acts 1973, No. 876, § 18; A.S.A. 1947, § 13-344.

Subchapter 21 — State-Funded Expenses of Constitutional Officers

A.C.R.C. Notes. References to “this chapter” in subchapters 1-20 may not apply to this subchapter which was enacted subsequently.

19-4-2101. Definition.

For purposes of this subchapter the term “constitutional officers” means the Governor, the Lieutenant Governor, the Attorney General, the Secretary of State, the Treasurer of State, the Auditor of State, and the Commissioner of State Lands.

History. Acts 1991, No. 768, § 1.

19-4-2102. Documentation required.

  1. For all expenditures exceeding twenty-five dollars ($25.00), all constitutional officers and their employees shall hereafter file with their disbursing officers the following documents to substantiate expenditures for transportation, lodging, food, or any other expense to be paid from the maintenance and operations moneys appropriated by the General Assembly:
    1. A copy of the vendor's invoice or receipt;
    2. A statement of the purpose of the expenditure; and
    3. The names of all persons for which the expenditure was incurred.
  2. For all expenditures not exceeding twenty-five dollars ($25.00), all constitutional officers and their employees shall hereafter file with their disbursing officers the following documents to substantiate expenditures for transportation, lodging, food, or any other expense to be paid from the maintenance and operations moneys appropriated by the General Assembly:
    1. A statement of the purpose of the expenditure;
    2. The amount of such expense;
    3. The date, place, and nature of such expense; and
    4. The business relationship of any persons for whom the expenditure was incurred, including such person's identity, title, or other information sufficient to establish such a relationship.

History. Acts 1991, No. 768, § 2.

19-4-2103. Expenditures for official state business only — Exemptions.

  1. No constitutional officer or employee of a constitutional officer shall expend for personal use any moneys appropriated by the General Assembly for the maintenance and operation of the office, and the moneys appropriated for the maintenance and operation of the offices of the constitutional officers shall be expended only for official state business.
  2. This subchapter does not apply to the purchase, maintenance, and operation of state-owned motor vehicles.

History. Acts 1991, No. 768, § 3.

19-4-2104. Expenditures — Disapproval.

No disbursing officer of state funds shall approve any expenditure from maintenance and operation funds for expenses for a constitutional officer or an employee of a constitutional officer unless the request for the expenditure is accompanied by the documentation required by this subchapter.

History. Acts 1991, No. 768, § 4.

19-4-2105. Retention of documentation.

The constitutional officers and their employees shall retain the original documentation required by this subchapter for a period of three (3) years after the date of the request for expenditure.

History. Acts 1991, No. 768, § 5.

Subchapter 22 — Review of Discretionary Grants

A.C.R.C. Notes. References to “this chapter” in subchapter 1-20 may not apply to this subchapter which was enacted subsequently.

Effective Dates. Acts 1999, No. 1032, § 6: Apr. 1, 1999. Emergency clause provided: “It is hereby found and determined by the General Assembly that the provisions of this act are necessary to foster confidence in the operations of state government and to insure the proper expenditure of public funds and that this act should therefore go into effect as soon as possible. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

19-4-2201. Definitions — Review generally — Exempt grants.

  1. For the purposes of this subchapter:
    1. “Discretionary grant” means a grant in which the recipient of the grant funds or the formula for the grant award is not specifically stated in the legislation authorizing the grant;
    2. “Nondiscretionary grant” means a grant in which the recipient of the grant funds or the formula for the grant award is specifically stated in the legislation authorizing the grant, or in specific agency rules promulgated by the agency and reviewed by the Legislative Council, or in the case of federal funds, in the statute, regulation, or other federal directive which restricts the disbursement of the funds according to federal guidelines; and
    3. “State agency” means:
      1. Every board, commission, department, division, or office of state government whether executive, legislative, or judicial; and
      2. All state-supported postsecondary educational institutions, including, but not limited to, colleges and universities, vocational and technical schools, and community colleges.
  2. Hereafter, no state agency shall award any discretionary grant prior to review by the Legislative Council between legislative sessions, or by the Joint Budget Committee during legislative sessions. However, if a state agency determines that an emergency exists requiring the discretionary grant to be awarded prior to review, it may award the discretionary grant prior to the review by the Legislative Council or the Joint Budget Committee, and shall immediately notify the Legislative Council between legislative sessions, or the Joint Budget Committee during legislative sessions, as to the facts constituting the emergency.
  3. Grants exempt from review shall include:
    1. Grants for which the total consideration is less than or equal to ten thousand dollars ($10,000);
    2. Nondiscretionary grants as determined by the agency;
    3. Grants to another governmental entity such as a state agency, public educational institution, federal governmental entity, or body of a local government;
    4. Disaster relief grants;
    5. Grants identified as not requiring review by the Legislative Council between legislative sessions, or the Joint Budget Committee during legislative sessions;
    6. Grants containing confidential information, the disclosure of which is determined by the agency to constitute a violation of other provisions of law regarding disclosure; and
    7. Any scholarship or financial assistance award to, or on behalf of, a postsecondary student.

History. Acts 1999, No. 1032, § 1; 2019, No. 315, § 1738.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (a)(2).

19-4-2202. Review of nonexempt grants.

The Legislative Council between legislative sessions, and the Joint Budget Committee during legislative sessions, shall review all nonexempt discretionary grants by state agencies, and notify the agencies as to the results of the review. The Legislative Council or the Joint Budget Committee shall notify agencies of any other grants identified as not requiring review.

History. Acts 1999, No. 1032, § 2.

Chapter 5 Revenue Stabilization Law

Subchapter 1 — General Provisions

Effective Dates. Acts 1973, No. 750, § 14: July 1, 1973. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that it is necessary to establish an orderly procedure which will insure the monthly distribution of funds for the necessary services and operations of the state government, as provided for in this Act; that only the provisions of this Act will correct many of our financial difficulties, which otherwise may deprive the citzens of this State from receiving the benefits for which the operation of state government contemplates. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after July 1, 1973.”

Acts 1977, No. 719, § 3: July 1, 1977. Emergency clause provided: “It has been found and determined by the 71st General Assembly that individual delinquent political entities' settlements for employee-employer social security and retirement programs matching and employee contribution jeopardizes the entire state's program and the immediate passage of this Act is necessary to prevent unusual and large penalties being assessed. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1977.”

Acts 1977, No. 955, § 20: July 1, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly that the amendments to the Revenue Stabilization Law are essential to the continued operation of State Government. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1977.”

Acts 1979, No. 1013, § 11: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the aforementioned sections of the Revenue Stabilization Law of Arkansas require amending to conform with legislation, and for more effective operations of state government. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1979, No. 1077, § 5: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the Seventy-Second General Assembly that it is essential for the State of Arkansas to place the institutions of higher learning under the provisions of the Uniform Attendance and Leave Policy and to provide that the same rules and regulations that apply to other classified positions shall also apply to these classified positions located in the institutions of higher education. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1981, No. 938, § 22: July 1, 1981. Emergency clause provided: “It is hereby found and determined by the Seventy-Third General Assembly that certain amendments to Act 750 of 1973, the Revenue Stabilization Law are essential to the continued financial operation of state government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1981.”

Acts 1985, No. 64, § 5: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly that the clarification of certain fiscal transactions of the State is needed in order to more accurately reflect the condition of the State's assets at all times and to maintain the fiscal integrity of the State. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in force and effect from and after July 1, 1985.”

Acts 1991, No. 1166, § 13: Apr. 10, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly of the State of Arkansas that there is a need to implement quality management in state government and provide a method to document and analyze quality management projects. Therefore, to ensure that state government services are provided in an efficient manner, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1995, No. 89, § 10: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1995 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1995 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1995.”

Acts 2007, No. 110, § 9: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the people of Arkansas are having to pay more in fuel costs due to the rise in oil prices; that the rise in fuel costs has resulted in an increase in the price of food and other goods; and that in order to offset these rising prices the sales and use tax rate on food and food ingredients should be reduced. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2007.”

19-5-101. Title.

This chapter shall be known and cited as the “Revenue Stabilization Law”.

History. Acts 1973, No. 750, § 1; A.S.A. 1947, § 13-501.

Case Notes

Constitutionality.

Former Revenue Stabilization Law did not delegate powers contrary to Ark. Const., Art. 4. Hooker v. Parkin, 235 Ark. 218, 357 S.W.2d 534 (1962) (decision under prior law).

Former Revenue Stabilization Law, in the using of moneys derived from a tax levied for one purpose for another purpose, did not violate the constitutional prohibition of Ark. Const., Art. 16, § 11. Hooker v. Parkin, 235 Ark. 218, 357 S.W.2d 534 (1962) (decision under prior law).

Former Revenue Stabilization Law, which provided for the allocation of funds within the State Treasury and which did not provide for the withdrawal of any funds from the State Treasury, not being an appropriation act within the meaning of Ark. Const., Art. 5, §§ 29 and 30, did not violate the Constitution. Hooker v. Parkin, 235 Ark. 218, 357 S.W.2d 534 (1962) (decision under prior law).

19-5-102. Legislative intent.

Because of the many revenue laws of the state providing for the levying and collecting of taxes, licenses, and fees for the support of state government and its agencies and enacted by the General Assembly, it is declared to be the policy of the General Assembly with respect to all such revenues and other state income which is required by law to be deposited into the State Treasury to provide for the handling and deposit of the funds in the manner provided in the Revenue Classification Law, § 19-6-101 et seq., and in this chapter in the following manner:

  1. To declare the objects and purposes for which the general revenues as defined in the Revenue Classification Law, § 19-6-101 et seq., and other incomes individually and collectively are to be used. It is the intent and purpose of this section and other provisions of this chapter to comply with the provisions of the Arkansas Constitution, including Arkansas Constitution, Article 16, § 11;
  2. Because of the fact that the constitutional and fiscal agencies of the state and certain other defined agencies or programs, either individually or collectively, render services to every state department, board, commission, institution, agency, or activity supported from revenues deposited into the State Treasury, it is declared to be the policy of the General Assembly that all taxes, licenses, and fees defined as general revenues and special revenues under the provisions of the Revenue Classification Law, § 19-6-101 et seq., shall contribute to the support of such constitutional and fiscal agencies and other defined agencies in the proportion and for the purposes as provided by law for the payment of such services;
  3. As to the taxes, licenses, fees, and other revenues contributing to the general revenues as defined in the Revenue Classification Law, § 19-6-101 et seq., it is not the purpose of this chapter to levy or to change the amount or rate of such taxes, but to state the purpose for which such general revenues are to be used. This chapter shall not be construed as amending any of the provisions of the law with respect to such taxes defined to be general revenues except for the purpose of providing for the distribution of them and defining the purposes for which such revenues are raised and collected; and
  4. As to the special taxes, licenses, fees, and other revenues contributing to the special revenues as provided in the Revenue Classification Law, § 19-6-101 et seq., it is not the intent of the Revenue Classification Law, § 19-6-101 et seq., or of this chapter to levy or change the amount or rate of such taxes nor to change the purposes for which such special revenues are to be used as provided by law. This chapter shall not be construed as amending any of the provisions of the law with respect to the special revenues as defined in this chapter, except for the purpose of providing for the distribution of them and providing that the purposes for which such revenues are collected shall also include the services rendered to the constitutional and fiscal agencies and other defined agencies in the manner provided in the Revenue Classification Law, § 19-6-101 et seq., and in this chapter.

History. Acts 1973, No. 750, § 2; A.S.A. 1947, § 13-502.

Cross References. Levy and appropriation of taxes, Ark. Const., Art. 16, § 11.

19-5-103. Fiscal year.

The fiscal year of the state, for the conduct of its financial affairs, shall commence on July 1 and end on June 30 of the following year.

History. Acts 1973, No. 750, § 3; A.S.A. 1947, § 13-509.

19-5-104. Establishment of other funds or accounts.

The Chief Fiscal Officer of the State may only establish such other funds or fund accounts on the books and on the books of the Treasurer of State and the Auditor of State for making payments that are composed of funds derived from more than one (1) fund or fund account as established by this chapter. The Chief Fiscal Officer of the State may also establish paying accounts on the books of the Treasurer of State and the Auditor of State for making payments that are composed of funds derived from more than one (1) source. However, the Chief Fiscal Officer of the State may establish on the books accounts within funds or fund accounts carried on the books of the Treasurer of State and Auditor of State that he or she deems are necessary for the accounting system of his or her office. Nothing in this section shall prevent the establishment of new funds composed solely of federal grants, aids, reimbursements, or any other moneys received from the United States Government that are to be used for specific purposes.

History. Acts 1973, No. 750, § 9; 1979, No. 1013, § 8; 1979, No. 1077, § 2; A.S.A. 1947, § 13-535.

19-5-105. Appropriations for agencies not funded.

In the event the General Assembly has appropriated general revenue funds for any agency, department, or institution for which funding is not provided in this chapter, the Chief Fiscal Officer of the State shall make the appropriation payable from the General Revenue Fund from which the principal department as created by §§ 6-11-101, 6-11-102, 25-2-10125-2-109, 25-5-101, 25-6-102, 25-7-101, 25-8-101, 25-8-105, 25-9-101, , 25-10-102, 25-10-103 [repealed], 25-10-104, 25-10-105 [repealed], 25-10-106, 25-11-101, 25-11-102, 25-12-101, 25-13-101, and 25-14-101 draws its support. In the event such appropriation is made to any other agency of the state, the appropriation is to be made payable from the Miscellaneous Agencies Fund Account.

History. Acts 1973, No. 750, § 9; 1979, No. 1013, § 8; 1979, No. 1077, § 2; A.S.A. 1947, § 13-535.

19-5-106. Transfer of funds.

  1. The Chief Fiscal Officer of the State may direct a transfer of funds on the books of the Treasurer of State, the Auditor of State, and the Department of Finance and Administration for the following purposes:
    1. To correct accounting errors;
    2. To make loans to authorized funds, fund accounts, or accounts and to repay such loans when they become due and payable, all of which as may be authorized by law;
    3. To reimburse the Miscellaneous Revolving Fund or successor funds, fund accounts, or accounts for the payment of claims, refunds, or other authorized disbursements as may be authorized by law;
    4. For such other purposes as may be specifically authorized by law;
      1. To transfer funds on deposit in the State Treasury containing operating moneys for any:
        1. Political entity, including any state agency, board, commission, department, institution, state-supported community college, college, or university;
        2. Political subdivision of the state, including a regional, county, or municipal government; or
        3. School district,
        1. The head of the state agency responsible for administering the programs shall certify to the Chief Fiscal Officer of the State the agencies, funds, amounts involved, and any other pertinent information.
        2. The Chief Fiscal Officer of the State shall then notify the Auditor of State and the Treasurer of State of the transfers; or
    5. To transfer funds between state agencies and within state agencies in order to eliminate the double accounting of receipts and expenditures which occurs under the method of issuing vouchers.
    1. The transfer document form shall be designed by the Chief Fiscal Officer of the State, with the approval of the Treasurer of State and the Auditor of State, and shall be designed in such form so as to be compatible with the accounting and coding systems of all three (3) offices.
    2. The transfer document as executed by the Chief Fiscal Officer of the State must bear his or her manual signature or the signature of a designated official of his or her office.
    3. In addition, there shall be stated in the document a clearly understood reason for the issuance of the transfer and the specific legal authority for the transfer.
    1. The Treasurer of State is authorized and directed to issue an official transfer document, designed by him or her with the approval of the Chief Fiscal Officer of the State and the Auditor of State as to its form, for the purpose of distributing general and special revenues at the close of business each month.
    2. This document shall bear the manual signature of the Treasurer of State or his or her deputy.
  2. The Treasurer of State may refuse to make any transfer if, in his or her opinion, sufficient proof of the legality of the transfer is not provided.
  3. The Chief Fiscal Officer of the State may transfer moneys from the General Revenue Allotment Reserve Fund accruing thereto from year-end balances as authorized by § 19-5-1004(b)(1) and (2), or from such other funds, fund accounts, or accounts when such fund balances may be transferred for the following purpose: In those instances in which the General Assembly authorizes carrying forward from one (1) fiscal year to the succeeding fiscal year, but not exceeding a two-year appropriation period in conformity with Arkansas Constitution, Article 5, § 29, a transfer of moneys shall be made for reimbursing the fund, in accordance with the provisions of this subsection for the additional moneys expended resulting from the carry-forward provisions of this subsection.
    1. The Chief Fiscal Officer of the State may remove any inactive funds, other than those funds or fund accounts established by law, upon determination that the funds have no appropriations or outstanding warrants and are therefore inactive, from the financial records of the State of Arkansas and to transfer any balances remaining in such funds to the General Revenue Allotment Reserve Fund.
    2. The Chief Fiscal Officer of the State shall notify the Treasurer of State and the Auditor of State of such transactions.
    3. The Chief Fiscal Officer of the State shall report to the Legislative Council and the Joint Budget Committee, during the month of November of each even-numbered year, the status of all inactive funds, along with his or her recommendation as to the disposition of such funds and balances maintained in them.
  4. The Treasurer of State may transfer funds under this section by direct deposit.

to the state agency responsible for administering federal Social Security and state retirement programs for public employees, public school teachers as defined by law, highway employees, and state police employees in such amounts as shall be certified as being due, including any penalties due to delinquency of obligations.

History. Acts 1973, No. 750, § 10; 1977, No. 719, § 1; 1977, No. 955, § 18; 1981, No. 938, §§ 10, 11; 1985, No. 64, §§ 3, 4; A.S.A. 1947, § 13-535.1; Acts 1991, No. 1166, § 5; 2005, No. 1172, § 2; 2013, No. 1146, § 2; 2019, No. 616, § 1.

Amendments. The 2005 amendment substituted “agencies and within” for “grantee agencies and sub-grantee” in (a)(6).

The 2013 amendment repealed former (a)(7).

The 2019 amendment added (g).

Cross References. Use of certain funds to reconcile operations expenses, § 19-4-527.

19-5-107. Appropriation for agencies not provided by General Assembly.

  1. In the event that the appropriation is not provided by the General Assembly for cash fund expenditures for any state agency, pursuant to § 19-4-801 et seq., the agency shall request a transfer of appropriation from the Chief Fiscal Officer of the State, stating clearly the amount required.
  2. Upon approval of the Chief Fiscal Officer of the State, and after seeking prior review by the Legislative Council or Joint Budget Committee, the cash fund appropriations shall be established upon the books of the Department of Finance and Administration; provided further, that upon request of the state agency and with the approval of the Chief Fiscal Officer of the State, the requested appropriations may be established upon the books of the Department of Finance and Administration in compliance with the applicable classifications of appropriations as enumerated in §§ 19-4-521 — 19-4-525.

History. Acts 1995, No. 89, § 2; 2007, No. 68, § 1.

A.C.R.C. Notes. Acts 2016, No. 251, § 49, provided: “TRANSFER PROCEDURES — CASH FUNDS. In the event that the appropriation is not provided by the General Assembly for Cash Fund expenditures for any state agency, pursuant to Arkansas Code 19-4-801 et. seq., said agency shall request a transfer of appropriation from the Chief Fiscal Officer of the State, stating clearly the amount required. Upon approval of the Chief Fiscal Officer of the State, and after seeking prior review by the Arkansas Legislative Council or Joint Budget Committee, said cash fund appropriations shall be established upon the books of the Department of Finance and Administration, provided further, that upon request of the state agency and with the approval of the Chief Fiscal Officer of the State, the requested appropriations may be established upon the books of the Department of Finance and Administration in compliance with the applicable classifications of appropriations as enumerated in Arkansas Code 19-4-521 through 19-4-527.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Amendments. The 2007 amendment inserted “or Joint Budget Committee” in (b).

Subchapter 2 — Funds and Accounts Generally

Effective Dates. Acts 1973, No. 750, § 14: July 1, 1973. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that it is necessary to establish an orderly procedure which will insure the monthly distribution of funds for the necessary services and operations of the state government, as provided for in this Act; that only the provisions of this Act will correct many of our financial difficulties, which otherwise may deprive the citizens of this State from receiving the benefits for which the operation of state government contemplates. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after July 1, 1973.”

Acts 1975, No. 868, § 17: July 1, 1975. Emergency clause provided: “It is hereby found and determined by the Seventieth General Assembly that the amendments to the Revenue Stabilization Law are essential to the continued operation of State Government. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1975.”

Acts 1977, No. 955, § 20: July 1, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly that the amendments to the Revenue Stabilization Law are essential to the continued operation of State Government. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1977.”

Acts 1979, No. 1013, § 11: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the aforementioned section of the Revenue Stabilization Law of Arkansas require amending to conform with legislation, and for more effective operations of state government. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1983, No. 392, § 3: Mar. 10, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that net special revenue and other revenues available to the Workers' Compensation Commission will be insufficient to fund the Death and Permanent Total Disability Trust Fund and the Second Injury Trust Fund and, at the same time, fund the operations of the Workers' Compensation Commission unless these revenues are exempted from existing deductions described above. Therefore, an emergency is hereby declared to exist, and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 737, § 3: Mar. 23, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly that these amendments to Act 750 of 1973, the Revenue Stabilization Law are essential to the continued financial operation of state government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety, shall be in full force and effect upon passage and approval.”

Acts 1983, No. 801, § 18: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly that the amendments to the Revenue Stabilization Law are essential to the continued operation of State government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1983.”

Acts 1985, No. 64, § 5: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly that the clarification of certain fiscal transactions of the State is needed in order to more accurately reflect the condition of the State's assets at all times and to maintain the fiscal integrity of the State. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in force and effect from and after July 1, 1985.”

Acts 1985, No. 888, § 26: July 1, 1985, except §§ 18, 20, and 21, effective Apr. 15, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly that the amendments to the Revenue Stabilization Law are essential to the continued operation of State government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1985. Provided, however, that Sections 18, 20 and 21 of this Act shall become effective from and after the passage and approval of this Act.”

Acts 1985 (1st Ex. Sess.), No. 3, § 2: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly, meeting in Extraordinary Session, that various appropriations enacted by the General Assembly could have the effect of placing the Constitutional and Fiscal Agencies Fund in an unsound financial condition and that the mechanism provided for in this Act will help to alleviate such conditions and maintain the financial integrity of the State. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

Acts 1987 (1st Ex. Sess.), No. 24, § 4: June 12, 1987. Emergency clause provided: “It is hereby found and determined by the 76th General Assembly meeting in 1st Extraordinary Session that the passage of this Act is necessary to provide for the orderly and continued operation of the agencies funded from the State Central Services Fund and to correct an oversight applicable to the Constitutional and Fiscal Agencies Fund. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 629, § 18: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly that the amendments to the Revenue Stabilization Law are essential to the continued operation of State government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1989.”

Acts 1991, No. 1135, § 20: July 1, 1991. Emergency clause provided: “ It is hereby found and determined by the Seventy-Eighth General Assembly that the distribution of general revenues and the creation of the various funds and fund accounts are essential to be in force at the beginning of the state fiscal year and that in the event that the General Assembly extends beyond the sixty day limit, the effective date of this act would not begin at that time creating confusion and not permitting the agencies to implement those programs as approved by the General Assembly. Therefore an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1991.”

Acts 1995, No. 1021, § 4: Apr. 10, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly that the provisions of this Act are of critical importance in providing for the appropriate expenditure of public funds and that the provisions of this Act are necessary. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1995, No. 1163, § 35: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly that the distribution of general revenues and the creation of the various funds and fund accounts are essential to be in force at the beginning of the state fiscal year and that in the event that the General Assembly extends beyond the sixty day limit, the effective date of this act would not begin at that time creating confusion and not permitting the agencies to implement those programs as approved by the General Assembly. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1995.”

Acts 1997, No. 1115, § 66: July 1, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1997 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1997 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1997.”

Acts 1997, No. 1248, § 43: July 1, 1997, except § 33, effective Apr. 9, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly that the distribution of general revenues and the creation of the various funds and fund accounts are essential to be in force at the beginning of the state fiscal year and that in the event that the General Assembly extends beyond the sixty day limit, the effective date of this act would not begin at that time creating confusion and not permitting the agencies to implement those programs as approved by the General Assembly. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety Section 33 of this act shall be in full force and effect from and after the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, Section 33 shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, Section 33 shall become effective on the date the last house overrides the veto. The remaining sections of this act shall become effective from and after July 1, 1997.”

Acts 1997, No. 1355, § 21: July 1, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1997 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1997 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1997.”

Acts 1999, No. 904, § 24: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1999 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1999 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1999.”

Acts 1999, No. 1463, § 40: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that changes in the state's fiscal laws must take effect at the beginning of the fiscal year and that if the current legislative session is extended such that the 90 period is later than July 1, 1999 such changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 1999.”

Acts 2001, No. 1646, § 34: July 1, 2001. Emergency clause provided: “It is hereby found and determined by the General Assembly that changes in the state's fiscal laws must take effect at the beginning of the fiscal year and that if the current legislative session is extended such that the 90 day period is later than July 1, 2001 such changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2003, No. 1022, § 6: July 1, 2003, except § 5(b), effective Apr. 2, 2003. Emergency clause provided: “It is hereby found and determined by the General Assembly that the central administrative functions for state government must be financed at an adequate and stable level; that the current law is outdated and does not result in complying with legislative appropriation decisions regarding those budgets funded through the State Central Services Fund; and that an extension of this regular session might cause this act to be come effective after the first day of the new fiscal year causing confusion and hardships. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect on July 1, 2003 with the exception that subsection (b) of Section 5 of this Act shall become effective immediately upon its passage and approval.”

Acts 2003 (1st Ex. Sess.), No. 55, § 43: July 1, 2003, except § 38, effective May 13, 2003. Emergency clause provided: “It is hereby found and determined by the General Assembly that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, that if the current legislative session is extended such that the 90 day period is later than July 1, 2003 the changes will not be timely and that the authority to transfer funds to general revenue from unclaimed property receipts are required before the end of the current fiscal year. Therefore, an emergency is declared to exist and Section 38 of this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its passage and approval and the remainder of this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2003.”

Acts 2005, No. 196, § 13: July 1, 2005. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2005 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2005 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2005.”

Acts 2005, No. 2282, § 20: July 1, 2005. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, that if the current legislative session is extended such that the 90 day period is later than July 1, 2005 the changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2005.”

Acts 2005, No. 2316, § 20: July 1, 2005. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, that if the current legislative session is extended such that the 90 day period is later than July 1, 2005 the changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2005.”

Acts 2007, No. 1032, § 39: July 1, 2007. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, that if the current legislative session is extended such that the 90 day period is later than July 1, 2007 the changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2007.”

Acts 2007, No. 1201, § 39: July 1, 2007. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, that if the current legislative session is extended such that the 90 day period is later than July 1, 2007 the changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2007.”

Identical Acts 2010, Nos. 262 and 296, § 17: July 1, 2010, except § 15, effective Feb. 26, 2010. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, that the effectiveness of this act on July 1, 2010, with the exception that Section 15 in this Act shall be in full force and effect from and after the date of its passage and approval, is essential to the operation of the agencies for which allocations in this act are provided, and the delay in the effective date of this act beyond July 1, 2010, with the exception that Section 15 in this Act shall be in full force and effect from and after the date of its passage and approval, could work irreparable harm upon the proper administration and provision of essential government programs. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2010, with the exception that Section 15 in this Act shall be in full force and effect from and after the date of its passage and approval.”

Acts 2011, No. 1136, § 3: Apr. 4, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that failure to fully finance the expenditures and obligations of the State Central Services Fund could work irreparable harm on the proper administration and provision of essential government programs. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2013, No. 1516, § 6: July 1, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, and that if the current legislative session is extended such that the 90-day period is later than July 1, 2013 the changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2013.”

Acts 2013, No. 1517, § 6: July 1, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, and that if the current legislative session is extended such that the 90-day period is later than July 1, 2013 the changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2013.”

Identical Acts 2015, Nos. 1144 and 1145, § 12: July 1, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, and that if the current legislative session is extended such that the 90-day period is later than July 1, 2015 the changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2015.”

Acts 2016 (3rd Ex. Sess.), No. 1, § 23: July 1, 2016, §§ 1-8, 13, 15, and 18-21. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that Arkansas bridges and roads are in need of repair and proper maintenance; that the repair and proper maintenance of Arkansas bridges and roads are necessary for the preservation of the public peace, health, and safety; that increased funding is essential to the repair and proper maintenance of Arkansas bridges and roads; that this act is designed to provide the necessary funding that is essential to the repair and proper maintenance of Arkansas bridges and roads, and this act is necessary because without this increased funding, the repair and proper maintenance of Arkansas bridges and roads may not be performed. Therefore, an emergency is declared to exist, and Sections 1-8, 13, 15, 18-21 of this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2016.”

Acts 2019, No. 580, § 18: Sept. 1, 2019. Effective date clause provided: “Sections 2-17 of this act are effective on the first day of the second calendar month following the effective date of this act”.

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ shoul