Senate committee hears bill to modernize procedures at Commissioner of State Lands; members press office on cash policy and fees

Senators heard testimony on House Bill 11-63, a bill that would update Arkansas Code provisions about correcting erroneous sales of state-owned land and clarify the duties and procedures of the Commissioner of State Lands.

Senator Gary Stubblefield introduced the measure, saying its purpose was to remove obsolete language from Arkansas Code 22 6 1 0 2. "The purpose of 11 63 is really it's really very simple. It's to move some obsolete language," he said. Kelly Boyd, deputy commissioner of state lands, described the revisions as aligning statute with current practice and reducing unnecessary trips to Little Rock by allowing more work to be submitted electronically.

A central line of questioning focused on payments and whether the office will accept cash at public land sales. Boyd said the office is "moving away from accepting cash for operations other than redemption of taxes," citing concerns that high-value cash transactions present money-laundering risks: "Last year we had one individual pay $200,000 in $100 bills," he said, and the office has consulted outside legal counsel about the issue. Boyd told senators the office plans to eliminate cash payments for purchases of property by July 1 but emphasized that accepting cash to redeem taxes would continue.

Some senators worried the policy could imperil small transactions and raised constitutional concerns about refusing U.S. currency for public obligations. Senator Payton asked whether the bill could explicitly preserve acceptance of U.S. currency for small fees (for example, the $125 filing referenced in the bill). Boyd replied the office aims for a single policy on transactional cash acceptance with an exception for redemption deeds and that the $125 fee under discussion is intended to recover costs; survey expenses would likely be in addition to that fee.

Committee members also probed procedural safeguards: whether adjoining landowners would receive notice of potential new conveyances created by river accretion, who may perform required surveys, and whether deeds issued would include water up to an ordinary high-water mark. Boyd said interested parties would be able to hire surveyors and submit information electronically, the office performs due diligence and outreach to surrounding landowners, and deeds extend to the ordinary high-water mark (except where separate law applies, as for the Mulberry River).

Senators asked why the bill replaces language that required the office to pay certain survey costs and why the statute uses "may" instead of "shall" when describing issuance of deeds; Boyd said the office chose "may" to retain discretion when ownership is unclear and said the $125 is a cap intended to recover commission costs. Because several members sought further clarification and wanted to consult Commissioner Tommy Land, the committee agreed to pause action on HB 11-63 to allow follow-up discussions.

The transcript records no final committee vote on HB 11-63 during this meeting.