Stricken language would be deleted from and underlined language would be added to present law. Act 786 of the Regular Session *TNL436* 3/30/2023 5:31:01 PM TNL436 State of Arkansas 1 94th General Assembly A Bill 2 Regular Session, 2023 SENATE BILL 551 3 4 By: Senator J. Dotson 5 By: Representative Brooks 6 7 For An Act To Be Entitled 8 AN ACT TO AMEND THE REFERENCES IN THE AR KANSAS CODE 9 TO "DIRECTOR OF THE DIVISION OF HIGHER E DUCATION" TO 10 THE "COMMISSIONER OF THE DIVISION OF HIGH ER 11 EDUCATION"; TO AMEND THE MEANS BY WHICH T HE DIRECTOR 12 OF THE DIVISION OF H IGHER EDUCATION IS APPOINTED; TO 13 DECLARE AN EMERGENCY ; AND FOR OTHER PURP OSES. 14 15 16 Subtitle 17 TO AMEND THE ARKANSAS CODE AS IT PERTAINS 18 TO REFERENCES TO THE DIRECTOR OF THE 19 DIVISION OF HIGHER EDUCATION; AND TO 20 DECLARE AN EMERGENCY. 21 22 23 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24 25 SECTION 1. Arkansas Code § 1 -4-114(b)(1), concerning the person 26 designated or appointed by the Governor as Poet Laureate of the State of 27 Arkansas, is amended to read as follows: 28 (b)(1) The person designated or appo inted by the Governor as Poet 29 Laureate of the State of Arkansas shall be a person whose name was selected 30 from a list of names submitted to the Governor upon recommendation of a 31 committee consisting of: 32 (A) Two (2) principal heads of English department s of 33 state-supported universities or colleges who are selected by the Director 34 Commissioner of the Division of Higher Education; and 35 (B) Two (2) members of the Poets' Roundtable of Arkansas 36 SB551 2 3/30/2023 5:31:01 PM TNL436 who are selected by the President of the Poets' Roundtable of Arkansas. 1 2 SECTION 2. Arkansas Code § 6 -1-404(a)(4), concerning the members of 3 the School Leadership Coordinating Council, is amended to read as follows: 4 (4) The Director Commissioner of the Division of Higher 5 Education; 6 7 SECTION 3. Arkansas Code § 6-5-1102(b), concerning the membership of 8 the Council on Postsecondary Education and Career Readiness, is amended to 9 read as follows: 10 (b) The council shall consist of eleven (11) members as follows: 11 (1) The Commissioner of Elementary and Secondary Edu cation or 12 his or her designee; 13 (2) The Director Commissioner of the Division of Higher 14 Education or his or her designee; 15 (3) The Director of the Division of Career and Technical 16 Education or his or her designee; 17 (4) The Director of the Arkansas Ec onomic Development Commission 18 or his or her designee; 19 (5) The Director of the Division of Workforce Services or his or 20 her designee; 21 (6) A president or chancellor of an Arkansas four -year 22 institution of higher education or his or her designee, appoin ted annually by 23 the Director Commissioner of the Division of Higher Education; 24 (7) The Executive Director of the Arkansas Association of 25 Educational Administrators or his or her designee; 26 (8) The Executive Director of Arkansas Community Colleges or h is 27 or her designee; 28 (9) The Executive Director of the Arkansas Education Association 29 or his or her designee; 30 (10) The Executive Director of the Arkansas School Boards 31 Association or his or her designee; and 32 (11) The President of the Arkansas State Chamber of Commerce and 33 the Associated Industries of Arkansas or his or her designee. 34 35 SECTION 4. Arkansas Code § 6 -11-208(a)(1), concerning the membership 36 SB551 3 3/30/2023 5:31:01 PM TNL436 of the Regional Educational Career Alternative School System for Adjudicated 1 Youth multiagency ta sk force, is amended to read as follows: 2 (a)(1) A multiagency task force, staffed and supported by the Division 3 of Career and Technical Education, is established and shall consist of five 4 (5) members, including: 5 (A) The Commissioner of Elementary and Secondary Education 6 or his or her designee; 7 (B) The Director of the Division of Career and Technical 8 Education or his or her designee; 9 (C) The Director Commissioner of the Division of Higher 10 Education or his or her designee; 11 (D) The Secretary of the Department of Human Services or 12 his or her designee; and 13 (E) The Director of the Division of Workforce Services or 14 his or her designee. 15 16 SECTION 5. Arkansas Code § 6 -15-2501(c)(3), concerning the appointment 17 of a liaison to the Office of Edu cation Renewal Zones, is amended to read as 18 follows: 19 (3) The Director Commissioner of the Division of Higher 20 Education shall assign one (1) individual from the staff of the Division of 21 Higher Education to serve as a liaison to the office. 22 23 SECTION 6. Arkansas Code § 6-16-127(d), concerning the receipt of 24 donations, grants, and appropriations by the Division of Higher Education 25 under the Arkansas Foreign Language Teacher Training Program, is amended to 26 read as follows: 27 (d)(1) The awards granted under the provisions of this section and § 28 6-16-128 may be funded by donations, grants, or legislative appropriation. 29 (2) All donations, grants, and appropriations received shall be 30 accounted for by the Division of Higher Education. 31 (3) The Director Commissioner of the Division of Higher 32 Education may solicit and receive donations and grants for the purpose of 33 making awards. 34 (4) The provisions of this section and § 6 -16-128 shall be 35 contingent on the appropriation and funding necessary to allow the Divis ion 36 SB551 4 3/30/2023 5:31:01 PM TNL436 of Higher Education to carry out the duties assigned it in this section and § 1 6-16-128. 2 3 SECTION 7. Arkansas Code § 6 -42-303(b)(3)(A), concerning the ex 4 officio nonvoting members serving on the Board of Visitors for the Arkansas 5 School for Mathematic s, Sciences, and the Arts, is amended to read as 6 follows: 7 (3)(A) In addition to appointed members of the Board of Visitors 8 for the Arkansas School for Mathematics, Sciences, and the Arts, nine (9) ex 9 officio nonvoting members shall also serve on the Boa rd of Visitors for the 10 Arkansas School for Mathematics, Sciences, and the Arts as follows: 11 (i) The Commissioner of Elementary and Secondary 12 Education; 13 (ii) The Director Commissioner of the Division of 14 Higher Education; 15 (iii) The Director of the Arkansas Economic 16 Development Commission or his or her designee; 17 (iv) The Director of the Division of Arkansas 18 Heritage; 19 (v) The president of the parent association of the 20 school; 21 (vi) The president of the student government of the 22 school; 23 (vii) The president of the faculty and staff 24 Governing Council of the Arkansas School for Mathematics, Sciences, and the 25 Arts; 26 (viii) The Chair of the Association for Alumni and 27 Friends of ASMSA, or his or her designee; and 28 (ix) The Chair of the ASMSA Foundation Fund Board of 29 Ambassadors, or his or her designee. 30 31 SECTION 8. Arkansas Code § 6 -50-702(6), concerning the definition of 32 "governing council" under the Arkansas Existing Workforce Training Act of 33 1995, is amended to read as follow s: 34 (6) “Governing council” means the Director of the Arkansas 35 Economic Development Commission, the Director Commissioner of the Division of 36 SB551 5 3/30/2023 5:31:01 PM TNL436 Higher Education, and the Director of the Office of Skills Development, or 1 their designees; 2 3 SECTION 9. Arkansas Code § 6-51-213(c)(1), concerning the 4 administration of certain federal and state vocational education laws, is 5 amended to read as follows: 6 (c)(1) The Director Commissioner of the Division of Higher Education, 7 by and with the advice and consent of the Arkansas Higher Education 8 Coordinating Board, may designate assistants as may be necessary to carry out 9 properly the provisions of this subchapter. 10 11 SECTION 10. Arkansas Code § 6 -51-605(a)(2), concerning nonvoting, ex 12 officio members of the State Board o f Private Career Education, is amended to 13 read as follows: 14 (2) The Director Commissioner of the Division of Higher 15 Education and the Director of the Division of Career and Technical Education 16 or their designees shall serve as nonvoting, ex officio membe rs of the board. 17 18 SECTION 11. Arkansas Code § 6 -51-605(b)(1), concerning the election of 19 officers to the State Board of Private Career Education, is amended to read 20 as follows: 21 (b)(1) The board may elect the necessary officers, acting by and 22 through the Director Commissioner of the Division of Higher Education. 23 24 SECTION 12. Arkansas Code § 6 -51-607(f), concerning the use of funds 25 in the Private Career School Student Protection Trust Fund, is amended to 26 read as follows: 27 (f) Any amounts in the Private Career School Student Protection Trust 28 Fund above two hundred thousand dollars ($200,000) may be used with the 29 approval of the Director Commissioner of the Division of Higher Education to: 30 (1) Fund educational seminars and other forms of educational 31 projects for the use and benefit of licensed school administrators, faculty, 32 staff, or admissions representatives; 33 (2) Provide for travel expenses and registration fees to send 34 staff or board members to accrediting meetings, seminars, or meetings 35 relating to the school sector; 36 SB551 6 3/30/2023 5:31:01 PM TNL436 (3) Provide staff assistance; or 1 (4)(A) Fund student scholarships as provided for by the Higher 2 Education Grants Fund Account. 3 (B) Priority of funding scholarships under subdivision 4 (f)(4)(A) of this section shall be given to the funding of veterinary 5 medicine student loans at the College of Veterinary Medicine of Mississippi 6 State University. 7 8 SECTION 13. Arkansas Code § 6 -51-609(c)(2)(A), concerning the 9 endorsement of an admissions representative's license, is amended to read as 10 follows: 11 (2)(A) The license shall be endorsed by the Director 12 Commissioner of the Division of Higher Education. 13 14 SECTION 14. Arkansas Code § 6 -51-615(b), concerning the denial of an 15 admissions representative's license, is amended to read as f ollows: 16 (b) The Director Commissioner of the Division of Higher Education, 17 upon receipt of information considered dependable which indicates fraud, 18 misrepresentation, or unethical practices on the part of an applicant, may 19 deny issuance of a license appl ied for or may suspend immediately a license 20 already issued pending a review by the Division of Higher Education. 21 22 SECTION 15. Arkansas Code § 6 -51-618(d), concerning a school's appeal 23 regarding penalties imposed on a school that violates the law as it pertains 24 to private resident and correspondence schools, is amended to read as 25 follows: 26 (d) Any school dissatisfied with the penalties imposed may seek 27 judicial review, provided the school files notice of appeal in Pulaski County 28 Circuit Court within fif teen (15) calendar days immediately following the 29 date of notification of this action by the Director Commissioner of the 30 Division of Higher Education. 31 32 SECTION 16. Arkansas Code § 6 -60-303(d)(1), concerning the 33 appropriation transfer procedures for tuit ion revenue that would have been 34 generated by charging an out -of-state tuition rate instead of an approved in -35 state or out-of-district tuition rate, is amended to read as follows: 36 SB551 7 3/30/2023 5:31:01 PM TNL436 (1) The Director Commissioner of the Division of Higher Education 1 shall determine the difference between the amount of tuition revenue which 2 that would have been generated by charging the Arkansas Higher Education 3 Coordinating Board-approved out-of-state tuition rate to the students as 4 compared to the approved in -state or out-of-district rate. 5 6 SECTION 17. Arkansas Code § 6 -61-129(d)(1), concerning the meeting of 7 individuals to review applications for the creation of a center of 8 excellence, is amended to read as follows: 9 (d)(1) Two (2) representatives of the division as desig nated by the 10 Director Commissioner of the Division of Higher Education, and one (1) 11 representative of the Arkansas Economic Development Commission shall meet as 12 needed to review applications jointly. 13 14 SECTION 18. Arkansas Code § 6 -61-504 is amended to re ad as follows: 15 6-61-504. Division of Community Junior Colleges created. 16 The Director Commissioner of the Division of Higher Education shall 17 establish a separate Division of Community Junior Colleges within the 18 Division of Higher Education. 19 20 SECTION 19. Arkansas Code § 6-61-803 is amended to read as follows: 21 6-61-803. Arkansas Research Development Program created — 22 Administration. 23 There is created a program to be known as the “Arkansas Research 24 Development Program”, which shall be administered by the Director 25 Commissioner of the Division of Higher Education. 26 27 SECTION 20. Arkansas Code § 6 -61-808(b)(1), concerning the review of 28 applications for funds under the Arkansas Research Development Act, is 29 amended to read as follows: 30 (b)(1) The Director Commissioner of the Division of Higher Education 31 shall review the applications and shall approve applications in the amount he 32 or she determines appropriate, after seeking the advice of the Legislative 33 Council. 34 35 SECTION 21. Arkansas Code § 6 -61-902(c), concerning the work conducted 36 SB551 8 3/30/2023 5:31:01 PM TNL436 by the Office of Accountability within the Division of Higher Education, is 1 amended to read as follows: 2 (c) Under the direction of the Director Commissioner of the Division 3 of Higher Education, the staff of the office shall work cooperatively with 4 and provide any necessary assistance to the House Committee on Education and 5 the Senate Committee on Education. 6 7 SECTION 22. Arkansas Code § 6 -61-1403(a), concerning the 8 recommendation for additions or alterations to the common course number 9 system, is amended to read as follows: 10 (a) The Director Commissioner of the Division of Higher Education 11 shall recommend to the Arkansas Higher Education Coordinating Board any 12 additions or alterations to the common course numbering system. 13 14 SECTION 23. Arkansas Code § 6 -62-105(c)(1), concerning the 15 authorization of state -supported institutions to borrow funds from a private 16 financial institution, is amended to read as follows: 17 (c)(1) Notwithstanding subsections (a) and (b) of this section or § 18 19-4-705, the Chief Fiscal Officer of the State and the Director Commissioner 19 of the Division of Higher Education may authorize a state -supported 20 institution of higher education to borrow funds from a private financial 21 institution provided that the board of trustees certifies that borrowing 22 funds from a private financial institution: 23 (A) Is required to continue essential operations of the 24 state-supported institution of higher education into the following fiscal 25 year; and 26 (B) Will be repaid not later than one hundred twenty (120) 27 days after the start of the following fiscal year. 28 29 SECTION 24. Arkansas Code § 6 -63-307(a), concerning salary 30 restrictions for employees of state institu tions of higher education, is 31 amended to read as follows: 32 (a) An employee drawing a salary or other form of compensation from an 33 institution of higher education shall not be paid an additional salary or 34 receive additional compensation other than reimburs ement for actual expenses 35 from that institution or from any other agency or institution of higher 36 SB551 9 3/30/2023 5:31:01 PM TNL436 education except upon written certification to and approval by the Director 1 Commissioner of the Division of Higher Education and by the head of each 2 agency or institution that the work performed by the employee for the other 3 agency or institution of higher education does not interfere with the proper 4 and required performance of the employee's primary duties and that the 5 combined salary payments from both agenci es or institutions of higher 6 education will not exceed the larger maximum annual salary of the line item 7 position authorized for either agency from which the employee is to be paid. 8 9 SECTION 25. Arkansas Code § 6 -67-114(b), concerning the biennial 10 report to the General Assembly submitted by the Board of Trustees of the 11 University of Central Arkansas, is amended to read as follows: 12 (b) The report shall be incorporated in the report of the Director 13 Commissioner of the Division of Higher Education and shal l set forth the 14 financial and scholastic condition of the University of Central Arkansas, 15 furnish such suggestions as in the board's judgment are necessary for the 16 improvement of the university, and shall make any further recommendations 17 that may seem wise and expedient to the board. 18 19 SECTION 26. Arkansas Code § 6 -84-104(b), concerning the cotrustees of 20 the Arkansas Brighter Future Fund Plan Trust, is amended to read as follows: 21 (b) The cotrustees of the trust shall be the Director Commissioner of 22 the Division of Higher Education, the Executive Director of the Arkansas 23 Teacher Retirement System, and the Treasurer of State. 24 25 SECTION 27. Arkansas Code § 6 -84-105(a), concerning the administration 26 of the Section 529 Plan Review Committee under the Arkansas Brighter Future 27 Fund Plan Trust, is amended to read as follows: 28 (a) This chapter shall be administered by the Section 529 Plan Review 29 Committee, which shall be composed of: 30 (1) The Director Commissioner of the Division of Higher 31 Education; 32 (2) The Executive Director of the Arkansas Teacher Retirement 33 System; and 34 (3) The Treasurer of State. 35 36 SB551 10 3/30/2023 5:31:01 PM TNL436 SECTION 28. Arkansas Code § 6 -85-205(e), concerning the review and 1 evaluation of the Arkansas Academic Challenge Scholarship Program, is amended 2 to read as follows: 3 (e) The Director Commissioner of the Division of Higher Education 4 shall review and evaluate the operation of the program with regard to 5 eligibility criteria and size of the scholarship award to ensure that the 6 program's operation meets the inte nt of this subchapter. 7 8 SECTION 29. Arkansas Code § 6 -85-216(c), concerning the required 9 annual report to the Legislative Council concerning the Arkansas Academic 10 Challenge Scholarship Program, is amended to read as follows: 11 (c) The division shall use the information provided under this section 12 to conduct the research and analysis needed to support the annual report of 13 the Director Commissioner of the Division of Higher Education to the 14 Legislative Council under § 6 -85-205. 15 16 SECTION 30. Arkansas Code § 6-85-219(a)(2), concerning information 17 included in the annual report to the Legislative Council concerning the 18 Arkansas Academic Challenge Scholarship Program, is amended to read as 19 follows: 20 (2) The information provided shall include without limitatio n: 21 (A) Current year expenditures for scholarships and grants 22 under the Arkansas Academic Challenge Scholarship Program; 23 (B) Projected obligations for succeeding years from each 24 scholarship or grant funding source; 25 (C) Fund balances for the: 26 (i) Higher Education Grants Fund Account; and 27 (ii) Trust accounts maintained by the Director 28 Commissioner of the Division of Higher Education to hold the net proceeds 29 from the state lottery; 30 (D) An evaluation of whether the net proceeds from the 31 state lottery available for the program supplement and do not supplant 32 nonlottery state educational resources; and 33 (E) Other information that the Legislative Council or the 34 General Assembly requests. 35 36 SB551 11 3/30/2023 5:31:01 PM TNL436 SECTION 31. Arkansas Code § 15 -3-104(c), concerning the membership of 1 the Board of Directors of the Division of Science and Technology of the 2 Arkansas Economic Development Commission, is amended to read as follows: 3 (c) The board shall consist of the Director Commissioner of the 4 Division of Higher Educ ation or the Director Commissioner of the Division of 5 Higher Education's designee and thirteen (13) directors who shall be 6 appointed by the Governor, subject to confirmation by the Senate, as follows: 7 (1) Three (3) directors shall be engineers or scientists 8 recognized for their scientific or technological research efforts; 9 (2) Two (2) directors shall be appointed as representatives of 10 academic institutions who have an extended extensive involvement in science 11 and technology research; 12 (3) Five (5) directors shall be representatives of the private 13 sector of the state, who shall be persons with knowledge or experience in the 14 fields of agriculture, forestry, finance, economic development, or science 15 and technology; and 16 (4) Three (3) directors s hall be appointed as representatives of 17 the private sector of the state, who shall be persons with knowledge or 18 experience in the field of manufacturing. 19 20 SECTION 32. Arkansas Code § 19 -4-1604(c), concerning approval by the 21 Director of the Division of Hi gher Education for a person to be paid a salary 22 or compensation from an institution of higher education other than the 23 institution of higher education that employs the person, is amended to read 24 as follows: 25 (c) A person drawing a salary or other compensa tion from a state 26 agency or institution of higher education shall not be paid a salary or 27 compensation from another institution of higher education except upon the 28 written certification to and approval by the Director Commissioner of the 29 Division of Higher Education that the: 30 (1) Work performed for the other state agency or institution of 31 higher education does not interfere with the proper and required performance 32 of the person's duties; and 33 (2) Combined salary payments from the state agency and 34 institution of higher education do not exceed the larger maximum annual 35 salary of the line-item position authorized for either the agency or 36 SB551 12 3/30/2023 5:31:01 PM TNL436 institution of higher education from which the employee is being paid. 1 2 SECTION 33. Arkansas Code § 19 -5-501(b)(1)(E) and (F), concerning 3 temporary loans made to institutions of higher education, is amended to read 4 as follows: 5 (E) Temporary loans may be made to the institutions of 6 higher education for operational purposes. In making these loans, the 7 following procedures shall be applicable. The institutions of higher 8 education shall submit requests for loans to both the Director Commissioner 9 of the Division of Higher Education and the Chief Fiscal Officer of the State 10 setting forth the need for the loan. The request s shall include at least the 11 following: 12 (i) The current total cash balance of all accounts 13 of the requesting institution's cash funds; 14 (ii) The reasons why the cash fund balances and 15 their general revenue fund balances are insufficient to meet cu rrent 16 obligations; 17 (iii) The anticipated duration of the loan; and 18 (iv) A proposed repayment schedule. 19 (F) The Chief Fiscal Officer of the State and the Director 20 Commissioner of the Division of Higher Education shall review the request for 21 the loan. The Director Commissioner of the Division of Higher Education 22 shall recommend, in writing, the approval or disapproval of the loan and the 23 reasons for the recommendation to the Chief Fiscal Officer of the State. The 24 Chief Fiscal Officer of the St ate shall review the institution's request, the 25 funds available in the Budget Stabilization Trust Fund, and the 26 recommendation of the Director Commissioner of the Division of Higher 27 Education. The Chief Fiscal Officer of the State may request such additio nal 28 information as is deemed necessary to make a determination as to whether the 29 request should be approved. If the Chief Fiscal Officer of the State 30 determines that the request is proper and necessary for the operation of the 31 institution and that suffici ent funds are available, the Chief Fiscal Officer 32 of the State shall approve the request and establish a repayment schedule for 33 the loan. If the Chief Fiscal Officer of the State determines that the loan 34 is not necessary or required, or that funds are not available, the Chief 35 Fiscal Officer of the State shall deny the request. The Chief Fiscal Officer 36 SB551 13 3/30/2023 5:31:01 PM TNL436 of the State shall communicate in writing to the institution and to the 1 Director Commissioner of the Division of Higher Education the reasons for 2 disapproval of the requested loan. All loans made to the institutions of 3 higher education under the provisions of this section shall be repaid in full 4 by June 30 of the fiscal year in which the loan was made. In the event an 5 agency or program is established by the General Assembly which is to be 6 supported solely from other than general revenues or federal funds, the Chief 7 Fiscal Officer of the State may make a temporary loan from the Budget 8 Stabilization Trust Fund to the agency or program to the extent necessary f or 9 carrying out the intent of the enabling legislation. The amount of the loan 10 shall be determined by the Chief Fiscal Officer of the State, and the loans 11 shall be repaid in full by June 30 of the fiscal year in which the loan was 12 made; 13 14 SECTION 34. Arkansas Code § 19-5-1018(d), concerning the disbursement 15 of funds accrued to the Higher Education Building Maintenance Fund, is 16 amended to read as follows: 17 (d) Those funds accruing to the Higher Education Building Maintenance 18 Fund under the provisions of t his section shall be disbursed by the Director 19 Commissioner of the Division of Higher Education in accordance with the 20 recommendations of the Arkansas Higher Education Coordinating Board, but only 21 after the board shall determine the projects and priorities for which the 22 funds shall be used, and after the board shall have sought the advice of the 23 Legislative Council with respect to them. 24 25 SECTION 35. Arkansas Code § 19 -5-1076(d)(1), concerning the 26 determination of a difference in tuition revenue under the Higher Education 27 Tuition Adjustment Fund, is amended to read as follows: 28 (d)(1) The Director Commissioner of the Division of Higher Education 29 shall determine the difference between the amount of tuition revenue which 30 would have been generated by charging the Arkansas Higher Education 31 Coordinating Board-approved out-of-state tuition rate to said students as 32 compared to approved in -state or out-of-district rates. 33 34 SECTION 36. Arkansas Code § 19 -11-1004(c)(3), concerning the receipt 35 of additional compensat ion by an employee of an institution of higher 36 SB551 14 3/30/2023 5:31:01 PM TNL436 education, is amended to read as follows: 1 (3) An employee of an institution of higher education performing 2 professional or consulting services to a state agency may receive additional 3 compensation if: 4 (A) The institution of higher education requests and 5 receives written approval from the Director Commissioner of the Division of 6 Higher Education concerning the amount of additional compensation to be paid 7 to any employee; and 8 (B) The total salary payme nts received from the employee's 9 regular salaried position and amounts received for services performed under a 10 professional services contract do not exceed one hundred twenty -five percent 11 (125%) of the maximum annual salary authorized by law for the employ ee's 12 position with the institution of higher education. 13 14 SECTION 37. Arkansas Code § 19 -12-117(a)(3), concerning the membership 15 of the Director of the Division of Higher Education on the Arkansas Tobacco 16 Settlement Commission, is amended to read as follo ws: 17 (3) The Director Commissioner of the Division of Higher 18 Education or his or her designee; 19 20 SECTION 38. Arkansas Code § 20 -45-302(c)(7), concerning the membership 21 of a representative from higher education on the Arkansas Suicide Prevention 22 Council, is amended to read as follows: 23 (7) A representative from higher education, to be designated by 24 the Director Commissioner of the Division of Higher Education; 25 26 SECTION 39. The introductory language of Arkansas Code § 21 -5-27 223(b)(1), concerning the aut horization of the payment of funds on a regular 28 payroll schedule as severance pay, is amended to read as follows: 29 (b)(1) If the head of an institution of higher education determines 30 that it is necessary to implement the state workforce reduction policy d ue to 31 institution organization structure change, budgetary reductions, abolishment 32 of positions or duties, loss of functional responsibility by the institution, 33 or the loss of federal funding, grants, or other special funds, the head of 34 the institution, upon approval by the Director Commissioner of the Division 35 of Higher Education, may authorize the payment of funds on a regular payroll 36 SB551 15 3/30/2023 5:31:01 PM TNL436 schedule as severance pay to full -time, part-time, and job sharing classified 1 employees in regular positions affected by t he workforce reduction on the 2 basis of the following pro rata lump sum for completed years of service, 3 including any formally implemented probationary period: 4 5 SECTION 40. Arkansas Code § 21 -5-1402(9), concerning the definition of 6 "job sharing" under the Higher Education Uniform Classification and 7 Compensation Act, is amended to read as follows: 8 (9)(A)(i) “Job sharing” means a form of employment in which the 9 hours of work of two (2) or more persons are arranged in such a way as to 10 cover one (1) regular full-time position. 11 (ii) The division may authorize job sharing for any 12 regular full-time position. 13 (B) The Director Commissioner of the Division of Higher 14 Education or his or her designee shall promulgate necessary rules to carry 15 out this subdivision (9); 16 17 SECTION 41. Arkansas Code § 21 -5-1405(a)(6)(C), concerning the 18 procedure to allow the head of an institution of higher education to review 19 the qualifications of applicants whose education and experience do not meet 20 or exceed that required by the class specification, is amended to read as 21 follows: 22 (C) The procedure under subdivision (a)(6)(A) of this 23 section shall require the final approval of the Director Commissioner of the 24 Division of Higher Education, with the review of the Legislative Council or, 25 if the General Assembly is in session, the Joint Budget Committee; 26 27 SECTION 42. Arkansas Code § 21 -5-1409(c)(1), concerning the procedure 28 for the increase of the maximum annual salary for an institution of higher 29 education employee under the Higher Education Uniform Classification and 30 Compensation Act, is amended to read as follows: 31 (c)(1) In addition to a compensation increase under subsection (b) of 32 this section, the maximum annual salary for which an employee covered by this 33 subchapter is eligible may be increased: 34 (A) By a percentage up to two percent (2%) with written 35 approval by the Director Commissioner of the Division of Higher Education; or 36 SB551 16 3/30/2023 5:31:01 PM TNL436 (B) More than two percent (2%) only with written approval 1 of the Director of the Divis ion of Higher Education after review by the 2 Legislative Council or, if the General Assembly is in session, the Joint 3 Budget Committee. 4 5 SECTION 43. Arkansas Code § 21 -5-1410(c)(1), concerning a request by 6 an institution of higher education for a special rate of pay for a specific 7 classification or position under the Higher Education Uniform Classification 8 and Compensation Act, is amended to read as follows: 9 (c)(1) An institution may request a special rate of pay for a specific 10 classification or position due to prevailing market rates of pay up to the 11 midpoint pay level of the appropriate grade of a classification on the 12 appropriate pay table for the assigned grade with the written approval of the 13 Director Commissioner of the Division of Higher Education. 14 15 SECTION 44. Arkansas Code § 21 -5-1411(c)(3)(B), concerning approval of 16 a shift schedule, classifications, positions, and the percentage of a shift 17 differential under the Higher Education Uniform Classification and 18 Compensation Act, is amended to read a s follows: 19 (B) The shift schedule, classifications, positions, and 20 the percentage of shift differential for which the class titles are eligible 21 shall be submitted to the division for approval by the Director Commissioner 22 of the Division of Higher Educa tion. 23 24 SECTION 45. Arkansas Code § 21 -5-1412(c)(2)(B), concerning the 25 certification of hazardous duty differential under the Higher Education 26 Uniform Classification and Compensation Act, is amended to read as follows: 27 (B) The positions shall be certi fied by the institution as 28 having been assigned to a work environment that poses an increased risk of 29 personal injury and shall be submitted as part of the plan for payment of a 30 hazardous duty differential to the division for approval by the Director 31 Commissioner of the Division of Higher Education after review and approval of 32 the Legislative Council or, if the General Assembly is in session, the Joint 33 Budget Committee. 34 35 SECTION 46. Arkansas Code § 21 -5-1413(a)(1), concerning the request by 36 SB551 17 3/30/2023 5:31:01 PM TNL436 an institution of higher education regarding a salary administration grid 1 under the Higher Education Uniform Classification and Compensation Act, is 2 amended to read as follows: 3 (a)(1) An institution of higher education may request that a 4 salary administration grid be approved for specific classifications of 5 positions assigned to the pay plan as established in § 21 -5-1410 if the: 6 (A) Institution has documented the need for a salary 7 administration grid for specified positions or classifications; 8 (B) Terms and conditions of a salary administration grid 9 proposed by the institution address the needs of the targeted positions; 10 (C) Cost of implementing and maintaining a salary 11 administration grid is within the institution's existing appropriation and 12 the implementation does not use funds specifically set aside for other 13 programs within the institution; and 14 (D) Salary administration grid has been approved by the 15 Director Commissioner of the Division of Higher Education after review by the 16 Legislative Council or, if the General Assembly is in session, the Joint 17 Budget Committee. 18 19 SECTION 47. Arkansas Code § 21 -5-1416(b), concerning the publishing of 20 policies and procedures for the administration of career service recognition 21 payments under the Higher Education U niform Classification and Compensation 22 Act, is amended to read as follows: 23 (b) The Division of Higher Education shall establish and publish 24 policies and procedures for the administration of career service recognition 25 payments to employees of institutions upon a determination by the Director 26 Commissioner of the Division of Higher Education that the respective 27 institution has sufficient funds available for that purpose. 28 29 SECTION 48. Arkansas Code § 23 -115-801(c)(1), concerning the 30 certification to the Off ice of the Arkansas Lottery of net proceed amounts 31 from the state lottery that are needed to fund scholarships under the 32 Arkansas Scholarship Lottery Act, is amended to read as follows: 33 (c)(1) The Director Commissioner of the Division of Higher Education 34 shall certify to the office the amount of net proceeds from the state lottery 35 needed to fund the scholarships awarded to recipients under the following 36 SB551 18 3/30/2023 5:31:01 PM TNL436 scholarship programs for each semester of an academic year based on the 1 contents of the Lottery Scholar ship Trust Account at the end of the 2 immediately preceding fiscal year: 3 (A) The Arkansas Academic Challenge Scholarship Program, § 4 6-85-201 et seq.; 5 (B) The Arkansas Workforce Challenge Scholarship Program, 6 § 6-85-301 et seq.; 7 (C) The Arkansas Concurrent Challenge Scholarship Program, 8 § 6-85-401 et seq.; and 9 (D) Any other scholarship funded with net proceeds from 10 the state lottery. 11 12 SECTION 49. Arkansas Code § 24 -7-801(4), concerning the definition of 13 "division employees" as it pertains to alternate retirement plans for state 14 colleges, is amended to read as follows: 15 (4) “Division employees” means the Director Commissioner of the 16 Division of Higher Education and the professional education employees of the 17 division; 18 19 SECTION 50. Arkansas Code § 24-7-804(c), concerning the administration 20 of an alternate retirement plan, is amended to read as follows: 21 (c) The board of any college which elects to establish and maintain an 22 alternate retirement plan and the Director Commissioner of the Division of 23 Higher Education, if it elects to establish and maintain a plan, shall have 24 authority to administer the plan and to perform or authorize the performance 25 of all such functions as may be reasonably appropriate in its administration. 26 27 SECTION 51. Arkansas Code § 24-7-805(c), concerning agents for service 28 of process as it pertains to alternate retirement plans, is amended to read 29 as follows: 30 (c) In any action brought by a staff member or division employee on a 31 policy or contract, any official of the college or the Director Commissioner 32 of the Division of Higher Education shall be deemed to be the agent of the 33 nonprofit company only for the purpose of service of process on the contract 34 or policy, and for no other purpose. 35 36 SB551 19 3/30/2023 5:31:01 PM TNL436 SECTION 52. Arkansas Code § 24-7-807(5)(A), concerning the election of 1 a Division of Higher Education employee who transferred from another state 2 department or division to participate in an alternate retirement plan, is 3 amended to read as follows: 4 (5)(A)(i) Any Division of Higher Education employee who 5 transferred from another state department or division covered by a state -6 supported retirement system may elect to participate in an alternate 7 retirement plan. 8 (ii) The employee shall file written notice of his 9 or her election with the Director Commissioner of the Division of Higher 10 Education. 11 12 SECTION 53. Arkansas Code § 24 -7-907(4)(B), concerning the provision 13 of notice by an individual who is a staff member at a vocational -technical 14 school to participate in an alternate reti rement plan, is amended to read as 15 follows: 16 (B) The notice of election shall be in writing on a form 17 established by the Department of Career Education and filed with both the 18 Director Commissioner of the Division of Higher Education and the retirement 19 system. 20 21 SECTION 54. Arkansas Code § 25 -7-101 is amended to read as follows: 22 25-7-101. Creation — Director Commissioner — Organization — Personnel. 23 (a) There is created a Division of Higher Education. 24 (b)(1) The executive head of the Division of Hi gher Education shall be 25 the Director Commissioner of the Division of Higher Education. 26 (2) The director commissioner shall be appointed, in 27 consultation with the Arkansas Higher Education Coordinating Board, by the 28 Governor and shall serve at the pleasure of the Governor. 29 (3) The director commissioner shall report to the Secretary of 30 the Department of Education. 31 (c) The Division of Higher Education shall consist of the Arkansas 32 Higher Education Coordinat ing Board and any other divisions which that may be 33 created by law and placed under the Division of Higher Education. 34 (d)(1) The director commissioner, with the advice and consent of the 35 Governor, and the Secretary of the Department of Education, shall a ppoint the 36 SB551 20 3/30/2023 5:31:01 PM TNL436 heads of the respective divisions. 1 (2)(A) All of the personnel of the Division of Higher Education 2 shall be employed by and serve at the pleasure of the director commissioner. 3 Provided, 4 (B) However, nothing in this section shall be so construed 5 as to reduce reducing any right which that an employee shall have under any 6 civil service or merit system. 7 (e)(1) Each division of the Division of Higher Education shall be 8 under the direction, control, and supervision of the director commissioner. 9 (2) The director commissioner may delegate his or her functions, 10 powers, and duties to various divisions of the Division of Higher Education 11 as he or she shall deem deems desirable or necessary for the effective and 12 efficient operation of the Divis ion of Higher Education. 13 (f) The several institutions of higher education in this state shall 14 be requested to cooperate with the Division of Higher Education in an effort 15 to coordinate their programs. 16 17 SECTION 55. Arkansas Code § 25 -10-144(b), concerning the purposes of 18 the Governor's Advisory Commission on National Service and Volunteerism, is 19 amended to read as follows: 20 (b) The purposes of the Governor's Advisory Commission on National 21 Service and Volunteerism are to: 22 (1) Assist the community engagement program and staff of the 23 office of the Director Commissioner of the Division of Higher Education in 24 setting goals, establishing priority activities, performing an advocacy role, 25 and assisting in funding and resource development and publicity and 26 recognition and awards programs; and 27 (2) Serve as the Arkansas Service Commission for the Edward M. 28 Kennedy Serve America Act, as governed by 42 U.S.C. § 12638. 29 30 SECTION 56. Arkansas Code § 25 -30-101(b)(2)(B), concerning the 31 membership of the Director of the Division of Higher Education as a nonvoting 32 member serving on the Career Education and Workforce Development Board, is 33 amended to read as follows: 34 (B) The Director Commissioner of the Division of Higher 35 Education; 36 SB551 21 3/30/2023 5:31:01 PM TNL436 1 SECTION 57. Arkansas Code § 26 -51-1104(b), concerning the approval of 2 a qualified research expenditure as it pertains to donations or sales of 3 equipment to educational institutions, is amended to read as follows: 4 (b) To claim the credit granted by § 2 6-51-1102, the taxpayer shall 5 show that the Director of the Arkansas Economic Development Commission and 6 the Director Commissioner of the Division of Higher Education have approved 7 the qualified research expenditure as a part of a qualified research progra m. 8 9 SECTION 58. Arkansas Code § 26 -51-1105 is amended to read as follows: 10 26-51-1105. Rules. 11 The Secretary of the Department of Finance and Administration, the 12 Director Commissioner of the Division of Higher Education, the Director of 13 the Division of Career and Technical Education, the Secretary of the 14 Department of Education, and the Director of the Arkansas Economic 15 Development Commission shall jointly promulgate rules to carry out the 16 purposes of this subchapter. 17 18 SECTION 59. EMERGENCY CLAUSE. It is found and determined by the 19 General Assembly of the State of Arkansas that it is important for the 20 Governor to be able to expeditiously appoint an individual to serve as 21 administrative head of the Division of Higher Education; that the Division of 22 Higher Education ensures that state -supported institutions of higher 23 education offer efficient and quality education to citizens of this state and 24 other states; and that this act is immediately necessary to ensure the 25 administrative head of the Division of High er Education is appointed in an 26 efficient manner for purposes of overseeing state -supported higher education 27 in the State of Arkansas. Therefore, an emergency is declared to exist, and 28 this act being immediately necessary for the preservation of the public 29 peace, health, and safety shall become effective on: 30 (1) The date of its approval by the Governor; 31 (2) If the bill is neither approved nor vetoed by the Governor, 32 the expiration of the period of time during which the Governor may veto the 33 bill; or 34 (3) If the bill is vetoed by the Governor and the veto is 35 overridden, the date the last house overrides the veto. APPROVED: 4/12/23 36