Stricken language would be deleted from and underlined language would be added to present law.
Act 1004 of the Regular Session
*LCW012* 04-10-2025 16:54:28 LCW012
State of Arkansas As Engrossed: H3/12/25 H4/10/25 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1105 3
4
By: Joint Budget Committee 5
6
7
For An Act To Be Entitled 8
AN ACT TO MAKE AN APPROPRIATION FOR PERSONAL SERVICES 9
AND OPERATING EXPENSES FOR THE DEPARTMENT OF HUMAN 10
SERVICES - SECRETARY'S OFFICE FOR THE FISCAL YEAR 11
ENDING JUNE 30, 2026; AND FOR OTHER PURPOSES. 12
13
14
Subtitle 15
AN ACT FOR THE DEPARTMENT OF HUMAN 16
SERVICES - SECRETARY'S OFFICE 17
APPROPRIATION FOR THE 2025 -2026 FISCAL 18
YEAR. 19
20
21
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
23
SECTION 1. REGULAR SALARIES - SECRETARY OF HUMAN SERVICES. There is 24
hereby established for the Department of Human Services - Secretary's Office 25
for the 2025-2026 fiscal year, the following maximum number of regular 26
employees. 27
28
Maximum Annual 29
Maximum Salary Rate 30
Item Class No. of Fiscal Year 31
No. Code Title Employees 2025 -2026 32
(1) SC008 SECRETARY OF HUMAN SERVICES 1 GRADE SE05 33
MAX. NO. OF EMPLOYEES 1 34
35
SECTION 2. APPROPRIATION - SECRETARY OF HUMAN SERVICES. There is 36 As Engrossed: H3/12/25 H4/10/25 HB1105
2 04-10-2025 16:54:28 LCW012
hereby appropriated, to the Department of Human Services, to be payable from 1
the paying account as determined by the Chief Fiscal Officer of the State, 2
for personal services of the Department of Human Services - Secretary's 3
Office for the fiscal year ending June 30, 2026, the following: 4
5
ITEM FISCAL YEAR 6
NO. 2025 -2026 7
(01) REGULAR SALARIES $287,042 8
(02) PERSONAL SERVICES MATCHING 68,678 9
TOTAL AMOUNT APPROPRIATED $355,720 10
11
SECTION 3. REGULAR SALARIES - OPERATIONS. There is hereby established 12
for the Department of Human Services - Secretary's Office for the 2025 -2026 13
fiscal year, the following maximum number of regular employees. 14
15
Maximum Annual 16
Maximum Salary Rate 17
Item Class No. of Fiscal Year 18
No. Code Title Employees 2025 -2026 19
(1) N255N DHS CHIEF DEPUTY DIRECTOR 2 GRADE SE04 20
(2) L023N DHS DEPUTY DIRECTOR 2 GRADE SE03 21
(3) N040N DHS CHIEF INFORMATION OFFICER 2 GRADE SE02 22
(4) N233N DHS CHIEF OF BUSINESS OPERATIONS 1 GRADE SE02 23
(5) N232N DHS DEPUTY CHIEF INFORMATION OFFICER 1 GRADE SE02 24
(6) A136C DHS MEDICAID CHIEF FINANCE OFFICER 1 GRADE SE02 25
(7) N027N DHS DEPUTY DIRECTOR ADULT SERVICES 1 GRADE SE01 26
(8) G029N DHS DIRECTOR OF POLICY AND LEGAL 2 GRADE SE01 27
(9) L009C NURSE MANAGER 1 GRADE MP03 28
(10) D006N STATE SYSTEMS ARCHITECT 3 GRADE IT10 29
(11) D025N DHS IT SENIOR ENGINEER 4 GRADE IT09 30
(12) D022N IT SENIOR PROJECT MANAGER 3 GRADE IT09 31
(13) D123C DB ADMINISTRATOR 1 GRADE IT08 32
(14) D007C INFORMATION SYSTEMS MANAGER 8 GRADE IT08 33
(15) D030C INFORMATION SYSTEMS COORDINATOR 3 GRADE IT07 34
(16) D025C STATE IT SECURITY SPECIALIST 3 GRADE IT06 35
(17) D054C COMPUTER SUPPORT COORDINATOR 1 GRADE IT05 36 As Engrossed: H3/12/25 H4/10/25 HB1105
3 04-10-2025 16:54:28 LCW012
(18) D063C COMPUTER SUPPORT SPECIALIST 12 GRADE IT05 1
(19) D061C INFORMATION SYSTEMS COORDINATION SPEC 7 GRADE IT05 2
(20) D057C INFORMATION TECHNOLOGY MANAGER 1 GRADE IT05 3
(21) D052C SOFTWARE SUPPORT ANALYST 7 GRADE IT05 4
(22) D044C SYSTEMS ANALYST 1 GRADE IT05 5
(23) D062C DATABASE ANALYST 4 GRADE IT04 6
(24) D068C INFORMATION SYSTEMS ANALYST 1 GRADE IT04 7
(25) D064C WEBSITE DEVELOPER 1 GRADE IT04 8
(26) D071C COMPUTER SUPPORT ANALYST 2 GRADE IT03 9
(27) D075C SOFTWARE SUPPORT SPECIALIST 3 GRADE IT03 10
(28) D079C COMPUTER SUPPORT TECHNICIAN 9 GRADE IT02 11
(29) R048C DHS CHIEF HUMAN RESOURCES OFFICER 1 GRADE GS15 12
(30) N244N DHS CHIEF OF COMMUNICATION 1 GRADE GS15 13
(31) A131C DHS CHIEF PROCUREMENT OFFICER 1 GRADE GS15 14
(32) N016N DHS DEP DIR ADMINISTRATIVE SVCS 2 GRADE GS15 15
(33) N231N DHS DEPUTY CHIEF COUNSEL 1 GRADE GS15 16
(34) N086N DHS DDS DIR EVAL PLAN & MGMT SYSTEMS 1 GRADE GS14 17
(35) N142N DHS/DAAS DEPUTY DIRECTOR 1 GRADE GS14 18
(36) N102N DHS/DCO ASSISTANT DIRECTOR 1 GRADE GS14 19
(37) N101N DHS/DCO ASST DEP DIR PGM & ADMN SPT 1 GRADE GS14 20
(38) N099N DHS/DMS ADD - LONG TERM CARE 1 GRADE GS14 21
(39) N100N DHS/DMS ADD - MEDICAL SERVICES 4 GRADE GS14 22
(40) N080N DHS/DMS ASSISTANT DIRECTOR - FISCAL 1 GRADE GS14 23
(41) N124N DHS/DYS ASSISTANT DIVISION DIRECTOR 2 GRADE GS14 24
(42) A010C AGENCY CONTROLLER II 1 GRADE GS13 25
(43) G290C ASST DEPUTY DIR OF LEGISLATIVE AFRS 1 GRADE GS13 26
(44) N128N DHS ASST DIR QUALITY ASSURANCE 1 GRADE GS13 27
(45) D026N DHS ELIGIBILITY SYSTEM PROGRAM MGR 3 GRADE GS13 28
(46) G054N DHS GENERAL COUNSEL 1 GRADE GS13 29
(47) N108N DHS/DCO ASST DEP DIR 1 GRADE GS13 30
(48) N107N DHS/OFA ASSISTANT DIR - ACCTNG OPS 2 GRADE GS13 31
(49) N109N DHS/OFA ASSISTANT DIRECTOR 1 GRADE GS13 32
(50) G019C GENERAL COUNSEL 1 GRADE GS13 33
(51) G004C MANAGING ATTORNEY 2 GRADE GS13 34
(52) A021C AGENCY CONTROLLER I 2 GRADE GS12 35
(53) G025C ATTORNEY SUPERVISOR 8 GRADE GS12 36 As Engrossed: H3/12/25 H4/10/25 HB1105
4 04-10-2025 16:54:28 LCW012
(54) G024C DEPARTMENT ADMINISTRATIVE LAW JUDGE 2 GRADE GS12 1
(55) G042C DHS ADMINISTRATIVE LAW JUDGE 6 GRADE GS12 2
(56) G101C DHS AREA MANAGER 1 GRADE GS12 3
(57) P004N DHS DIRECTOR OF PUBLIC RELATIONS 3 GRADE GS12 4
(58) A016C DHS DMS BUSINESS OPERATIONS MANAGER 4 GRADE GS12 5
(59) A014C FISCAL DIVISION MANAGER 4 GRADE GS12 6
(60) R006C HUMAN RESOURCES ADMINISTRATOR 3 GRADE GS12 7
(61) R013C AGENCY HUMAN RESOURCES MANAGER 1 GRADE GS11 8
(62) A031C ASSISTANT CONTROLLER 7 GRADE GS11 9
(63) G047C ATTORNEY SPECIALIST 58 GRADE GS11 10
(64) G022C DHS DIRECTOR OF EMERGENCY OPERATIONS 1 GRADE GS11 11
(65) A024C DHS DIVISION CHIEF FISCAL OFFICER 1 GRADE GS11 12
(66) G027N DHS RESEARCH ANALYSIS MANAGER 1 GRADE GS11 13
(67) G076C ADMINISTRATIVE SERVICES MANAGER 5 GRADE GS10 14
(68) G073C ATTORNEY 1 GRADE GS10 15
(69) A044C AUDIT COORDINATOR 7 GRADE GS10 16
(70) L010C DHS DMS MEDICAL ASSISTANCE MANAGER 2 GRADE GS10 17
(71) A052C ACCOUNTING COORDINATOR 4 GRADE GS09 18
(72) A050C AGENCY FISCAL MANAGER 2 GRADE GS09 19
(73) G099C DHS PROGRAM ADMINISTRATOR 7 GRADE GS09 20
(74) A038C FISCAL SUPPORT MANAGER 1 GRADE GS09 21
(75) G109C GRANTS MANAGER 3 GRADE GS09 22
(76) P004C PUBLIC INFORMATION MANAGER 1 GRADE GS09 23
(77) A082C ACCOUNTANT II 3 GRADE GS08 24
(78) R021C BUDGET ANALYST 3 GRADE GS08 25
(79) A056C DHS FINANCIAL SECTION MANAGER 7 GRADE GS08 26
(80) G152C DHS PROGRAM MANAGER 20 GRADE GS08 27
(81) G129C DHS/DCO PROGRAM MANAGER 3 GRADE GS08 28
(82) E031C EDUCATION PROGRAM COORDINATOR 1 GRADE GS08 29
(83) A047C FINANCIAL ANALYST II 3 GRADE GS08 30
(84) A066C INTERNAL AUDITOR 2 GRADE GS08 31
(85) R014C PERSONNEL MANAGER 7 GRADE GS08 32
(86) V007C PROCUREMENT COORDINATOR 5 GRADE GS08 33
(87) V004C PROCUREMENT MANAGER 4 GRADE GS08 34
(88) A041C PROGRAM FISCAL MANAGER 3 GRADE GS08 35
(89) X062C QUALITY ASSURANCE COORDINATOR 2 GRADE GS08 36 As Engrossed: H3/12/25 H4/10/25 HB1105
5 04-10-2025 16:54:28 LCW012
(90) A060C SENIOR AUDITOR 19 GRADE GS08 1
(91) E023C TRAINING PROJECT MANAGER 2 GRADE GS08 2
(92) A089C ACCOUNTANT I 7 GRADE GS07 3
(93) G181C ACOM DWS PROGRAM MONITOR 2 GRADE GS07 4
(94) G138C AGENCY ADMINISTRATIVE REVIEW OFFICER 5 GRADE GS07 5
(95) R024C ASSISTANT PERSONNEL MANAGER 11 GRADE GS07 6
(96) A081C AUDITOR 2 GRADE GS07 7
(97) V008C BUYER SUPERVISOR 1 GRADE GS07 8
(98) P065C DEVELOPMENT SPECIALIST 1 GRADE GS07 9
(99) G183C DHS PROGRAM COORDINATOR 7 GRADE GS07 10
(100) M042C DHS STAFF SUPERVISOR 1 GRADE GS07 11
(101) C010C EXECUTIVE ASSISTANT TO THE DIRECTOR 1 GRADE GS07 12
(102) M040C FAMILY SERVICES PROGRAM COORDINATOR 1 GRADE GS07 13
(103) A076C FINANCE PROGRAM ANALYST 2 GRADE GS07 14
(104) A075C FINANCIAL ANALYST I 2 GRADE GS07 15
(105) X125C FRAUD INVESTIGATOR COORDINATOR 2 GRADE GS07 16
(106) G147C GRANTS COORDINATOR 3 GRADE GS07 17
(107) L048C HEALTH PROGRAM SPECIALIST II 1 GRADE GS07 18
(108) S017C MAINTENANCE COORDINATOR 1 GRADE GS07 19
(109) A065C PAYROLL SERVICES COORDINATOR 1 GRADE GS07 20
(110) P020C PRODUCTION ARTIST 1 GRADE GS07 21
(111) P013C PUBLIC INFORMATION COORDINATOR 3 GRADE GS07 22
(112) E040C STAFF DEVELOPMENT COORDINATOR 3 GRADE GS07 23
(113) C037C ADMINISTRATIVE ANALYST 16 GRADE GS06 24
(114) M045C ADULT PROTECTIVE SERVICES WORKER 4 GRADE GS06 25
(115) R027C BUDGET SPECIALIST 14 GRADE GS06 26
(116) R026C CIVIL RIGHTS/EMPLOYEE RELATIONS COORD 1 GRADE GS06 27
(117) G170C DHS ADMINISTRATIVE REVIEW OFFICER 6 GRADE GS06 28
(118) G210C DHS PROGRAM SPECIALIST 13 GRADE GS06 29
(119) P021C EDITOR 1 GRADE GS06 30
(120) A074C FISCAL SUPPORT SUPERVISOR 11 GRADE GS06 31
(121) X156C FRAUD INVESTIGATOR 3 GRADE GS06 32
(122) G180C GRANTS ANALYST 10 GRADE GS06 33
(123) G214C GRANTS SPECIALIST 1 GRADE GS06 34
(124) P049C GRAPHIC ARTIST 1 GRADE GS06 35
(125) L053C HEALTH PROGRAM SPECIALIST I 1 GRADE GS06 36 As Engrossed: H3/12/25 H4/10/25 HB1105
6 04-10-2025 16:54:28 LCW012
(126) R025C HUMAN RESOURCES ANALYST 13 GRADE GS06 1
(127) R029C HUMAN RESOURCES RECRUITER 5 GRADE GS06 2
(128) X101C INTERNAL AFFAIRS INVESTIGATOR 2 GRADE GS06 3
(129) G179C LEGAL SERVICES SPECIALIST 8 GRADE GS06 4
(130) S033C MAINTENANCE SUPERVISOR 1 GRADE GS06 5
(131) P031C MEDIA SPECIALIST 2 GRADE GS06 6
(132) G178C POLICY DEVELOPMENT COORDINATOR 1 GRADE GS06 7
(133) M066C PROGRAM ELIGIBILITY SPECIALIST 1 GRADE GS06 8
(134) A084C PROGRAM/FIELD AUDIT SPECIALIST 2 GRADE GS06 9
(135) X136C QUALITY ASSURANCE REVIEWER 1 GRADE GS06 10
(136) B076C RESEARCH PROJECT ANALYST 4 GRADE GS06 11
(137) G202C VOLUNTEER PROGRAM COORDINATOR 1 GRADE GS06 12
(138) C050C ADMINISTRATIVE SUPPORT SUPERVISOR 1 GRADE GS05 13
(139) A088C ASSETS COORDINATOR 1 GRADE GS05 14
(140) R033C BENEFITS ANALYST 1 GRADE GS05 15
(141) C022C BUSINESS OPERATIONS SPECIALIST 1 GRADE GS05 16
(142) V014C BUYER 1 GRADE GS05 17
(143) A091C FISCAL SUPPORT ANALYST 16 GRADE GS05 18
(144) L070C HEALTH CARE ANALYST 3 GRADE GS05 19
(145) D077C HELP DESK SPECIALIST 2 GRADE GS05 20
(146) R032C HUMAN RESOURCES PROGRAM REP 6 GRADE GS05 21
(147) C040C LEASING SPECIALIST 1 GRADE GS05 22
(148) A090C PAYROLL SERVICES SPECIALIST 4 GRADE GS05 23
(149) V015C PURCHASING SPECIALIST 8 GRADE GS05 24
(150) V018C WAREHOUSE MANAGER 2 GRADE GS05 25
(151) A101C ACCOUNTING TECHNICIAN 1 GRADE GS04 26
(152) C056C ADMINISTRATIVE SPECIALIST III 13 GRADE GS04 27
(153) A098C FISCAL SUPPORT SPECIALIST 15 GRADE GS04 28
(154) V020C INVENTORY CONTROL MANAGER 1 GRADE GS04 29
(155) C046C LEGAL SUPPORT SPECIALIST 34 GRADE GS04 30
(156) C044C MEDICAL BILLING SPECIALIST 2 GRADE GS04 31
(157) A097C PAYROLL TECHNICIAN 2 GRADE GS04 32
(158) C043C RECORDS MANAGEMENT ANALYST 3 GRADE GS04 33
(159) V021C SURPLUS PROPERTY AGENT 1 GRADE GS04 34
(160) V025C WAREHOUSE SPECIALIST 1 GRADE GS04 35
(161) C073C ADMINISTRATIVE SPECIALIST II 6 GRADE GS03 36 As Engrossed: H3/12/25 H4/10/25 HB1105
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(162) V027C INVENTORY CONTROL TECHNICIAN 3 GRADE GS03 1
(163) C062C LOCAL OFFICE ADMINISTRATIVE ASST 1 GRADE GS03 2
(164) S054C PRINTER 1 GRADE GS03 3
MAX. NO. OF EMPLOYEES 650 4
5
SECTION 4. EXTRA HELP - OPERATIONS. There is hereby authorized, for 6
the Department of Human Services - Secretary's Office for the 2025 -2026 7
fiscal year, the following maximum number of part -time or temporary 8
employees, to be known as "Extra Help", payable from funds appropriated 9
herein for such purposes: twenty -eight (28) temporary or part -time employees, 10
when needed, at rates of pay not to exceed those provided in the Uniform 11
Classification and Compensation Act, or its successor, or this act for the 12
appropriate classification. 13
14
SECTION 5. APPROPRIATION - OPERATIONS. There is hereby appropriated, 15
to the Department of Human Services, to be payable from the paying account as 16
determined by the Chief Fiscal Officer of the State, for personal services 17
and operating expenses of the Department of Human Services - Secretary's 18
Office for the fiscal year ending June 30, 2026, the following: 19
20
ITEM FISCAL YEAR 21
NO. 2025 -2026 22
(01) REGULAR SALARIES $38,443,782 23
(02) EXTRA HELP 298,556 24
(03) PERSONAL SERVICES MATCHING 14,099,810 25
(04) OVERTIME 8,383 26
(05) MAINT. & GEN. OPERATION 27
(A) OPER. EXPENSE 5,571,873 28
(B) CONF. & TRAVEL 59,433 29
(C) PROF. FEES 8,861,800 30
(D) CAP. OUTLAY 400,000 31
(E) DATA PROC. 0 32
(06) DATA PROCESSING SERVICES 2,016,710 33
TOTAL AMOUNT APPROPRIATED $69,760,347 34
35
SECTION 6. APPROPRIATION - VARIOUS BUILDING CONSTRUCTION. There is 36 As Engrossed: H3/12/25 H4/10/25 HB1105
8 04-10-2025 16:54:28 LCW012
hereby appropriated, to the Department of Human Services, to be payable from 1
the Department of Human Services Renovation Fund, for construction, 2
renovation, maintenance, equipment, and repairs for various buildings 3
operated by the Department of Human Services - Secretary's Office for the 4
fiscal year ending June 30, 2026, the following: 5
6
ITEM FISCAL YEAR 7
NO. 2025 -2026 8
(01) CONSTRUCTION $15,914,729 9
10
SECTION 7. APPROPRIATION - CONSOLIDATED COST. There is hereby 11
appropriated, to the Department of Human Services, to be payable from the DHS 12
Consolidated Cost Revolving Fund, for operating expenses of the Department of 13
Human Services - Secretary's Office - Consolidated Cost for the fiscal year 14
ending June 30, 2026, the following: 15
16
ITEM FISCAL YEAR 17
NO. 2025 -2026 18
(01) MAINT. & GEN. OPERATION 19
(A) OPER. EXPENSE $800,000 20
(B) CONF. & TRAVEL 0 21
(C) PROF. FEES 0 22
(D) CAP. OUTLAY 21,500 23
(E) DATA PROC. 0 24
TOTAL AMOUNT APPROPRIATED $821,500 25
26
SECTION 8. APPROPRIATION - GRANTS PAYING. There is hereby 27
appropriated, to the Department of Human Services, to be payable from the 28
paying account as determined by the Chief Fiscal Officer of the State, for 29
purchase of services of the Department of Human Services - Secretary's Office 30
for the fiscal year ending June 30, 2026, the following: 31
32
ITEM FISCAL YEAR 33
NO. 2025 -2026 34
(01) PURCHASE OF SERVICES $129,084 35
36 As Engrossed: H3/12/25 H4/10/25 HB1105
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SECTION 9. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 1
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. 2
SECRETARY'S OFFICE/OFFICE OF CHIEF COUNSEL - PURCHASE OF EVIDENCE. Upon 3
approval by the Chief Fiscal Officer of the State, the Chief Counsel for the 4
Department of Human Services may transfer an amount up to but not to exceed 5
$12,000 and deposit same in a bank account for the purpose of purchasing 6
evidence in the course of investigating the illegal use of food 7
stamps/Electronic Benefit Transfer (EBT) cards. The funds so transferred 8
shall be subject to accounting in a manner substantially similar to that 9
employed by the Arkansas State Police for such transactions; provided 10
however, that information tending to identify participants in such 11
transactions shall be exempt from the Arkansas Freedom of Information Act. 12
The provisions of this section shall be in effect only from July 1, 2024 13
2025 through June 30, 2025 2026. 14
15
SECTION 10. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 16
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. HUMAN 17
SERVICES RENOVATION FUND. Department of Human Services Renovation Fund. 18
(a) There is established on the books of the Treasurer of State, Auditor 19
of State, and the Chief Fiscal Officer of the State a fund to be known as the 20
Department of Human Services Renovation Fund. 21
(b) This fund shall be used for constructing, acquiring, renovating, 22
maintaining, repairing, and equipping facilities of the Department of Human 23
Services and for paying disallowances by the federal government. 24
(c) The fund shall consist of: 25
(1) Federal reimbursement received by the Department of Human Services and 26
deposited in the various fund accounts of the department; and 27
(2) General revenues transferred from the Division of Youth Services, the 28
Division of Aging, Adult, and Behavioral Health Services, and the Division of 29
Developmental Disabilities Services for the purposes of repairing, 30
renovating, equipping, acquiring and constructing Department of Human 31
Services facilities with an annual maximum of five million dollars 32
($5,000,000). The projects for which these transfers are authorized must be 33
projects which were unanticipated during the preceding regular session of the 34
Arkansas General Assembly and must be projects which, if not carried out in 35
the interim period between regular sessions of the Arkansas General Assembly 36 As Engrossed: H3/12/25 H4/10/25 HB1105
10 04-10-2025 16:54:28 LCW012
would cause greater harm to the facilities, clients or programs of the 1
Department of Human Services than to wait until the next regular session. 2
(3) Other non-general revenue funds as may be available within the Department 3
of Human Services that can be used for the purposes of this fund. 4
(d)(1) At the request of the Secretary of the Department of Human 5
Services, and upon certification of the availability of such funds, the Chief 6
Fiscal Officer of the State shall initiate the necessary transfer documents 7
to reflect the transfer on the books of record of the Treasurer of State, the 8
Auditor of State, the Chief Fiscal Officer of the State, and the Department 9
of Human Services. 10
(2) The Secretary of the Department of Human Services shall submit any 11
transfer plan to and must receive approval of the plan from the Chief Fiscal 12
Officer of the State, the Governor and the Arkansas Legislative Council or 13
Joint Budget Committee prior to the effective date of the transfer. 14
(e) Provided, that any non -general revenue funding that may remain in the 15
fund at the end of any fiscal year shall be carried over into the next fiscal 16
year and all obligated general revenue funding that may remain in the fund at 17
the end of any fiscal year shall be carried over into the next fiscal year to 18
satisfy such legal and contractual obligations that have been entered into 19
prior to the end of the fiscal year. 20
(f) Determining the amount of funds appropriated to a state agency is the 21
prerogative of the General Assembly and is usually accomplished by 22
delineating specific line items and by identifying the appropriation and 23
funding attached to that line item. The General Assembly has determined that 24
the Department of Human Services could be operated more efficiently if some 25
flexibility is given to that agency. That flexibility is being accomplished 26
by providing transfer authority in subsection (d) of this section, and since 27
the General Assembly has granted the agency broad powers under the transfer 28
authority concept, it is both necessary and appropriate that the General 29
Assembly maintain oversight of the utilization of the transfer authority by 30
requiring prior approval of the Legislative Council or Joint Budget Committee 31
in the utilization of this transfer authority. Therefore, the requirement of 32
approval by the Legislative Council or Joint Budget Committee is not a 33
severable part of this section. If the requirement of approval by the 34
Legislative Council or Joint Budget Committee is ruled unconstitutional by a 35
court of competent jurisdiction, this entire section is void. 36 As Engrossed: H3/12/25 H4/10/25 HB1105
11 04-10-2025 16:54:28 LCW012
The provisions of this section shall be in effect only from July 1, 2024 1
2025 through June 30, 2025 2026. 2
3
SECTION 11. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 4
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. 5
TRANSFER AUTHORITY. The Secretary of the Department of Human Services shall 6
have transfer authority provided by the following: 7
(a) DEPARTMENT OF HUMAN SERVICES RENOVATION FUND. The Secretary of the 8
Department of Human Services is authorized to request fund transfers 9
according to the provisions established by Arkansas Code Ann. 19 -5-1020, 10
Department of Human Services Renovation Fund, as amended herein; and 11
(b) MATCH TRANSFER. The Secretary of the Department of Human Services, 12
with the approval of the Chief Fiscal Officer of the State, is authorized to 13
effect inter-agency and inter-divisional fund transfers for the purpose of 14
providing the State's matching share for payments made to that Division or 15
Office or its service providers for services eligible for federal 16
reimbursement under programs administered by the Department of Human 17
Services. The Department of Human Services shall report to the Legislative 18
Council or Joint Budget Committee on a quarterly basis all fund transfers 19
made in accordance with the authority granted by this section; and 20
(c) REALLOCATION OF RESOURCES: (1) The Department of Human Services (DHS) 21
provides hundreds of different services to over 1 million Arkansans. The 22
specific mix of service needs and the funding and staffing required to 23
provide them can vary significantly based on many factors, including natural 24
disasters, changing federal mandates and funding sources, demographic shifts, 25
fluctuating court-ordered services, social trends, and job market variations 26
such as nursing shortages. The impact of these factors through the course of 27
any fiscal year make it very difficult for the Department to accurately 28
predict the exact needs for funding, appropriation and positions in each of 29
its over 100 different appropriations. To ensure that it can respond quickly 30
to changing client needs and make the most effective use of the resources 31
allocated to it, the Department of Human Services shall be authorized to 32
utilize the reallocation of resource authority to make the proper adjustments 33
to the budgets within the Department. Therefore, upon determination by the 34
Secretary of the Department of Human Services that a reallocation of 35
resources within the department is necessary for the efficient and effective 36 As Engrossed: H3/12/25 H4/10/25 HB1105
12 04-10-2025 16:54:28 LCW012
operation of the department, the Secretary, with approval of the Governor, 1
shall have the authority to request, from the Chief Fiscal Officer of the 2
State, a transfer of positions, appropriations, line item appropriations, and 3
funds within or between existing and newly created divisions, offices, 4
sections, or units of the department. Provided, however, that no transfer of 5
funds or appropriation that provides direct support or matching support for 6
the Arkansas Medicaid Program shall be made to any other fund account or 7
appropriation that does not directly support the Arkansas Medicaid Program. 8
Further, no positions, funds, or appropriation authorized during the budget 9
process for the Division of Children and Family Services' compliance with 10
initiatives established under the Angela R. consent decree shall be 11
transferred to any other division. Nothing in this provision is intended to 12
prevent the one-time transfers of savings in any other program to the 13
Arkansas Medicaid Program, with the exception of the provisions previously 14
cited for the Division of Children and Family Services – Angela R. consent 15
decree. The Division of Developmental Disabilities – Grants to Community 16
Providers line item of the Developmental Disabilities Services - Grants-in-17
Aid appropriation may not be decreased. The appropriation, funding, and 18
positions provided for the five Human Development Centers shall remain at a 19
level sufficient to ensure quality care for the Centers' residents. The 20
exemptions provided in this subsection whereby certain DHS Programs and 21
Divisions are protected from appropriation, fund, or position transfers are 22
applicable only to the reallocation or transfer authority granted herein, and 23
not by any reductions which are applicable to all state programs. 24
The Secretary of the Department of Human Services shall submit any 25
requests for transfers to and must receive approval of the requests for 26
transfers from the Chief Fiscal Officer of the State, the Governor, and the 27
Arkansas Legislative Council or Joint Budget Committee prior to the effective 28
date of the transfers. Provided, however, that the Department of Human 29
Services shall be limited to submitting no more than four reallocation of 30
resources transfer requests during any fiscal year. In each Departmental 31
request no single division will request reallocation for more than one 32
purpose as listed in this section. Tra nsfer authority for unforeseen purposes 33
shall further be limited to no more than 5% of the total appropriation, 34
funding, and positions authorized for the Department. Reallocation of 35
resources transfers may include multiple items but shall be limited to the 36 As Engrossed: H3/12/25 H4/10/25 HB1105
13 04-10-2025 16:54:28 LCW012
following purposes: 1
i) Medicaid Program; 2
ii) Facilities and institutions costs, including operational expenses and 3
construction/renovation/equipping expenses; 4
iii) Departmental grants and contracts; 5
iv) Court ordered settlements and payments; 6
v) Payment of administrative expenses, including but not limited to, overtime 7
and other costs of personnel for critical services or functions necessary to 8
carry out the mission of the agency; 9
vi) Restructuring efforts as deemed necessary to comply with new and/or 10
unanticipated federal or state mandates; and/or 11
vii) Redirecting internal resources, both direct and/or indirect, to meet 12
client needs and services. 13
Determining the maximum number of employees and the maximum amount of 14
appropriation and general revenue funding for a state agency each fiscal year 15
is the prerogative of the General Assembly. This is usually accomplished by 16
delineating such maximums in the appropriation act(s) for a state agency and 17
the general revenue allocations authorized for each fund and fund account by 18
amendment to the Revenue Stabilization law. Further, the General Assembly has 19
determined that the Department of Human Services may operate more efficiently 20
if some flexibility is provided to the Department of Human Services 21
authorizing broad powers under the Reallocation of Resources provisions 22
herein. Therefore, it is both necessary and appropriate that the General 23
Assembly maintain oversight by requiring prior approval of the Legislative 24
Council or Joint Budget Committee as provided by this section. The 25
requirement of approval by the Legislative Council or Joint Budget Committee 26
is not a severable part of this section. If the requirement of approval by 27
the Legislative Council or Joint Budget Committee is ruled unconstitutional 28
by a court of competent jurisdiction, this entire section is void. 29
(2) If it is determined that the requested reallocation of resources 30
transfers should be made, the Chief Fiscal Officer of the State shall then 31
initiate the necessary transfer documents to reflect the transfers upon the 32
fiscal records of the Treasurer of State, the Auditor of State, the Chief 33
Fiscal Officer of the State, and the Department of Human Services. In 34
addition, the Chief Fiscal Officer of the State, together with the Co -35
Chairpersons of the Legislative Council or Joint Budget Committee, may 36 As Engrossed: H3/12/25 H4/10/25 HB1105
14 04-10-2025 16:54:28 LCW012
approve, on an emergency basis, requests for utilization of this Section 1
without prior approval of the Arkansas Legislative Council or Joint Budget 2
Committee, with any such actions reported at the next meeting of the Arkansas 3
Legislative Council or Joint Budget Committee. 4
The provisions of this section shall be in effect only from July 1, 2024 5
2025 through June 30, 2025 2026. 6
7
SECTION 12. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 8
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL, AND TEMPORARY LAW. Arkansas 9
State Hospital — Insurance reimbursements and unspent set -aside funds for 10
repairs recoupment. 11
(a) An insurance reimbursement received by the Department of Human 12
Services to reimburse funds that were transferred from the EBD or Contingency 13
Set-Aside in the Restricted Reserve Fund for critical storm damage repair for 14
the Arkansas State Hospital shall be transferred, as the insurance 15
reimbursement is received, on the books of the Chief Fiscal Officer of the 16
State, the Treasurer of State, and the Auditor of State from the appropriate 17
fund or fund account into which the department deposited the insurance 18
reimbursement payment to: 19
(1) The EBD or Contingency Set -Aside in the Restricted Reserve 20
Fund if the EBD or Contingency Set -Aside in the Restricted Reserve Fund is 21
currently active with a balance greater than zero dollars ($0.00); or 22
(2) The General Revenue Allotment Reserve Fund if the EBD or 23
Contingency Set-Aside in the Restricted Reserve Fund is no longer active. 24
(b) Any funds received by the department for critical storm damage 25
repair for the Arkansas State Hospital from the EBD or Contingency Set -Aside 26
in the Restricted Reserve Fund that remain upon completion of the storm 27
damage repair project shall be transferred as provided for insurance 28
reimbursements under subsection (a) of this section. 29
(c) The Secretary of the Department of Human Services shall notify the 30
Chief Fiscal Officer of the State and the Performance Evaluation and 31
Expenditure Review Subcommittee of the Legislative Council or, if the General 32
Assembly is in session, the PEER/Review Subcommittee of the Joint Budget 33
Committee, of the following to allow for the transfers provided for in 34
subsections (a) and (b) of this section: 35
(1) The receipt of an insurance reimbursement by the department 36 As Engrossed: H3/12/25 H4/10/25 HB1105
15 04-10-2025 16:54:28 LCW012
for critical storm damage repair for the Arkansas State Hospital; and 1
(2) Upon completion of the storm damage repair project, the 2
amount of any remaining funds described in subsection (b) of this section. 3
(d) The department shall report quarterly to the Legislative Council 4
or, if the General Assembly is in session, the Joint Budget Committee: 5
(1) The status of the storm damage repair project; 6
(2) The projected completion time lines for the storm damage 7
repair project; 8
(3) The total amount of the insurance reimbursements received by 9
the department to date for the storm damage repair project; and 10
(4) Any remaining balance of the original five million dollars 11
($5,000,000) transferred to the department from the EBD or Contingency Set -12
Aside in the Restricted Reserve Fund. 13
(e) This section is effective on July 1, 2024, and until the final 14
transfer of funds has been made as provided in this section. 15
16
17
SECTION 13. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 18
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL, AND TEMPORARY LAW. 19
DEPARTMENT OF HUMAN SERVICES COMPREHENSIVE AGENCY REVIEW. The Arkansas 20
Legislative Council - Hospital and Medicaid Study Subcommittee shall perform 21
a comprehensive review of the Department of Human Services, which shall 22
commence at the direction of the co -chairs of the Arkansas Legislative 23
Council, in consultation with the subcommittee co -chairs. This review shall 24
include, but is not limited to: administrative policies and functions, 25
personnel and staffing evaluations, and revenues and expenditures of the 26
department, divisions, and providers. The subcommittee shall prioritize the 27
review as follows: the Shared Services division, the Division of Children and 28
Family Services, and the Division of County Operations, with further 29
prioritization of divisions to be determined by the subcommittee. The review 30
shall include input and recommendations from the Attorney General's Medicaid 31
Fraud Unit and the Department of Inspector General's office. 32
The preliminary recommendations and report shall be completed within 33
six months of the subcommittee‘s initial meeting. Upon completion of this 34
preliminary report, the subcommittee shall provide the department, the 35
Governor, and the Arkansas Legislative Council with a report to include 36 As Engrossed: H3/12/25 H4/10/25 HB1105
16 04-10-2025 16:54:28 LCW012
recommendations and desired metrics with expected timelines of completion to 1
meet the desired outcomes provided in the preliminary report. At the 2
direction of the chair of the Arkansas Legislative Council - Hospital and 3
Medicaid Study Subcommittee, the subcommittee may add recommendations and 4
approve and review actions by the department in accordance with the 5
preliminary recommendations. 6
The final report and outcomes, including recommending legislation to 7
address findings, shall be presented at the final Arkansas Legislative 8
Council meeting of the 95th General Assembly. 9
The Department of Human Services shall report to the subcommittee 10
monthly the status of implementation of the recommendations with review and 11
approval of all steps taken to meet the metrics and desired outcomes of the 12
department in accordance with the recommendations by the subcommittee and by 13
the Arkansas Legislative Council. 14
The provisions of this section shall be in effect only from July 1, 15
2025 through June 30, 2026. 16
17
SECTION 14. COMPLIANCE WITH OTHER LAWS. Disbursement of funds 18
authorized by this act shall be limited to the appropriation for such agency 19
and funds made available by law for the support of such appropriations; and 20
the restrictions of the State Procurement Law, the General Accounting and 21
Budgetary Procedures Law, the Revenue Stabilization Law, the Regular Salary 22
Procedures and Restrictions Act, or their successors, and other fiscal 23
control laws of this State, where applicable, and regulations promulgated by 24
the Department of Finance and Administration, as authorized by law, shall be 25
strictly complied with in disbursement of said funds. 26
27
SECTION 15. LEGISLATIVE INTENT. It is the intent of the General 28
Assembly that any funds disbursed under the authority of the appropriations 29
contained in this act shall be in compliance with the stated reasons for 30
which this act was adopted, as evidenced by the Agency Requests, Executive 31
Recommendations and Legislative Recommendations contained in the budget 32
manuals prepared by the Department of Finance and Administration, letters, or 33
summarized oral testimony in the official minutes of the Arkansas Legislative 34
Council or Joint Budget Committee which relate to its passage and adoption. 35
36 As Engrossed: H3/12/25 H4/10/25 HB1105
17 04-10-2025 16:54:28 LCW012
SECTION 16. EMERGENCY CLAUSE. It is found and determined by the 1
General Assembly, that the Constitution of the State of Arkansas prohibits 2
the appropriation of funds for more than a one (1) year period; that the 3
effectiveness of this Act on July 1, 2025 is essential to the operation of 4
the agency for which the appropriations in this Act are provided, and that in 5
the event of an extension of the legislative session, the delay in the 6
effective date of this Act beyond July 1, 2025 could work irreparable harm 7
upon the proper administration and provision of essential governmental 8
programs. Therefore, an emergency is hereby declared to exist and this Act 9
being necessary for the immediate preservation of the public peace, health 10
and safety shall be in full force and effect from and after July 1, 2025. 11
12
/s/Joint Budget Committee 13
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APPROVED: 4/22/25 16
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