Stricken language would be deleted from and underlined language would be added to present law.
Act 883 of the Regular Session
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State of Arkansas 1
94th General Assembly A Bill 2
Regular Session, 2023 SENATE BILL 543 3
4
By: Senator K. Hammer 5
By: Representative Cozart 6
7
For An Act To Be Entitled 8
AN ACT TO AMEND ARKA NSAS LAW CONCERNING SCHOOL 9
DISTRICT BOARDS OF D IRECTORS; AMENDING A PORTION OF 10
LAW RESULTING FROM I NITIATED ACT 1 OF 19 90; AND FOR 11
OTHER PURPOSES. 12
13
14
Subtitle 15
TO AMEND ARKANSAS LAW CONCERNING SCHOOL 16
DISTRICT BOARDS OF DIRECTORS AND AMENDING 17
A PORTION OF LAW RESULTING FROM INITIATED 18
ACT 1 OF 1990. 19
20
21
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
23
SECTION 1. Arkansas Code § 6 -13-611(a)(5), concerning vacancies on a 24
school district board of directors, is amended to read as follows: 25
(5) Is convicted of a : 26
(A) felony Felony in accordance with § 6 -13-612; or 27
(B) Violation of the ethical guidel ines and prohibitions under § 28
6-24-101 et seq.; 29
30
SECTION 2. Arkansas Code § 6 -13-617 is amended to read as follows: 31
6-13-617. Oath. 32
(a)(1)(A) Each director elected for an initial or nonconsecutive term 33
of office shall, within ten (10) days afte r receiving notice from the county 34
clerk or his or her designee of his or her election or within ten (10) days 35
after receiving notice from the county clerk or his or her designee of his or 36 SB543
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her appointment, subscribe to the following oath before an individu al 1
authorized to administer oaths under § 21 -2-105: 2
“I, __________________________, do hereby solemnly swear or 3
affirm, that I will support the United States Constitution and the Arkansas 4
Constitution, and that I will not be interested, directly or indir ectly, in 5
any contract made by the district of which I am a director, except as 6
permitted by state law , that I shall abide by the ethical guidelines and 7
prohibitions under § 6 -24-101 et seq., and that I will faithfully discharge 8
the duties as school direct or in __________________________ School District 9
upon which I am about to enter. 10
_____________ 11
Director's Signature 12
_____________ 13
Administrator's Signature 14
_____________ 15
Date”. 16
____ Accepted 17
____ Rejected 18
_____________________________ ________ Reason for rejection 19
______________ 20
County Clerk’s Signature”. 21
(B) The notification from the county clerk or his or her 22
designee shall indicate the date by which the oath shall be subscribed to. 23
(2)(A) After the oath is administered, the director shall submit 24
a certification of the administration of the oath to the county clerk or his 25
or her designee. 26
(B) The certification of the administration of the oath 27
shall contain: 28
(i) A copy of the oath; 29
(ii) The director's signature; 30
(iii) The administrator's signature; and 31
(iv) The date. 32
(C) The certification of the administration of the oath 33
shall be submitted to the county clerk or his or her designee no later than 34
the close of business on the date in dicated in the notification from the 35
county clerk under subdivision (a)(1) of this section. 36 SB543
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(b)(1) The county clerk or his or her designee , upon receipt of the 1
certification of the administration of the oath prescribed for a director, 2
shall immediately: commission such persons, and they shall enter at once upon 3
their duties as directors. 4
(A) Verify that the: 5
(i) Certification of the administration of the oath 6
was submitted on or before the close of business on the date indicated in the 7
notification from the county clerk or his or her designee under subdivision 8
(a)(1) of this section; and 9
(ii) Individual before whom the oath was subscribed 10
to is an individual authorized to administer oaths under § 21 -2-105; and 11
(B) Either: 12
(i) Accept the certification of the administration 13
of the oath if it complies with the requirements of this section; or 14
(ii) Reject the certification of the administration 15
of the oath if it does not comply with one (1) or more of the requirements of 16
this section. 17
(2)(A) Immediately following the acceptance of the certification 18
of the administration of the oath, the county clerk or his or her designee 19
shall: 20
(i) Commission the director; 21
(ii) Provide the director a copy of § 6 -24-101 et 22
seq.; and 23
(iii) Require the director to sign an 24
acknowledgement that he or she received a copy of § 6 -24-101 et seq. 25
(B) The term of the director shall begin upon the 26
receiving of the commission under subdivision (b)(2)(A)(i) of this section. 27
(2)(3) By the close of business of the day following the receipt 28
of the certification of the administration of the oath, the county clerk or 29
his or her designee shall either: 30
(A)(i) notify Notify the superintendent of the school 31
district by phone that the individual has subscribed to the director's oath 32
and that the county clerk has accepted the certification of the 33
administration of the oath; and 34
(ii) shall send Send a copy of the certificate of 35
the administration of the oath to the school district’s central office within 36 SB543
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five (5) days; or 1
(B) If the certification of the administration of the oath 2
has not been timely received or otherwise rejected by the county c lerk or his 3
or her designee, notify the superintendent of the school district by phone of 4
the rejection of the certification of the administration of the oath by the 5
close of business on the day following the date indicated in the notification 6
from the county clerk or his or her designee under subdivision (a)(1) of this 7
section. 8
(c) The failure of an elected director to have the oath administered 9
and submit proof that the oath was administered as required under subsection 10
(a) of this section will result i n: 11
(1) The individual’s not being qualified to serve for the 12
purpose of Arkansas Constitution, Article 19, § 5; and 13
(2) A holdover. 14
15
SECTION 3. Arkansas Code § 6 -13-619 is amended to add an additional 16
subsection to read as follows: 17
(e)(1) In addition to the circumstances in which an executive session 18
is permitted under the Freedom of Information Act of 1967, § 25 -19-101 et 19
seq., the board of directors may meet in executive session for the purposes 20
of: 21
(A) Pre-litigation discussions; 22
(B) Litigation updates; 23
(C) The discussion and consideration of settlement offers; 24
(D) The discussion and consideration of contract disputes 25
with the superintendent of the school district; and 26
(E) Discussions pertaining to real p roperty. 27
(2) In addition to the persons permitted to be present at an 28
executive session under the Freedom of Information Act of 1967, § 25 -19-101 29
et seq., the following may be present at an executive session of the board of 30
directors upon invitation of the board of directors: 31
(A) The superintendent of the school district; and 32
(b) The attorney for the school district. 33
34
SECTION 4. Arkansas Code § 6 -24-104 is amended to read as follows: 35
6-24-104. General prohibition. 36 SB543
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(a)(1) No board member, administrator, or employee shall knowingly: 1
(A) use Use or attempt to use his or her official position 2
to secure unwarranted privileges or exemptions for himself or herself or 3
others.; 4
(b)(B) While serving as a board member, administrator, or 5
employee, an individual shall not accept Accept employment, contract, or 6
engage in any public or professional activity that a reasonable person would 7
expect might require or induce him or her to disclose any information 8
acquired by the member by reason of his or her official position that is 9
declared by law or rule to be confidential .; 10
(c)(C) No board member, administrator, or employee shall 11
knowingly disclose Disclose any confidential information gained by reason of 12
his or her position, nor shall the member knowingly otherwise including 13
without limitation disclosing information acquired by attending an executive 14
session of the board of directors unless the disclosure of that information 15
is otherwise authorized or required by law ; or 16
(D) use such Use information acquired by reason or his or 17
her position for his or her personal gain or benefit. 18
(b) A board member shall not act in a manner on school grounds or at a 19
school-sponsored event that: 20
(1) Results or otherwise would have resulted in the removal of 21
the board member from campus or the event if the board member’s actions 22
resulted in removal or otherwise would have resulted in removal if the 23
actions were conducted by a member of the public; or 24
(2) Results in a violation of the criminal laws of this state or 25
the Federal government. 26
(c) Any board member, administrator, or employee who knew or should 27
have known his or her actions were prohibited under subsections (a) or (b) of 28
this section may be subject to § 6 -24-118. 29
(d)(d) Nothing in this chapter prohibits board members, 30
administrators, or employees of public educational entities from donating 31
services or property to a public educational entity. 32
33
SECTION 5. Arkansas Code § 6 -24-115 is amended to read as follows: 34
6-24-115. Criminal penalties. 35
(a)(1) Any board member, administrator, employee, or nonemployee who 36 SB543
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shall knowingly violate the provisions of this chapter shall be guilty of a 1
felony. 2
(b)(1) Upon pleading guilty or nolo contendere to or being found 3
guilty of violating this chapter, the court shall order restitution to the 4
public educational entity. 5
(2) In addition, the court may fine the violator in any sum not 6
to exceed the greater of ten thousand dollars ($10,0 00) or double the dollar 7
amounts involved in the transactions, sentence the violator to prison for not 8
more than five (5) years, or impose both a fine and imprisonment. 9
(b) Any board member, administrator, employee, or nonemployee who 10
should have known his or her actions would violate the provisions of this 11
chapter shall be guilty of a Class A misdemeanor. 12
(c) Upon pleading guilty or nolo contendere or being found guilty of 13
violating this chapter, the court shall order restitution to the public 14
educational entity in addition to any other penalty proscribed. 15
16
SECTION 5. Arkansas Code § 6 -24-116 is amended to read as follows: 17
6-24-116. Request for review of transactions. 18
At the request of a board of a public educational entity, the executive 19
administrator at a public educational entity, the Commissioner of Elementary 20
and Secondary Education, the Arkansas Ethics Commission, or the Legislative 21
Joint Auditing Committee, the appropriate prosecuting attorney shall review 22
contracts or transactions for c ompliance with the provisions of this chapter. 23
24
SECTION 7. Arkansas Code § 6 -24-117 is amended to read as follows: 25
6-24-117. Board position vacant upon conviction. 26
If a board member is found guilty of violating the provisions of this 27
chapter and any appeals regarding the finding of guilt have been concluded , 28
the board member shall immediately cease to be a board member, the position 29
is declared vacant, and a replacement shall be named as provided by law in § 30
6-13-611. 31
32
SECTION 8. Arkansas Code § 6 -24-118 is amended to read as follows: 33
6-24-118. Enforcement. 34
(a)(1) It Except as provided in subsection (b) of this section, it 35
shall be the duty and responsibility of the prosecuting attorneys to 36 SB543
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supervise compliance with this chapter and prosecute pe rsons who violate this 1
chapter. 2
(b)(2) If the prosecuting attorney fails or refuses to enforce 3
this chapter when the facts are known by the prosecuting attorney, or are 4
called to his or her attention, the Attorney General or any citizen of this 5
state may bring mandamus proceedings to compel the prosecuting attorney to 6
perform his or her duties. 7
(c)(3) All criminal actions related to alleged violations of 8
this chapter shall be filed in circuit court and shall be subject to the 9
criminal rules and proced ures of this state. 10
(b)(1) The Arkansas Ethics Commission shall supervise compliance with 11
this chapter by board members and investigate citizen complaints alleging 12
violations of this chapter by board members. 13
(2)A) Upon completion of an investigatio n of a complaint that a 14
board member has violated this chapter, the commission may assess a penalty 15
under § 7-6-218(b)(4). 16
(B) All moneys received by the commission as payment of 17
fines shall be deposited in the State Treasury as general revenues. 18
(3) The commission may promulgate rules that it deems necessary 19
to perform its duties under this section. 20
21
SECTION 9. Arkansas Code § 7 -6-217(g), concerning the authority of the 22
Arkansas Ethics Commission and resulting from Initiated Act 1 of 1990, is 23
amended to read as follows: 24
(g) The commission shall have the authority to: 25
(1) Under the Arkansas Administrative Procedure Act, § 25 -15-201 26
et seq., promulgate reasonable rules to implement and administer the 27
requirements of this subchapter, a s well as the Disclosure Act for Public 28
Initiatives, Referenda, and Measures Referred to Voters, § 7 -9-401 et seq.; § 29
19-11-718; § 21-8-301 et seq.; the Disclosure Act for Lobbyists and State and 30
Local Officials, § 21 -8-401 et seq., § 21-8-601 et seq., § 21-8-701 et seq., 31
and § 21-8-801 et seq.; § 21-8-901; § 21-8-1001 et seq.; and Arkansas 32
Constitution, Article 19, §§ 28 -30; and to govern procedures before the 33
commission, matters of commission operations, and all investigative and 34
disciplinary procedures a nd proceedings; 35
(2) Issue advisory opinions and guidelines on the requirements 36 SB543
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of § 6-24-101 et seq.; § 7-1-103(a)(1)-(4), (6), and (7); this subchapter; 1
the Disclosure Act for Public Initiatives, Referenda, and Measures Referred 2
to Voters, § 7-9-401 et seq.; § 19-11-718; § 21-8-301 et seq.; the Disclosure 3
Act for Lobbyists and State and Local Officials, § 21-8-401 et seq., § 21-8-4
601 et seq., § 21-8-701 et seq., and § 21 -8-801 et seq.; § 21-8-901 et seq.; 5
§ 21-8-1001 et seq.; and Arkansas Constitution, Article 19, §§ 28 -30; 6
(3) After a citizen complaint has been submitted to the 7
commission, investigate alleged violations of § 6-24-101 et seq.; § 7-1-8
103(a)(1)-(4), (6), and (7); this subchapter; the Disclosure Act for Public 9
Initiatives, Referenda, and Measures Referred to Voters, § 7 -9-401 et seq.; § 10
19-11-718; § 21-1-401 et seq.; § 21-8-301 et seq.; the Disclosure Act for 11
Lobbyists and State and Local Officials, § 21 -8-401 et seq., § 21-8-601 et 12
seq., § 21-8-701 et seq., and § 21 -8-801 et seq.; § 21-8-901; § 21-8-1001 et 13
seq.; and Arkansas Constitution, Article 19, §§ 28 -30; and render findings 14
and disciplinary action thereon; 15
(4) Pursuant to commission investigations, subpoena any person 16
or the books, records, or other documents being held by any person and take 17
sworn statements; 18
(5) Administer oaths for the purpose of taking sworn testimony 19
of witnesses and conduct hearings; 20
(6) Hire a staff and retain legal counsel; 21
(7) Approve forms prepared by the Secretary of State under this 22
subchapter; the Disclosure Act for Public Initiatives, Referenda, and 23
Measures Referred to Voters, § 7 -9-401 et seq.; § 19-11-718; § 21-8-301 et 24
seq.; the Disclosure Act for Lobbyists and State and Local Officials, § 21 -8-25
401 et seq., § 21-8-601 et seq., § 21-8-701 et seq., and § 21 -8-801 et seq.; 26
§ 21-8-901 et seq.; and § 21 -8-1001 et seq.; and 27
(8)(A) File suit in the Pulaski County Circuit Court or in the 28
circuit court of the county wherein the respondent resides or, under § 16 -17-29
706, in the small claims division established in any district court in the 30
State of Arkansas, to obtain a judgment for the amount of a ny fine imposed 31
under § 7-6-218(b)(4)(B)(i)-(iii), or to enforce an order of the commission 32
requiring the filing or amendment of a disclosure form. 33
(B) Said action by the court shall not involve further 34
judicial review of the commission's actions. 35
(C) The fee normally charged for the filing of a suit in 36 SB543
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any of the circuit courts in the State of Arkansas shall be waived on behalf 1
of the commission. 2
3
SECTION 10. Arkansas Code § 7 -6-218, resulting from Initiated Act 1 of 4
1990, is amended to read as f ollows: 5
7-6-218. Citizen complaints — Definition. 6
(a)(1) Any citizen may file a complaint with the Arkansas Ethics 7
Commission against a person covered by this subchapter, by § 6-24-101 et 8
seq.; § 7-1-103(a)(1)-(4), (6), or (7); the Disclosure Act for Public 9
Initiatives, Referenda, and Measures Referred to Voters, § 7 -9-401 et seq.; § 10
21-1-401 et seq.; § 21-8-301 et seq.; the Disclosure Act for Lobbyists and 11
State and Local Officials, § 21 -8-401 et seq., § 21-8-601 et seq., § 21-8-701 12
et seq., and § 21-8-801 et seq.; § 21-8-901 et seq.; § 21-8-1001 et seq.; and 13
Arkansas Constitution, Article 19, §§ 28 -30, for an alleged violation of the 14
subchapters or sections. For purposes of this subdivision (a)(1), the 15
Arkansas Ethics Commission shall be considered a citizen. 16
(2) A complaint must be filed within four (4) years after the 17
alleged violation occurred. If the alleged violation is the failure to file a 18
report or the filing of an incorrect report, the complaint shall be filed 19
within four (4) years after th e date the report was due. 20
(b)(1)(A) Upon a complaint stating facts constituting an alleged 21
violation signed under penalty of perjury by any person, the Arkansas Ethics 22
Commission shall investigate the alleged violation of this subchapter or § 6-23
24-101 et seq.; § 7-1-103(a)(1)-(4), (6), or (7); the Disclosure Act for 24
Public Initiatives, Referenda, and Measures Referred to Voters, § 7 -9-401 et 25
seq.; § 21-1-401 et seq.; § 21-8-301 et seq.; the Disclosure Act for 26
Lobbyists and State and Local Officials, § 21 -8-401 et seq., § 21-8-601 et 27
seq., § 21-8-701 et seq., and § 21 -8-801 et seq.; § 21-8-901 et seq.; § 21-8-28
1001 et seq.; and Arkansas Constitution, Article 19, §§ 28 -30. 29
(B) The Arkansas Ethics Commission shall immediately 30
notify any person under inves tigation of the investigation and of the nature 31
of the alleged violation. 32
(C) The Arkansas Ethics Commission in a document shall 33
advise the complainant and the respondent of the final action taken, together 34
with the reasons for the action, and such doc ument shall be a public record. 35
(D) Filing of a frivolous complaint shall be a violation 36 SB543
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of this subchapter. For purposes of this section, “frivolous” means clearly 1
lacking any basis in fact or law. In any case in which the Arkansas Ethics 2
Commission has dismissed a complaint, the respondent may request in writing 3
that the Arkansas Ethics Commission make a finding as to whether or not the 4
complaint filed was frivolous. In the event that the Arkansas Ethics 5
Commission finds that the complaint was frivolo us, the respondent may file a 6
complaint seeking sanctions as provided in subdivision (b)(4) of this 7
section. 8
(2) If, after the investigation, the Arkansas Ethics Commission 9
finds that probable cause exists for a finding of a violation, the respondent 10
may request a hearing. The hearing shall be a public hearing. 11
(3)(A) The Arkansas Ethics Commission shall keep a record of its 12
investigations, inquiries, and proceedings. 13
(B)(i) Except as provided in subdivision (b)(3)(B)(ii) of 14
this section, all proc eedings, records, and transcripts of any investigations 15
or inquiries shall be kept confidential by the Arkansas Ethics Commission, 16
unless the respondent requests disclosure of documents relating to 17
investigation of the case, in case of a hearing under subd ivision (b)(2) of 18
this section, or in case of judicial review of a decision of the Arkansas 19
Ethics Commission pursuant to § 25 -15-212. 20
(ii)(a) Through its members or staff, the 21
Arkansas Ethics Commission may disclose confidential information to prope r 22
law enforcement officials, agencies, and bodies, or as may be required to 23
conduct its investigation. 24
(b) If an investigation or inquiry concerns an 25
attorney or judge, the Arkansas Ethics Commission may, through its members or 26
staff, disclose confid ential information to the Supreme Court Committee on 27
Professional Conduct or the Judicial Discipline and Disability Commission. 28
(C) Thirty (30) days after any final adjudication in which 29
the Arkansas Ethics Commission makes a finding of a violation, al l records 30
relevant to the investigation and upon which the Arkansas Ethics Commission 31
has based its decision, except working papers of the Arkansas Ethics 32
Commission and its staff, shall be open to public inspection. 33
(4) If the Arkansas Ethics Commissio n finds a violation of this 34
subchapter; § 6-24-101 et seq.; § 7-1-103(a)(1)-(4), (6), or (7); § 21 -1-401 35
et seq.; § 21-8-301 et seq.; the Disclosure Act for Lobbyists and State and 36 SB543
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Local Officials, § 21 -8-401 et seq., § 21-8-601 et seq., § 21-8-701 et seq., 1
and § 21-8-801 et seq.; § 21-8-901 et seq.; § 21-8-1001 et seq.; or Arkansas 2
Constitution, Article 19, §§ 28 -30, then the Arkansas Ethics Commission shall 3
do one (1) or more of the following, unless good cause be shown for the 4
violation: 5
(A) Issue a public letter of caution or warning or 6
reprimand; 7
(B)(i) Notwithstanding the provisions of §§ 7 -6-202, 7-9-8
409, 21-8-403, and 21-8-903, impose a fine of not less than fifty dollars 9
($50.00) nor more than three thousand five hundred dollars ($3,500) for 10
negligent or intentional violation of this subchapter; § 6-24-101 et seq.; 11
the Disclosure Act for Public Initiatives, Referenda, and Measures Referred 12
to Voters, § 7-9-401 et seq.; § 21-8-301 et seq.; the Disclosure Act for 13
Lobbyists and State and Local O fficials, § 21-8-401 et seq., § 21-8-601 et 14
seq., § 21-8-701 et seq., and § 21 -8-801 et seq.; § 21-8-901 et seq.; § 21-8-15
1001 et seq.; or Arkansas Constitution, Article 19, §§ 28 -30. 16
(ii) The Arkansas Ethics Commission shall adopt rules 17
governing the imposition of such fines in accordance with the provisions of 18
the Arkansas Administrative Procedure Act, § 25 -15-201 et seq. 19
(iii) All moneys received by the Arkansas Ethics 20
Commission in payment of fines shall be deposited into the State Treasury as 21
general revenues; 22
(C) Order the respondent to file or amend a statutorily 23
required disclosure form; or 24
(D)(i) Report its finding, along with such information and 25
documents as it deems appropriate, and make recommendations to the proper law 26
enforcement authorities. 27
(ii) When exercising the authority provided in this 28
subdivision (b)(4), the Arkansas Ethics Commission is not required to make a 29
finding of a violation of the laws under its jurisdiction. 30
(5)(A)(i) Except as provided in subd ivision (b)(5)(A)(iii) of 31
this section, the Arkansas Ethics Commission shall complete its investigation 32
of a complaint filed pursuant to this section and take final action within 33
two hundred ten (210) days of the filing of the complaint. 34
(ii) Except as provided in subdivision (b)(5)(A)(iii) 35
of this section, if a hearing under subdivision (b)(2) of this section or 36 SB543
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other hearing of adjudication is conducted, all action on the complaint by 1
the Arkansas Ethics Commission shall be completed within two hundre d forty 2
(240) days. 3
(iii) If the Arkansas Ethics Commission requires 4
additional time to complete its investigation under subdivision (b)(5)(A)(i) 5
of this section or to complete its hearing or action under subdivision 6
(b)(5)(A)(ii) of this section and g ives written notice to the person who is 7
under investigation or the subject of the hearing or action, the Arkansas 8
Ethics Commission may extend the time to complete the investigation, hearing, 9
or action by no more than sixty (60) days. 10
(B) However, such time shall be tolled during the pendency 11
of any civil action, civil appeal, or other judicial proceeding involving 12
those particular Arkansas Ethics Commission proceedings. 13
(c) Any final action of the Arkansas Ethics Commission under this 14
section shall constitute an adjudication for purposes of judicial review 15
under § 25-15-212. 16
17
SECTION 11. EFFECTIVE DATE. This act shall be effective on and after 18
May 1, 2024. 19
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APPROVED: 4/13/23 23
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