Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 553 3
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By: Senator K. Hammer 5
By: Representative Milligan 6
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For An Act To Be Entitled 8
AN ACT TO AMEND THE ARKANSAS MUNICIPAL ACCOUNTING 9
LAW; TO AMEND THE DUTIES OF A MUNICIPAL TREASURER; TO 10
REQUIRE TRAINING FOR AN INDIVIDUAL CHARGED WITH 11
DUTIES UNDER THE ARKANSAS MUNICIPAL ACCOUNTING LAW; 12
AND FOR OTHER PURPOSES. 13
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Subtitle 16
TO AMEND THE ARKANSAS MUNICIPAL 17
ACCOUNTING LAW; TO AMEND THE DUTIES OF A 18
MUNICIPAL TREASURER; AND TO REQUIRE 19
TRAINING FOR AN INDIVIDUAL CHARGED WITH 20
DUTIES UNDER THE ARKANSAS MUNICIPAL 21
ACCOUNTING LAW. 22
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
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SECTION 1. Arkansas Code § 14 -59-115 is amended to read as follows: 26
14-59-115. Duties of municipal treasurer. 27
(a)(1) A municipal treasurer, whether elected or appointed, shall 28
complete eight (8) hours of training provided by the Arkansas Municipal 29
League in cooperation with Arkansas Legislative Audit. 30
(2)(A) A newly elected or appointed municipal treasurer shall 31
complete the training required under this subsection within one hundred 32
eighty (180) days of taking office. 33
(B) If the municipal treasurer fails to obtain the 34
required training under this subsection within one hundred eighty (180) days 35
of taking office, the municipality is in noncompliance with this chapter 36 SB553
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until the municipal treasurer completes the training. 1
(b)(1) The curriculum for the mandatory training under subsection (a) 2
of this section shall be established by the Arkansas Municipal League in 3
cooperation with Arkansas Legislative Audit. 4
(2) The curriculum for the mandatory training under subsection 5
(a) of this section shall provide at least eight (8) hours of training. 6
(c) Each municipal treasurer of this state or the designated 7
representative that has been approved by the governing body shall submit a 8
monthly financial report to the council or board of directors. 9
(b) (d)(1) Municipal treasurers shall maintain the accounting records 10
prescribed in this chapter and other duties that may be prescribed by 11
ordinance. 12
(2)(A)(i) If the municipal treasurer does not comply with this 13
chapter or requests that specific duties be assigned to another employee or 14
contracting entity, the governing body of a municipality may assign specific 15
duties outlined in this chapter to another employee, or it may contract for 16
the services to be performed by a private, qualified person or entity. 17
(ii) As used in this subdivision (d)(2)(A), 18
"private, qualified person" means a person who, at minimum, is a resident of 19
Arkansas and has: 20
(a) Previous experience in government or 21
municipal accounting in Arkansas; or 22
(b) Received the training under 23
subsection (a) of this section. 24
(iii) Any other employee or private person 25
contracted with by the municipality to take on specific duties outlined in 26
this chapter shall obtain the training required under subsection (a) of this 27
section within one hundred eighty (180) days of taking on the duties 28
assigned. 29
(iv)(a)(1) Before the governing body of a 30
municipality assigns or contracts with a private, qualified person or entity 31
for the disbursing of funds, the governing body of a municipality shall 32
establish by ordinance a method that provides for internal accounting 33
controls and documentation for audit and accounting purposes. 34
(2) The municipal treasurer shall 35
approve the disbursement of funds before the private, qualified person or 36 SB553
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entity disburses the funds. 1
(b) The governing body of a municipality shall 2
ensure that the private, qualified person or entity is adequately insured and 3
bonded and conforms to best practices and standards in the industry. 4
(B)(i) The governing body of a municipality may not assign 5
duties relating to the collecting of funds to anyone other than an employee 6
of the municipality. 7
(ii) The governing body of a municipality may assign 8
or contract with a private, qualified person or entity for the duties 9
relating to the disbursing of funds for payroll, bonded debt, or construction 10
projects funded with bond proceeds. 11
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SECTION 2. Arkansas Code § 14 -59-117(b), concerning withholdings of 13
turnback funds for noncompliance for municipal accounting, is amended to read 14
as follows: 15
(b)(1) Upon notification of noncompliance by Arkansas Legislative 16
Audit, the Legislative Joint Auditing Committee shall notify in writing the 17
mayor and the city council or town council that the municipality's accounting 18
records do not substantially comply with this chapter. 19
(2)(A) Upon notification by the Legislative Joint Auditing 20
Committee of noncompliance by the municipal treasurer under § 14 -59-115(a), 21
the governing body of the municipality shall require the treasurer to attend 22
the training as described under § 14 -59-115(a). 23
(B) The minutes of the governing body of the municipality 24
shall reflect receipt of the Legislative Joint Auditing Committee 25
notification under subdivision (b)(2) of this section and the subsequent 26
municipal treasurer training requirement. 27
(3) The municipality has sixty (60) days after the date of 28
notification to bring the accounting records into substantial compliance with 29
this chapter. 30
(3) (4)(A) After the sixty (60) days allowed for compliance or 31
upon request by the appropriate municipal officials, Arkansas Legislative 32
Audit shall review the records to determine if the municipality substantially 33
complies with this chapter. 34
(B) Arkansas Legislative Audit shall report its findings 35
to the Legislative Joint Auditing Committee. 36 SB553
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1
SECTION 3. Arkansas Code § 14 -59-117(c)(2), concerning withholdings of 2
turnback funds for noncompliance for municipal accounting, is amended to read 3
as follows: 4
(2) If the municipality has not achieved substantial compliance 5
within the sixty-day period, the governing body of the municipality shall 6
assign specific duties outlined in this chapter to another employee or shall 7
contract for the services to be performed by a private, qualified person or 8
entity as described under § 14 -59-115. 9
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SECTION 4. DO NOT CODIFY. Effective Date. 11
This act is effective on and after July 1, 2026. 12
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