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SB 480

Prior authorization.

2025 Regular Session Introduced by Scott Alexander and 46 co-sponsors

SB 480 expands Arkansas' state fund investment options, enhances Treasury operations, and ensures competitive transactions, boosting returns for state agencies and taxpayers.

Signed by the Governor
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Bill Summary · SB 480

Summary of Senate Bill 480 (SB 480)

Bill Title: To Amend the Law Concerning the Investment of State Funds
Bill Number: SB 480
Status: Now Act 739
Introduced: March 17, 2025
Authors: Senator K. Hammer, Representative Wing

Purpose and Intent

Senate Bill 480 aims to update and amend existing laws regarding the investment of state funds in Arkansas. The bill seeks to enhance the investment strategies employed by the State Treasury, ensuring that state funds are managed effectively and securely while adhering to modern financial practices.

Key Provisions

The bill introduces several amendments to Arkansas Code § 19-3-518, which governs the investment of state funds. The key changes include:

  1. Expanded Investment Options:

    • The bill adds new categories of permissible investments, including:
      • Obligations issued by the State Board of Education.
      • Warrants from political subdivisions with maturities not exceeding one year.
      • Prerefunded municipal bonds fully secured by U.S. government obligations.
      • Demand, savings, or time deposits in federally insured institutions.
      • Repurchase agreements fully collateralized by specified securities.
      • Investments in money market funds that primarily hold U.S. government obligations.

  2. Competitive Procedures for Transactions:

    • All purchases and sales of securities by the Treasurer of State must follow a competitive procedure approved by the State Board of Finance. This aims to ensure optimal pricing and value without favoritism towards any broker.

  3. Interest Distribution:

    • The bill specifies that interest earned on state funds invested will be credited to participants on the second business day after the 25th of each month, minus administrative expenses.

Impact

The amendments proposed in SB 480 will primarily affect:

  • State Treasury Operations: The bill provides the State Treasury with a broader range of investment options, potentially increasing returns on state funds.
  • State Agencies and Boards: These entities will benefit from clearer guidelines on how interest from investments is distributed, enhancing transparency and efficiency in fund management.
  • Financial Institutions: The bill may lead to increased business for banks and investment firms that meet the new investment criteria.

Procedural Timeline

  • March 17, 2025: SB 480 was filed and introduced.
  • March 31, 2025: The bill passed in the Senate and was transmitted to the House.
  • April 15, 2025: The House passed the bill, and it was ordered enrolled.
  • April 18, 2025: SB 480 was signed into law, becoming Act 739.

Conclusion

Senate Bill 480 represents a significant update to the investment framework for state funds in Arkansas. By broadening investment options and instituting competitive procedures, the bill aims to enhance the financial management of state resources, ultimately benefiting state agencies and taxpayers alike.

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

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