General Provisions

Ark. Code Ann. tit. 19, ch. 1

in effect

Ark. Code Ann. § 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.

Ark. Code Ann. § 19-1-202 Secretary.

(a) 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. (b) 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. (c)(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. (4)(A) 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. (B) Any bonds which may be required of employees shall be filed with the Secretary of the Department of Finance and Administration.

Ark. Code Ann. § 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.

Ark. Code Ann. § 19-1-204 Personnel.

(a) 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. (b) 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.

Ark. Code Ann. § 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.

Ark. Code Ann. § 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.

Ark. Code Ann. § 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: (A) The unencumbered balance of all funds and accounts carried on the books of the Auditor of State and the Treasurer of State; (B) The distribution and allotment of state revenues; and (C) A detailed record of the receipts and expenditures of all State Treasury funds.

Ark. Code Ann. § 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.

Ark. Code Ann. § 19-1-209 Publications required.

(a) 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. (b) 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.

Ark. Code Ann. § 19-1-210 Recordkeeping.

(a) 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. (b) 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.

Ark. Code Ann. § 19-1-211 Investigations.

(a)(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. (b)(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. (2)(A) 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. (B) Any failure to obey the order of the circuit court may be punished by the circuit court as contempt of the circuit court. (c) 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. (d)(1)(A) 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). (B) Each failure or refusal by any witness to appear or produce any such books, papers, or documents shall constitute a separate offense. (2) False testimony given in any such inquiry shall constitute perjury punishable as provided by law.

Ark. Code Ann. § 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.

Ark. Code Ann. § 19-1-213 Leasing of state property.

(a) 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. (b) No property shall be leased under this section for a term exceeding two (2) years.

Ark. Code Ann. § 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.

Ark. Code Ann. § 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.

Ark. Code Ann. § 19-1-302 Before adoption of rule, etc.

(a) 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. (b) 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.

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

(a)(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. (b)(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. (c) 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. (d) 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. (e) 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. (f) 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.

Ark. Code Ann. § 19-1-401 Exceptions.

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

Ark. Code Ann. § 19-1-402 Treasurer of State.

(a) The bond for the Treasurer of State shall be one million dollars ($1,000,000). (b) 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.

Ark. Code Ann. § 19-1-403 County and municipal officials and employees.

(a)(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: (A) On the first one hundred thousand dollars ($100,000), or any part thereof, of receipts of the office, ten percent (10%) of the amount; (B) 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; (C) On the next two hundred thousand dollars ($200,000), or any part thereof, of receipts of the office, five percent (5%) of the amount; (D) 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 (E) 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. (b)(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: (A) On the first one hundred thousand dollars ($100,000), or any part thereof, of disbursements, five percent (5%) of the amount; (B) 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 (C) 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. (c) The maximum amount of any bond required under subsections (a) and (b) of this section shall not exceed five hundred thousand dollars ($500,000). (d) 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. (e)(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.

Ark. Code Ann. § 19-1-404 County judges.

(a)(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. (b) The original bond shall be filed with the circuit clerk of the respective county.

Ark. Code Ann. § 19-1-405 State agency employees as disbursing agents.

(a)(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. (b) 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.

Ark. Code Ann. § 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: (A) Is issued for an essential governmental purpose or is guaranteed by a state agency; and (B) 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.

Ark. Code Ann. § 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.

Ark. Code Ann. § 19-1-503 Construction.

(a) 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. (b) 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.

Ark. Code Ann. § 19-1-504 Investments permitted.

(a)(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: (A) 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; (B) An Arkansas bank certificate of deposit or a certificate of deposit authorized under § 19-8-111; (C) 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 (D) 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: (A) A county board or commission; (B) 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 (C) 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. (b)(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: (A) School district treasurer when the school district has a treasurer; or (B) 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: (A) General obligation bonds of the United States; (B) Bonds, notes, debentures, or other obligations issued by an agency of the United States Government; (C) General obligation bonds of the state; or (D) Bank certificates of deposit. (c) 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. (d) 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. (e) 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.

Ark. Code Ann. § 19-1-505 Additional authority of certain cities.

(a)(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). (b)(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: (A) Preservation and safety of the principal; (B) Liquidity; and (C) Yield. (c) 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.

Ark. Code Ann. § 19-1-601 Title.

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

Ark. Code Ann. § 19-1-602 Intent and purpose.

(a) 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. (b) 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. (c) 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.

Ark. Code Ann. § 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: (A) General Accounting and Budgetary Procedures Law, § 19-4-101 et seq.; (B) State procurement laws, Arkansas Code Title 19, Chapter 11; (C) Attendance and leave laws, § 21-4-101 et seq.; (D) Regular Salary Procedures and Restrictions Act, §§ 19-4-1601 and 21-5-101; (E) Uniform Classification and Compensation Act, § 21-5-201 et seq.; (F) Higher Education Expenditure Restriction Act, § 6-63-301 et seq.; (G) Accounts and Notes Receivable Abatement Act for the State of Arkansas, § 19-2-301 et seq.; (H) Revenue Stabilization Law, § 19-5-101 et seq.; (I) Revenue Classification Law, § 19-6-101 et seq.; (J) Depositories for public funds, § 19-8-101 et seq.; (K) Public works, § 22-9-101 et seq.; and (L) 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.

Ark. Code Ann. § 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.

Ark. Code Ann. § 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.

Ark. Code Ann. § 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.

Ark. Code Ann. § 19-1-607 Documentation and notification of violation — Remedial action.

(a) 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. (b) 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. (c) 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.

Ark. Code Ann. § 19-1-608 Notification of Department of Finance and Administration — Review.

(a) 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. (b)(1) The secretary shall review the summaries of violations received. The secretary may: (A) Accept the summary and approve the corrective or remedial action by the agency; (B) Request additional information regarding the violation and corrective or remedial action by the agency; or (C) 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.

Ark. Code Ann. § 19-1-609 Executive agencies.

(a) 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. (b) 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.

Ark. Code Ann. § 19-1-610 Investigation and suit by Attorney General.

(a) 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. (b) 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.

Ark. Code Ann. § 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.

Ark. Code Ann. § 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.

Ark. Code Ann. § 19-1-701 Definition.

(a) 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. (b) 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.

Ark. Code Ann. § 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.

Ark. Code Ann. § 19-1-703 Fiscal impact statements required for bills.

(a) 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. (b) 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. (c)(1)(A) 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. (B) An affirmative vote of two-thirds (2/3) of a quorum present and voting shall override such objection. (2) 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. (d) 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.

Source: Public.Resource.Org / UniCourt, Official Code of Arkansas Annotated, Release 78 (2020) (unicourt.github.io/cic-code-ar)URL: https://unicourt.github.io/cic-code-ar/transforms/ar/ocar/r78/gov.ar.code.title.19.htmlFetched: 11/8/2026