AR
Arkansas House Bill HB1118

Arkansas 2025 Regular Session

Arkansas House Bill HB1118 Compare Versions

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11 Stricken language would be deleted from and underlined language would be added to present law.
2-Act 151 of the Regular Session
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5-State of Arkansas As Engrossed: H2/5/25 1
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3+State of Arkansas 1
64 95th General Assembly A Bill 2
75 Regular Session, 2025 HOUSE BILL 1118 3
86 4
97 By: Representative Warren 5
108 By: Senator K. Hammer 6
119 7
1210 For An Act To Be Entitled 8
1311 AN ACT TO AMEND THE LAWS CONCERNING THE MANAGEMENT OF 9
1412 PREMIUM TAXES UNDER THE ARKANSAS FIRE AND POLICE 10
1513 PENSION REVIEW BOARD; TO DECLARE AN EMERGENCY; AND 11
1614 FOR OTHER PURPOSES. 12
1715 13
1816 14
1917 Subtitle 15
2018 TO AMEND THE LAWS CONCERNING THE 16
2119 MANAGEMENT OF PREMIUM TAXES UNDER THE 17
2220 ARKANSAS FIRE AND POLICE PENSION REVIEW 18
2321 BOARD; AND TO DECLARE AN EMERGENCY. 19
2422 20
2523 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21
2624 22
2725 SECTION 1. Arkansas Code § 24 -11-203(k), concerning certification of 23
2826 funding recommended for disbursement of premium tax funds to underfunded 24
2927 municipal fire and police relief and pension plans, is repealed. 25
3028 (k)(1) On or before June 15 of each fiscal year, the Arkansas Fire and 26
3129 Police Pension Review Board shall certify to the Chief Fiscal Officer of the 27
3230 State the amount of funding it recommends for disbursement in the ensuing 28
3331 fiscal year to underfunded municipal fire and police relief and pension plans 29
3432 as defined in § 24-11-217. 30
3533 (2) After receiving the certification required under subdivision 31
3634 (k)(1) of this section, the Chief Fiscal Officer of the State shall 32
3735 immediately transfer on his or her books and the books of the Treasurer of 33
3836 State the lesser of the total amount recommended by the Arkansas Fire and 34
3937 Police Pension Review Board or the amount appropriated by the General 35
40-Assembly for the ensuing fiscal year from the Revenue Holding Fund Account to 36 As Engrossed: H2/5/25 HB1118
38+Assembly for the ensuing fiscal year from the Revenue Holding Fund Account to 36 HB1118
4139
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4541 the Firemen's and Police Officers' Pension and Relief Fund for distribution 1
4642 to the recommended underfunded plans. 2
4743 3
4844 SECTION 2. Arkansas Code § 24 -11-211(a), concerning the creation and 4
4945 administration of the Arkansas Policemen's Pension Supplement Program, is 5
5046 amended to read as follows: 6
5147 (a)(1) There is created the Arkansas Policemen's Pension Supplement 7
5248 Program, to be administered by the Arkansas Fire and Police Pension Review 8
5349 Board Department of Finance and Administration . 9
5450 10
5551 SECTION 3. Arkansas Code § 24 -11-211(b)(2)—(c)(2), concerning funding 11
5652 and administration of the Policemen's Pension Supplement Program Fund, are 12
5753 amended to read as follows: 13
5854 (2) The Policemen's Pension Supplement Program Fund shall be 14
5955 funded by that portion of those unallocated premium taxes levied on insurers 15
6056 for the support of police retirement programs that is transferred to the 16
6157 control of the board department under § 24-11-215(c). 17
6258 (c)(1) The board department shall administer the program and make the 18
6359 payments called for under the program, including formulating necessary rules, 19
6460 procedures, and forms. 20
6561 (2) The board department may retain one percent (1%) of the 21
6662 funds transferred for administrative expenses of the program. 22
6763 23
6864 SECTION 4. Arkansas Code § 24 -11-211(f)-(g), concerning payments and 24
6965 certification of transfers related to the Policemen's Pension Supplement 25
7066 Program Fund, are amended to read as follows: 26
7167 (f) On or after July 1 of each fiscal year following the board's 27
7268 payments required by subsection (e) of this section, the board shall pay to 28
7369 the State Treasury the amounts transferred to the board under § 24 -11-215(c) 29
7470 that exceed the amounts the board is required to pay under the program. 30
7571 (g)(1) The program is effective July 1, 1999. 31
7672 (2) The first payments may be made under the program beginning 32
7773 July 31, 1999, and the first transfer under § 24 -11-215(c) shall occur on 33
7874 July 25, 1999, and on each July 25 thereafter. 34
7975 35
80- SECTION 5. Arkansas Code § 24 -11-212(b), concerning the administration 36 As Engrossed: H2/5/25 HB1118
76+ SECTION 5. Arkansas Code § 24 -11-212(b), concerning the administration 36 HB1118
8177
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8579 of the Future Supplement Fund, is amended to read as follows: 1
8680 (b) The Future Supplement Fund shall be administered by the Arkansas 2
8781 Fire and Police Pension Review Board Department of Finance and 3
8882 Administration. 4
8983 5
9084 SECTION 6. Arkansas Code § 24 -11-212(f), concerning the use of 6
9185 allocations in previous years that were not distributed for the Future 7
9286 Supplement Fund, is amended to read as follows: 8
9387 (f) The Arkansas Fire and Police Pension Review Board department may 9
9488 use an amount allocated in previous years that has not been distributed for 10
9589 the Future Supplement Fund to: 11
9690 (1) Ensure the distribution of an amount listed in subdivision 12
9791 (d)(1) of this section; and 13
9892 (2) Help offset a reduction described in § 24-11-215. 14
9993 15
10094 SECTION 7. Arkansas Code § 24 -11-213(b), concerning the allocation of 16
10195 funds between the Firemen's and Police Officers' Pension and Relief Fund and 17
10296 the General Revenue Fund Account, is amended to read as follows: 18
10397 (b) The allocation of funds between the Firemen's and Police Officers' 19
10498 Pension and Relief Fund and the General Revenue Fund Account under this 20
10599 section is subject to the following conditions: 21
106100 (1) The Arkansas Fire and Police Pension Review Board Department 22
107101 of Finance and Administration shall review annually the distribution of funds 23
108102 to each qualified city, town, or fire protection district made in the 24
109103 previous calendar year before disbursing funds to an area qualified under § 25
110104 24-11-214; and 26
111105 (2) The board department shall consider as part of the annual 27
112106 assessment of the allocation of the disbursement of funds under § 24 -11-214: 28
113107 (A) The certification of a new city, town, or fire 29
114108 protection district for participation in the Firemen's and Police Officers' 30
115109 Pension and Relief Fund; and 31
116110 (B) A change in the legal description of a city, town, or 32
117111 fire protection district, which shall be reported to the board department 33
118112 annually by December 14. 34
119113 35
120- SECTION 8. Arkansas Code § 24 -11-214(b)(2)(B), concerning the 36 As Engrossed: H2/5/25 HB1118
114+ SECTION 8. Arkansas Code § 24 -11-214(b)(2)(B), concerning the 36 HB1118
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125117 actuarial cost for a calendar year to determine the amount of the premium tax 1
126118 revenues, is amended to read as follows: 2
127119 (B) For a group that is covered by a local policemen's 3
128120 pension and relief fund or a local firemen's relief and pension fund, shall 4
129121 be the cost calculated by the actuary for the Arkansas Fire and Police 5
130122 Pension Review Board Department of Finance and Administration for the 6
131123 preceding calendar year; and 7
132124 8
133125 SECTION 9. Arkansas Code § 24 -11-214(c), concerning the calculation of 9
134126 the amount of the premium tax revenues, is amended to read as follows: 10
135127 (c) The amount of revenues to be directed to cities, towns, and fire 11
136128 protection districts shall equal the amount in the Firemen's and Police 12
137129 Officers' Pension and Relief Fund less the payment for the administrative and 13
138130 actuarial expenses of the board Arkansas Fire and Police Pension Review Board 14
139131 under subsection (i) of this section and under § 24 -11-203. 15
140132 16
141133 SECTION 10. Arkansas Code § 24 -11-214(f)(2), concerning the timing of 17
142134 the certification by the Arkansas Fire and Police Pension Review Board, is 18
143135 amended to read as follows: 19
144136 (2) On or before June 15 of each calendar year after 2002 2025, 20
145137 the board shall certify to the Department of Finance and Administration shall 21
146138 certify the exact amount of tax revenues each city, town, or fire protection 22
147139 district is entitled to receive for the calendar year under this section. 23
148140 24
149141 SECTION 11. Arkansas Code § 24 -11-214(h)—(i), concerning fees and 25
150142 expenses for the administration of this section, is amended to read as 26
151143 follows: 27
152144 (h)(1) There shall be no administrative fees charged to these entities 28
153145 by the board department upon qualification. 29
154146 (2) The board department shall incur all administrative and 30
155147 actuarial costs associated with obtaining the information required under this 31
156148 section. 32
157149 (i)(1) The board department shall establish a certain percentage of 33
158150 the insurance tax revenues to use to meet its proper actuarial expenses and 34
159151 administrative costs incurred in obtaining and evaluating the population 35
160-information required under § 24 -11-213, but in no event shall the board 36 As Engrossed: H2/5/25 HB1118
152+information required under § 24 -11-213, but in no event shall the board 36 HB1118
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165155 department be entitled to more than one percent (1%) of the Firemen's and 1
166156 Police Officers' Pension and Relief Fund as defined in § 24 -11-809(a)(2). 2
167157 (2) This assessment shall be collected in addition to the 3
168158 assessment provided in § 24 -11-203. 4
169159 5
170160 SECTION 12. Arkansas Code § 24 -11-214(l), concerning the promulgation 6
171161 of rules for the implementation of this section, is amended to read as 7
172162 follows: 8
173- (1) The Arkansas Fire and Police Pension Review Board department shall 9
174-may promulgate rules that are necessary to implement this section. 10
163+ (l) The Arkansas Fire and Police Pension Review Board department shall 9
164+promulgate rules that are necessary to implement this section. 10
175165 11
176166 SECTION 13. Arkansas Code § 24 -11-215(c), concerning annual transfers 12
177167 to the Arkansas Policemen's Pension Supplement Program, is amended to read as 13
178168 follows: 14
179169 (c) After transfers are made to cover funds distributed under 15
180170 subsection (b) of this section and the portion of those premium taxes set 16
181171 aside for transfer to the State Police Retirement Fund under § 24 -6-209(b), 17
182172 the Secretary of the Department of Finance and Administration is directed to 18
183173 make annual transfers from the police portion of the revenues to the 19
184174 Policemen's Pension Supplement Program Fund on or before July 25, 1999, and 20
185175 each year thereafter as certified by the Arkansas Fire and Police Pension 21
186176 Review Board on July 1 each year as the amount needed to pay the expenses of 22
187177 and to make payments to the eligible retired police officers and survivors 23
188178 under the Arkansas Policemen's Pension Supplement Program for the coming year 24
189179 of the program. 25
190180 26
191181 SECTION 14. Arkansas Code § 24 -11-217(c), concerning approval of 27
192182 additional allocations to the policemen's pension and relief funds and 28
193183 firemen's relief and pension funds, is amended to read as follows: 29
194184 (c) The policemen's pension and relief funds and firemen's relief and 30
195185 pension funds shall qualify for the additional allocation after approval of 31
196186 the Arkansas Fire and Police Pension Review Board and after meeting the 32
197187 following criteria: 33
198188 (1) The policemen's pension and relief fund or the firemen's 34
199189 relief and pension fund is in compliance with all applicable laws and rules; 35
200- (2) The policemen's pension and relief fund or the firemen's 36 As Engrossed: H2/5/25 HB1118
190+ (2) The policemen's pension and relief fund or the firemen's 36 HB1118
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205193 relief and pension fund shall receive employer contributions other than 1
206194 premium tax allocations that are at least eighty percent (80%) of the 2
207195 actuarial cost under § 24 -11-214 during the calendar year before an 3
208196 allocation; and 4
209197 (3)(A) A firemen's relief and pension fund that provides 5
210198 benefits to volunteer members shall receive funding without meeting the 6
211199 employer contribution requirement described in subdivision (c)(2) of this 7
212200 section if the firemen's relief and pension fund is: 8
213201 (i) Less than fifty percent (50%) funded as of the 9
214202 most recent actuarial valuation; and 10
215203 (ii) Administered by the Arkansas Local Police and 11
216204 Fire Retirement System. 12
217205 (B) The funding under this subsection shall be eliminated 13
218206 to meet the criteria of § 24 -11-215(e)(2)(A) notwithstanding the requirement 14
219207 of § 24-11-215(d). 15
220208 16
221209 SECTION 15. EMERGENCY CLAUSE. It is found and determined by the 17
222210 General Assembly of the State of Arkansas that the management of premium 18
223211 taxes collected for the benefit of municipal firemen's relief and pension 19
224212 funds and policemen's pension and relief funds is in need of a change in 20
225213 administration from the Arkansas Fire and Police Pension Review Board to the 21
226214 Department of Finance and Administration for purposes of financial security 22
227215 and efficiency; and that it is necessary for this act to have an effective 23
228216 date of July 1, 2025, in order to allow for a structured and proper 24
229217 administration of the procedures referenced in this act. Therefore, an 25
230218 emergency is declared to exist, and this act being necessary for the 26
231219 preservation of the public peace, health, and safety shall become effective 27
232220 on July 1, 2025. 28
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237-APPROVED: 2/25/25 33
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