Stricken language would be deleted from and underlined language would be added to present law.
Act 205 of the Regular Session
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State of Arkansas As Engrossed: S2/5/25 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 147 3
4
By: Senator J. Dotson 5
By: Representative Gazaway 6
7
For An Act To Be Entitled 8
AN ACT TO AMEND ARKANSAS LAW CONCERNING THE 9
DEPARTMENT OF TRANSFORMATION AND SHARED SERVICES; TO 10
CHANGE THE NAME OF THE DEPARTMENT OF TRANSFORMATION 11
AND SHARED SERVICES; TO DECLARE AN EMERGENCY; AND FOR 12
OTHER PURPOSES. 13
14
15
Subtitle 16
TO AMEND ARKANSAS LAW CONCERNING THE 17
DEPARTMENT OF TRANSFORMATION AND SHARED 18
SERVICES; AND TO CHANGE THE NAME OF THE 19
DEPARTMENT OF TRANSFORMATION AND SHARED 20
SERVICES; AND TO DECLARE AN EMERGENCY. 21
22
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 23
24
SECTION 1. Arkansas Code § 6 -21-112(e), concerning technology liaisons 25
to the Division of Public School Academic Facilities and Transportation, is 26
amended to read as follows: 27
(e)(1) The Secretary of the Department of Transformation and Shared 28
Administrative Services shall assign one (1) individual to serve as a 29
technology liaison to the Division of Public School Academic Facilities and 30
Transportation. 31
(2) The secretary shall assign one (1) individual from the staff 32
of the Building Authority Division to serve as a physical plant liaison to 33
the Division of Public School Academic Facilities and Transportation. 34
35
SECTION 2. Arkansas Code § 6 -63-602 is amended to read as follows: 36 As Engrossed: S2/5/25 SB147
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6-63-602. Administration. 1
(a)(1) The Department of Transformation and Shared Administrative 2
Services shall have administrative responsibility for developing, 3
implementing, and maintaining a catastrophic leave bank program for 4
nonfaculty benefits-eligible, full-time employees of the state institutions 5
of higher education. 6
(2) Each state institution of higher education may participate 7
in the catastrophic leave bank authorized by this section and administered by 8
the Office of Personnel Management, or the institution may establish a 9
catastrophic leave bank for its employees. 10
(b) Accrued annual leave and sick leave of employees may be donated to 11
a catastrophic leave bank. 12
(c) Catastrophic leave with pay may be granted to an employee when 13
such employee is unable to perform his or her duties due to a catastrophic 14
illness. 15
(d) An employee may be eligible for catastrophic leave when: 16
(1) The employee has been employed by the state institution of 17
higher education for more than two (2) years; 18
(2) An acceptable medical certificate from a physician 19
supporting the continued absence is on file; and 20
(3) The employee has not been disciplined for any leave abuse 21
during the past two (2) years. 22
(e) If the illness or injury is that of an employee and is covered by 23
workers' compensation, the compensation based on catastrophic leave when 24
combined with the weekly workers' compensation benefit received by the 25
employee shall not exceed the compensation being received by the employee at 26
the onset of the illness or injury. 27
(f) The Secretary of the Department of Transformation and Shared 28
Administrative Services or his or her designee shall promulgate necessary 29
rules as deemed necessary to carry out the provisions of this section. 30
(g) Nothing in this subchapter shall be construed to repeal in any way 31
the exclusion of nonclassified employees of state -supported institutions of 32
higher education under the Uniform Attendance and Leave Policy Act, § 21 -4-33
201 et seq. 34
35
SECTION 3. Arkansas Code § 15 -21-205 is amended to read as follows: 36 As Engrossed: S2/5/25 SB147
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15-21-205. State Surveyor. 1
(a) The Arkansas Geographic Information Systems Board shall employ, in 2
consultation with the Secretary of the Department of Transformation and 3
Shared Administrative Services, a State Surveyor to be the head of the 4
Division of Land Surveys of the Arkansas Geographic Information Systems 5
Office. 6
(b) The State Surveyor shall: 7
(1) Be a person of proven administrative ability, a registered 8
professional surveyor, and a resident of the State of Arkansas with training 9
and experience properly qualifying the person for the performance of his or 10
her official duties; 11
(2) Be appointed by and serve at the pleasure of the Secretary 12
of the Department of Transformation and Shared Administrative Services after 13
consultation with the State Board of Licensure for Professional Engineers and 14
Professional Surveyors and the Arkansas Society of Professional Surveyors; 15
(3) Devote his or her full time to the performance of his or her 16
official functions and duties as prescribed in this subchapter; 17
(4) Hold no other lucrative position while serving as State 18
Surveyor; and 19
(5) Receive such compensation as may be prescribed by law. 20
21
SECTION 4. Arkansas Code §15 -21-206(1), concerning the state surveyor, 22
is amended to read as follows: 23
The State Surveyor, acting under the supervision and direction of the 24
Arkansas Geographic Information Systems Office and the Secretary of the 25
Department of Transformation and Shared Administrative Services, shall have 26
the following authority and responsibility: 27
(1) To: 28
(A) Restore, maintain, and preserve the land survey 29
monuments, section corners, and quarter section corners established by the 30
United States Public Land Survey within the State of Arkansas, together with 31
all pertinent field notes, plats, and documents; and 32
(B) Restore, establish, maintain, and preserve other 33
boundary markers as may be determined to be necessary or important in 34
establishing and maintaining accurate land descriptions in this state; 35
36 As Engrossed: S2/5/25 SB147
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SECTION 5. Arkansas Code § 15 -21-207 is amended to read as follows: 1
15-21-207. Surveyors generally. 2
(a) Every employee of the Division of Land Surveys of the Arkansas 3
Geographic Information Systems Office or the Department of Transformation and 4
Shared Administrative Services, who performs any work required by law to be 5
done by a registered professional surveyor shall be a registered surveyor. 6
(b) Neither the State Surveyor nor any employee of the department 7
performing work on behalf of the division shall engage in private land 8
surveying or consultation while so employed by the department. 9
(c) The State Surveyor and employees of the department performing work 10
on behalf of the division shall cooperate with and assist county surveyors in 11
performing their duties as prescribed by law and shall cooperate with and 12
assist other surveyors in locating or establishing section corner markers and 13
other land description markers and monuments. 14
(d) In performing the duties and responsibilities provided for in this 15
subchapter, the State Surveyor and employees of the Division of Land Surveys 16
of the Arkansas Geographic Information Systems Office and the department may 17
solicit the advice and assistance of the county surveyor in each county and 18
other surveyors in the county. 19
(e) If there are no registered professional surveyors in a particular 20
county, the department on behalf of the division may employ qualified 21
registered professional surveyors from other areas of the state to assist the 22
division in carrying out its duties and responsibilities under this 23
subchapter. 24
25
SECTION 6. Arkansas Code § 15 -21-208 is amended to read as follows: 26
15-21-208. Right to enter private property. 27
(a) The State Surveyor or any employee of the Department of 28
Transformation and Shared Administrative Services or of the Division of Land 29
Surveys of the Arkansas Geographic Information Systems Office shall have the 30
right to enter upon private property for the purpose of making surveys or 31
searching for, locating, relocating, or remonumenting land monuments, 32
levelling stations, or section corners. 33
(b) Employees of the department or division shall be immune from 34
arrest for trespass in performing their duties as prescribed in this 35
subchapter and under the direction of a registered professional land surveyor 36 As Engrossed: S2/5/25 SB147
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but shall always, when practical, announce and identify themselves and their 1
intentions before entering upon private property. 2
3
SECTION 7. Arkansas Code § 15 -21-503(c), concerning the Arkansas 4
Geographic Information Systems Board, is amended to read as follows: 5
(c)(1)(A) A chair and a vice chair shall be elected by the board 6
membership to oversee all board and committee meetings. 7
(B) Members of the board must elect a chair and vice chair 8
every year. 9
(2)(A) The board shall appoint the State Geographic Information 10
Officer to serve with the approval and at the pleasure of the Governor. 11
(B) The State Geographic Information Officer will: 12
(i) Assist the board in developing a comprehensive 13
plan and evaluation procedures on how the state should implement tactical and 14
strategic geographic information systems and land information systems 15
planning; 16
(ii) Implement informational and educational 17
programs; and 18
(iii) Coordinate intrastate geographic information 19
systems and land information systems efforts. 20
(C) The State Geographic Information Officer shall report 21
to the Secretary of the Department of Transformation and Shared 22
Administrative Services. 23
24
SECTION 8. Arkansas Code § 16 -93-214(b), concerning the Safe Arkansas 25
App, is amended to read as follows: 26
(b)(1) To the extent permitted by federal law, the Parole Post-Prison 27
Transfer Board shall administer a mobile application that shall provide the 28
information set out in subsection (c) of this section concerning: 29
(A) An inmate who is being considered for parole; or 30
(B) A parolee who is on parole. 31
(2) The mobile application required under subdivision (b)(1) of 32
this section shall be known as the “Safe Arkansas App”. 33
(3) To facilitate the administration of the mobile application 34
required under subdivision (b)(1) of this section, the board may seek the 35
assistance of the Division of Information Systems of the Department of 36 As Engrossed: S2/5/25 SB147
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Transformation and Shared Administrative Services or enter into a contract 1
for technical database and data processing services. 2
3
SECTION 9. Arkansas Code § 19 -4-1405(e), concerning bidding 4
procedures, is amended to read as follows: 5
(e)(1)(A) When it is obvious from examination of the bid document that 6
it was the intent of a bidder to submit a responsive bid and because of a 7
scrivener's error, the bid, if accepted, would create a serious financial 8
loss to the bidder, the Secretary of the Department of Transformation and 9
Shared Administrative Services may relieve the bidder from responsibility 10
under his or her bond and may reject the bid. 11
(B) However, for projects undertaken by public 12
institutions of higher education exempt from review and approval of the 13
division, the chief executive officer of the public institution of higher 14
education or his or her designee may relieve the bidder from responsibility 15
under his or her bond and may reject his or her bid in the same manner and 16
within the same period as allowed by the division. 17
(2) As used in this section, “scrivener's error” means: 18
(A) An error in the calculation of a bid which can be 19
documented by clear and convincing written evidence and which can be clearly 20
shown by objective evidence drawn from inspection of the original work 21
papers, documents, or materials used in the preparation of the bid sought to 22
be withdrawn; and 23
(B) In the case of a bid sought to be withdrawn, the bid 24
was submitted in good faith and the mistake was due to a calculation or 25
clerical error, an inadvertent omission, or a typographical error as opposed 26
to an error in judgment. 27
(3)(A) To receive relief under subdivision (e)(1) of this 28
section, the bidder must serve written notice to the secretary or to the 29
chief executive officer or his or her designee of a public institution of 30
higher education exempt from review and approval of the division any time 31
after the bid opening, but no later than seventy -two (72) hours after 32
receiving the intent to award, excluding Saturdays, Sundays, and holidays. 33
(B) Failure to make a withdrawal request within seventy -34
two (72) hours shall constitute a waiver by the bidder of the bidder's right 35
to claim that the mistake in his or her bid was a scrivener's error. 36 As Engrossed: S2/5/25 SB147
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(4) In the event the secretary or the chief executive officer or 1
his or her designee of a public institution of higher education exempt from 2
review and approval of the division has relieved the bidder from 3
responsibility under his or her bond, action on the remaining bids should be 4
considered as though the withdrawn bid had not been received. 5
6
SECTION 10. Arkansas Code § 19-4-1413(a)(2), concerning projects 7
constructed with private funds, is amended to read as follows: 8
(2)(A) Before the public institution of higher education shall 9
enter into a contract with an architect, engineer, construction manager, or 10
contractor for the design, construction, or financing of any project financed 11
from private funds as provided in this section, it shall submit to the Chief 12
Fiscal Officer of the State and the Legislative Council, in writing, a 13
summary statement setting forth a general description of the proposed 14
project, its estimated overall cost, and the method proposed to finance the 15
cost, including a description of the sources and amount of private funds. 16
(B) The Chief Fiscal Officer of the State may forward a 17
copy of this statement to the Building Authority Division, the Secretary of 18
the Department of Transformation and Shared Administrative Services, and the 19
Governor for information; and 20
21
SECTION 11. Arkansas Code § 19 -4-1602(c), concerning payroll 22
deductions, is amended to read as follows: 23
(c) Deductions authorized by this section shall be made in compliance 24
with rules and procedures established by the Secretary of the Department of 25
Transformation and Shared Administrative Services. 26
27
SECTION 12. Arkansas Code § 19 -4-1603(a), concerning procedures for 28
position control, is amended to read as follows: 29
(a) The Secretary of the Department of Transformation and Shared 30
Administrative Services shall establish procedures for exercising position 31
control applicable to those state agencies subject to the provisions of the 32
Uniform Classification and Compensation Act, § 21 -5-201 et seq. 33
34
SECTION 13. Arkansas Code § 19 -4-1604(a), concerning salary from two 35
agencies, is amended to read as follows: 36 As Engrossed: S2/5/25 SB147
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(a) Except as provided in subsections (b) and (c) of this section, no 1
person drawing a salary or other compensation from one state agency shall be 2
paid salary or compensation, other than actual expenses, from any other state 3
agency except upon written certification to and approval by the Secretary of 4
the Department of Transformation and Shared Administrative Services and by 5
the head of each state agency, stating that: 6
(1) The work performed for the other state agency does not 7
interfere with the proper and required performance of the person's duties; 8
and 9
(2) The combined salary payments from the state agencies do not 10
exceed the larger maximum annual salary of the line -item position authorized 11
for either state agency from which the employee is being paid. 12
13
SECTION 14. Arkansas Code § 19 -4-1606(a), concerning the review of 14
payroll, is amended to read as follows: 15
(a) The Department of Transformation and Shared Administrative 16
Services shall review the payroll of state agencies covered by the provisions 17
of the Uniform Classification and Compensation Act, § 21 -5-201 et seq., with 18
respect to the salaries of all employees of affected state agencies. This 19
review shall determine the correctness of each payroll with respect to each 20
position to assure compliance with the compensation plan and to assure that 21
no position is being paid, during any payroll period, an amount greater than 22
authorized in the compensation plan or the amount authorized for the position 23
in the appropriation act applicable to the agency. 24
25
SECTION 15. Arkansas Code § 19 -4-1607(a), concerning the salaries of 26
employees, is amended to read as follows: 27
(a)(1) Except for those state agencies which operate principally on a 28
scholastic year, or on a part -time basis, or where such salaries or personal 29
services are specifically established for a period less than one (1) year, 30
all salaries established by the General Assembly shall be considered to be a 31
maximum amount to be paid for a twelve -month payroll period. No greater 32
amount than that established for the maximum annual salary of any state 33
official or employee shall be paid to such employee during any such twelve -34
month payroll period, nor shall more than one -twelfth (1/12) of such annual 35
salary be paid to any such employee during any calendar month unless 36 As Engrossed: S2/5/25 SB147
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authorized in this subchapter. 1
(2) The limitations set out in this section may be converted to 2
biweekly or weekly increments of one -twenty-sixth (1/26) or one-fifty-second 3
(1/52) of the maximum annual salary. 4
(3) For complying with federal requirements, upon approval of 5
the Secretary of the Department of Transformation and Shared Administrative 6
Services in consultation with the Chief Fiscal Officer of the State, the 7
maximum annual salaries may be converted to hourly rates of pay for positions 8
established on the basis of twelve (12) months or less if authorized by law. 9
10
SECTION 16. Arkansas Code § 19 -4-1610(c), concerning retroactive pay, 11
is amended to read as follows: 12
(c)(1) Salary payments made to correct an administrative error shall 13
not be considered retroactive pay, nor shall such payment be construed as 14
exceeding the employee's maximum authorized pay. 15
(2) Payments under subdivision (c)(1) of this section may be 16
made for a preceding fiscal year if: 17
(A) Requested within twelve (12) months of the end of the 18
preceding fiscal year; and 19
(B) Upon the consent of the Secretary of the Department of 20
Transformation and Shared Administrative Services in consultation with the 21
Chief Fiscal Officer of the State. 22
23
SECTION 17. Arkansas Code § 19 -4-1612(b), concerning overtime pay, is 24
amended to read as follows: 25
(b)(1) All state departments, agencies, boards, commissions, and 26
institutions may pay overtime to their employees, under the rules and 27
regulations set out by the federal Fair Labor Standards Act of 1938. 28
(2)(A) The Secretary of the Department of Transformation and 29
Shared Administrative Services will specify those specific employees or 30
groups of employees other than employees of the Arkansas Department of 31
Transportation eligible to receive overtime compensation, the circumstances 32
under which overtime pay is to be allowed, and other matters the secretary 33
finds appropriate and necessary to comply with the federal Fair Labor 34
Standards Act of 1938 as regards the payment of overtime compensation. 35
(B) The Director of State Highways and Transportation 36 As Engrossed: S2/5/25 SB147
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shall make these determinations as to employees of the Arkansas Department of 1
Transportation. 2
3
SECTION 18. Arkansas Code § 19 -11-215 is amended to read as follows: 4
19-11-215. Office of State Procurement. 5
(a) There is created within the Department of Transformation and 6
Shared Administrative Services the Office of State Procurement to be 7
administered by the State Procurement Director. 8
(b)(1) The Office of State Procurement shall be subject to the 9
supervision and management of the Secretary of the Department of 10
Transformation and Shared Administrative Services. 11
(2) The rules authorized in this subchapter shall be approved by 12
the secretary prior to the filing of the rules in accordance with the 13
Arkansas Administrative Procedure Act, § 25 -15-201 et seq. 14
15
SECTION 19. Arkansas Code § 19 -11-216 is amended to read as follows: 16
19-11-216. State Procurement Director. 17
(a)(1) The executive head of the Office of State Procurement is 18
designated as the administrator of the Office of State Procurement, and as 19
such, he or she shall be known and designated as the “State Procurement 20
Director”. 21
(2) The State Procurement Director shall be appointed by the 22
Secretary of the Department of Transformation and Shared Administrative 23
Services. 24
(b) The State Procurement Director shall be at least thirty (30) years 25
of age, of good moral character, and of demonstrated ability or capacity in 26
the field of purchasing commodities and services. 27
28
SECTION 20. Arkansas Code § 19 -11-217(b), concerning the State 29
Procurement Director, is amended to read as follows: 30
(b)(1) Except as otherwise provided in this subchapter and upon the 31
approval of the Secretary of the Department of Transformation and Shared 32
Administrative Services, the State Procurement Director shall have the 33
authority and responsibility to promulgate rules consistent with this 34
subchapter. 35
(2) In addition, consistent with the provisions of this 36 As Engrossed: S2/5/25 SB147
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subchapter, the director may adopt rules governing the internal procedures of 1
the Office of State Procurement. 2
3
SECTION 21. Arkansas Code § 19 -11-218(a)(1), concerning written 4
delegation orders, is amended to read as follows: 5
(a) Subject to the provisions of the Uniform Classification and 6
Compensation Act, § 21 -5-201 et seq., and the approval of the Secretary of 7
the Department of Transformation and Shared Administrative Services, the 8
State Procurement Director may: 9
(1) Employ and supervise such assistants and other persons as 10
may be necessary; 11
12
SECTION 22. Arkansas Code § 19 -11-220(b), concerning agency 13
procurement officials, is amended to read as follows: 14
(b)(1) Each official shall manage and establish internal procedures 15
for the procurement office of the state agency authorized to have the 16
official to ensure adequate administrative procedures and controls pursuant 17
to law and the procurement rules. 18
(2)(A) Approval by the Office of State Procurement of contracts 19
administered by the official shall not be required, unless a determination 20
has been made by the Secretary of the Department of Transformation and Shared 21
Administrative Services that administrative procedures and controls are not 22
adequate. 23
(B)(i) Such a determination shall result in notification 24
by the secretary of the specific deficiencies and the reasons therefor. 25
(ii) After the notification, approval of contracts by 26
the Office of State Procurement shall be required until the secretary 27
determines that the deficiencies have been corrected. 28
29
SECTION 23. Arkansas Code § 19 -11-226 is amended to read as follows: 30
19-11-226. Recommendations. 31
(a) The State Procurement Director shall maintain a close and 32
cooperative relationship with the using agencies. 33
(b)(1) The director shall afford each using agency reasonable 34
opportunity to participate in and make recommendations with respect to 35
matters affecting the using agency. 36 As Engrossed: S2/5/25 SB147
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(2) At any time, any using agency may make recommendations to 1
the director, and the director may make recommendations to any using agency. 2
(3) The Secretary of the Department of Transformation and Shared 3
Administrative Services may make recommendations to the director. 4
5
SECTION 24. Arkansas Code § 19 -11-227 is amended to read as follows: 6
19-11-227. Statistical data. 7
The State Procurement Director and the Secretary of the Department of 8
Transformation and Shared Administrative Services shall cooperate with the 9
Division of Budgets and Accounting in the preparation of statistical data 10
concerning the procurement and disposition of all commodities and services, 11
unless otherwise provided in this subchapter. 12
13
SECTION 25. Arkansas Code § 19 -11-235(b), concerning the 14
responsibility of bidders and offerors, is amended to read as follows: 15
(b)(1) Except as otherwise provided by law, information furnished by a 16
bidder or offeror pursuant to this section shall not be disclosed outside of 17
the Office of State Procurement or the procurement agency without prior 18
written consent by the bidder or offeror. 19
(2) This section is not intended to prohibit the office from 20
disclosing such information to the Governor, the Attorney General, or the 21
Secretary of the Department of Transformation and Shared Administrative 22
Services when any of those officers deems it necessary. 23
24
SECTION 26. Arkansas Code § 19 -11-242 is amended to read as follows: 25
19-11-242. Commodity management rules. 26
The State Procurement Director shall promulgate rules governing: 27
(1) The sale, lease, or disposal of surplus commodities by 28
public auction, competitive sealed bidding, or other appropriate method 29
designated by rule, and no employee of the Department of Transformation and 30
Shared Administrative Services or member of the employee's immediate family 31
shall be entitled to purchase any such commodities; 32
(2) The transfer of excess commodities within the state; and 33
(3) The sale, lease, or disposal of surplus commodities to not -34
for-profit organizations under § 22 -1-101. 35
36 As Engrossed: S2/5/25 SB147
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SECTION 27. Arkansas Code 19 -11-249(a)(2), concerning cooperative 1
purchasing, is amended to read as follows: 2
(2)(A) A cooperative purchasing agreement is limited to public 3
school construction services, commodities, and other services for which the 4
public procurement unit may realize savings or material economic value, or 5
both. 6
(B)(i) For cooperative purchasing agreements entered into 7
by a state agency, the State Procurement Director shall consider the economic 8
justification for using a cooperative purchasing agreement when granting or 9
withholding approval for the cooperative purchasing agreement. 10
(ii) The director shall adopt rules to create a 11
review policy outlining how the economic justification required under this 12
section may be demonstrated, including without limitation a comparison of: 13
(a) Current state contract pricing and the 14
pricing under a cooperative purchasing agreement; or 15
(b) Information obtained from a request for 16
information and pricing under a cooperative purchasing agreement. 17
(C) The director and the Secretary of the Department of 18
Transformation and Shared Administrative Services shall submit any request 19
for the Office of State Procurement to participate in a cooperative 20
purchasing agreement to the Governor for approval. 21
22
SECTION 28. Arkansas Code § 19 -11-264(c), concerning submission of 23
contracts with members of the General Assembly, is amended to read as 24
follows: 25
(c) The contract shall not be submitted to the Legislative Council or 26
to the Joint Budget Committee until the Department of Transformation and 27
Shared Administrative Services has reviewed the contract and provided the 28
Legislative Council or the Joint Budget Committee with a recommendation 29
regarding the legality of the contract. 30
31
SECTION 29. Arkansas Code 19 -11-271(a), concerning compliance 32
reporting, is amended to read as follows: 33
(a) Each report required under this subchapter shall be copied to the 34
Secretary of the Department of Transformation and Shared Administrative 35
Services, who shall review each report for compliance with the fiscal 36 As Engrossed: S2/5/25 SB147
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responsibility and management laws of the state under the State Fiscal 1
Management Responsibility Act, § 19 -1-601 et seq. 2
3
SECTION 30. Arkansas Code § 19 -11-705(b), concerning employee conflict 4
of interest, is amended to read as follows: 5
(b) Financial Interest in a Blind Trust. Where an employee or any 6
member of the employee's immediate family holds a financial interest in a 7
blind trust, the employee shall not be deemed to have a conflict of interest 8
with regard to matters pertaining to that financial interest if disclosure of 9
the existence of the blind trust has been made to the Secretary of the 10
Department of Transformation and Shared Administrative Services. 11
12
SECTION 31. Arkansas Code § 19 -11-706(a), concerning employee 13
disclosure requirements, is amended to read as follows: 14
(a) Disclosure of Benefit Received from Contract. Any employee who has 15
or obtains any benefit from any state contract with a business in which the 16
employee has a financial interest shall report such benefit to the Secretary 17
of the Department of Transformation and Shared Administrative Services. 18
However, this section shall not apply to a contract with a business where the 19
employee's interest in the business has been placed in a disclosed blind 20
trust. 21
22
SECTION 32. Arkansas Code 19 -11-712(b), concerning civil and 23
administrative remedies against employees who breach ethical standards, is 24
amended to read as follows: 25
(b) Supplemental Remedies. In addition to existing remedies for breach 26
of the ethical standards of this subchapter, or rules promulgated under this 27
subchapter, the Secretary of the Department of Transformation and Shared 28
Administrative Services may impose any one (1) or more of the following: 29
(1) Oral or written warnings or reprimands; 30
(2) Forfeiture of pay without suspension; 31
(3) Suspension with or without pay for specified periods of 32
time; and 33
(4) Termination of employment. 34
35
SECTION 33. Arkansas Code § 19 -11-713(b), concerning civil and 36 As Engrossed: S2/5/25 SB147
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administrative remedies against nonemployees who breach ethical standards, is 1
amended to read as follows: 2
(b) Supplemental Remedies. In addition to the existing remedies for 3
breach of the ethical standards of this subchapter, or rules promulgated 4
under this subchapter, the Secretary of the Department of Transformation and 5
Shared Administrative Services may impose any one (1) or more of the 6
following: 7
(1) Oral or written warnings or reprimands; 8
(2) Termination of transactions; and 9
(3) Suspension or debarment from being a contractor or 10
subcontractor under state contracts. 11
12
SECTION 34. Arkansas Code § 19 -11-715 is amended to read as follows: 13
19-11-715. Duties of Secretary of the Department of Transformation and 14
Shared Administrative Services. 15
(a) Rules. The Secretary of the Department of Transformation and Shared 16
Administrative Services shall promulgate rules to implement this subchapter 17
and shall do so in accordance with this subchapter and the applicable 18
provisions of the Arkansas Administrative Procedure Act, § 25 -15-201 et seq. 19
(b) Advisory Opinions. On written request of employees or contractors 20
and in consultation with the Attorney General, the secretary may render 21
written advisory opinions regarding the appropriateness of the course of 22
conduct to be followed in proposed transactions. Such requests and advisory 23
opinions may be duly published in the manner in which rules of this state are 24
published. Compliance with the requirements of a duly promulgated advisory 25
opinion of the secretary shall be deemed to constitute compliance with the 26
ethical standards of this subchapter. 27
(c) Waiver. On written request of an employee, the secretary may grant 28
an employee a written waiver from the application of § 19 -11-705, which 29
refers to employee conflict of interest, and grant permission to proceed with 30
the transaction to such extent and upon such terms and conditions as may be 31
specified. Such waiver and permission may be granted when the interests of 32
the state so require or when the ethical conflict is insubstantial or remote. 33
34
SECTION 35. Arkansas Code § 19 -11-716(b)(1), concerning participation 35
in business incubators, is amended to read as follows: 36 As Engrossed: S2/5/25 SB147
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(b)(1) The Secretary of the Department of Transformation and Shared 1
Administrative Services shall promulgate rules pursuant to the procedure for 2
adoption as provided under the Arkansas Administrative Procedure Act, § 25 -3
15-201 et seq., and under § 10 -3-309 to implement a program allowing 4
admittance to business incubators by faculty or staff of state -supported 5
institutions of higher education or admittance by companies in which faculty 6
or staff may hold an ownership interest. 7
8
SECTION 36. Arkansas Code § 19 -11-1014 is amended to read as follows: 9
19-11-1014. Compliance reporting — Definition. 10
(a) Each report required under this subchapter shall be copied to the 11
Secretary of the Department of Transformation and Shared Administrative 12
Services, who shall review each report for compliance with the fiscal 13
responsibility and management laws of the state under the State Fiscal 14
Management Responsibility Act, § 19 -1-601 et seq. 15
(b) If the secretary determines that a state agency, agency 16
procurement official, or state official or employee may be in violation of 17
the fiscal responsibility and management laws of the state under the State 18
Fiscal Management Responsibility Act, § 19 -1-601 et seq., the secretary shall 19
notify the chief executive officer of the relevant state agency. 20
21
SECTION 37. Arkansas Code § 19 -11-1101 is amended to read as follows: 22
19-11-1101. Contracts. 23
(a) An agency procurement official or procurement agent may enter into 24
contracts to acquire technology systems for performing the revenue -generating 25
functions and duties of the agency, including, but not limited to, 26
registration, processing, and collection functions. 27
(b) Any contract entered into under this subchapter between an agency 28
procurement official or procurement agent and a vendor of technology systems 29
shall provide for: 30
(1) Payment of the technology systems on the basis of a 31
percentage of the increase in the amount of specific taxes or fees collected, 32
including interest and penalties thereon, for a fixed time period, which 33
increase exceeds revenues projected prior to the project and is attributable 34
to the implementation and use of the technology system; or 35
(2) Payment of the technology system on a fixed fee contract 36 As Engrossed: S2/5/25 SB147
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basis, the fee to be paid from the increase in the amount of specific taxes 1
or fees collected, including interest and penalties thereon, which increase 2
exceeds revenues projected prior to the project and is attributable to the 3
implementation and use of the technology system. 4
(c)(1) All contracts authorized by this subchapter shall be entered 5
into pursuant to the requirements of the Arkansas Procurement Law, § 19 -11-6
201 et seq., and amendments thereto. 7
(2) Prior to execution of the contract, the following process 8
shall be followed: 9
(A) The requesting agency shall request approval from the 10
Secretary of the Department of Transformation and Shared Administrative 11
Services to prepare a request for proposal for a project authorized under 12
this subchapter; 13
(B) The request shall include the general nature of the 14
project, the anticipated revenues that will be enhanced, and the forecasted 15
revenues for the current biennium; 16
(C) Upon approval of the Secretary of the Department of 17
Transformation and Shared Administrative Services, the requesting agency 18
shall prepare a request to the Department of Finance and Administration for 19
approval to prepare a request for proposal for a technology project 20
authorized under this subchapter; 21
(D) The request must include the revenue source or sources 22
that will be increased as a result of the project and the projected revenues 23
for the anticipated life of the project; 24
(E) The requesting agency shall prepare a request for 25
proposal, with advice and consultation from the department, for the purchase 26
of technology systems on the basis of a portion of the increase in the 27
agency's revenues produced by the technology system; and 28
(F)(i) The request for proposal may provide that the 29
agency and the vendor may negotiate an amount or baseline upon which the 30
increase in taxes or fees is measured. 31
(ii) Any contract other than a fixed fee contract 32
shall include a factor in the baseline calculation to account for an increase 33
in taxes or fees due solely to economic factors and not to the use of the 34
technology. 35
(3) The agency procurement official or procurement agent and the 36 As Engrossed: S2/5/25 SB147
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vendor shall negotiate the contract , with the oversight of the department to 1
assist in negotiating an advantageous contract. 2
(4)(A) The agency director shall submit the proposed contract 3
and a request for new appropriation to the Governor or his or her designee. 4
(B) The accompanying information will include the 5
methodology used to calculate the baseline amount proposed by the agency and 6
other justifications and information that detail the program and the expected 7
benefits of the agreement. 8
(C) The Governor or his or her designee shall study the 9
request and determine whether the appropriation requested and the terms of 10
the proposed contract are in strict compliance with this subchapter. 11
(D)(i) The Governor may approve or modify the request for 12
new appropriation and the proposed contract. 13
(ii) Any modification of the proposed contract shall 14
be submitted to the vendor for approval. 15
(5)(A) Upon approval of the shared benefit agreement and new 16
appropriation request, the Governor shall seek the advice and recommendation 17
of the Legislative Council. 18
(B) Upon review of the Legislative Council, the Governor 19
shall forward a copy of his or her approvals to the agency director and the 20
Chief Fiscal Officer of the State. 21
(d) After receipt of the Governor's approvals, the Chief Fiscal 22
Officer of the State shall direct the Auditor of State and the Treasurer of 23
State to establish upon their books of record the necessary appropriation 24
accounts in accordance with the provisions as set out in this section from 25
the shared benefit holding appropriation. 26
(e) The requesting agency may utilize these appropriations to 27
implement the approved contract. 28
(f) Nothing in this section shall prohibit an agency that enters into 29
a contract according to this section from acquiring any goods or services 30
through appropriations for any function or program of that agency not 31
specifically included in any contract entered into according to this section. 32
(g) The Secretary of the Department of Transformation and Shared 33
Administrative Services may promulgate such rules, procedures, and guidelines 34
as he or she may deem necessary and proper in order to carry out the 35
provisions of this section. 36 As Engrossed: S2/5/25 SB147
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1
SECTION 38. Arkansas Code § 21 -1-103(d), concerning the service 2
recognition program, is amended to read as follows: 3
(d) The Secretary of the Department of Transformation and Shared 4
Administrative Services shall promulgate reasonable rules as he or she deems 5
necessary in carrying out the provisions of this service recognition program. 6
7
SECTION 39. Arkansas Code § 21 -1-604(f), concerning civil liability 8
definitions, is amended to read as follows: 9
(f)(1) In the event the Office of Personnel Management implements an 10
employee grievance mediation program, a public employee or public employer 11
may voluntarily participate in mediation under the office's mediation program 12
if either one wishes to resolve a dispute between them that involves an 13
adverse action taken against the public employee. 14
(2) Voluntary mediation shall occur before a civil action in 15
which the public employee and public employer are parties has been initiated 16
in a court. 17
(3) The Secretary of the Department of Transformation and Shared 18
Administrative Services shall adopt voluntary mediation application and 19
request forms. 20
21
SECTION 40. Arkansas Code § 21 -3-601(a), concerning the Arkansas 22
Public Service Internship Program, is amended to read as follows: 23
(a) The Department of Transformation and Shared Administrative 24
Services shall establish an internship program to be known as the “Arkansas 25
Public Service Internship Program”. 26
27
SECTION 41. Arkansas Code § 21 -4-214 is amended to read as follows: 28
21-4-214. Catastrophic leave program. 29
(a)(1) The Department of Transformation and Shared Administrative 30
Services shall have administrative responsibility for developing, 31
implementing, and maintaining the statewide catastrophic leave bank program. 32
(2)(A) Each state agency shall participate in a catastrophic 33
leave bank to be administered by the Office of Personnel Management. 34
(B) The following governmental entities may establish a 35
catastrophic leave bank for the governmental entities' employees: 36 As Engrossed: S2/5/25 SB147
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(i) The General Assembly; 1
(ii) The Bureau of Legislative Research; 2
(iii) Arkansas Legislative Audit; 3
(iv) The Arkansas Department of Transportation; 4
(v) The Arkansas State Game and Fish Commission; 5
(vi) The Supreme Court; 6
(vii) The Court of Appeals; 7
(viii) The Administrative Office of the Courts; 8
(ix) A constitutional office; and 9
(x) An institution of higher education. 10
(b) Accrued annual leave and sick leave of employees may be donated to 11
a catastrophic leave bank. 12
(c) Catastrophic leave with pay may be granted to an employee when the 13
employee is unable to perform his or her duties due to a catastrophic 14
illness, including maternity purposes. 15
(d) An employee may be eligible for catastrophic leave when: 16
(1)(A) The employee has been employed by the state for one (1) 17
year or more or was previously employed by a public school district or state -18
supported institution of higher education for one (1) year or more. 19
(B) A person who was employed by a public school district 20
or state-supported institution of higher education for less than one (1) year 21
also is eligible for catastrophic leave if: 22
(i) The person's combined years of employment with 23
the state and with a public school district or state -supported institution of 24
higher education totals more than one (1) year; and 25
(ii) The lapse in the person's employment between the 26
state and a public school district or state -supported institution of higher 27
education is less than six (6) months; 28
(2) The employee is female, and the catastrophic leave is to be 29
used for maternity purposes after: 30
(A) The birth of the employee's biological child; 31
(B) The placement of an adoptive child under one (1) year 32
of age in the home of the employee; or 33
(C) The foster placement of an infant under one (1) year 34
of age; 35
(3)(A) At the onset of the illness or injury the employee had to 36 As Engrossed: S2/5/25 SB147
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his or her credit at least eighty (80) hours of combined sick and annual 1
leave and has exhausted all such leave, unless the combined sick and annual 2
leave requirement is waived under subdivision (d)(3)(B) of this section. 3
(B) A state agency director or a president of an 4
institution of higher education may waive the minimum eighty -hour requirement 5
for combined sick and annual leave if the agency director determines that the 6
employee warrants eligibility because of extraordinary circumstances under 7
the standards and guidelines promulgated under subdivision (g)(2) of this 8
section; 9
(C)(i) An employee on catastrophic leave for maternity 10
purposes is not required to exhaust sick or annual leave before being granted 11
catastrophic leave. 12
(ii) An employee on catastrophic leave for maternity 13
purposes does not accrue any leave; 14
(4) An acceptable medical certificate from a physician 15
supporting the continued absence is on file; and 16
(5) The employee has not been disciplined for any leave abuse 17
during the past year from the time of application. 18
(e)(1) Up to twelve (12) consecutive weeks of catastrophic leave with 19
full pay may be granted to an employee for maternity purposes. 20
(2) The employee shall be eligible for the leave only within the 21
first twelve (12) weeks after the birth, fostering, or adoption of a child. 22
(3) After the expiration of the twelve (12) weeks of leave under 23
subdivision (e)(1) of this section, maternity leave shall be treated as any 24
other leave for sickness or disability under § 21 -4-209. 25
(4) Catastrophic leave for maternity purposes shall run 26
concurrently with the Family and Medical Leave Act of 1993, Pub. L. No. 103 -27
3. 28
(5) The employee shall not be eligible for an additional twelve 29
(12) weeks of leave for the adoption of a child if the employee took twelve 30
(12) weeks of leave after the initial foster placement of the same child into 31
the employee's home. 32
(f) If the illness or injury is that of an employee and is covered by 33
workers' compensation, the compensation based on catastrophic leave when 34
combined with the weekly workers' compensation benefit received by the 35
employee shall not exceed the compensation being received by the employee at 36 As Engrossed: S2/5/25 SB147
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the onset of the illness or injury. 1
(g) The Secretary of the Department of Transformation and Shared 2
Administrative Services, or the secretary's designee, shall establish 3
policies and procedures: 4
(1) As deemed necessary to carry out the provisions of this 5
section; and 6
(2) To prescribe the standards and guidelines of the 7
extraordinary circumstances that the state agency director or the president 8
of an institution of higher education may use to waive the minimum 9
requirement for combined sick and annual leave. 10
11
SECTION 42. Arkansas Code § 21 -5-106(b), concerning annual career 12
service recognition payments for state employees, is amended to read as 13
follows: 14
(b) The Office of Personnel Management shall establish and publish 15
policies and procedures for the administration of career service recognition 16
payments to state employees upon a determination by the Chief Fiscal Officer 17
of the State and the Secretary of the Department of Transformation and Shared 18
Administrative Services that sufficient funds are available for such purpose. 19
20
SECTION 43. Arkansas Code § 21 -5-109(a), concerning electronic direct 21
deposit for new employees, is amended to read as follows: 22
(a)(1)(A) As a condition of employment, a person hired or appointed to 23
a position in any agency in state government on or after August 12, 2005, 24
shall be required to accept payment of salary or wages by electronic warrants 25
transfer. 26
(B) The electronic warrants transfer shall be made in the 27
form of a direct deposit of funds to the account of the beneficiary of the 28
payment in any financial institution equipped for electronic fund transfers, 29
provided that the financial institution is designated in writing by the 30
beneficiary and has lawful authority to accept such deposits. 31
(2)(A)(i) Any person affected by the direct deposit requirement 32
set forth in subdivision (a)(1) of this section may request an exemption from 33
the requirement. 34
(ii) The Secretary of the Department of 35
Transformation and Shared Administrative Services may grant an exemption from 36 As Engrossed: S2/5/25 SB147
23 02-05-2025 11:54:10 MBM119
the direct deposit requirement upon a showing of hardship to the person 1
requesting the exemption or upon any other reasonable basis. 2
(B) The secretary shall establish the standards and 3
procedures for granting an exemption from the direct deposit requirement set 4
forth in subdivision (a)(1) of this section. 5
(3) The direct deposit requirement set forth in subdivision 6
(a)(1) of this section shall not apply to a person who is in the employment 7
of the state prior to August 12, 2005, and subsequently receives a promotion 8
appointment, transfer, or other change in position within the same personnel 9
system on or after August 12, 2005. 10
11
SECTION 44. Arkansas Code § 21 -5-203(a)(12), concerning definitions 12
under the Uniform Classification and Compensation Act, is amended to read as 13
follows: 14
(12) “Office of Personnel Management” means the Office of 15
Personnel Management within the Department of Transformation and Shared 16
Administrative Services acting under the authority granted in this subchapter 17
and subject to the direction of the Secretary of the Department of 18
Transformation and Shared Administrative Services; 19
20
SECTION 45. Arkansas Code § 21 -5-211(b)(1), concerning the 21
implementation procedure for grade changes, is amended to read as follows: 22
(b)(1) If the Chief Fiscal Officer of the State and the Secretary of 23
the Department of Transformation and Shared Administrative Services determine 24
that general revenue funds are insufficient to implement the salary increases 25
authorized in this subchapter or by any other law that affects salary 26
increases for state employees, the Chief Fiscal Officer of the State and the 27
secretary upon approval by the Governor may reduce the percentage of all 28
authorized salary increases for all state employees covered by this 29
subchapter without regard to whether or not the employees are compensated 30
from general or special revenues, federal funds, or trust funds. 31
32
SECTION 46. Arkansas Code § 21 -5-214(c)(1), concerning new 33
appointments and other compensation plan provisions, is amended to read as 34
follows: 35
(c)(1) A state agency may request a special rate of pay for a specific 36 As Engrossed: S2/5/25 SB147
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classification or position due to prevailing market rates of pay up to the 1
midpoint pay level of the appropriate grade of a classification on the 2
appropriate pay table for the assigned grade with the written approval of the 3
Secretary of the Department of Transformation and Shared Administrative 4
Services. 5
6
SECTION 47. Arkansas Code § 21 -5-218 is amended to read as follows: 7
21-5-218. Reimbursement for interpreter services for deaf. 8
Whereas Arkansas Rehabilitation Services currently purchases and sells 9
staff interpreter services for the deaf with four (4) other agencies, the 10
University of Arkansas at Fayetteville, the University of Arkansas at Little 11
Rock, the Arkansas School for the Deaf, and the Administrative Office of the 12
Courts and whereas the need for interpreters is immediate and often for 13
crisis purposes and cannot be planned ahead, the Division of Workforce 14
Services is authorized to arrange for reimbursement with those agencies, 15
assuring that the amount paid from both agencies will not exceed the maximum 16
for the grades they occupy consistent with the intent of § 19 -4-1604, with 17
notification and justification to the Secretary of the Department of 18
Transformation and Shared Administrative Services. 19
20
SECTION 48. Arkansas Code § 21 -5-220(c), concerning shift 21
differentials, is amended to read as follows: 22
(c)(1) If a facility uses shifts other than traditional eight -hour 23
shifts, a shift differential may be paid for those shifts exceeding the 24
normal day shift of the facility. 25
(2) If shift and weekend differentials are provided to an 26
employee, the total compensation may exceed the maximum annual rate for the 27
assigned pay grade for those positions included in this subchapter. 28
(3)(A) The state agency shall identify the shifts, job 29
classifications, and positions to be eligible for the shift differential and 30
the differential percentage for which each classification is eligible within 31
each shift. 32
(B) The shift schedule, job classifications, positions, 33
and the percentage of shift differential for which the job titles will be 34
eligible shall be submitted to the Office of Personnel Management for 35
approval by the Secretary of the Department of Transformation and Shared 36 As Engrossed: S2/5/25 SB147
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Administrative Services. 1
(C) Subsequent changes to the shift schedule, job 2
classifications, positions, and shift differential percentages shall be 3
submitted to the Office of Personnel Management and receive prior approval by 4
the Secretary of the Department of Transformation and Shared Administrative 5
Services. 6
7
SECTION 49. Arkansas Code § 21 -5-221(c) and (d), concerning 8
compensation differentials, are amended to read as follows: 9
(c)(1) Hazardous duty differential of up to ten percent (10%) may be 10
authorized for the increased risk of personal physical injury for an employee 11
occupying a certain identified high -risk position if the: 12
(A) Position classification is determined to be physically 13
hazardous or dangerous due to location, facility, services provided, or other 14
factors directly related to the duty assignment of the positions; and 15
(B) Employee's regularly assigned work schedule exposes 16
him or her to clear, direct, and unavoidable hazards during at least fifty 17
percent (50%) of the work time and the employee is not compensated for the 18
hazardous exposure. 19
(2)(A) The director of the requesting state agency shall 20
identify the facility or unit, location, and eligible positions and 21
classifications within the facility or unit that are identified as high -risk. 22
(B) The positions shall be certified by the state agency 23
director as having been assigned to a work environment that poses an 24
increased risk of personal injury and shall be submitted as part of the plan 25
for payment of hazardous duty differential to the Office of Personnel 26
Management for approval by the Secretary of the Department of Transformation 27
and Shared Administrative Services in consultation with the Chief Fiscal 28
Officer of the State after review and approval of the Legislative Council or, 29
if the General Assembly is in session, the Joint Budget Committee. 30
(C) Subsequent changes to the facility or unit, location, 31
and eligible positions or classifications within the facility or unit on file 32
with the Office of Personnel Management shall receive prior approval by the 33
Secretary of the Department of Transformation and Shared Administrative 34
Services after review and approval by the Legislative Council or, if the 35
General Assembly is in session, the Joint Budget Committee. 36 As Engrossed: S2/5/25 SB147
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(d) It is the intent of this subsection that hazardous duty 1
compensation shall be at the discretion of the Secretary of the Department of 2
Transformation and Shared Administrative Services and the director of the 3
state agency and shall not be implemented using funds specifically set aside 4
for other programs within the state agency. 5
6
SECTION 50. Arkansas Code § 21 -5-222(a)(1), concerning salary 7
administration grids, is amended to read as follows: 8
(a)(1) A state agency may request that a salary administration grid be 9
approved for specific classifications or positions if the: 10
(A) State agency has documented the need for a salary 11
administration grid for specified positions or classifications; 12
(B) Terms and conditions of a grid proposed by the state 13
agency address the needs of the targeted positions; 14
(C) Cost of implementing and maintaining a salary 15
administration grid is within the state agency's existing appropriation and 16
the implementation does not use funds specifically set aside for other 17
programs within the state agency; 18
(D) Salary administration grid has been submitted to the 19
Office of Personnel Management for approval by the Secretary of the 20
Department of Transformation and Shared Administrative Services up to the 21
midpoint pay level; and 22
(E)(i) Salary administration grid has been submitted to 23
the Office of Personnel Management for approval by the Secretary of the 24
Department of Transformation and Shared Administrative Services above the 25
midpoint pay level. 26
(ii) The Secretary of the Department of 27
Transformation and Shared Administrative Services shall not approve the 28
salary administration grid in this subdivision (a)(1)(E) until the salary 29
administration grid has been reviewed by the Legislative Council or, if the 30
General Assembly is in session, the Joint Budget Committee. 31
32
SECTION 51. Arkansas Code § 21 -5-223(a)(1), concerning severance pay, 33
is amended to read as follows: 34
(a)(1) If the agency director determines that it is necessary to 35
implement the state workforce reduction policy due to state agency 36 As Engrossed: S2/5/25 SB147
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organization structure change, budgetary reductions, abolishment of positions 1
or duties, loss of functional responsibility by the state agency, or the loss 2
of federal funding, grants, or other special funds, the agency director, upon 3
approval by the Secretary of the Department of Transformation and Shared 4
Administrative Services, may authorize the payment of funds on a regular 5
payroll schedule as severance pay to full -time, part-time, and job sharing 6
classified and nonclassified employees in regular positions affected by the 7
workforce reduction on the basis of the following pro rata lump sum for 8
completed years of service, including any formally implemented probationary 9
period: 10
Over one (1) year up to five (5) years Eight hundred dollars ($800) 11
Over five (5) years up to fifteen (15) years One thousand two hundred 12
dollars ($1,200) 13
Over fifteen (15) years One thousand six hundred dollars ($1,600) 14
15
SECTION 52. Arkansas Code § 21 -5-406(a), concerning the director of 16
the State Board of Finance, is amended to read as follows: 17
(a)(1) The State Board of Finance shall choose the Director of the 18
Employee Benefits Division with the approval of the Secretary of the 19
Department of Transformation and Shared Administrative Services. 20
(2)(A) The director shall be employed by and serve at the 21
pleasure of the secretary, and shall perform all duties in consultation with 22
the secretary. 23
(B) However, the board may recommend the removal of the 24
director, but removal is subject to the approval of the secretary. 25
(3) The director shall employ staff adequate to manage the State 26
and Public School Life and Health Insurance Program within the funds 27
appropriated for the program within the Department of Transformation and 28
Shared Administrative Services. 29
30
SECTION 53. Arkansas Code § 21 -5-414(a), concerning partial state 31
contribution of employees' premiums, is amended to read as follows: 32
(a) The Department of Transformation and Shared Administrative 33
Services shall seek the advice of the Legislative Council and the House 34
Committee on Insurance and Commerce and the Senate Committee on Insurance and 35
Commerce before additional state contributions can be made to the State and 36 As Engrossed: S2/5/25 SB147
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Public School Life and Health Insurance Program on behalf of state employees. 1
2
SECTION 54. Arkansas Code § 21 -5-1101(a), concerning definitions in 3
the merit increase pay system, is amended to read as follows: 4
(a)(1) The Department of Transformation and Shared Administrative 5
Services is authorized to develop and establish a merit increase pay system 6
in accordance with the performance evaluation process under § 21 -5-1001 et 7
seq. for employees of all state agencies, boards, and commissions covered by 8
the Uniform Classification and Compensation Act, § 21 -5-201 et seq. 9
(2) The merit increase pay system shall be reviewed by the 10
Legislative Council or, if the General Assembly is in session, the Joint 11
Budget Committee. 12
13
SECTION 55. Arkansas Code § 21 -5-1202(b), concerning the compensation 14
of employees of state agencies and state -supported institutions of higher 15
education — Emergency activities, is amended to read as follows: 16
(b) The Department of Transformation and Shared Administrative 17
Services shall establish appropriate procedures for the administration of 18
this section. 19
20
SECTION 56. Arkansas Code § 21 -11-104(a), concerning the procedure for 21
submission of suggestions, is amended to read as follows: 22
(a) The Secretary of the Department of Transformation and Shared 23
Administrative Services, or his or her designee, is directed to develop and 24
adopt rules in accordance with this chapter for the administration of the 25
Employee Suggestion System. 26
27
SECTION 57. Arkansas Code § 22 -2-104 is amended to read as follows: 28
22-2-104. Creation of Building Authority Division. 29
(a) There is created within the Department of Transformation and 30
Shared Administrative Services the Building Authority Division. 31
(b) The division shall carry out the duties and responsibilities set 32
out in § 22-2-108 under the policies, guidelines, standards, and procedures 33
established by the Department of Transformation and Shared Administrative 34
Services. 35
36 As Engrossed: S2/5/25 SB147
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SECTION 58. Arkansas Code § 22 -2-105 is amended to read as follows: 1
22-2-105. Secretary of the Department of Transformation and Shared 2
Administrative Services — Duties. 3
(a) The Secretary of the Department of Transformation and Shared 4
Administrative Services may hire sufficient staff as authorized by 5
legislation to perform the duties of the Building Authority Division. 6
Personnel employed by the secretary shall be compensated according to the 7
Uniform Classification and Compensation Act, § 21 -5-201 et seq., for similar 8
duties and responsibilities. 9
(b) The secretary shall be responsible for administering the rules and 10
policies adopted by the Department of Transformation and Shared 11
Administrative Services pursuant to the provisions of this chapter. 12
(c) The secretary shall be the disbursing agent for the division and 13
shall pay any and all accounts. The disbursing agent shall furnish and keep 14
in effect a bond to the state with a corporate surety thereon which, together 15
with any other bonds furnished by him or her, shall total in final sum not 16
less than fifty thousand dollars ($50,000) and is conditioned that he or she 17
will faithfully perform his or her duties and properly handle all funds 18
received and disbursed by him or her and account for those funds. The bond so 19
furnished shall be filed in the office of the Auditor of State. The premium 20
on the bond shall be a proper charge against funds of the division. 21
22
SECTION 59. Arkansas Code § 22 -2-107(a)(1)(A), concerning the creation 23
of Building Authority Division sections, is amended to read as follows: 24
(a) There are created within the Building Authority Division the 25
following sections which shall have the duties and responsibilities 26
designated by the Secretary of the Department of Transformation and Shared 27
Administrative Services and which may include, in relation to other 28
provisions of this chapter, the duties and responsibilities respectively 29
designated in this section: 30
(1) Construction Section. The Construction Section shall: 31
(A) Supervise the bidding and awarding of contracts for 32
new construction and renovations for or by state agencies' capital 33
improvements; 34
35
SECTION 60. Arkansas Code §22 -2-108(a)(1), concerning the powers and 36 As Engrossed: S2/5/25 SB147
30 02-05-2025 11:54:10 MBM119
duties, is amended to read as follows: 1
As may be provided, allowed, or limited by the provisions of this 2
chapter, the Secretary of the Department of Transformation and Shared 3
Administrative Services may establish policies, guidelines, standards, and 4
procedures which shall guide and govern the Building Authority Division with 5
regard to the following responsibilities, duties, powers, and activities: 6
(1) To investigate and obtain information concerning the various 7
boards, commissions, authorities, agencies, departments, and offices of the 8
state, which are the “state agencies”, in relation to: 9
(A) Where they are housed; 10
(B) Their present and projected needs for space and 11
facilities; 12
(C) The rental being paid and the rental that state 13
agencies could reasonably pay for space and facilities in public and private 14
buildings; and 15
(D) The public building space and facilities that can be 16
feasibly financed from appropriated funds available to the division; 17
18
SECTION 61. Arkansas Code § 22 -2-110 is amended to read as follows: 19
22-2-110. Schedule of supervision generally. 20
The powers, authorities, and responsibilities of the Secretary of the 21
Department of Transformation and Shared Administrative Services relating to 22
the acquisition of properties and to the supervision of all capital 23
improvements, as defined in § 22 -2-102, shall be in accordance with the 24
schedules of supervision as provided in §§ 22 -2-111 — 22-2-113. 25
26
SECTION 62. Arkansas Code § 22 -2-112 is amended to read as follows: 27
22-2-112. Schedule of supervision — Designated funds. 28
(a) From the funds appropriated by the General Assembly to the 29
Building Authority Division for the construction or purchase of a particular 30
building or capital improvement which is specifically designated to be 31
purchased, constructed, or improved for a particular state agency, the 32
division shall carry out the powers, authorities, and responsibilities in 33
respect to that construction or purchase as designated in § 22 -2-111. 34
(b) The division shall review and approve architectural and 35
engineering design plans and construction plans to ensure compliance with 36 As Engrossed: S2/5/25 SB147
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minimum design and construction standards and criteria promulgated by the 1
Secretary of the Department of Transformation and Shared Administrative 2
Services pursuant to this chapter. 3
(c) The division shall negotiate all contracts for architectural and 4
engineering and construction services and revisions and modifications to 5
those contracts. 6
7
SECTION 63. Arkansas Code § 22 -2-113(a), concerning the schedule of 8
supervision, is amended to read as follows: 9
(a) In all other cases, within or without Pulaski County, Arkansas, 10
when the construction of public buildings or capital improvements is 11
undertaken or is presently being undertaken or is authorized but not 12
presently under contract by or for a state agency, then the Building 13
Authority Division shall serve in a technical advisory capacity to advise an 14
agency in relation to that agency's capital improvement and to perform review 15
and approval duties, specifically including, but not limited to, the 16
provision and performance of the following services and duties: 17
(1) Consult with the agency as to the need for and the type, 18
cost, and design of the capital improvement; 19
(2) Assist the agency in reviewing architectural proposals and 20
advising the agency in the selection of persons to perform architectural and 21
engineering services, but the agency shall have the responsibility of 22
selecting those persons. However, nothing in this subdivision (a)(2) shall 23
affect the power and responsibility of the Building Authority Division to 24
review and approve architectural and engineering design plans and to 25
negotiate contracts for architects' and engineers' services as otherwise 26
provided in this section; 27
(3) Review and approve architectural and engineering plans and 28
designs to ensure compliance with minimum design and construction standards 29
and criteria promulgated by the Secretary of the Department of Transformation 30
and Shared Administrative Services pursuant to this chapter; 31
(4) As agent for the state agency, negotiate and approve any 32
contractual terms, relationships, or responsibilities for architectural and 33
engineering services; 34
(5) Assist the state agency in receipt of bids for construction 35
contracts necessary for the capital improvement if bids are required by law; 36 As Engrossed: S2/5/25 SB147
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(6) Advise and assist the agency in the selection of persons to 1
perform construction services, but the agency shall have the responsibility 2
of selecting the persons to perform the services. However, nothing in this 3
subdivision (a)(6) shall affect the powers and responsibilities of the 4
Building Authority Division consistent with subdivisions (a)(7) and (8) of 5
this section; 6
(7)(A) Review and approve construction plans to ensure 7
compliance with minimum construction standards and criteria promulgated by 8
the secretary as provided in this chapter. 9
(B)(i) This subdivision (a)(7) does not apply to the 10
design or construction of an unpaved trail project. 11
(ii) The State Parks, Recreation, and Travel 12
Commission shall ensure that an unpaved trail project created under this 13
subdivision (a)(7) meets the standards for observation by registered 14
professionals as established by the Building Authority Division; 15
(8)(A) As agent for the agency, negotiate and approve all 16
construction contracts, revisions, and modifications necessary for the 17
capital improvement. 18
(B)(i) This subdivision (a)(8) does not apply to the 19
design or construction of an unpaved trail project. 20
(ii) The State Parks, Recreation, and Travel 21
Commission shall ensure that an unpaved trail project created under this 22
subdivision (a)(8) adheres to applicable public works laws; 23
(9) Assist and advise the state agency as to the operation, 24
management, and maintenance of the capital improvement. However, the 25
operation, management, and maintenance shall be in accordance with minimum 26
standards as promulgated by the secretary; and 27
(10) Otherwise take such action as may be necessary to carry out 28
the policies, standards, criteria, and other rules as may be adopted or 29
promulgated by the secretary to implement the provisions of this chapter. 30
31
SECTION 64. Arkansas Code § 22 -2-114(a), concerning leasing 32
responsibilities, is amended to read as follows: 33
(a) It is the intent of the General Assembly that state agencies be 34
housed, whenever possible, in public buildings as soon as space and 35
facilities in public buildings are available and that the acquisition and 36 As Engrossed: S2/5/25 SB147
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granting of leasehold interests in land be regulated and supervised by the 1
Building Authority Division. The division and all other state agencies are 2
authorized and directed to implement that intent as follows: 3
(1)(A) The division is given the authority and responsibility to 4
act as the leasing agent for all state agencies and component parts thereof, 5
acting either as lessor or lessee, and to act as the agent for leasing space 6
in all public buildings located in the State of Arkansas. 7
(B) In addition, the division is given the authority and 8
responsibility to act as the leasing agent for any nonagency state entity if 9
requested in writing by a nonagency state entity to act in that manner and if 10
the responsibility for the services is accepted in writing by the division. 11
(C)(i) After July 1, 1975, no state agency shall enter 12
into or renew or otherwise negotiate a lease between itself as lessor or 13
lessee and a nongovernmental or other government lessor or lessee. 14
(ii) The division shall determine the needs of the 15
state agency, locate appropriate rental space, and act as the agent for the 16
state agency in negotiating the lease for the rental space; 17
(2) All state agencies and component parts thereof, when 18
requested by the division, shall execute and enter into leases with the 19
division for the leasing or renting of space and facilities in any public 20
buildings. The leases may be upon such conditions, for such terms, for such 21
rentals, and may contain such other provisions that the Department of 22
Transformation and Shared Administrative Services and the state agency 23
involved determine to be appropriate and in the best interests of all 24
concerned; 25
(3) Any state agency or component part thereof needing new or 26
additional space shall notify the division, and the division shall prepare a 27
lease for the space based upon the standards and criteria as adopted by the 28
Secretary of the Department of Transformation and Shared Administrative 29
Services. If space is available in a public building, the lease will be 30
negotiated for placement in the public building; 31
(4) If the Real Estate Services Section determines that adequate 32
space is not available in public buildings, the Real Estate Services Section 33
shall act as provided in subdivision (a)(1) of this section to obtain 34
adequate space from a privately owned facility; 35
(5)(A)(i) The secretary shall adopt standards and criteria for 36 As Engrossed: S2/5/25 SB147
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the leasing and utilization of space and the allocation of space to state 1
agencies. 2
(ii) These standards and criteria shall be used as a 3
basis for all planning, leasing of space, allocation of space to state 4
agencies, or advising state agencies on leasing considerations. 5
(iii) These standards and criteria shall include, but 6
not be limited to, equipment, work stations, private offices, conference 7
rooms, reception areas, general equipment, vaults, and the necessary space to 8
ensure adequate and effective circulation within and access to all state 9
agencies, including parking and traffic patterns. 10
(B) In cities and towns having a population of less than 11
twenty-five thousand (25,000) according to the last federal decennial census, 12
for those state agencies providing direct public access services, preference 13
shall be granted to lease space located in existing buildings in the central 14
business district, as defined by the locality's planning commission, or, in 15
the absence thereof, by the municipality's governing body, except in cases 16
where location within the central business district would impair or restrict 17
the intent of the services being provided to the public or the state's 18
proximity to other state or nongovernmental services or where rental rates 19
justify other locations; 20
(6) Leases as to office space, buildings, structures, parking 21
lots, and grounds from private individuals, firms, and corporations by state 22
agencies and component parts thereof shall be on a standard lease form 23
approved by the secretary. The standard lease form shall contain all terms 24
and conditions deemed necessary based on the type and purpose of the leased 25
property. The secretary also shall adopt a standard lease form to be used by 26
state agencies when subleasing from the division. Both standard lease forms 27
shall be approved as to the legality of form and content by the Attorney 28
General before becoming a requirement; and 29
(7) The division shall obtain and maintain files of all leases 30
in existence from and after July 1, 1975, to which a state agency or 31
component part thereof is a party. 32
33
SECTION 65. Arkansas Code § 22 -2-115(a), concerning lease -purchase 34
agreements, is amended to read as follows 35
(a) For the express purpose of providing adequate office facilities, 36 As Engrossed: S2/5/25 SB147
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the Secretary of the Department of Transformation and Shared Administrative 1
Services, acting as the primary lessor, may enter into lease -purchase 2
agreements to obtain facilities for state agencies. Each lease -purchase 3
agreement shall contain a provision whereby the agreement shall be cancelled 4
at the close of each fiscal biennium, if necessary, if funds for the payment 5
of the rent under the lease -purchase agreement will not be available. 6
7
SECTION 66. Arkansas Code § 22 -2-120(b), concerning exemptions from 8
statutes concerning the Capitol Zoning District, is amended to read as 9
follows: 10
(b) The Secretary of the Department of Transformation and Shared 11
Administrative Services shall endeavor to cooperate with the Capitol Zoning 12
District Commission so as to establish coordinated physical development in 13
the State Capitol area and to promote the uniform and appropriate regulation 14
and development of the State Capitol area. 15
16
SECTION 67. Arkansas Code § 22 -3-405 is amended to read as follows: 17
22-3-405. Capitol Parking Control Committee — Creation — Members — 18
Meetings. 19
(a) There is created a committee to be known as the “Capitol Parking 20
Control Committee”, hereinafter referred to as “the committee”, which shall 21
have the powers and duties provided in § 22 -3-406. 22
(b) The committee shall be composed of three (3) members, as follows: 23
(1) The Secretary of State or a designee; 24
(2) The Secretary of the Department of Transformation and Shared 25
Administrative Services or his or her designee; and 26
(3) A state employee designated by the Secretary of State who is 27
employed on the State Capitol grounds in a position of administrator or 28
higher by an agency or office other than that of the Secretary of State or of 29
the Building Authority Division. 30
(c) The Secretary of State shall be the chair of the committee, and 31
the Secretary of the Department of Transformation and Shared Administrative 32
Services or his or her designee shall serve as secretary of the committee. 33
(d) Members of the committee shall serve without additional pay or 34
compensation. 35
(e) Meetings of the committee shall be held at such times and places 36 As Engrossed: S2/5/25 SB147
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as shall be directed by the chair or upon the petition of two (2) members of 1
the committee. 2
3
SECTION 68. Arkansas Code § 22 -3-906 is amended to read as follows: 4
22-3-906. Secretary of the Department of Transformation and Shared 5
Administrative Services. 6
(a) The Secretary of the Department of Transformation and Shared 7
Administrative Services shall be the custodian of all property held in the 8
name of the Building Authority Division, shall be its disbursing agent and 9
executive officer, and shall administer the provisions of this subchapter and 10
the rules and orders established thereunder. 11
(b) The Secretary of the Department of Transformation and Shared 12
Administrative Services shall employ such assistants and other personnel as 13
are, in his or her opinion, necessary to properly administer the provisions 14
of this subchapter. 15
(c)(1) The Secretary of the Department of Transformation and Shared 16
Administrative Services shall furnish bond to the state, with a corporate 17
surety thereon, in the penal sum of twenty -five thousand dollars ($25,000), 18
conditioned that he or she will faithfully perform his or her duties and 19
properly account for all funds received and disbursed by him or her. 20
(2) An additional disbursing agent's bond shall not be required 21
of the Secretary of the Department of Transformation and Shared 22
Administrative Services, and the bond so furnished shall be filed in the 23
office of the Secretary of State, and an executed counterpart thereof shall 24
be filed with the Auditor of State. 25
(3) The premium on the bond shall be a proper charge against the 26
funds under the control of the Secretary of the Department of Transformation 27
and Shared Administrative Services. 28
29
SECTION 69. Arkansas Code § 22 -3-918(d), concerning notice for bids for 30
construction bonds, is amended to read as follows: 31
(d) The Secretary of the Department of Transformation and Shared 32
Administrative Services shall execute all contracts awarded by the division. 33
34
SECTION 70. Arkansas Code § 22 -3-1207(a)(1), concerning certificates 35
of indebtedness and issuance and purchases authorized, is amended to read as 36 As Engrossed: S2/5/25 SB147
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follows: 1
(a)(1) For the purpose of providing funds for the construction of 2
buildings as authorized in this subchapter, the Director of the Building 3
Authority Division, with the approval of the Governor and the Secretary of 4
the Department of Transformation and Shared Administrative Services, is 5
authorized and empowered to issue, and the State Board of Finance is 6
authorized and empowered to purchase, Building Authority Division 7
certificates of indebtedness of a total principal amount not to exceed 8
twenty-five million dollars ($25,000,000). 9
10
SECTION 71. Arkansas Code § 22 -3-1208(d), concerning certificates of 11
indebtedness and terms and execution, is amended to read as follows: 12
(d) The certificates of indebtedness shall be executed on behalf of 13
the division by the Secretary of the Department of Transformation and Shared 14
Administrative Services. 15
16
SECTION 72. Arkansas Code §22 -3-1404(8), concerning the powers of the 17
Building Authority Division, is amended to read as follows: 18
(8) Take such other actions not inconsistent with law as may be 19
necessary or desirable to carry out the powers, purposes, and authority as 20
set forth in this section in accordance with the policies promulgated by the 21
Secretary of the Department of Transformation and Shared Administrative 22
Services. 23
24
SECTION 73. Arkansas Code § 22 -3-1405(4), concerning the duties of the 25
Building Authority Division, is amended to read as follows: 26
(4) Take such other actions not inconsistent with law as may be 27
necessary or desirable to carry out the powers, purposes, and authority set 28
forth herein, in accordance with the policies promulgated by the Secretary of 29
the Department of Transformation and Shared Administrative Services as 30
authorized by law. 31
32
SECTION 74. Arkansas Code § 22 -3-1902(a), concerning rules promulgated 33
for the Sustainable Building Design Program for State Agencies, is amended to 34
read as follow: 35
(a) The Secretary of the Department of Transformation and Shared 36 As Engrossed: S2/5/25 SB147
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Administrative Services shall promulgate rules for the implementation of the 1
Sustainable Building Design Program for State Agencies. 2
3
SECTION 75. Arkansas Code § 22 -6-601 is amended to read as follows: 4
22-6-601. Sale procedure. 5
(a)(1)(A) The several state boards or commissions having supervision 6
of the affairs of the charitable, penal, correctional, educational, and other 7
institutions of the State of Arkansas and all other state boards and 8
commissions, except the State Highway Commission, the Arkansas State Game and 9
Fish Commission, the Arkansas Natural Heritage Commission, the State Parks, 10
Recreation, and Travel Commission, the Division of Higher Education, and 11
institutions of higher education, and the executive heads of all state 12
offices, departments, divisions, and agencies, all referred to separately as 13
“state agency”, may sell or purchase, for cash in hand and upon compliance 14
with the provisions of this section, the lands, in whole or in part, 15
belonging to or under the supervision or control of the respective state 16
agency or belonging to the state and held for the use or benefit of the state 17
agency. 18
(B) State agencies may purchase lands, so that the lands, 19
in whole or in part, shall belong to or be under the supervision or control 20
of the respective state agency or belong to the state and be held for the use 21
or benefit of the state agency. 22
(2) The provisions of this section shall not apply to: 23
(A) The sale of land by the Commissioner of State Lands; 24
(B) The transfer of state lands to political subdivisions 25
of the State of Arkansas; 26
(C) The transfer of state lands between state entities; or 27
(D) The exchange of state lands for other lands which are 28
suitable for state purposes if the Secretary of the Department of Finance and 29
Administration has made a recommendation to the Governor that the exchange be 30
made and if the Governor has approved the exchange. 31
(b)(1) State agencies may transfer lands in whole or in part to the 32
Building Authority Division for the use of that state agency or other state 33
agencies. 34
(2) In the event that the Building Authority Division shall sell 35
the lands at a later date, the provisions of this section shall apply, and 36 As Engrossed: S2/5/25 SB147
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the proceeds of the sale, less any expenses and liquidated damages, shall be 1
deposited into the State Treasury as a nonrevenue receipt to the credit of 2
the fund from which the state agency that transferred the land to the 3
Building Authority Division is operated. 4
(c)(1) In the event that a state agency elects to sell certain of its 5
lands or to purchase lands, the state agency shall certify to the Building 6
Authority Division its proposal for any sale or purchase. 7
(2)(A) The state agency proposing the sale or purchase of land 8
shall obtain the services of a qualified appraiser to appraise the lands so 9
proposed to be sold or purchased, with notice to the Secretary of the 10
Department of Transformation and Shared Administrative Services. 11
(B) The appraiser selected by the state agency, by 12
education or experience, shall: 13
(i) Be capable of determining the value of lands, 14
water and mineral rights, timber, and rural, agricultural, and 15
noncultivatable lands; 16
(ii) Understand legal descriptions of real 17
properties; 18
(iii) Have a working knowledge of county and state 19
real property records; and 20
(iv) Be capable of rendering dependable judgments of 21
the values of properties, determining the flood plains of the properties, and 22
of previous uses of the properties, which may result in environmental 23
remediation. 24
(C) The appraiser shall be licensed and certified by the 25
State Board of Appraisers, Abstracters, and Home Inspectors. 26
(D) The appraiser shall take an oath or certify that he or 27
she will not, directly or indirectly, be engaged in the purchasing or selling 28
of the land or give information to any agent, friend, secret partner, or 29
other partner so as to secure advantages of the information to himself or 30
herself or any person, association, or company to the prejudice or exclusion 31
of any other person. 32
(d)(1) The Secretary of the Department of Transformation and Shared 33
Administrative Services shall furnish to the Governor: 34
(A) The appraisal; 35
(B) The state agency proposal to sell or purchase; and 36 As Engrossed: S2/5/25 SB147
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(C) The Building Authority Division recommendations. 1
(2) The Governor, if he or she approves the proposed sale or 2
purchase, shall endorse his or her approval of the proposal and transmit a 3
copy of the proposal to the Secretary of the Department of Finance and 4
Administration and the Secretary of the Department of Transformation and 5
Shared Administrative Services. 6
(e)(1) The Building Authority Division shall give notice of the terms 7
of the sale by publication in one (1) newspaper regularly published in Little 8
Rock, Arkansas, and having a general circulation in the State of Arkansas, by 9
four (4) weekly insertions therein. 10
(2) If there is a newspaper published in the county in which the 11
lands are located having a general circulation therein, the notice shall also 12
be published in that newspaper one (1) time a week for four (4) consecutive 13
weeks, provided the land may be advertised for sale as a whole or in separate 14
tracts. 15
(f) The notice shall specify a time and place, which time shall be not 16
less than thirty (30) days from and after the date of the first insertion of 17
the notice, for the receipt by the Building Authority Division of sealed bids 18
for the purchase of the lands. 19
(g)(1) Each bid shall be accompanied by a cashier's check, payable to 20
the order of the state agency and drawn upon a bank or trust company doing 21
business in this state, in an amount equal to one -tenth (1/10) of the bid. 22
(2) The proceeds of the cashier's check of the successful bidder 23
shall be credited against the bid upon payment of the balance or shall be 24
retained by the state agency as liquidated damages upon failure to tender and 25
pay the balance of the bid price. 26
(3) Cashier's checks of unsuccessful bidders shall be returned 27
to them upon the completion of the sale to the successful bidder. 28
(4) The Building Authority Division, at the time and place 29
specified in the notice, or by announcement then and there, or at some other 30
time or place, shall open the bids which have been received and proceed to 31
accept the highest bid properly accompanied by a cashier's check for the 32
lands in whole or in part as offered for such sale. 33
(h)(1) The lands shall be sold for the highest aggregate responsible 34
bid, and no sale shall be otherwise than for cash, nor for less than the 35
amount of the appraisal. 36 As Engrossed: S2/5/25 SB147
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(2)(A)(i)(a) Upon approval by the Governor, lands may be sold to 1
the highest responsible bidder for less than the amount of the appraisal if 2
the bid process has been utilized and it has been determined and recommended 3
by the state agency director and the Secretary of the Department of 4
Transformation and Shared Administrative Services that further solicitation 5
of bids is unnecessary. 6
(b) Upon approval, the state agency may enter 7
into negotiations with the highest responsible bidder for the sale of the 8
lands. 9
(ii) If negotiations are unsuccessful, the state 10
agency may enter into negotiations with the next highest responsible bidder. 11
(B) Nothing shall preclude an agency from reletting bids 12
under this section if the negotiations as stated in subdivision (h)(2)(A) of 13
this section are unsuccessful. 14
(C) The Legislative Council shall review the sale of the 15
land before the state agency finalizes the sale. 16
(i)(1) Upon receipt from the successful bidder of the full amount of 17
his or her bid, the state agency shall execute and deliver its deed conveying 18
the lands to him or her and shall certify a copy of the deed to the Governor. 19
(2) The deed shall recite in detail the compliance with the 20
respective provisions of this section, which recitals shall be prima facie 21
evidence of the facts so set forth. 22
(3) The deed need not be acknowledged to entitle it to be 23
recorded. 24
(4) The effect of the deed, the provisions of this section 25
having been substantially complied with in the sale, shall be to vest the 26
purchaser with the title of the lands, at law and in equity, in fee simple 27
absolute. 28
(5) Any conveyance of title to lands owned by the State of 29
Arkansas shall be subject to § 22 -6-113. 30
(j) Upon receipt thereof, the proceeds of the sale, including any 31
liquidated damages, shall be deposited into the State Treasury, as a 32
nonrevenue receipt, to the credit of the fund from which the state agency is 33
operated. Any unexpended balance of such proceeds remaining at the end of 34
each fiscal year as certified to the Chief Fiscal Officer of the State by the 35
state agency director may be carried forward until the end of the biennium 36 As Engrossed: S2/5/25 SB147
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following the biennium in which collected, after which any remaining balances 1
shall be subject to § 19 -5-1004. 2
(k)(1) Before any state agency may receive donated land, the state 3
agency director shall certify the proposed donation request to the Building 4
Authority Division. 5
(2) The Secretary of the Department of Transformation and Shared 6
Administrative Services shall forward a recommendation to the Governor. 7
(3) No donation shall be made without approval from the 8
Governor. 9
(l) Before a state agency purchases real property, the state agency 10
shall consult the Arkansas Buildings & Sites Database maintained by the 11
Arkansas Economic Development Commission to determine if there is a property 12
available for purchase that meets the practical and financial needs and 13
specifications of the state agency . 14
15
SECTION 76. Arkansas Code § 22 -9-201(c)(5), concerning the contracts 16
awarded by the State Highway Commission, is amended to read as follows: 17
(5) The Secretary of the Department of Transformation and Shared 18
Administrative Services or a designee may make or authorize others to make 19
emergency contracting procedures as defined in subdivision (c)(3) of this 20
section and in accordance with the minimum standards and criteria of the 21
division. 22
23
SECTION 77. Arkansas Code § 22 -9-208(a)(3), concerning the renovation 24
of historic sites, is amended to read as follows: 25
(3) The procedures provided in subdivision (a)(2) of this 26
section should be applicable for specific projects only after review and 27
approval by the Chief Fiscal Officer of the State, the Secretary of the 28
Department of Transformation and Shared Administrative Services, and the 29
Legislative Council. Provided, however, projects undertaken by public 30
institutions of higher education exempt from review and approval of the 31
Department of Transformation and Shared Administrative Services shall not 32
require review and approval by the secretary. 33
34
SECTION 78. Arkansas Code § 22 -10-501(b)(1), concerning the review and 35
approval of proposed qualifying projects, is amended to read as follows: 36 As Engrossed: S2/5/25 SB147
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(b)(1) Before execution of an interim agreement or a comprehensive 1
agreement, the responsible public entity shall: 2
(A) Review, negotiate, and select a qualifying project in 3
accordance with this chapter and the rules promulgated under this chapter; 4
and 5
(B)(i) Submit the proposed interim agreement or 6
comprehensive agreement to the Secretary of the Department of Transformation 7
and Shared Administrative Services for approval. 8
(ii) After completing all of the steps in subdivision 9
(b)(2) of this section, the responsible public entity shall submit a proposed 10
comprehensive agreement to the Governor for approval and authorization to 11
execute the comprehensive agreement. 12
13
SECTION 79. Arkansas Code § 22 -10-502(a), concerning the duties of the 14
Department of Transformation and Shared Services, is amended to read as 15
follows: 16
(a) The Department of Transformation and Shared Administrative 17
Services shall promulgate certain rules regarding the definitions and 18
guidelines related to the development of qualifying projects under this 19
chapter within ninety (90) days of August 1, 2017. 20
21
SECTION 80. Arkansas Code § 22 -10-503 is amended to read as follows: 22
22-10-503. Rules. 23
(a) The Department of Transformation and Shared Administrative 24
Services and the Arkansas Development Finance Authority shall jointly 25
promulgate rules to administer this chapter, including without limitation 26
rules regarding: 27
(1) Criteria for selecting a qualifying project; 28
(2) Guidelines for a public entity operating under this chapter; 29
(3) Guidelines for monitoring and reporting on qualifying 30
projects; 31
(4) Timeline for selecting a qualified respondent; 32
(5) Guidelines for negotiating a comprehensive agreement; 33
(6) Guidelines for the accelerated selection of a qualified 34
respondent and the review and approval of a qualifying project that the 35
Governor determines to be a priority and that is funded, in whole or in part, 36 As Engrossed: S2/5/25 SB147
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by dedicated revenues; 1
(7) Guidelines for selecting a qualifying project, including 2
without limitation: 3
(A) Reasonable criteria for selecting and scoring among 4
competing proposals; 5
(B) Financial review and analysis procedures for financial 6
and technical advisors or consultants that include without limitation: 7
(i) A cost-benefit analysis; 8
(ii) A value-for-money analysis, which shall include 9
without limitation a: 10
(a) Qualitative assessment; 11
(b) Quantitative assessment; 12
(c) Business case analysis; and 13
(d) Comparison of the net present value of the 14
total, risk-adjusted costs of delivering a qualifying project under this 15
chapter and through procurement methods outside of this chapter; 16
(iii) An assessment of the opportunity cost; 17
(iv) An analysis of the lifecycle costs, including 18
without limitation the design and construction costs, operating costs, and 19
maintenance and upgrade costs; and 20
(v) Consideration of the results of relevant studies 21
and analyses related to the proposed qualifying project; 22
(C) Procedures for considering the nonfinancial benefits 23
of a proposed qualifying project; 24
(D) Suggested timelines for selecting proposals and 25
negotiating an interim agreement or a comprehensive agreement; 26
(E) Criteria for allowing the responsible public entity to 27
accelerate the selection, review, and documentation timelines for proposals 28
involving a qualifying project that the responsible public entity considers 29
to be a priority; 30
(F) Procedures to: 31
(i) Determine the adequacy of the information 32
released when seeking proposals under this chapter; and 33
(ii) Allow the responsible public entity to release 34
more detailed information when seeking proposals if the responsible public 35
entity determines that the release of additional information is necessary to 36 As Engrossed: S2/5/25 SB147
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encourage competition; 1
(G) Criteria, key decision points, and approvals that are 2
required to ensure that the responsible public entity considers the extent of 3
competition before selecting proposals and negotiating an interim agreement 4
or a comprehensive agreement; 5
(H) Criteria for establishing and determining any fees 6
that the responsible public entity elects to charge under § 22 -10-202; 7
(I) Procedures for posting and publishing the public 8
notice of a responsible public entity's request for proposals, including 9
without limitation: 10
(i) Specific information and documentation to be 11
released regarding the nature, timing, and scope of the qualifying project; 12
(ii)(a) A reasonable time period as determined 13
by the responsible public entity to encourage competition and public -private 14
partnerships in accordance with the purpose of this chapter. 15
(b) However, the time period established under 16
subdivision (a)(7)(I)(ii)(a) of this section shall not be less than forty -17
five (45) days, during which time the responsible public entity shall accept 18
the submission of proposals for the qualifying project under this chapter; 19
and 20
(iii) A process for posting the notice required under 21
this subdivision (a)(7)(I) on the responsible public entity's official 22
website and otherwise publishing the notice; and 23
(J) The maximum term of a comprehensive agreement for each 24
type of qualifying project for which the responsible public entity intends to 25
request proposals or invite bids from private entities; 26
(8) A responsible public entity's interaction with affected 27
local jurisdictions and other public entities, including without limitation: 28
(A) Considerations and guidelines for establishing and 29
determining the delivery of a request for proposals or an invitation for bids 30
by the responsible public entity to each affected local jurisdiction and 31
public entity that has complementary authority with respect to a qualifying 32
project; 33
(B) The method of identifying affected local jurisdictions 34
and public entities that have complementary authority with respect to a 35
qualifying project; and 36 As Engrossed: S2/5/25 SB147
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(C) The time period during which an affected local 1
jurisdiction and a public entity other than the responsible public entity 2
may: 3
(i) Submit written comments regarding the proposed 4
qualifying project to the responsible public entity; and 5
(ii) Indicate whether the proposed qualifying project 6
is compatible with local plans and budgets; 7
(9) Considerations and guidelines for establishing and 8
determining the mandatory and optional elements of a proposal by a private 9
entity under this chapter, including without limitation: 10
(A) A project description, including without limitation: 11
(i) The location of the qualifying project; and 12
(ii) The specific or conceptual design of the 13
proposed facility, building, infrastructure, or improvement or a conceptual 14
plan for the provision of services or technology infrastructure; 15
(B) A feasibility statement that includes without 16
limitation: 17
(i) The method by which the private entity proposes 18
to secure any necessary property interests required for the qualifying 19
project; 20
(ii) A list of all permits and approvals required for 21
the qualifying project from local, state, and federal agencies; and 22
(iii) A list of public utility facilities, if any, 23
that will be crossed by the qualifying project and a statement of how the 24
private entity will accommodate the crossings; 25
(C) A schedule for the initiation and completion of the 26
qualifying project, including without limitation: 27
(i) The proposed responsibilities of the responsible 28
public entity and the private entity; 29
(ii) A timeline of the activities to be performed by 30
the responsible public entity and the private entity; and 31
(iii) A proposed schedule for obtaining the permits 32
required under subdivision (a)(9)(B)(ii) of this section; 33
(D) A plan for financing the qualifying project, including 34
without limitation: 35
(i) The sources of the private entity's funds; 36 As Engrossed: S2/5/25 SB147
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(ii) Any dedicated revenue source or proposed debt or 1
equity investment on behalf of the private entity; 2
(iii) A description of any user fees, lease payments, 3
and other service payments to be paid over the term of the interim agreement 4
or the comprehensive agreement; and 5
(iv) The methodology and circumstances for modifying 6
any user fees, lease payments, and other service payments; 7
(E) A business case statement that includes a basic 8
description of the indirect and direct benefits that the private entity can 9
provide in delivering the qualifying project, including without limitation 10
relevant cost, quality, and time frame data; 11
(F) The names and addresses of the persons who may be 12
contacted for further information concerning the request; and 13
(G) Any additional material and information that the 14
responsible public entity reasonably requests; 15
(10) Considerations and guidelines with respect to the 16
preliminary, mandatory, and optional requirements of an interim agreement and 17
a comprehensive agreement, including without limitation the: 18
(A) Engagement of: 19
(i) An attorney; 20
(ii) A certified public accountant; 21
(iii) A financial or economics professional; and 22
(iv) A consultant or other professional with 23
specialized expertise that is relevant to the proposed qualifying project; 24
(B)(i) Delivery of one (1) or more written evaluations or 25
assessments analyzing financial, legal, or other considerations that should 26
be evaluated by the public entity, including without limitation an assessment 27
of the costs of the qualifying project, the financial viability of the 28
qualifying project, and all other financial and operating assumptions related 29
to the qualifying project. 30
(ii) If municipal financing is a component of the 31
interim agreement, the responsible public entity shall obtain a written 32
evaluation of the proposed qualifying project from a municipal advisor 33
registered with the United States Securities and Exchange Commission and the 34
Municipal Securities Rulemaking Board; 35
(C) Fees and expenses and the responsibility for paying 36 As Engrossed: S2/5/25 SB147
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the fees and expenses associated with engaging an attorney, certified public 1
accountant, financial or economics professional, or other consultant; and 2
(D) Negotiation and creation of additional contracts for 3
services and materials, including without limitation revenue contracts, 4
construction contracts, management contracts, services contracts, and other 5
agreements related to the qualifying project; 6
(11) Considerations and guidelines with respect to the 7
preliminary, mandatory, and optional terms and conditions of an interim 8
agreement, including without limitation: 9
(A) Criteria for determining when the private entity is 10
permitted to commence activities and perform tasks related to the qualifying 11
project for which the private entity shall be compensated, including without 12
limitation: 13
(i) Project planning and development; 14
(ii) Design and engineering; 15
(iii) Environmental analysis and mitigation; 16
(iv) Surveying; and 17
(v) Ascertaining the availability of financing for 18
the proposed qualifying project and the ownership of any work product 19
developed; 20
(B) Criteria for establishing the process and timing of 21
the negotiation of the comprehensive agreement; 22
(C) The process for amending, extending, or supplementing 23
an interim agreement; and 24
(D) Other provisions and criteria related to the 25
development of a proposed qualifying project; 26
(12) Considerations and guidelines with respect to the 27
preliminary, mandatory, and optional terms and conditions of a comprehensive 28
agreement, including without limitation: 29
(A) A thorough description of the duties of the 30
responsible public entity and the qualified respondent in relation to the 31
development and operation of the qualifying project; 32
(B) Dates and schedules for the completion of the 33
qualifying project, including any available extensions or renewals of the 34
qualifying project; 35
(C) A pro forma analysis or budget under which the 36 As Engrossed: S2/5/25 SB147
49 02-05-2025 11:54:10 MBM119
qualifying project shall be developed, financed, constructed, operated, and 1
maintained; 2
(D) The source of all revenues derived from the operation 3
and maintenance of the qualifying project and any process for modifying the 4
revenues during the term of the comprehensive agreement; 5
(E) Financing and funding sources for the qualifying 6
project and any contractual provisions related to the financing and funding 7
sources for the qualifying project; 8
(F) A copy of each contract related to the development of 9
the qualifying project; 10
(G) Reimbursements to be paid to the responsible public 11
entity for services provided by the qualified respondent, if any; 12
(H) A process for the review of plans and specifications 13
for the qualifying project by the responsible public entity and the 14
engineering and architectural consultants of the responsible public entity, 15
if any; 16
(I) A process for the periodic and final inspection of the 17
qualifying project by the responsible public entity or its designee to ensure 18
that the qualified respondent's development activities comply with the 19
comprehensive agreement; 20
(J) For the components of the qualifying project that 21
involve construction, provisions for the: 22
(i) Delivery of maintenance, payment, and 23
performance bonds in the amounts that may be specified by the responsible 24
public entity in the comprehensive agreement; and 25
(ii) Posting and delivery of all other bonds, letters 26
of credit, or other forms of security acceptable to the responsible public 27
entity in connection with the development of the qualifying project; 28
(K) Submission to the responsible public entity by the 29
qualified respondent of proof of workers' compensation, property, casualty, 30
general liability, and other policies of insurance related to the development 31
and operation of the qualifying project in the amounts and subject to the 32
terms that may be specified by the responsible public entity in the 33
comprehensive agreement; 34
(L) A process for the responsible public entity's 35
monitoring of the practices of the qualified respondent to ensure that the 36 As Engrossed: S2/5/25 SB147
50 02-05-2025 11:54:10 MBM119
qualifying project is properly developed, constructed, operated, and 1
maintained; 2
(M) The filing by the qualified respondent of appropriate 3
financial statements with the responsible public entity related to the 4
operations of the qualifying project within the timeframes established in the 5
comprehensive agreement; 6
(N) Policies and procedures governing the rights and 7
responsibilities of the responsible public entity and the qualified 8
respondent if the comprehensive agreement is terminated according to the 9
terms of the comprehensive agreement or as the result of a default under the 10
terms of the comprehensive agreement; and 11
(O) The process for amending, extending, or supplementing 12
the terms of the comprehensive agreement; and 13
(13) Guidelines for using the value -for-money analysis as a 14
determinative factor in selecting a qualifying project. 15
(b) The Department of Transformation and Shared Administrative 16
Services and the Arkansas Development Finance Authority may jointly 17
promulgate rules that establish procurement guidelines and requirements that 18
vary depending on the type of qualifying project. 19
20
SECTION 81. Arkansas Code § 25 -1-126(a)(1)(N), concerning the purchase 21
of flags with public funds, is amended to read as follows: 22
(N) The Department of Transformation and Shared 23
Administrative Services; 24
25
SECTION 82. Arkansas Code § 25 -1-128 is amended to read as follows: 26
25-1-128. Policy regarding use of technology resources and 27
cybersecurity by public entities — Definitions. 28
(a) As used in this section: 29
(1) “Employee” means a person employed by a public entity; 30
(2) “Public entity” means an instrumentality funded in whole or 31
in part by taxpayer funds, including without limitation: 32
(A) The Department of Agriculture; 33
(B) The Department of Commerce; 34
(C) The Department of Corrections; 35
(D) The Department of Education; 36 As Engrossed: S2/5/25 SB147
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(E) The Department of Energy and Environment; 1
(F) The Department of Finance and Administration; 2
(G) The Department of Health; 3
(H) The Department of Human Services; 4
(I) The Department of Inspector General; 5
(J) The Department of Labor and Licensing; 6
(K) The Department of the Military; 7
(L) The Department of Parks, Heritage, and Tourism; 8
(M) The Department of Public Safety; 9
(N) The Department of Transformation and Shared 10
Administrative Services; 11
(O) The Department of Veterans Affairs; 12
(P) The office of a constitutional officer; 13
(Q) A political subdivision of the state; 14
(R) A public school district; 15
(S) A public school district board of directors; 16
(T) An open-enrollment public charter school; 17
(U) An institution of higher education; 18
(V) The State Highway Commission; 19
(W) The Arkansas Department of Transportation; or 20
(X) The Arkansas State Game and Fish Commission; 21
(3) “State educational entity” means an entity with an 22
educational purpose that is funded in whole or in part by taxpayer funds that 23
is, including without limitation: 24
(A) A public school district; 25
(B) A public school district board of directors; and 26
(C) An open-enrollment charter school; 27
(4) “State entity” means: 28
(A) The Department of Agriculture; 29
(B) The Department of Commerce; 30
(C) The Department of Corrections; 31
(D) The Department of Education; 32
(E) The Department of Energy and Environment; 33
(F) The Department of Finance and Administration; 34
(G) The Department of Health; 35
(H) The Department of Human Services; 36 As Engrossed: S2/5/25 SB147
52 02-05-2025 11:54:10 MBM119
(I) The Department of Inspector General; 1
(J) The Department of Labor and Licensing; 2
(K) The Department of the Military; 3
(L) The Department of Parks, Heritage, and Tourism; 4
(M) The Department of Public Safety; 5
(N) The Department of Transformation and Shared 6
Administrative Services; 7
(O) The Department of Veterans Affairs; 8
(P) The State Highway Commission; 9
(Q) The Arkansas Department of Transportation; 10
(R) The Arkansas State Game and Fish Commission; and 11
(S) An institution of higher education; and 12
(5) “Technology resources” means: 13
(A) The machines, devices, and transmission facilities 14
used in information processing, including computers, word processors, 15
terminals, telephones, cables, software, and related products; 16
(B) The devices used to process information through 17
electronic capture, collection, storage, manipulation, transmission, 18
retrieval, and presentation of information in the form of data, text, voice, 19
or image and includes telecommunications and office automation functions; 20
(C) Any component related to information processing and 21
wired and wireless telecommunications, including data processing and 22
telecommunications hardware, software, services, planning, personnel, 23
facilities, and training; 24
(D) The procedures, equipment, and software that are 25
designed, built, operated, and maintained to collect, record, process, store, 26
retrieve, display, and transmit information, and the associated personnel, 27
including consultants and contractors; and 28
(E) All electronic mail accounts issued by a public 29
entity. 30
(b) A public entity shall: 31
(1) Create a technology resources policy that defines the 32
authorized use of technology resources for the public entity; 33
(2)(A) Develop a cybersecurity policy for all technology 34
resources of the public entity based on the standards and guidelines set by 35
the State Cyber Security Office. 36 As Engrossed: S2/5/25 SB147
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(B) Subdivision (b)(2)(A) of this section shall not apply 1
to political subdivisions of the state; and 2
(3)(A) Develop a training program for all employees of the 3
public entity concerning the technology resources policy and cybersecurity 4
policy. 5
(B) A political subdivision of the state is not required 6
to develop a training program under this section for a cybersecurity policy. 7
(c)(1) The technology resources policy for each state entity shall be 8
available to the public upon request. 9
(2) The Department of Education, in coordination with the State 10
Cyber Security Office, shall: 11
(A) Develop technology resources policies that shall be 12
used by each type of state educational institution; and 13
(B) Make the policies developed under subdivision 14
(c)(2)(A) of this section available to the public upon request. 15
(d) Each technology resources policy shall include prohibitions on the 16
use of a public entity's technology resources, including without limitation 17
that a public entity's technology resources shall not be used to: 18
(1) Express a personal political opinion to an elected official 19
unless the opinion is: 20
(A) Within the scope of the employee's regular job duties; 21
or 22
(B) Requested by an elected official or public entity; 23
(2) Engage in lobbying an elected official on a personal opinion 24
if the employee is not a registered lobbyist for the public entity; 25
(3) Engage in illegal activities or activities otherwise 26
prohibited by federal law or state law; or 27
(4) Intentionally override or avoid the security and system 28
integrity procedures of the public entity. 29
(e) A public entity shall create a disciplinary procedure for a 30
violation of the public entity's technology resources policy concerning 31
authorized use of technology resources. 32
(f)(1) Each state entity shall submit a cybersecurity policy for the 33
state entity for approval to the State Cyber Security Office by October 1 of 34
each even-numbered year. 35
(2) The State Cyber Security Office shall establish a procedure 36 As Engrossed: S2/5/25 SB147
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to review and approve state entity cybersecurity policies. 1
(3) The Department of Education shall: 2
(A) Develop a cybersecurity policy that shall be used by 3
each type of state educational institution; 4
(B) Submit the policies developed under subdivision 5
(f)(3)(A) of this section for approval to the State Cyber Security Office by 6
October 1 of each even -numbered year; and 7
(C) Coordinate with each state educational institution to 8
implement the cybersecurity policy. 9
(g) A public entity, except for a political subdivision of the state, 10
shall create a disciplinary procedure for a violation of the public entity's 11
cybersecurity policy in consultation with the State Cyber Security Office 12
that establishes: 13
(1) A disciplinary procedure for a violation of a state entity's 14
cybersecurity policy; and 15
(2) The reporting procedure for suspected violations of the 16
cybersecurity policy. 17
(h) All cybersecurity policies developed under this section shall not 18
be deemed open public records under the Freedom of Information Act of 1967, § 19
25-19-101 et seq. 20
(i) The disciplinary procedures under subsection (e) of this section 21
shall not apply to employee communications made in compliance with the: 22
(1) Public Employees' Political Freedom Act of 1999, § 21 -1-501 23
et seq.; or 24
(2) Arkansas Whistle -Blower Act, § 21-1-601 et seq. 25
26
SECTION 83. Arkansas Code § 25 -1-129(d), concerning the purchase of 27
small unmanned aircraft from covered foreign entity by public entities, is 28
amended to read as follows: 29
(d) The Secretary of the Department of Transformation and Shared 30
Administrative Services may waive the restriction under subdivision (b)(2) or 31
subdivision (c)(2) of this section upon: 32
(1) His or her review of the necessity to purchase a small 33
unmanned aircraft system that is manufactured or assembled by a covered 34
foreign entity due to exigent circumstances, Counter Unmanned Aircraft 35
Systems, or criminal investigative purposes; and 36 As Engrossed: S2/5/25 SB147
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(2) Notification to the General Assembly. 1
2
SECTION 84. Arkansas Code § 25 -1-901(4)(A), concerning definitions, is 3
amended to read as follows: 4
(4)(A) “State entity” means an instrumentality of state 5
government, including: 6
(i) The Department of Agriculture; 7
(ii) The Department of Commerce; 8
(iii) The Department of Corrections; 9
(iv) The Department of Education; 10
(v) The Department of Energy and Environment; 11
(vi) The Department of Finance and Administration; 12
(vii) The Department of Health; 13
(viii) The Department of Human Services; 14
(ix) The Department of Inspector General; 15
(x) The Department of Labor and Licensing; 16
(xi) The Department of the Military; 17
(xii) The Department of Parks, Heritage, and Tourism; 18
(xiii) The Department of Public Safety; 19
(xiv) The Department of Transformation and Shared 20
Administrative Services; and 21
(xv) The Department of Veterans Affairs. 22
23
SECTION 85. Arkansas Code § 25 -1-904(b) and (c), concerning state 24
entity training, are amended to read as follows: 25
(b) The Secretary of the Department of Transformation and Shared 26
Administrative Services shall develop rules for the enforcement of the 27
provisions of this subchapter. 28
(c) Each state entity head shall: 29
(1) Issue a policy incorporating the requirements of this 30
subchapter into state entity operations; 31
(2) Request that the state entity thoroughly review and assess 32
not less than annually thereafter, state entity compliance with the 33
requirements of the policy in the form of a report submitted to the 34
Department of Transformation and Shared Administrative Services; and 35
(3) Assign at least one (1) employee of the state entity 36 As Engrossed: S2/5/25 SB147
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responsibility for ensuring compliance with the requirements of the policy 1
2
SECTION 86. Arkansas Code § 25 -4-104 is amended to read as follows: 3
25-4-104. Division of Information Systems. 4
(a) There is established within the Department of Transformation and 5
Shared Administrative Services the Division of Information Systems. 6
(b)(1) The Division of Information Systems shall be headed by a 7
director to be appointed by the Governor, subject to confirmation by the 8
Senate in the manner provided by law, and shall serve at the pleasure of the 9
Governor. 10
(2) The director shall be a person who, by education and 11
training, has technical knowledge and management experience in information 12
technology-related equipment, systems, and services. 13
(3) The director shall qualify by filing the oath of office 14
required in the Arkansas Constitution with the Secretary of State. 15
(c) The director, in consultation with the Secretary of the Department 16
of Transformation and Shared Administrative Services, may establish divisions 17
and the organizational structure deemed necessary and appropriate for the 18
efficient performance of the duties imposed under the provisions of this 19
chapter, provided the organizational structure of the division shall conform 20
to the positions authorized and limitations provided therefor in the biennial 21
appropriation of the division. 22
(d) The director, in consultation with the Secretary of the Department 23
of Transformation and Shared Administrative Services, shall appoint the 24
deputy and division directors and the professional, technical, and clerical 25
assistants and employees as necessary to perform the duties imposed by this 26
chapter. All employees of the division shall be employed by the department 27
and serve at the pleasure of the Secretary of the Department of 28
Transformation and Shared Administrative Services. 29
(e) The director shall report to the Secretary of the Department of 30
Transformation and Shared Administrative Services any matters relating to 31
abuses of this chapter. 32
(f) The director shall recommend statutory changes to the Secretary of 33
the Department of Transformation and Shared Administrative Services. 34
35
SECTION 87. Arkansas Code § 25 -4-111(c), concerning information 36 As Engrossed: S2/5/25 SB147
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technology prerequisites, is amended to read as follows: 1
(c)(1) Upon evaluation of the waiver request, the director shall 2
notify the agency in writing of his or her approval or rejection of the 3
request and his or her reasons. 4
(2) The director shall make his or her evaluation in a timely 5
manner. If the director requires more than thirty (30) days to complete the 6
evaluation, he or she shall report in writing to the Governor and the 7
Secretary of the Department of Transformation and Shared Administrative 8
Services his or her reasons for the delay in completion. 9
(3) If the director rejects a request for a waiver, a state 10
agency shall not make any expenditure of public funds for the acquisition or 11
expansion of information technology equipment or services. 12
(4) If the director determines that the agency needs additional 13
information technology resources, he or she may: 14
(A) Authorize the agency to acquire the requested 15
information technology in accordance with the state enterprise architecture; 16
(B) Authorize acquisition of a modified information 17
technology configuration; 18
(C) Notify the agency of the availability of Division of 19
Information Systems facilities to provide the requested information 20
technology; or 21
(D) Recommend that the information technology be provided 22
through the facilities of some other designated state agency. 23
24
SECTION 88. Arkansas Code § 25 -4-115(b)(1), concerning the 25
professional services contracts between the Division of Information Systems 26
and outside vendors, is amended to read as follows: 27
(b)(1) The division may utilize moneys appropriated for maintenance, 28
operation, and payment of regular salaries of the division for the purchase 29
of professional services upon approval by the Secretary of the Department of 30
Transformation and Shared Administrative Services. 31
32
SECTION 89. Arkansas Code § 25 -4-119(b), concerning budget procedures 33
of the Division of Information Systems, is amended to read as follows: 34
(b)(1) When the General Assembly has completed the appropriation 35
process, the director shall oversee budgetary planning for the division for 36 As Engrossed: S2/5/25 SB147
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each fiscal year of the biennium. 1
(2) The proposed annual operating budget shall be submitted to 2
the Secretary of the Department of Transformation and Shared Administrative 3
Services for his or her approval prior to the beginning of each fiscal year. 4
(3)(A) During the course of the biennium, the director shall 5
make certain that the expenditures of the division do not exceed the income 6
to be received by the division for the current fiscal year. 7
(B) Subject to the written approval of the Chief Fiscal 8
Officer of the State upon the written application of the division and review 9
by the Legislative Council, in order to effect compliance with state and 10
federal statutory and regulatory provisions: 11
(i) The director shall adjust rates for services or 12
issue billing adjustments as necessary; or 13
(ii) Funds sufficient to effect compliance shall be 14
provided to the division. 15
(4)(A) If rates charged to a customer are increased to ensure 16
compliance with state and federal statutory and regulatory provisions under 17
subdivision (b)(3) of this section, then the director shall promptly notify 18
the Governor, the Joint Committee on Advanced Communications and Information 19
Technology, and all state agencies and other customers before any changes 20
shall be effected. 21
(B) Rates shall be reviewed by the division on no less 22
than an annual basis in order to ensure compliance with state and federal 23
statutory and regulatory provisions. 24
25
SECTION 90. Arkansas Code § 25 -4-127(a) and (b), concerning the 26
creation of a Data and Transparency Panel, are amended to read as follows: 27
(a) The Data and Transparency Panel is created within the Department 28
of Transformation and Shared Administrative Services. 29
(b) The panel shall consist of the following members: 30
(1)(A) Three (3) appointees from the private sector who shall be 31
appointed as follows: 32
(i) One (1) appointee shall be appointed by the 33
Governor; 34
(ii) One (1) appointee shall be appointed by the 35
Speaker of the House of Representatives; and 36 As Engrossed: S2/5/25 SB147
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(iii) One (1) appointee shall be appointed by the 1
President Pro Tempore of the Senate. 2
(B) Each appointee shall serve at the pleasure of his or 3
her appointer. 4
(C) The appointer of an appointee who vacates his or her 5
position on the panel shall fill the vacancy as required under this section; 6
(2) The Attorney General or his or her designee; 7
(3) The secretaries, directors, or their designees, of the 8
following entities: 9
(A) The Department of Public Safety; 10
(B) The Department of Inspector General; 11
(C) The Department of Education; 12
(D) The Department of Energy and Environment; 13
(E) The Department of Corrections; 14
(F) The Department of Parks, Heritage, and Tourism; 15
(G) The Department of Finance and Administration; 16
(H) The Department of Health; 17
(I) The Department of Agriculture; 18
(J) The Department of Human Services; 19
(K) The Department of Transformation and Shared 20
Administrative Services; 21
(L) The Department of Labor and Licensing; 22
(M) The Department of Veteran Veterans Affairs; 23
(N) The Department of the Military; and 24
(O) The Department of Commerce; 25
(4)(A) The Chief Data Officer of the Division of Information 26
Systems. 27
(B) The Chief Data Officer of the Division of Information 28
Systems shall be the Chair of the Data and Transparency Panel. 29
(C) The members of the panel shall select a vice chair 30
annually; 31
(5) The Chief Privacy Officer of the Division of Information 32
Systems; and 33
(6) The Chief Justice of the Supreme Court or his or her 34
designee. 35
36 As Engrossed: S2/5/25 SB147
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SECTION 91. Arkansas Code 25 -8-106 is amended to read as follows: 1
25-8-106. Marketing and redistribution of state personal property. 2
(a)(1) This section applies only with respect to personal property. 3
(2) This section does not apply to or affect the: 4
(A) Disposition of surplus real property of the state; or 5
(B) Sale of plants, animals, or commodities of plants or 6
animals by a public institution of higher education if the proceeds from the 7
sale are used solely for agricultural research, extension, or teaching 8
programs, including without limitation 4 -H programs and National FFA 9
Organization programs. 10
(b)(1) There is created within the Office of State Procurement a 11
Marketing and Redistribution Section for the purpose of promoting and 12
ensuring effective utilization of surplus state property. 13
(2)(A) All state agencies, boards, commissions, departments, and 14
colleges and universities are required and county, municipal, or other tax -15
supported institutions are authorized to utilize the services of the 16
Marketing and Redistribution Section, unless specifically exempted in writing 17
by the State Procurement Director. 18
(B)(i) Nothing in this section shall be construed to make 19
it mandatory that county, municipal, or other local government units utilize 20
the services of the Marketing and Redistribution Section. 21
(ii) Nothing in this section shall be construed to 22
make it mandatory that any agency, department, division, office, board, 23
commission, or institution of this state, including state -supported 24
institutions of higher education, utilize the services of the Marketing and 25
Redistribution Section in the sale of surplus computer equipment and 26
electronics to state agency employees for a price not less than ten percent 27
(10%) above depreciated value. 28
(3) The Department of Transformation and Shared Administrative 29
Services shall maintain adequate and accurate records of the costs for 30
operating the Marketing and Redistribution Section and is authorized to 31
establish fair and reasonable charges for the services of the Marketing and 32
Redistribution Section. The charges for services shall be deposited into the 33
State Treasury as nonrevenue receipts, there to be credited to the Property 34
Sales Holding Fund for the operation, maintenance, and improvement of the 35
Marketing and Redistribution Section. 36 As Engrossed: S2/5/25 SB147
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(c) The office may maintain an inventory of furniture, equipment, and 1
other items which shall be made available to state agencies on rental 2
agreements based upon fair and reasonable rental values. 3
(d) The department is authorized to establish a fair and reasonable 4
fee schedule for redistributing property between state agencies upon their 5
request. 6
(e) Proceeds from the sale, transfer, or rental of property by the 7
director shall be accounted for as follows: 8
(1) The purchasers, transferees, and lessees of property 9
available for such purposes as are authorized by this section shall transmit 10
to the office the agreed sale price, service charge, or rental fee; 11
(2) The office shall deposit the full amount of proceeds 12
received, as set out above, into the State Treasury in the manner as provided 13
by law; and 14
(3)(A) Proceeds from the sale or transfer of property deposited 15
into the State Treasury shall be classified as nonrevenue receipts and 16
credited to the Property Sales Holding Fund herein created on the books of 17
the Treasurer of State as a trust fund. 18
(B) Funds deposited into the Property Sales Holding Fund 19
may be expended only by the selling or transferring agency under procedures 20
established by the Chief Fiscal Officer of the State and appropriations 21
provided by the General Assembly. 22
(C) However, funds deposited into the Property Sales 23
Holding Fund from the sale of property purchased from agency cash funds may 24
be refunded to the agency cash fund from which the original expenditure was 25
made by the issuance of a warrant under procedures established by the Chief 26
Fiscal Officer of the State and the Auditor of State to be payable from 27
appropriations provided by the General Assembly for disposition of the 28
proceeds. 29
(f) The Secretary of the Department of Transformation and Shared 30
Administrative Services is authorized to promulgate reasonable rules, not 31
inconsistent with law, for compliance with the provisions of this section, 32
the Arkansas Procurement Law, § 19 -11-201 et seq., the General Accounting and 33
Budgetary Procedures Law, § 19 -4-101 et seq., and the sale of surplus 34
commodities to not-for-profit organizations under § 22 -1-101. 35
36 As Engrossed: S2/5/25 SB147
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SECTION 92. Arkansas Code § 25 -8-110(a)(1), concerning the duties of 1
Department of Shared Administrative Services and Department of Finance and 2
Administration, is amended to read as follows: 3
(a) The Department of Transformation and Shared Administrative 4
Services shall: 5
(1) Develop retention schedules for control, preservation, 6
protection, and disposition of the electronic records of state agencies under 7
§ 25-18-601 et seq.; 8
9
SECTION 93. Arkansas Code § 25 -10-503 is amended to read as follows: 10
25-10-503. Arkansas State Hospital contingency positions. 11
(a) If the Department of Human Services determines, after prior review 12
by the Legislative Council or, if the General Assembly is in session, the 13
Joint Budget Committee, that it is in the best interest of the state to 14
discontinue a management contract with a private provider and it is deemed 15
necessary to utilize Department of Human Services staff to provide the 16
required services, the Secretary of the Department of Human Services may 17
request the Department of Transformation and Shared Administrative Services 18
to approve the establishment of one (1) or more additional positions at 19
salary rates not to exceed the maximum salaries established for comparable 20
positions in the Uniform Classification and Compensation Act, § 21 -5-201 et 21
seq., the operative appropriation act of the Department of Human Services, 22
and the operative appropriation act of the University of Arkansas for Medical 23
Sciences. 24
(b) Upon approval by the Department of Transformation and Shared 25
Administrative Services and after review by the Legislative Council or, if 26
the General Assembly is in session, the Joint Budget Committee, the Division 27
of Aging, Adult, and Behavioral Health Services of the Department of Human 28
Services may establish positions described in subsection (a) of this section. 29
(c) If the division requests continuation of a position as established 30
in this section, the position shall be requested as a new position in the 31
division's budget request. 32
33
SECTION 94. Arkansas Code § 25 -32-117 is amended to read as follows: 34
25-32-117. Creation and retention of electronic records and conversion 35
of written records by governmental agencies. 36 As Engrossed: S2/5/25 SB147
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(a) Each governmental agency of this State state shall determine 1
whether and the extent to which it will create and retain electronic records 2
and convert written records to electronic records. 3
(b) Each state agency shall comply with applicable standards and 4
policies adopted or established by the Department of Transformation and 5
Shared Administrative Services with advice and review from the Division of 6
Information Systems to determine whether and the extent to which it will 7
retain and convert written records to electronic records. 8
9
SECTION 95. Arkansas Code § 25 -32-118(a), concerning the acceptance 10
and distribution of electronic records by governmental agencies, is amended 11
to read as follows: 12
(a)(1) Except as otherwise provided in § 25-32-112(f), each 13
governmental agency of this state shall determine whether and the extent to 14
which it will send and accept electronic records and electronic signatures to 15
and from other persons and otherwise create, generate, communicate, store, 16
process, use, and rely upon electronic records and electronic signatures. 17
(2) For state agencies, the determinations shall be consistent 18
with applicable standards and policies adopted or established by the 19
Department of Transformation and Shared Administrative Services with advice 20
and review from the Division of Information Systems. 21
22
SECTION 96. Arkansas Code § 25 -43-104(a), concerning cabinet -level 23
departments, is amended to read as follows: 24
(a) The following cabinet -level departments are created: 25
(1) The Department of Agriculture; 26
(2) The Department of Commerce; 27
(3) The Department of Corrections; 28
(4) The Department of Education; 29
(5) The Department of Energy and Environment; 30
(6) The Department of Finance and Administration; 31
(7) The Department of Health; 32
(8) The Department of Human Services; 33
(9) The Department of the Inspector General; 34
(10) The Department of Labor and Licensing; 35
(11) The Department of the Military; 36 As Engrossed: S2/5/25 SB147
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(12) The Department of Parks, Heritage, and Tourism; 1
(13) The Department of Public Safety; 2
(14) The Department of Transformation and Shared Administrative 3
Services; and 4
(15) The Department of Veterans Affairs. 5
6
SECTION 97. Arkansas Code § 25 -43-108(d), concerning cabinet -level 7
department secretaries, is amended to read as follows: 8
(d) There is hereby created one (1) new classification and position 9
for the executive head for each cabinet -level department, designated as 10
follows: 11
(1) Secretary of the Department of Agriculture; 12
(2) Secretary of the Department of Commerce; 13
(3) Secretary of the Department of Corrections; 14
(4) Secretary of the Department of Education; 15
(5) Secretary of the Department of Energy and Environment; 16
(6) Secretary of the Department of Finance and Administration; 17
(7) Secretary of the Department of Health; 18
(8) Secretary of the Department of Human Services; 19
(9) Secretary of the Department of Inspector General; 20
(10) Secretary of the Department of Labor and Licensing; 21
(11) Secretary of the Department of the Military; 22
(12) Secretary of the Department of Parks, Heritage, and Tourism; 23
(13) Secretary of the Department of Public Safety; 24
(14) Secretary of the Department of Transformation and Shared 25
Administrative Services; and 26
(15) Secretary of the Department of Veterans Affairs. 27
28
SECTION 98. Arkansas Code § 25 -43-1501 is amended to read as follows: 29
25-43-1501. Department of Transformation and Shared Administrative 30
Services. 31
There is created the Department of Transformation and Shared 32
Administrative Services as a cabinet -level department. 33
34
SECTION 99. Arkansas Code § 25 -43-1502 is amended to read as follows: 35
25-43-1502. State entities transferred to the Department of 36 As Engrossed: S2/5/25 SB147
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Transformation and Shared Services. 1
(a) The administrative functions of the following state entities are 2
transferred to the Department of Transformation and Shared Administrative 3
Services by a cabinet -level department transfer: 4
(1) The Arkansas Geographic Information Systems Board, created 5
under § 15-21-503; 6
(2) The Arkansas Geographic Information Systems Office, created 7
under § 15-21-502; 8
(3) The Building Authority Division, created under § 22 -2-104; 9
(4) The Data and Transparency Panel, created under § 25 -4-127; 10
(5) The Department of Information Systems, created under § 25 -4-11
104, now to be known as the “Division of Information Systems”; 12
(6) The Employee Benefits Division, created under § 25 -43-1505; 13
(7) The Office of Personnel Management, created under § 25-43-14
1504; and 15
(8) The Office of State Procurement, created under § 19 -11-215. 16
(b) Unless otherwise provided by law, a cabinet -level department 17
transfer under subsection (a) of this section includes all state entities 18
under a state entity transferred to the Department of Transformation and 19
Shared Administrative Services under subsection (a) of this section, 20
including without limitation a division, office, program, or other unit of a 21
state entity transferred to the Department of Transformation and Shared 22
Administrative Services under subsection (a) of this section. 23
(c) Unless otherwise provided by law, a state entity whose 24
administrative functions have been transferred to the Department of 25
Transformation and Shared Administrative Services under subsection (a) of 26
this section shall otherwise continue to exercise the duties of the state 27
entity under the administration of the cabinet -level Department of 28
Transformation and Shared Administrative Services in the same manner as 29
before the creation of the cabinet -level department. 30
31
SECTION 100. Arkansas Code § 25 -43-1503(a), concerning the Secretary 32
of the Department of Transformation and Shared Services, is amended to read 33
as follows: 34
(a) The executive head of the Department of Transformation and Shared 35
Administrative Services shall be the Secretary of the Department of 36 As Engrossed: S2/5/25 SB147
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Transformation and Shared Administrative Services. 1
2
SECTION 101. Arkansas Code § 25 -43-1504 is amended to read as follows: 3
25-43-1504. Office of Personnel Management — State Personnel 4
Administrator. 5
(a) There is created within the Department of Transformation and 6
Shared Administrative Services the Office of Personnel Management. 7
(b)(1)(A) The Director of the Office of Personnel Management shall be 8
known as the “State Personnel Administrator”. 9
(B) The State Personnel Administrator shall be employed by 10
the Secretary of the Department of Transformation and Shared Administrative 11
Services with the advice and consent of the Governor. 12
(2) The office shall be under the overall direction, control, 13
and supervision of the secretary. 14
15
SECTION 102. Arkansas Code § 25 -43-1505 is amended to read as follows: 16
25-43-1505. Employee Benefits Division. 17
There is created within the Department of Transformation and Shared 18
Administrative Services the Employee Benefits Division. 19
20
SECTION 103. DO NOT CODIFY. Corrections. The Arkansas Code Revision 21
Commission may change references to the Department of Transformation and 22
Shared Services to the Department of Shared Administrative Services: 23
(1) During the codification of legislation enacted during the Ninety -24
Fifth General Assembly; and 25
(2) In existing law that was not included in this act. 26
27
SECTION 104. EMERGENCY CLAUSE. It is found and determined by the 28
General Assembly of the State of Arkansas that the people of the State of 29
Arkansas rely on state agency names to conduct their business; that to ensure 30
the efficient operations of state government agencies it is important to set 31
a date certain for the official change of the name of an agency; and that 32
this act is necessary because it will allow the agency to prepare for the 33
official name change in a timely and efficient manner. Therefore, an 34
emergency is declared to exist, and this act being necessary for the 35
preservation of the public peace, health, and safety shall become effective 36 As Engrossed: S2/5/25 SB147
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on July 1, 2025. 1
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/s/J. Dotson 3
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APPROVED: 2/27/25 6
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