CONCERNING THE DEVELOPMENT AND PRESENTATION OF FISCAL IMPACT STATEMENTS CONCERNING THE FISCAL IMPACT OF STATEWIDE INITIATIVE AND REFERENDUM MEASURES AND LEGISLATIVELY REFERRED CONSTITUTIONAL AMENDMENTS.

2025 Regular Session Introduced by Mark Johnson and 2 co-sponsors

Act 457 requires clear fiscal impact statements for Arkansas ballot measures, ensuring voters understand financial implications before voting.

Notification that HB1637 is now Act 457

Purpose and Intent

House Bill 1637, now known as Act 457, aims to enhance the transparency and understanding of the fiscal implications of statewide initiative and referendum measures, as well as legislatively referred constitutional amendments in Arkansas. The bill mandates the development and presentation of fiscal impact statements to inform voters about the financial consequences of proposed measures before they cast their ballots.

Key Provisions

The bill introduces several significant changes to existing laws regarding fiscal impact statements:

Fiscal Impact Statement Requirement:

The Department of Finance and Administration (DFA) is required to prepare an unbiased fiscal impact statement for any statewide measure or constitutional amendment that has a financial impact.
This statement must be completed within ten business days of the Attorney General certifying the measure.

Content of Fiscal Impact Statements:

The fiscal impact statement must include:
- Total estimated fiscal impact over relevant time periods.
- Specific dollar amounts for any tax increases, decreases, or new taxes.
- Estimated changes in public debt if applicable.
- Estimated costs or savings to state government entities.
- A concise description of funding sources.

Inclusion on Ballots:

Fiscal impact statements must be included on the ballot if they are prepared for a proposed measure.
If the statement exceeds 200 words, a shorter version (not exceeding 200 words) must be provided for the ballot.

No Cost to Sponsors:

Sponsors of proposed measures will not incur any costs associated with the preparation of the fiscal impact statements.

Word Count Guidelines:

When counting words in the fiscal impact statement, numerals and special characters (like dollar signs) are not included.

Affected Parties

Voters: The primary beneficiaries of this legislation are the voters, who will receive clearer information about the financial implications of measures they are voting on.

State Agencies: The DFA and the Attorney General's office will have increased responsibilities in preparing and certifying fiscal impact statements.

Sponsors of Measures: Individuals or groups proposing initiatives or amendments will benefit from the clarity provided by the fiscal impact statements without facing financial burdens.

Procedural Timeline

Introduced: March 3, 2025

Passed: The bill underwent several readings and amendments before passing through both the House and Senate by March 31, 2025.

Enrolled: The bill was correctly enrolled and transmitted to the Governor's Office on April 1, 2025.

Act Status: Officially became Act 457 on April 3, 2025.

Conclusion

House Bill 1637 represents a significant step towards improving the transparency of fiscal information related to statewide measures and constitutional amendments in Arkansas. By ensuring that voters have access to clear and concise fiscal impact statements, the legislation aims to empower informed decision-making at the polls.

Bill