Arkansas Administrative Code Agency 239 - Department of Health
The Arkansas Administrative Code (AAC) consists of various regulations adopted by state agencies, which include the Arkansas State Treasurer (Agency 236). These regulations provide guidance for financial matters, investment management, and public funds administration in Arkansas. While the State Treasurer's office deals with many aspects of public finance, I will explain four significant areas of regulation that are related to the Arkansas State Treasurer's role.
Here are some of the key cases, or regulatory areas, within the Arkansas State Treasurer's domain:
1. Arkansas State Treasurer Investment Policies:
Purpose: The Arkansas State Treasurer's Office is responsible for managing and overseeing the state's investment portfolio, which includes public funds such as taxes, fees, and other state revenues. These funds must be managed carefully to ensure safety, liquidity, and optimal return on investment, within the guidelines of state law.
Relevant Regulation: The State Treasurer adopts rules and policies related to the investment of public funds. Arkansas Code Title 19, Subtitle 5, Chapter 3 outlines the investment authority and responsibilities of the Treasurer's office. The investment policy generally includes allowable investment vehicles, such as U.S. Treasury securities, municipal bonds, money market funds, and certain corporate bonds.
Case Example: If an investment decision leads to a loss of public funds, a case might arise to evaluate whether the Treasurer's office followed the correct procedures and investment policies. Cases involving disputes on the interpretation of investment rules or investment losses are often handled through administrative hearings or state audits.
2. Revenue Distribution to Local Governments:
Purpose: The State Treasurer's Office is involved in the distribution of state revenue to local government entities, including cities, counties, and school districts. This includes the disbursement of state sales taxes, property taxes, and other designated revenue sources.
Relevant Regulation: Arkansas Administrative Code, under the authority of the State Treasurer, governs how funds are distributed based on various formulas, such as population-based distributions, per capita funding, and specific legislative mandates.
Case Example: A local government might challenge the State Treasurer's office regarding the amount or timing of its distribution, arguing that the allocation formula was incorrectly applied or that certain conditions were not met. In such a case, the local entity might bring a formal dispute to the Treasurer’s office or seek judicial review to resolve the issue.
3. State Bank Depository Program:
Purpose: This program allows banks to participate in holding state funds. The Arkansas State Treasurer’s office oversees the designation of depository institutions where state funds, including those from agencies, are deposited. The Treasurer must ensure that the state’s funds are safely deposited and that banks providing this service meet specific criteria.
Relevant Regulation: Under the Arkansas Code, the Treasurer's office creates rules to implement the bank depository program. The regulations require banks to meet certain financial standards and provide collateral to ensure the safety of state deposits. Banks interested in participating must submit an application and may be subject to periodic reviews.
Case Example: If a bank participating in the depository program fails to meet the required collateralization standards, or if there is a breach in the agreement leading to a financial loss, the State Treasurer could be involved in investigating the matter. A legal case might arise if there’s a dispute over whether the bank met its obligations under the agreement.
4. Unclaimed Property Program:
Purpose: The Arkansas State Treasurer's office administers the unclaimed property program, which involves the collection and safekeeping of unclaimed financial assets (such as forgotten bank accounts, uncashed checks, etc.). The Treasurer is responsible for returning these assets to their rightful owners.
Relevant Regulation: Arkansas law mandates that financial institutions and businesses must report unclaimed property to the Treasurer’s office, which is then responsible for trying to reunite the property with its rightful owners. The unclaimed property law is governed by Arkansas Code Title 18, Chapter 28.
Case Example: Suppose a person claims that they are the rightful owner of unclaimed property, but the Treasurer’s office has already sent the property to the state’s unclaimed property fund. In this case, the person may file a claim to recover the property. Disputes might arise if the claimant disagrees with the amount or type of property being returned, leading to an administrative hearing or appeal to resolve the case.
5. State Debt Management and Bond Issuance:
Purpose: The Arkansas State Treasurer’s office is involved in managing the state’s debt, including the issuance of bonds for various state projects. This includes maintaining records, ensuring compliance with bond covenants, and overseeing the repayment of debt.
Relevant Regulation: Under the Arkansas Administrative Code, the Treasurer has the authority to issue bonds and notes for capital projects, subject to the approval of the governor and the Arkansas Legislative Council. The regulations also specify the terms under which bonds can be issued, including interest rates, repayment schedules, and maturity dates.
Case Example: If a bond issuer fails to meet their obligations or if there is a dispute regarding the interpretation of the bond covenants, legal action may be taken. The Treasurer’s office could become involved in any disputes over whether the bond issuance was in accordance with state law, or in cases where bondholders seek to enforce certain provisions of the bond agreements.
These regulatory cases and policies are all critical to the functioning of the State Treasurer’s office, as they ensure the proper management of public funds, fiscal accountability, and transparency in the handling of state resources. Each case is shaped by Arkansas law, and the specific details are often handled through formal procedures, such as administrative hearings, audits, and legislative oversight.
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