This bill amends the provisions regarding delinquent payments by political subdivisions under the Arkansas Local Police and Fire Retirement System. It specifies that if a political subdivision fails to make a payment or report due to the system within five calendar days of the due date, it will be considered delinquent. The delinquency will be certified according to the rules established by the Board of Trustees of the Arkansas Local Police and Fire Retirement System to the Treasurer of State. Additionally, until the delinquency and any associated interest are resolved, the Treasurer of State is authorized to withhold all funds due to the political subdivision from the state.

The bill also includes an emergency clause, stating that the management of delinquent payments for municipal firemen's and policemen's pension funds needs to be transferred from the Arkansas Local Police and Fire Retirement System to the Department of Finance and Administration for improved financial security and efficiency. The act is set to take effect on July 1, 2025, to allow time for necessary programming and educational notices to be sent to affected employers.