AR SB838

Creates a new State Board of Finance with 10 members including the Governor, Treasurer of State, Auditor, Bank Commissioner, and Director of Finance and Administration, plus four appointed members with specific qualifications in banking, securities, accounting, and public representation; board members serve staggered four-year terms and receive $100 stipend per meeting.

Establishes comprehensive powers and duties for the State Board of Finance to develop policies and procedures for managing State Treasury funds, including record-keeping, collateralization, eligibility requirements for depositories and brokers, investment policies, and liquidity requirements.

Implements strict employee qualifications and background check requirements for Treasury and Board staff handling State Treasury funds, including criminal background checks by September 1, 2013, conflict of interest disclosures, and prohibitions on employment for those with felony convictions, moral turpitude crimes, or administrative violations.

Authorizes the Board to select a chief investment officer and hire investment consultants to review investment policies and make recommendations on asset allocation, target rates of return, and money manager suitability.

Repeals the previous State Board of Finance statute and allows a grace period until January 1, 2014, for existing depositories to comply with new eligibility requirements established by this act.