Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 633 3
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By: Senator J. Bryant 5
By: Representative Jean 6
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For An Act To Be Entitled 8
AN ACT TO PROVIDE FUNDING FOR THE CORRECTIONAL 9
FACILITIES SET-ASIDE; TO PROVIDE FOR THE TRANSFER OF 10
FUNDS FROM THE SECURITIES RESERVE FUND; TO DECLARE AN 11
EMERGENCY; AND FOR OTHER PURPOSES. 12
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Subtitle 15
TO PROVIDE FUNDING FOR THE CORRECTIONAL 16
FACILITIES SET-ASIDE; TO PROVIDE FOR THE 17
TRANSFER OF FUNDS FROM THE SECURITIES 18
RESERVE FUND; AND TO DECLARE AN 19
EMERGENCY. 20
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
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SECTION 1. Arkansas Code § 19-5-905(a)(12), concerning the uses of the 24
Securities Reserve Fund, is amended to read as follows: 25
(12) After all distributions and transfers under this section, 26
less one hundred thousand dollars ($100,000) under § 19 -3-521(a)(2), for a 27
transfer by the Chief Fiscal Officer of the State on the last business day of 28
the fiscal year for that fiscal year of the fund balances to the Catastrophic 29
Reserve Fund shall be held in a sub -fund as necessary to be distributed as 30
follows: 31
(A) On July 1, 2025 or upon the effective date of this 32
Act: 33
(i) The lesser of the remaining fund balance or one 34
hundred twenty-five million dollars ($125,000,000) to the Correctional 35
Facilities Set-Aside in the Restricted Reserve Fund; and 36 SB633
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(ii) On September 2, 2025, any remaining fund 1
balance, after the transfers under subdivisions (a)(12)(A)(i) of this section 2
and then any other transfers authorized by the General Assembly, to the 3
General Revenue Allotment Reserve Fund; 4
(B) On July 1, 2026: 5
(i) The lesser of the remaining fund balance or 6
forty-five million dollars ($45,000,000) to the Correctional Facilities Se -7
Aside in the Restricted Reserve Fund; and 8
(ii) On July 3, 2026 any remaining fund balance 9
after the transfers under subdivisions (a)(12)(B)(i) of this section, and 10
then any other transfers authorized by the General Assembly, to the General 11
Revenue Allotment Reserve Fund; 12
(C) On July 2, 2027: 13
(i) Any remaining fund balance, after any transfers 14
authorized by the General Assembly, to the General Revenue Allotment Reserve 15
Fund; and 16
(D) For fiscal years beginning on and after July 1, 2028, 17
on the last business day of the fiscal year the remaining fund balance to the 18
General Revenue Allotment Reserve Fund . 19
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SECTION 2. Arkansas Code § 19-5-1004(b), concerning the revenues that 21
make up the General Revenue Allotment Reserve Fund, is amended to read as 22
follows: 23
(b) Unless otherwise provided by law, the General Revenue Allotment Reserve 24
Fund shall consist of: 25
(1) The remainder of the general revenues collected by the state after 26
deductions as specified in § 19 -5-202 have been made and which are not 27
required to fulfill the requirements of the maximum allotments of general 28
revenues as may be provided in the Revenue Stabilization Law, § 19 -5-101 et 29
seq., for the fiscal year in which the general revenues were collected and 30
deposited into the State Treasury; and 31
(2) The portion not determined to be special revenues by § 19 -6-110 of the 32
year-end fund balances of the funds and fund accounts created in § 19 -5-302, 33
except for § 19-5-302(11)(A), and in § 19 -5-304(2)--(7) and (10), §§ 19-5-34
306, 19-5-307, 19-6-404, and 19-6-411, which fund balances are to be 35
transferred on or before August 15 of the fiscal year next following the 36 SB633
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fiscal year during which balances accrued. 1
(3) The remaining fund balance in the Securities Reserve Fund under § 19 -2
5-905(a)(12). 3
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SECTION 3. DO NOT CODIFY. PRISON CONSTRUCTION FUND TRANSFER. 5
Immediately upon the effective date of this Act, the Chief Fiscal Office r of 6
the State shall transfer on his or her books and those of the State Treasurer 7
and the Auditor of the State the sum of two hundred and fifty million dollars 8
($250,000,000) from the General Revenue Allotment Reserve Fund to the 9
Correctional Facilities Set -Aside in the Restricted Reserve Fund, which shall 10
be in addition to existing balances in the Correctional Facilities Set -Aside 11
as established in Section 3(a)(2) of Act 561 of 2023. 12
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SECTION 4. DO NOT CODIFY. PRISON CONSTRUCTION REPORTING REQUIREMENTS. 14
(a) The Department of Corrections shall report quarterly to the Arkansas 15
Legislative Council or Joint Budget Committee the status of all prison 16
construction activity that will not compromise the security or compromise the 17
integrity of the facility, to include the following: 18
(1) Projected cost summaries, which shall include budgeted amounts, 19
expenditures, funds balances, projected funding and the source of funds; 20
(2) Summary of the design of the facility, that may be provided without 21
any risk of a breach of security; 22
(3) A summary of any contract bidding process related to the construction 23
of the prison; 24
(4) A summary of any contracts awarded, notice to proceed, methods of 25
finance, grant awards, which shall include contract and grant amount(s), and 26
the amount(s) paid to date; 27
(5) Schedule of timelines and milestones, which shall include, 28
construction start, construction completion and occupancy; 29
(6) Summary of the number of beds and style of beds; 30
(7) Plans for inmate programming at the prison facility; 31
(8) Projected activity for the next quarter; and 32
(9) Any other information as requested by the Arkansas Legislative Council 33
or Joint Budget Committee. 34
(b) The provisions of this section shall be in effect from July 1, 2025 35
through the completion of the Prison Construction Project. 36 SB633
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1
SECTION 5. DO NOT CODIFY. Conditions and Audit. (a) Transfer of 2
funds from the "Restricted Reserve Fund" shall be made only after the Chief 3
Fiscal Officer of the State has determined that all criteria or pre -4
conditions established in the appropriation act to receive the transfer have 5
been met and that a Method of Finance has been filed with the Office of 6
Accounting in the Department of Finance and Administration, if required. 7
(b) Any matching funds as may be provided in law shall be certified to 8
the Chief Fiscal Officer of the State prior to the commencement of the 9
project. 10
(c) Any recipient of the funds appropriated herein are also subject to 11
an audit by the Arkansas Legislative Audit of the Legislative Joint Auditing 12
Committee in order to determine that the use of the funds was in compliance 13
with the intent and appropriated purposes of the General Assembly. 14
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SECTION 6. EMERGENCY CLAUSE. It is found and determined by the General 16
Assembly, that the Constitution of the State of Arkansas prohibits the 17
appropriation of funds for more than a one (1) year period; that the 18
effectiveness of this Act upon passage and approval is essential to allow 19
transfers which can provide an additional funding mechanism for the 20
construction and operation of a state prison, as well as to address 21
unforeseen needs, and a delay in its effectiveness could work irreparable 22
harm upon the proper transfer of funds, administration and provision of 23
essential governmental programs. Therefore, an emergency is hereby declared 24
to exist and this Act being necessary for the immediate preservation of the 25
public peace, health, and safety shall be in full force and effect upon 26
passage and approval. If the bill is neither approved nor vetoed by the 27
Governor, it shall become effective on the expiration of the period of time 28
during which the Governor may veto the bill. If the bill is vetoed by the 29
Governor and the veto is overridden, it shall become effective on the date 30
the last house overrides the veto. 31
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