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HB 1118

TO AMEND THE LAWS CONCERNING THE MANAGEMENT OF PREMIUM TAXES UNDER THE ARKANSAS FIRE AND POLICE PENSION REVIEW BOARD; AND TO DECLARE AN EMERGENCY.

2025 Regular Session Introduced by Kim Hammer and 1 co-sponsor

HB 1118 streamlines funding for underfunded municipal fire and police pensions in Arkansas, enhancing management and ensuring timely access to premium tax funds.

Notification that HB1118 is now Act 151
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WeVote Research Nonpartisan
Bill Summary · HB 1118

Summary of House Bill 1118 (HB 1118)

Purpose and Intent

House Bill 1118 (HB 1118) aims to amend existing laws regarding the management of premium taxes under the Arkansas Fire and Police Pension Review Board. The bill seeks to streamline the process for disbursing funds to underfunded municipal fire and police relief and pension plans and to enhance the administration of the Arkansas Policemen's Pension Supplement Program. Additionally, the bill declares an emergency, indicating the need for immediate implementation.

Key Provisions

  1. Repeal of Certification Requirement:

    • The bill repeals Arkansas Code § 24-11-203(k), which required the Arkansas Fire and Police Pension Review Board to certify funding recommendations for disbursement of premium tax funds by June 15 each fiscal year.

  2. Administration Changes:

    • The administration of the Arkansas Policemen's Pension Supplement Program is transferred to the Arkansas Fire and Police Pension Review Board from the Department of Finance and Administration.
    • The board is authorized to retain 1% of the funds for administrative expenses.

  3. Funding Adjustments:

    • Amendments to Arkansas Code § 24-11-211 and § 24-11-212 clarify the funding sources and administration of the Policemen's Pension Supplement Program Fund and the Future Supplement Fund.
    • The bill stipulates that the board shall administer the program and make necessary payments.

  4. Annual Review and Certification:

    • The bill mandates an annual review of fund distributions to qualified cities and towns, ensuring that allocations are based on updated certifications and actuarial assessments.

  5. Elimination of Administrative Fees:

    • The bill specifies that no administrative fees will be charged to municipalities upon qualification for the pension funds, with the board covering all associated costs.

  6. Emergency Clause:

    • The bill includes an emergency clause, allowing it to take effect immediately upon being signed into law.

Affected Parties

  • Municipal Fire and Police Departments: The bill directly impacts underfunded municipal fire and police relief and pension plans by facilitating access to premium tax funds.
  • Arkansas Fire and Police Pension Review Board: The board will have enhanced responsibilities in managing and distributing pension funds.
  • Local Governments: Cities, towns, and fire protection districts will benefit from clearer guidelines and potential increases in funding for their pension plans.

Procedural Timeline

  • Introduced: January 14, 2025
  • Passed: The bill passed through various legislative stages, including readings, amendments, and votes in both the House and Senate.
  • Emergency Clause Adopted: February 12, 2025
  • Enrolled and Transmitted to Governor: February 20, 2025
  • Act 151 Notification: February 25, 2025

Conclusion

HB 1118 represents a significant legislative effort to improve the management of premium taxes for fire and police pension plans in Arkansas. By amending existing laws and streamlining administrative processes, the bill aims to ensure better funding and support for municipal pension programs, ultimately benefiting public safety personnel across the state.

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

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