Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Financial Records topic
No spam. Unsubscribe anytime.
Committee allows online-banking images for canceled-check records with passage of HB 1405
Summary
House Bill 1405 updates the check-imaging law to allow online-banking images in place of original canceled checks for public-entity audits; Legislative Audit staff said complete images (front and back) will still be required and bankers reviewed the draft with no objections.
The Senate Insurance & Commerce Committee voted to advance House Bill 1405 after Legislative Audit staff told the panel the bill updates the state’s check-imaging law to include images produced by online banking.
Frank Carey of Legislative Audit told the committee the bill "updates the check imaging law to include online banking." Carey said the change reflects current banking practice, in which many institutions do not return original canceled checks but instead provide electronic images.
Senator Chesterfield asked whether images would include the backs of checks; Carey answered, "We'll still require as one of the requirements that the image be complete. That is, we see the front and the back." Senator Johnson asked whether the change applies only to entities Legislative Audit covers; Carey said it applies whenever a financial institution does not return original canceled checks and therefore will cover state agencies, school districts and other public entities that meet the code definition.
Carey also said the draft had been reviewed by the Arkansas Bankers Association and community bankers, and neither organization objected to the update. Senator English moved "do pass," Senator Johnson seconded, and the committee approved the bill on a voice vote. The transcript does not include a roll-call tally or any amendments.
