(a)

1. (1) A noncomplying location will be able to correct any issues of noncompliance and be approved for an allocation of premium taxes after the date of the allocation report.

2. (2) The process to effect this correction is as follows:

   1. (A)

(i) The Arkansas Fire and Police Pension Review Board will notify each noncomplying location by certified mail of the areas of noncompliance and the amount of premium tax allocation to be withheld from each fund associated with the noncomplying location.

1. (ii) This notification will be made on or about June 15;

   1. (B)

      1. (i) The noncomplying location must correct the areas of noncompliance and submit a letter to the board stating the nature of the correction and asking to receive an allocation.
      2. (ii) The corrections must be made by August 15 and the letter must be received by the Executive Director of the Arkansas Fire and Police Pension Review Board by August 15;
   2. (C) If the noncompliance issue is resolved with the executive director, the noncomplying location will be recommended for an allocation at the board’s September meeting;
   3. (D) If the compliance issue cannot be resolved with the executive director, then a local board member or city representative must appear at the board’s September meeting to demonstrate that it has fully resolved the areas of noncompliance.

(b)

1. (1) If the noncomplying location does not demonstrate that it has fully resolved the areas of noncompliance on or before its appearance at the board’s September meeting, then the premium tax allocated to every fund associated with that location, including police and fire local plans, police supplement, fire and police future supplement funds, additional allocation, and the Arkansas Local Police and Fire Retirement System, is forfeited for that year.
2. (2) The amount of that forfeited allocation will be added to the next year’s Police Allocation Fund (for police locations) or Fire Allocation Fund (for fire locations).
3. (3) This would be added back at the point after the division to the General Revenue Allocation Fund and before the allocation to individual locations.