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HB 1589

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104th Regular Session Introduced by Anne Stava

HB 1589 modernizes Arkansas county finances by allowing electronic payments and updating annual reporting, enhancing transparency and efficiency for officials and taxpayers.

House Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee
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Bill Summary · HB 1589

Summary of HB 1589: Amendments to County Financial Operations

Bill Number: HB 1589
Title: To Amend the Law Concerning the Financial Operations of a County; and to Amend the Law Concerning the Annual County Financial Report
Status: Now Act 676
Introduced: February 25, 2025
Sponsors: Rep. Schulz and Sen. Crowell

Purpose and Intent

The primary purpose of HB 1589 is to modernize and clarify the financial operations of counties in Arkansas, particularly focusing on the annual financial reporting requirements and the methods of disbursing county funds. The bill aims to enhance transparency and efficiency in county financial management.

Key Provisions

1. Electronic Funds Transfer

  • New Provision: Counties are now permitted to make payments via electronic funds transfer when the funds are used to pay a creditor by order of a court with competent jurisdiction. This change aims to streamline payment processes and improve efficiency.

2. Annual County Financial Report Updates

  • Reporting Requirements: The bill updates the information that must be included in the annual financial report, which is prepared by the county clerk or county comptroller and the county treasurer. Key elements of the report now include:
    • Balance of each fund
    • Detailed revenue reports from each source
    • Expenditure reports for the fiscal year
    • Short-term indebtedness of the county
  • Publication Timeline: The annual financial report must be published by March 15 each year, covering the previous fiscal year, and does not require accruals for January and February of the following year.

3. Duties of County Treasurer

  • The bill amends several sections regarding the duties of the county treasurer, including:
    • Refusing payment of warrants that would cause a deficit in special revenue accounts.
    • Ensuring that grant revenues are properly receipted into the appropriate funds.
    • Establishing penalties for neglect or refusal to pay warrants when funds are available.

Impact

Who is Affected?

  • County Officials: The bill directly impacts county treasurers, clerks, and comptrollers by redefining their responsibilities and the processes they must follow.
  • County Residents: Enhanced financial reporting and electronic payment options may lead to improved financial management and transparency, benefiting taxpayers.

Fiscal and Taxpayer Impact

  • According to the Fiscal Impact Statement, the implementation of HB 1589 is not expected to have any fiscal impact on the state budget or taxpayer costs.

Procedural Aspects

  • Implementation Timeline: Adequate time has been provided for counties to implement the changes outlined in the bill.
  • Legislative Process: The bill underwent several readings and committee reviews before being passed by both the House and Senate, ultimately being signed into law as Act 676 on April 16, 2025.

Conclusion

HB 1589 represents a significant update to the financial operations of counties in Arkansas, aiming to improve efficiency and transparency in financial reporting and fund disbursement. By allowing electronic payments and clarifying reporting requirements, the bill seeks to modernize county financial practices in line with contemporary standards.

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

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