The bill mandates that vendors contracting with the Employee Benefits Division must submit their data for verification through an independent audit process. It amends Arkansas Code 21-5-404 to require that contracts with these vendors include a stipulation for data verification and establishes a new section, 21-5-425, which outlines the independent audit process. This section specifies that vendors must agree to verify the accuracy of their data, and the division cannot contract with vendors who do not comply.

Additionally, the bill imposes civil penalties on vendors found to have provided inaccurate data, with fines of $500 for the first violation and $1,000 for subsequent violations, along with potential loss of licensure. The Director of the Employee Benefits Division is tasked with developing the audit process and promulgating rules for its implementation. An emergency clause is included, emphasizing the immediate need for accurate data to assess the fiscal impact of legislation, allowing the act to take effect promptly upon approval.

Statutes affected:
Old version SB491 Original - 3-17-2025 04:39 PM: 21-5-404(10)
Old version SB491 V2 - 4-15-2025 09:16 AM: 21-5-404(10)
SB 491: 21-5-404(10)
Act 956: 21-5-404(10)