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Committee pauses bill to create Department of Financial Services after members press for more detail on costs, boards and structure
Summary
Representative Acre presented Senate Bill 229 to create a Department of Financial Services as an umbrella over the State Bank Department and the State Securities Department. Committee members questioned costs, stakeholder consultation and whether the change merely renames existing structures; sponsor pulled the bill for further work.
Representative A. Acre introduced Senate Bill 229 to create a Department of Financial Services within the Department of Commerce and to place the State Bank Department and the State Securities Department under that umbrella. Supporters said the change would formalize a structure that has already consolidated leadership: the bank commissioner currently serves as both bank and securities commissioner following 2023 legislation.
Committee members pressed on several points. Representative Dolby and others asked about the cost and outreach needed to change a name that, one member noted, has existed since 1913. Deputy Commissioner John Allen and Campbell McLaren of the Arkansas Securities Department said the measure is largely a formal reorganization and that no immediate additional staff positions were planned; Laurie Trogdon, president and CEO of the Arkansas Bankers Association, told the committee that the association had reviewed the bill and had no objection.
Members repeatedly asked whether the bank board and other stakeholders had been consulted; witnesses said the change grew from discussions between the secretary of commerce and the bank commissioner and that some boards had not yet reviewed the draft. Representatives also sought clarity on budgetary and administrative effects: witnesses said both agencies retain separate funds and that the change was intended to encourage future administrative efficiencies rather than to immediately alter budgeting or create new funded positions.
In response to the questions, Representative Acre moved to pull the bill to address the committee’s concerns and to meet individually with stakeholders. The chair granted the request and the measure will be refiled or reheard after additional work.
Why it matters: The proposal would rebrand and formally organize financial regulatory functions under a single Department of Financial Services; members expressed concern about potential confusion for the public, the need for board consultation and the lack of a clear cost estimate for transition activities.
Next steps: Sponsor withdrew the bill from consideration and indicated it will be revised and returned after additional stakeholder engagement.
