Arkansas 2025 Regular Session

Arkansas Senate Bill SB553 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 671 of the Regular Session
3	2		SSS275 03/20/2025 3:32:37 PM SSS275
4	3		State of Arkansas 1
5	4		95th General Assembly A Bill 2
6	5		Regular Session, 2025 SENATE BILL 553 3
7	6		4
8	7		By: Senator K. Hammer 5
9	8		By: Representative Milligan 6
10	9		7
11	10		For An Act To Be Entitled 8
12	11		AN ACT TO AMEND THE ARKANSAS MUNICIPAL ACCOUNTING 9
13	12		LAW; TO AMEND THE DUTIES OF A MUNICIPAL TREASURER; TO 10
14	13		REQUIRE TRAINING FOR AN INDIVIDUAL CHARGED WITH 11
15	14		DUTIES UNDER THE ARKANSAS MUNICIPAL ACCOUNTING LAW; 12
16	15		AND FOR OTHER PURPOSES. 13
17	16		14
18	17		15
19	18		Subtitle 16
20	19		TO AMEND THE ARKANSAS MUNICIPAL 17
21	20		ACCOUNTING LAW; TO AMEND THE DUTIES OF A 18
22	21		MUNICIPAL TREASURER; AND TO REQUIRE 19
23	22		TRAINING FOR AN INDIVIDUAL CHARGED WITH 20
24	23		DUTIES UNDER THE ARKANSAS MUNICIPAL 21
25	24		ACCOUNTING LAW. 22
26	25		23
27	26		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
28	27		25
29	28		SECTION 1. Arkansas Code § 14 -59-115 is amended to read as follows: 26
30	29		14-59-115. Duties of municipal treasurer. 27
31	30		(a)(1) A municipal treasurer, whether elected or appointed, shall 28
32	31		complete eight (8) hours of training provided by the Arkansas Municipal 29
33	32		League in cooperation with Arkansas Legislative Audit. 30
34	33		(2)(A) A newly elected or appointed municipal treasurer shall 31
35	34		complete the training required under this subsection within one hundred 32
36	35		eighty (180) days of taking office. 33
37	36		(B) If the municipal treasurer fails to obtain the 34
38	37		required training under this subsection within one hundred eighty (180) days 35
39	38		of taking office, the municipality is in noncompliance with this chapter 36 SB553
40	39
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42	41		until the municipal treasurer completes the training. 1
43	42		(b)(1) The curriculum for the mandatory training under subsection (a) 2
44	43		of this section shall be established by the Arkansas Municipal League in 3
45	44		cooperation with Arkansas Legislative Audit. 4
46	45		(2) The curriculum for the mandatory training under subsection 5
47	46		(a) of this section shall provide at least eight (8) hours of training. 6
48	47		(c) Each municipal treasurer of this state or the designated 7
49	48		representative that has been approved by the governing body shall submit a 8
50	49		monthly financial report to the council or board of directors. 9
51	50		(b) (d)(1) Municipal treasurers shall maintain the accounting records 10
52	51		prescribed in this chapter and other duties that may be prescribed by 11
53	52		ordinance. 12
54	53		(2)(A)(i) If the municipal treasurer does not comply with this 13
55	54		chapter or requests that specific duties be assigned to another employee or 14
56	55		contracting entity, the governing body of a municipality may assign specific 15
57	56		duties outlined in this chapter to another employee, or it may contract for 16
58	57		the services to be performed by a private, qualified person or entity. 17
59	58		(ii) As used in this subdivision (d)(2)(A), 18
60	59		"private, qualified person" means a person who, at minimum, is a resident of 19
61	60		Arkansas and has: 20
62	61		(a) Previous experience in government or 21
63	62		municipal accounting in Arkansas; or 22
64	63		(b) Received the training under 23
65	64		subsection (a) of this section. 24
66	65		(iii) Any other employee or private person 25
67	66		contracted with by the municipality to take on specific duties outlined in 26
68	67		this chapter shall obtain the training required under subsection (a) of this 27
69	68		section within one hundred eighty (180) days of taking on the duties 28
70	69		assigned. 29
71	70		(iv)(a)(1) Before the governing body of a 30
72	71		municipality assigns or contracts with a private, qualified person or entity 31
73	72		for the disbursing of funds, the governing body of a municipality shall 32
74	73		establish by ordinance a method that provides for internal accounting 33
75	74		controls and documentation for audit and accounting purposes. 34
76	75		(2) The municipal treasurer shall 35
77	76		approve the disbursement of funds before the private, qualified person or 36 SB553
78	77
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80	79		entity disburses the funds. 1
81	80		(b) The governing body of a municipality shall 2
82	81		ensure that the private, qualified person or entity is adequately insured and 3
83	82		bonded and conforms to best practices and standards in the industry. 4
84	83		(B)(i) The governing body of a municipality may not assign 5
85	84		duties relating to the collecting of funds to anyone other than an employee 6
86	85		of the municipality. 7
87	86		(ii) The governing body of a municipality may assign 8
88	87		or contract with a private, qualified person or entity for the duties 9
89	88		relating to the disbursing of funds for payroll, bonded debt, or construction 10
90	89		projects funded with bond proceeds. 11
91	90		12
92	91		SECTION 2. Arkansas Code § 14 -59-117(b), concerning withholdings of 13
93	92		turnback funds for noncompliance for municipal accounting, is amended to read 14
94	93		as follows: 15
95	94		(b)(1) Upon notification of noncompliance by Arkansas Legislative 16
96	95		Audit, the Legislative Joint Auditing Committee shall notify in writing the 17
97	96		mayor and the city council or town council that the municipality's accounting 18
98	97		records do not substantially comply with this chapter. 19
99	98		(2)(A) Upon notification by the Legislative Joint Auditing 20
100	99		Committee of noncompliance by the municipal treasurer under § 14 -59-115(a), 21
101	100		the governing body of the municipality shall require the treasurer to attend 22
102	101		the training as described under § 14 -59-115(a). 23
103	102		(B) The minutes of the governing body of the municipality 24
104	103		shall reflect receipt of the Legislative Joint Auditing Committee 25
105	104		notification under subdivision (b)(2) of this section and the subsequent 26
106	105		municipal treasurer training requirement. 27
107	106		(3) The municipality has sixty (60) days after the date of 28
108	107		notification to bring the accounting records into substantial compliance with 29
109	108		this chapter. 30
110	109		(3) (4)(A) After the sixty (60) days allowed for compliance or 31
111	110		upon request by the appropriate municipal officials, Arkansas Legislative 32
112	111		Audit shall review the records to determine if the municipality substantially 33
113	112		complies with this chapter. 34
114	113		(B) Arkansas Legislative Audit shall report its findings 35
115	114		to the Legislative Joint Auditing Committee. 36 SB553
116	115
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118	117		1
119	118		SECTION 3. Arkansas Code § 14 -59-117(c)(2), concerning withholdings of 2
120	119		turnback funds for noncompliance for municipal accounting, is amended to read 3
121	120		as follows: 4
122	121		(2) If the municipality has not achieved substantial compliance 5
123	122		within the sixty-day period, the governing body of the municipality shall 6
124	123		assign specific duties outlined in this chapter to another employee or shall 7
125	124		contract for the services to be performed by a private, qualified person or 8
126	125		entity as described under § 14 -59-115. 9
127	126		10
128	127		SECTION 4. DO NOT CODIFY. Effective Date. 11
129	128		This act is effective on and after July 1, 2026. 12
130	129		13
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132		-	~~APPROVED: 4/16/25~~ 15
	131	+	15
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