State Revenues — Receipts and Expenditures Generally

Ark. Code Ann. tit. 19, ch. 2

in effect

Ark. Code Ann. § 19-2-101 Receipts for all funds coming into State Treasury.

(a) It shall be the duty of the Secretary of State, the Insurance Commissioner, the Commissioner of State Lands, the Attorney General, the Bank Commissioner, and the Auditor of State to issue their receipts respectively for all moneys coming into the State Treasury through their departments, respectively, on account of: (1) Fees of every kind and character; (2) Sale of books, charters, and articles of incorporation; (3) Commissions of notaries public, justices of the peace, and county, city, and town officers, in addition to nomination fees, etc.; (4) Insurance taxes and fees; (5) Jitney and chauffeur licenses; (6) Affidavits of loss, license tags, deeds, patents, field notes, maps, and charts; (7) Franchise taxes, back taxes, and sand and gravel taxes; (8) All matters pertaining to the duties of the Attorney General when money belonging to the state is to be collected; (9) Bank examination fees; and (10) Any and all fees coming through the Bank Commissioner's office. (b)(1) Each of the departments is authorized to accept personal checks when tendered in payment of any of the items mentioned in subsection (a) of this section and issue their receipts, respectively, for them. (2)(A) The checks shall be endorsed by the heads of the respective departments to the Treasurer of State and paid into the State Treasury daily, if anything has been collected, with an itemized statement of all items for which payment was made. (B) No officer endorsing these checks shall become personally liable by reason of the officer's endorsement in case the checks are rejected by the drawee.

Ark. Code Ann. § 19-2-102 Duplicate receipts given by Treasurer of State.

The Treasurer of State shall grant duplicate receipts under the seal of his or her office for all sums of money which shall be paid into the State Treasury. The person receiving the receipts shall deposit one (1) of them with the Auditor of State, who shall credit the person accordingly and charge the Treasurer of State with the amount.

Ark. Code Ann. § 19-2-103 Time for making payments.

(a) All payments for the expenses of the departments of the state government shall be due and payable in the normal course of business. (b) All payments whatever of contingent expenses shall be due and payable as they may accrue.

Ark. Code Ann. § 19-2-104 Expenditures, contracts, or obligations in excess of appropriations prohibited.

(a)(1) No officer, employee, or agent of the State of Arkansas, nor any board of regents or board of trustees, nor any other person or authority who may make expenditures of money appropriated for the different state institutions or who may direct the expenditure of such money so appropriated shall expend or direct the expenditure of moneys or funds in excess of the amount appropriated and becoming a part of any appropriation by executive approval for the particular purpose named in the act making the appropriations. (2) No officer, employee, agent, person, board, or authority shall make any contract that will exceed the amount appropriated and becoming a part of any appropriation act by executive approval for the particular purpose named in the act making the appropriation. (3) No officer, agent, person, board, or authority shall incur any obligation for any purpose in excess of the amount appropriated and becoming a part of any appropriation by executive approval for the particular purpose named in the act making the appropriation, except as provided. (b) Any person violating a provision of this section shall be guilty of a violation and upon conviction shall be fined in any sum not less than fifty dollars ($50.00) nor more than two hundred dollars ($200).

Ark. Code Ann. § 19-2-105 Deficiencies in excess of appropriations unlawful.

(a) It shall be unlawful for the head or any subordinate in charge of any state department, board, bureau, or other state-maintained institution to cause, permit to occur, or allow to exist any deficiency in excess of regular appropriation made for maintenance of the department, board, bureau, or other state-maintained institution. (b)(1) Any person violating this section shall be deemed guilty of a misdemeanor. (2) Upon conviction, an offender shall be fined in any sum not to exceed five hundred dollars ($500) or imprisoned not more than ninety (90) days, or both fined and imprisoned, and shall be discharged from office.

Ark. Code Ann. § 19-2-201 Acceptance of checks.

The Treasurer of State is authorized and directed to accept checks for the remittance due the state.

Ark. Code Ann. § 19-2-202 Proceedings on bad checks.

(a) Where remittance is made by check to the Treasurer of State and the check is returned unpaid, it shall be the duty of the Treasurer of State to make a duplicate of the check and carry it as a cash item, delivering the original to the Attorney General for collection after adding a penalty of twenty-five percent (25%) to the amount of the check. (b)(1) It shall be the duty of the Attorney General to take such action as shall be deemed proper for the collection of a rejected check, together with twenty-five percent (25%) of the face amount of the check as penalty, for the punishment of the maker of that check under the criminal laws of this state. (2) The penalty shall be credited to the same fund as was the original amount of the check delivered to the Attorney General by the Treasurer of State pursuant to subsection (a) of this section. (c) If for any reason the Attorney General is unable to collect either the principal or penalty on a rejected check, as contemplated by this section, then, as soon as such fact is ascertained, it shall be the duty of the Treasurer of State to cancel the receipt for it, taking credit therefor, and notifying the Auditor of State of the cancellation; and the Auditor of State shall likewise credit the Treasurer of State with it. (d) Any state official issuing a certificate of authority or making book entries affecting any transaction, payment for which was made with bad checks, is authorized and directed to cancel them upon receipt of the Attorney General's notice of inability to collect on such checks as specified in subsection (c) of this section.

Ark. Code Ann. § 19-2-203 Receipts by Department of Finance and Administration — Additional penalty.

(a) If any person, firm, corporation, partnership, or business makes payment to the Department of Finance and Administration for any license or fees imposed by the laws of this state by means of a check, draft, or order drawn on any bank, person, firm, or corporation, and the check, draft, or order is returned by the bank, person, firm, or corporation without having been paid in full, then the Secretary of the Department of Finance and Administration is authorized and empowered to impose a penalty. The penalty shall be in the amount of either ten percent (10%) of the face amount of the check, draft, or order or twenty dollars ($20.00), whichever is greater, against the maker or drawer of the check, draft, or order. (b) This penalty is cumulative to any other penalties provided by law.

Ark. Code Ann. § 19-2-204 Refusal to accept personal checks.

Effective January 1, 2000, no state agency, board, commission, or institution may refuse to accept personal checks unless and until it has filed with the Legislative Council a written statement justifying the agency's policy to not accept personal checks.

Ark. Code Ann. § 19-2-301 Title.

This subchapter may be known as the “Accounts and Notes Receivable Abatement Act for the State of Arkansas”.

Ark. Code Ann. § 19-2-302 Purpose.

The purpose of this subchapter is to establish procedures for the various state agencies, authorities, boards, commissions, departments, and institutions of higher education to charge-off or cancel uncollectible moneys owed to them.

Ark. Code Ann. § 19-2-303 Definitions.

As used in this subchapter: (1) “Abatement” means a complete or partial cancellation of a tax levied, special assessment, service charge, student loan, note receivable, or other amounts for which asset recognition criteria have been met; (2) “Accounts receivable” means an asset account upon the books of record reflecting amounts owing on open account from persons or organizations for taxes levied, special assessments, service charges, goods and services furnished by a state agency, or other amounts for which asset recognition criteria have been met but does not include amounts due from other state agencies; (3) “Notes receivable” means an unconditional written promise, signed by the maker, to pay a certain sum in money on demand or at a fixed or determinable future time either to the bearer or to the order of a person designated therein; (4) “Special assessment” means a compulsory levy made against certain properties or business entities to defray part or all of the cost of a specific improvement or service deemed to primarily benefit or regulate those upon whom the assessment is levied; (5) “State agency” means a state agency, board, authority, commission, department, or institution of higher education created by or receiving an appropriation by the General Assembly; and (6) “Tax” means a compulsory charge levied by the State of Arkansas for the purpose of financing services performed for the common benefit of its citizens.

Ark. Code Ann. § 19-2-304 Recording of amounts due.

Each state agency shall record upon its books of record the amounts due it for delivery of goods and services, licenses, unpaid taxes, student loans, special assessments, accounts receivable, and notes receivable that are recognized by the state agency as due and payable or recognized as current-year income or as an asset that is due and payable upon a date ascertained.

Ark. Code Ann. § 19-2-305 Referring of outstanding debts for collection.

(a) A state agency shall diligently and actively pursue the collection of the state agency’s accounts and notes receivable. (b) Diligently and actively pursuing the collection of these accounts may include, but is not limited to: (1) Contacting a debtor by phone or letter within a reasonable time after an account is deemed delinquent; (2)(A) Referring an account to a licensed collection agency or an attorney for collection with a remuneration not exceeding fifty percent (50%) for accounts of five hundred dollars ($500) or less and not exceeding thirty-three and one-third percent (331/3%) for accounts in excess of five hundred dollars ($500). (B) If an agency is unable to procure the services of a collection agency or attorney for the collection of any account in excess of five hundred dollars ($500) for a fee of one-third (1/3) of the amount recovered as authorized in this subsection, the agency may report this fact to the Legislative Joint Auditing Committee, and the Legislative Joint Auditing Committee may authorize the agency to pay a higher fee for collecting the account, not to exceed fifty percent (50%); (3) Pursuing setoff of debt against income tax refunds as allowed by §§ 26-36-301 — 26-36-320; or (4) Pursuing all other available means of collection if deemed feasible and economically justifiable by the agency.

Ark. Code Ann. § 19-2-306 Abatement of debt.

(a) If after the state agency has pursued collection of the debt owed it as set out in this subchapter and the debt or partial debt is decreed to be uncollectible, then the debt shall be referred to the Chief Fiscal Officer of the State for abatement. (b) The Chief Fiscal Officer of the State shall satisfy himself or herself that all efforts to collect the indebtedness have been fulfilled, and he or she may then, by written approval, declare the debt or remaining debt uncollectible and notify the state agency and Legislative Joint Auditing Committee of abatement of the debt.

Ark. Code Ann. § 19-2-307 Rules.

The Secretary of the Department of Finance and Administration is authorized to promulgate such rules as deemed necessary to implement the provisions and intent of this subchapter.

Ark. Code Ann. § 19-2-404 Emergency expenditures.

(a)(1) In the event of riots, threatened riots, sabotage, public insurrection, threatened insurrection, storm, flood, famine, or other public calamity which jeopardizes the public peace, health, and safety of citizens of Arkansas that calls for immediate action, the Governor is delegated and authorized by the General Assembly to declare an emergency to exist and to issue a proclamation declaring an emergency to exist. (2) Other requests for utilization of this appropriation shall be submitted for prior review by the Governor to a Governor's Emergency Fund Review Committee, meeting in committee, composed of the cochairs and co-vice chairs of the Legislative Joint Auditing Committee and the cochairs and co-vice chairs of the Legislative Council. (b) A proclamation or request, as approved by the Governor or the Governor's Emergency Fund Review Committee, shall include: (1) The nature and location of the emergency; (2) The name of the department or agency which, in the Governor's opinion, is best able to alleviate or obviate the conditions which have arisen or are about to arise because of the emergency; and (3) The amount of funds required for the emergency, such amount or so much thereof as shall have been set forth in each proclamation to be extended upon vouchers drawn by the disbursing agent of the department or agency named in the proclamation. (c) The original of the proclamation shall be filed with the Secretary of State, and an executed counterpart of it shall be filed with the Auditor of State, the Treasurer of State, and the Department of Finance and Administration. (d) Any expenditures made in accordance with the authorizations provided for in this section may be reimbursed to the Miscellaneous Revolving Fund by transfers authorized by the Chief Fiscal Officer of the State from funds or fund accounts supporting the benefiting agencies. However, in the case of the Governor's proclamations and emergencies of a nature where no specific state agency is the beneficiary, then the expenditures shall be borne by the Miscellaneous Revolving Fund.

Ark. Code Ann. § 19-2-501 Purpose.

The State of Arkansas and its political subdivisions have the responsibility to properly account for all financial transactions. In order to help fulfill this responsibility, the State of Arkansas and other public entities are required to maintain books and records of transactions. The State of Arkansas and its political subdivisions recognize that through the use of computers and electronic data, banking and the flow of information are continuing to change. With this change, it is important that the State of Arkansas and its political subdivisions continue to receive evidentiary information concerning financial transactions. The purpose of this subchapter is to permit public entities to accept photographic copies or digital images of financial transactions and to require financial institutions to furnish the needed documentation in a readable, meaningful, permanent format.

Ark. Code Ann. § 19-2-502 Definition.

As used in this subchapter, “public entity” means state agencies, including all constitutional offices and agencies, boards, and commissions, state institutions of higher education, municipalities, counties, school districts, education service cooperatives, improvement districts, and other public officials or public offices. Public entities shall maintain records of all transactions with financial institutions.

Ark. Code Ann. § 19-2-503 Eligibility to accept public funds.

In order for a financial institution to be eligible to be a depository of public funds, the financial institution must furnish the public entity documentation, as required in this subchapter, of transactions with or through that institution.

Ark. Code Ann. § 19-2-504 Transaction summaries.

On a monthly basis, financial institutions shall furnish public entities with statements summarizing all transactions of the public entity. Unless the public entity and the financial institution have a written agreement to receive digital images or copies in compliance with the provisions of this subchapter, the financial institutions shall return all original canceled checks to the public entity along with the transaction summary or statement.

Ark. Code Ann. § 19-2-505 Approval by Arkansas Legislative Audit.

(a) A financial institution desiring to provide public entities with images of canceled checks as provided in this subchapter shall provide a sample of imaged documents in one (1) or more of the following formats to Arkansas Legislative Audit for review: (1) Stored on a CD-ROM or similar tangible digital media; (2) Accessible through the internet; or (3) On paper. (b) Upon receipt of imaged documents submitted under subsection (a) of this section, Arkansas Legislative Audit shall immediately review and notify the financial institution whether or not the imaged documents are in compliance with this subchapter.

Ark. Code Ann. § 19-2-506 Digital images or copies of documentation.

(a) After a financial institution has received written notification from Arkansas Legislative Audit that the submitted samples of its imaged documents under § 19-2-505 comply with this subchapter and upon agreement with the public entity, the financial institution may provide the public entity canceled check images in the format and quality approved by Arkansas Legislative Audit. (b) The canceled check images of financial transactions provided to the public entity by the financial institution under this subchapter shall be legible and show both the front and back images of the canceled checks. (c)(1) If a financial institution provides canceled check images on tangible digital media under this subchapter, the images shall be provided on a read-only CD-ROM or other agreed upon digital media that would provide a permanent and tamper-proof record. (2)(A) If particular software is needed to view or search the digital images provided under this subchapter, the financial institution shall provide the software to the public entity and, upon request, to Arkansas Legislative Audit. (B) Software provided under subdivision (c)(2)(A) of this section shall make canceled check images clear and readable. (3) Before delivery of a CD-ROM or other tangible digital media to a public entity, a financial institution shall perform random verification of the legibility of the contents of the data. (d)(1) If a financial institution provides canceled check images to a public entity through internet access to online banking documents under this subchapter, the financial institution may provide Arkansas Legislative Audit read-only internet access to the public entity's online banking documents. (2) Read-only internet access granted under subdivision (d)(1) of this section shall permit viewing and copying of each public entity's bank statements, canceled check images, deposit slips, and other financial transaction documentation made available to the public entity. (3)(A) If particular software is needed to view or search images made available under this subsection, the financial institution shall provide the necessary software to the public entity and, upon request, to Arkansas Legislative Audit. (B) Software provided under subdivision (d)(3)(A) of this section shall make canceled check images clear and readable. (4) An online banking document made available to a public entity under this subsection shall be available for read-only internet access for at least five (5) years after the document is made available to the public entity online. (e) If a financial institution provides canceled check images on paper under this subchapter, the images shall be of such clarity and size that the details may be read without the aid of a magnifying device. (f)(1) If a financial institution provides canceled check images under this subchapter, the financial institution shall implement one (1) of the following procedures to provide verification of the authenticity of the records retained by the public entity: (A) A duplicate copy of the check images on paper and statements mailed to Arkansas Legislative Audit on a monthly basis; (B) The use of an identifying mark unique to the financial institution on the paper images of checks sent to the public entity; (C) The delivery of a duplicate copy of the check images stored on tangible digital media, conforming to the digital imaging specifications stated in this subchapter, to Arkansas Legislative Audit on a monthly basis; (D) The provision to Arkansas Legislative Audit of read-only internet access to the public entity's online banking documents in accordance with the requirements of this subchapter; or (E) Any other authenticating method approved by Arkansas Legislative Audit. (2) A financial institution may elect which of the procedures listed in subdivision (f)(1) of this section it shall implement to provide authentication of images relating to the accounts of each public entity. (g) A financial institution shall be able to, and, at the request of Arkansas Legislative Audit, shall provide duplicate copies of any checks and statements delivered to a public entity: (1) With the same clarity and size as the imaged documents previously delivered; and (2) In the format requested by Arkansas Legislative Audit if the format is currently available to the financial institution.

Ark. Code Ann. § 19-2-507 Request of records by Legislative Auditor.

(a) Upon request by the Legislative Auditor, a financial institution shall provide a copy of a public entity's financial information directly to Arkansas Legislative Audit staff without delay or approval from the public entity. (b) The financial institutions may provide the digital transaction statements and digital canceled check images to Arkansas Legislative Audit in a media format allowed under the provisions of this subchapter for public entities or other media mutually agreed upon by the financial institution and Arkansas Legislative Audit. (c) No bank shall be liable for making available to Arkansas Legislative Audit staff any of the information required under the provisions of this subchapter. (d) Any cost associated with providing this information to Arkansas Legislative Audit shall be borne by the public entity being audited or investigated.

Ark. Code Ann. § 19-2-509 Effect on other laws.

The provisions of this subchapter do not change, amend, or repeal any laws or rules regarding a financial institution's normal obligations and responsibilities to maintain customer financial records.

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