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HB 1378

TO AMEND THE COMPOSITION AND MEETING REQUIREMENTS OF THE STATE BOARD OF FINANCE; AND TO REPEAL THE REQUIREMENTS FOR THE EMPLOYMENT OF A CHIEF COMPLIANCE OFFICER BY THE STATE BOARD OF FINANCE.

2025 Regular Session Introduced by Howard Beaty and 1 co-sponsor

HB 1378 streamlines Arkansas' State Board of Finance by reducing quorum from seven to six, replacing a member, and eliminating the Chief Compliance Officer role.

Notification that HB1378 is now Act 204
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Bill Summary · HB 1378

Summary of HB 1378 - Act 204

Overview

House Bill 1378 (HB 1378), now known as Act 204, was introduced on February 3, 2025, and aims to amend the operational structure and requirements of the State Board of Finance in Arkansas. The bill was sponsored by Representative Beaty and Senator Hill.

Purpose and Intent

The primary intent of HB 1378 is to streamline the composition and meeting requirements of the State Board of Finance. Additionally, it seeks to eliminate the mandate for the board to employ a Chief Compliance Officer, thereby simplifying governance and oversight within the board.

Key Provisions

HB 1378 includes several significant changes to the State Board of Finance:

  1. Quorum Requirements:

    • The number of members required to constitute a quorum is reduced from seven to six.

  2. Board Composition:

    • The Securities Commissioner is replaced by the Secretary of Transformation and Shared Services as a member of the board.
    • This change ensures that two board positions are not held by a single individual, following the administrative restructuring of the State Securities Department.

  3. Chief Compliance Officer:

    • The requirement for the board to employ a Chief Compliance Officer is repealed. Previously, this position was authorized for the Office of the Treasurer of State but was not employed directly by the board.

  4. Governor's Designee:

    • The bill allows the Governor's designee to serve on the board in the absence of the Governor.

Impact

Who is Affected?

  • State Board of Finance: The changes will directly affect the governance structure and operational efficiency of the board.
  • State Officials: The Secretary of Transformation and Shared Services will now have a formal role on the board, while the Chief Compliance Officer position will no longer exist.
  • Arkansas Taxpayers: The fiscal impact of the bill is noted as none, meaning there are no anticipated costs or savings for taxpayers.

Implementation Timeline

  • The bill provides adequate time for implementation, with no specific procedural changes required. The transition to the new structure is expected to be smooth, given the lack of significant fiscal or operational impacts.

Legislative Actions

  • February 27, 2025: Notification that HB 1378 is now Act 204.
  • February 26, 2025: The bill was read for the third time and passed in both the House and Senate.
  • February 25, 2025: Returned by the Committee with a recommendation to pass.

Conclusion

HB 1378 represents a legislative effort to modernize the State Board of Finance's structure and operations in Arkansas. By reducing quorum requirements and eliminating the Chief Compliance Officer position, the bill aims to enhance the efficiency of the board while ensuring that governance remains effective and accountable.

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

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