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HB 1208

CRIM PRO-REVOKE PRETRIAL REL

104th Regular Session Introduced by John Cabello and 7 co-sponsors

HB 1208 allows Arkansas retirement systems to collect overpayments by offsetting state tax refunds, impacting taxpayers with debts to these systems.

Added Co-Sponsor Rep. Nicole La Ha
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WeVote Research Nonpartisan
Bill Summary · HB 1208

Summary of House Bill 1208 (HB 1208)

Purpose and Intent

House Bill 1208 (HB 1208) aims to amend existing Arkansas tax law to allow the Arkansas Public Employees' Retirement System (APERS) to collect overpayments owed to state-supported retirement systems. This bill seeks to enhance the state's ability to recover debts related to retirement benefits, thereby improving fiscal responsibility within the retirement systems.

Key Provisions

  • Amendment to Claimant Agencies: The bill modifies Arkansas Code § 26-36-303(1)(A) to include the Arkansas Judicial Retirement System and the State Police Retirement System as claimant agencies. This allows these agencies to offset a taxpayer's state income tax refund to recover debts owed to them.

  • Definition of Debt: The bill also amends § 26-36-303(2)(H) to clarify that any overpayment of a monthly benefit or lump sum from a state retirement system administered by APERS can be considered a debt subject to offset against state tax refunds.

Impact

  • Taxpayer Implications: Taxpayers who owe debts to the Arkansas Judicial Retirement System or the State Police Retirement System may see their state income tax refunds reduced or eliminated to satisfy these debts.

  • Administrative Changes: The implementation of this bill will require updates to computer programs, tax forms, and instructions. The estimated cost for programming changes to the Arkansas Integrated Revenue System (AIRS) is approximately $8,000, with no ongoing maintenance costs anticipated.

Procedural Aspects

  • Legislative Journey:
    • Introduced on January 23, 2025.
    • Passed through various readings and committee approvals, including a Do Pass recommendation from the relevant committee.
    • The bill was read and passed in both the House and Senate by February 17, 2025.
    • It was officially enrolled and transmitted to the Governor's Office on February 18, 2025, and subsequently became Act 128 on February 20, 2025.

Conclusion

HB 1208 represents a significant change in how Arkansas manages debts owed to its retirement systems. By expanding the list of claimant agencies and clarifying the definition of debt, the bill aims to streamline the recovery process for overpayments, thereby enhancing the financial integrity of state-supported retirement systems.

Compiled from official sources — confirm details with the bill’s official record.

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