Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 2 - ADMINISTRATION OF STATE TAXES (§§ 26-17-201 — 26-21-115) › Chapter 17 - REVENUE DIVISION (§§ 26-17-201 — 26-17-504) › Subchapter 4 - RECIPROCAL PACTS AND AGREEMENTS (§§ 26-17-401 — 26-17-404) › Section 26-17-403 - Powers and duties - Definition

The Secretary of the Department of Finance and Administration and his or her agents are authorized and empowered to perform the duties necessary to comply with any pact or agreement with any other state or with the United States Government as provided:
(1)
Upon request of any state or government of the United States that is a party to a reciprocal pact or agreement with the State of Arkansas, the secretary and his or her agents are empowered to furnish such information from public or private records as may be requested by a state;
(2)
The secretary and his or her agents in the performance of these duties are empowered to require any person, firm, or corporation to make records available to the secretary for examination and copying. These records shall be available to the secretary or his or her agents at all reasonable times;
(3)
The secretary and his or her agents are empowered to question any person with reference to any matter involving Arkansas taxes or the taxes of any state or government of the United States with which the State of Arkansas may be a party to a pact or agreement for exchange of tax information if the state or government of the United States shall request assistance of the State of Arkansas in obtaining information. The secretary and his or her agents are empowered to take depositions or written sworn statements in the performance of these duties. All persons, firms, or corporations shall, upon demand of the secretary or his or her agents, supply full and accurate information. That information shall not be used against the person, firm, or corporation supplying the information in any grand jury investigation, indictment, or trial of any person, firm, or corporation involving violation of tax laws, it being the intent of this provision to comply fully with constitutional rights guaranteed to defendants which permit defendants to refrain from giving information or testimony against themselves;
(4)
The secretary and his or her agents shall not be empowered to make arrests of persons in Arkansas charged with violating tax laws of other states, unless those persons shall have been charged in the courts of other states with such offenses and notices thereof, together with a certified copy of the charges, shall have been transmitted to the secretary. Any person so arrested shall be permitted to maintain all rights relative to extradition of prisoners;
(5)
(A)
As used in this subdivision (5), "affected person" means a person who may be authorized by the secretary to access or view federal tax information as a requirement of the person's job duties and who is also:
(i)
A current employee of the department;
(ii)
An applicant for employment with the department;
(iii)
A current employee of a contractor of the department; or
(iv)
An applicant for employment with a contractor of the department.
(B)
The secretary shall establish a criminal background investigation policy for all affected persons that shall include at least the following provisions:
(i)
An affected person shall authorize the secretary or his or her designee to obtain a state and national criminal background check at the expense of the department;
(ii)
A criminal background check shall be conducted by the Identification Bureau of the Division of Arkansas State Police and the Federal Bureau of Investigation and shall include the taking of fingerprints;
(iii)
A criminal background check shall satisfy the background investigation standards established by the Internal Revenue Service with regard to access to federal tax information;
(iv)
A criminal background check performed on an affected person before his or her employment by the secretary or a contractor of the department shall be conducted before an offer of employment is extended by the secretary or the contractor of the department;
(v)
A criminal background check performed on an affected person who is already employed by the secretary or a contractor of the department shall be conducted at least one (1) time every ten (10) years;
(vi)
An affected person shall authorize the release of the criminal background check results to the secretary or his or her designee, and the Identification Bureau of the Division of Arkansas State Police shall forward to the secretary or his or her designee all information obtained as a result of the criminal background check;
(vii)
Information received from a criminal background check shall be used only for the purpose of making decisions regarding the employment or retention of an affected person in a position in which access to federal tax information may or will be authorized;
(viii)
Information received by the secretary or his or her designee from the Identification Bureau of the Division of Arkansas State Police under this section shall not be released to any party other than the affected person or his or her authorized representative; and
(ix)
(a)
An affected person who is employed by the department or by a contractor of the department shall notify the secretary or his or her designee of an arrest for a misdemeanor or felony offense.
(b)
Any information received under subdivision (5)(B)(ix)
(a)
of this section shall be used only for the purpose of the secretary making a decision regarding retention of an affected person following the arrest.
(c)
Failure to provide notice of a subsequent arrest under subdivision (5)(B)(ix)
(a)
of this section may be grounds for immediate termination of the affected person's employment or other action as the secretary or his or her designee deems appropriate.
Amended by Act 2019, No. 910,§ 3601, eff. 7/1/2019.
Amended by Act 2017, No. 758,§ 1, eff. 10/1/2017.
Acts 1949, No. 144, § 2; A.S.A. 1947, § 84-1732.