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Committee approves Treasury cleanup bill to broaden eligible Arkansas banks for investments
Summary
Sen. Missy Irvin presented Senate Bill 480 to revise investment‑rating language in the treasurer’s code so the state can invest with more Arkansas banks; the committee approved the measure by voice vote after staff explained the change.
Sen. Missy Irvin, R‑District 24, introduced Senate Bill 480, a bill described as a statutory cleanup intended to align investment language in the treasurer’s code with current operations and allow the state to invest with more local banks.
Michael Harry, chief compliance officer and director of government affairs for the treasurer’s office, told the committee that an investment‑rating requirement had been carried over from banking code language and did not fit the treasurer’s operations. The bill reduces a requirement from two ratings to one investment‑grade rating so that certain local banks that receive only a single rating can be eligible partners.
The treasurer’s office said it seeks the best available deal and prefers FDIC‑insured local banks when feasible. No opponents signed up to speak and the committee approved the bill on a motion by Sen. Flowers, seconded by Sen. Irvin.
Committee members asked about whether the office seeks the highest interest rate and whether investments are kept in‑state when possible. The treasurer’s office said it aims to secure the best deals and invest in Arkansas banks where feasible.
