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 636 3
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By: Senator J. Dismang 5
By: Representative Jean 6
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For An Act To Be Entitled 8
AN ACT TO TRANSFER FUNDS; DEFINE THE MONIES TO BE 9
AVAILABLE IN THE RESTRICTED RESERVE FUND; AND TO 10
ALLOW THAT ADDITIONAL FUNDS MAY BE MADE AVAILABLE FOR 11
STATE DEPARTMENTS, AGENCIES, AND INSTITUTIONS; TO 12
DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES. 13
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Subtitle 16
AN ACT TO TRANSFER FUNDS; DEFINE THE 17
MONIES TO BE AVAILABLE IN THE RESTRICTED 18
RESERVE FUND; AND ALLOW ADDITIONAL FUNDS 19
TO BE MADE AVAILABLE FOR STATE 20
DEPARTMENTS, AGENCIES AND INSTITUTIONS; 21
AND TO DECLARE AND EMERGENCY. 22
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
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SECTION 1. DO NOT CODIFY. Legislative findings — Nonseverability. 26
(a) The General Assembly finds that: 27
(1) Determining the maximum amount of appropriation and funding 28
for a state agency or institution each fiscal year is the prerogative of the 29
General Assembly; 30
(2) Determining the maximum amount of appropriation and funding 31
for a state agency or institution is usually accomplished by delineating the 32
maximum amounts in the appropriation acts for the state agency or 33
institution, authorizing the distribution of unobligated funds, and in the 34
general revenue allocations authorized for each relevant fund and fund 35
account by amendment to the Revenue Stabilization Law, § 19 -5-101 et seq.; 36 SB636
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(3) The Restricted Reserve Fund has established procedures for 1
the transfer of funds to various funds and fund accounts for the efficient 2
and effective operation of state government; and 3
(4) It is necessary and appropriate that the General Assembly 4
maintain oversight by requiring prior approval of the Legislative Council or, 5
if the General Assembly is in session, the Joint Budget Committee, as 6
provided in § 19-5-1263(c). 7
(b) The requirement of approval by the Legislative Council or if the 8
General Assembly is in session the Joint Budget Committee, is not a severable 9
part of § 19-5-1263. If the requirement of approval by the Legislative 10
Council or if the General Assembly is in session the Joint Budget Committee, 11
is ruled unconstitutional by a court of competent jurisdiction, § 19 -5-1263 12
(c)(d) and (e) are void in their entirety. 13
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SECTION 2. DO NOT CODIFY. TRANSFERS TO THE RESTRICTED RESERVE FUND. 15
Immediately upon the effective date of this Act, as soon thereafter as is 16
practical or as authorized in this Section the State Treasurer shall transfer 17
and credit to the "Restricted Reserve Fund”, upon certification of the 18
amounts thereof by the Chief Fiscal Officer of the State, the following: 19
(a)(1) All unobligated monies in the EBD or Contingency Set -Aside in the 20
Restricted Reserve Fund as established in Section 3(a)(19) of Act 561 of 21
2023; 22
(2) All unobligated monies in the Adequacy Set -Aside in the 23
Restricted Reserve Fund as established in Section 3(b)(3) of Act 561 of 2023; 24
(3) All unobligated monies in the Infrastructure Investment and Jobs 25
Act Grants Matching Set -Aside as established in Section 3(a)(4) of Act 561 of 26
2023; and 27
(4) All unobligated monies in the Law Enforcement Stipends Set -Aside 28
in the Restricted Reserve Fund as established in Section 3(a)(27); 29
(b) All unobligated and unallocated monies remaining in the 30
“Development and Enhancement Fund” on June 30, 2025 which are not required to 31
finance projects to be financed therefrom pursuant to appropriations enacted 32
by the General Assembly, or which have not been reappropriated or reallocated 33
for financing from the “Development and Enhancement Fund” by the 95th General 34
Assembly; 35
(c)(1) All General Revenue Funds recovered from remaining fund balances 36 SB636
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in the "General Revenue Allotment Reserve Fund" from monies accruing thereto 1
during the 2023-2024 fiscal year which are not required to finance enactments 2
of the 95th General Assembly that do not expire on June 30, 2024, including 3
all General Revenue Funds recovered from remaining fund balances; 4
(2) Any unobligated or unallocated funds remaining on July 2, 2025 in 5
the "General Revenue Allotment Reserve Fund" which are not required to 6
finance enactments of the 95th General Assembly that do not expire on June 7
30, 2025, including all General Revenue Funds recovered from remaining fund 8
balances; 9
(3) All General Revenue Funds recovered from remaining fund balances 10
in the "General Revenue Allotment Reserve Fund" which are not required to 11
finance enactments of the 95th General Assembly that do not expire on June 12
30, 2026, including all General Revenue Funds recovered from remaining fund 13
balances; 14
(d) Those special revenues credited to the Development and Enhancement 15
Fund from estate taxes as set out in Arkansas Code § 19 -6-301(171); and 16
(e) Other revenues as may be transferred or authorized by law. 17
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SECTION 3. DO NOT CODIFY. TRANSFERS, RESTRICTED RESERVE FUND 19
DISTRIBUTION AND SET -ASIDES. After having made transfers as authorized in 20
this Act, and after having transferred or set -aside the obligations as set 21
out in §19-5-202(b)(2)(B)(iii) as determined by the Chief Fiscal Officer of 22
the State, for those funds transferred and credited to the Restricted Reserve 23
Fund as authorized in Section 2 of this Act, and that are unobligated for 24
other Set-Asides established by the General Assembly, the State Treasurer 25
shall transfer funds or establish sub -fund set-asides, or transfer funds to 26
existing sub-fund set-asides in the Restricted Reserve Fund, referred to and 27
established as "Set-Asides" in the Restrict Reserve fund herein, which shall 28
be funded as funds are available: 29
(a) Set-Aside four hundred thirty -six million seven hundred ninety -four 30
thousand four hundred thirty -three dollars ($436,794,433) or so much as is 31
available for the "Restricted Reserve Fund Set -Asides" as enumerated in 32
subsections (a)(2) through (a)(12) of this section, not inclusive of funds 33
authorized in subsection (a)(1) that is to be transferred effective upon 34
passage and approval of this Act, for purpose as set out in each Set -Aside, 35
to be funded in the following order; 36 SB636
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(1) For a fund transfer upon the effective date of this subsection, the 1
Chief Fiscal Officer of the State shall transfer on his or her books and 2
those of the State Treasurer and the Auditor of the State the sum of one 3
hundred and thirty-six million dollars ($136,000,000) from the General 4
Revenue Allotment Reserve Fund to the State Captive Insurance Program Trust 5
Fund; 6
(2) Medicaid Sustainability Set -Aside, for the Department of Human 7
Services for transfers from time to time as determined by the Chief Fiscal 8
Officer of the State for Medicaid Expenses, as authorized in 19 -5-1263 (c), 9
in a sum not to exceed $100,000,000; 10
(3) Children's Educational Freedom Account Set -Aside, for the Department 11
of Education - Division of Elementary and Secondary Education, for transfers 12
from time to time to the Arkansas Children's Educational Freedom Account 13
Fund, as authorized in 19 -5-1263 (c), in a sum not to exceed $90,000,000; 14
(4)(A) Various General Discretionary Majority Vote Set -Aside, for 15
transfers from time to time as determined by the Chief Fiscal Officer of the 16
State, in a sum not to exceed $45,994,433; 17
(B) Funds transferred to the Various General Discretionary Majority 18
Vote Set-Aside herein shall be in addition to those remaining balances 19
currently available as established in Section 3(a)(18) of Act 561 of 2023 and 20
any other funds made available by the General Assembly; 21
(C) Notwithstanding other provisions of law as set out in 19 -5-1263(c) 22
the Various General Discretionary Majority Vote Set -Aside authorized in 23
subsections (a)(4) herein shall only require a majority affirmative vote as 24
set out in the rules of the Legislative Council or the Joint Budget Committee 25
during a legislative session of the General Assembly for prior approval of 26
all disbursements; 27
(5)(A) Educational Facilities Set -Aside, for the Department of Education - 28
Division of Public School Academic Facilities and Transportation, Educational 29
Facilities Partnership Fund Account, Academic Facilities Partnership Program, 30
as authorized in 19-5-1263 (c), in a sum not to exceed $45,000,000; 31
(B) Funds transferred to the Educational Facilities Set -Aside herein 32
shall be in addition to those remaining balances currently available as 33
established in Section 3(a)(1) of Act 561 of 2023 and any other funds made 34
available by the General Assembly; 35
(C) All funds held in the Educational Facilities Set -Aside in the 36 SB636
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Restricted Reserve Fund shall be invested and reinvested at the direction of 1
the State Board of Finance to maximize returns using any investments 2
authorized for use by the Treasurer of State; and Interest Earnings or other 3
earnings on moneys in the fund shall be allocated and retained in addition to 4
existing balances in the Educational Facilities Set -Aside; 5
(6)(A) Teacher Academy Scholarship Set -Aside, for the Department of 6
Education - Division of Higher Education, for transfers from time to time for 7
the Arkansas Teacher Academy Scholarship Program Fund, as authorized in 19 -5-8
1263 (c), in a sum not to exceed $12,000,000; 9
(B) Funds transferred to the Teacher Academy Scholarship Set -Aside 10
herein shall be in addition to those remaining balances currently available 11
as established in Sections 3(a)(8) and 3(b)(4) of Act 561 of 2023 and any 12
other funds made available by the General Assembly; 13
(7)(A) Motor Vehicle Set -Aside, for transfers from time to time as 14
determined by the Chief Fiscal Officer of the State, as authorized in 19 -5-15
1263 (c), in a sum not to exceed $4,700,000; 16
(B) Funds transferred to the Motor Vehicle Set -Aside herein shall be in 17
addition to those remaining balances currently available as established in 18
Sections 3(a)(9) of Act 561 of 2023 and any other funds made available by the 19
General Assembly; 20
(8) Economic Stimulus Programs Set -Aside, for transfers from time to time 21
to the Department of Commerce - Arkansas Economic Development Commission to 22
fund or fund accounts as determined by the Chief Fiscal Officer of the State 23
for Site Infrastructure Grants and Economic Stimulus Activities throughout 24
the state, as authorized in 19 -5-1263 (c), in a sum not to exceed 25
$50,000,000; 26
(9) Arkansas School for the Deaf/Blind Set -Aside, for transfers from time 27
to time as determined by the Chief Fiscal Officer of the State, as authorized 28
in 19-5-1263 (c), in a sum not to exceed $35,000,000; 29
(10) State Capitol HVAC Upgrade Set -Aside, for the Secretary of State, for 30
transfers from time to time as determined by the Chief Fiscal Officer of the 31
State, as authorized in 19 -5-1263 (c), in a sum not to exceed $9,100,000; 32
(11) For a transfer upon the effective date of this subsection, the Chief 33
Fiscal Officer of the State shall transfer on his or her books and those of 34
the State Treasurer and the Auditor of the State the sum of twenty -five 35
million dollars ($25,000,000) to the Economic Development Incentive Quick 36 SB636
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Action Closing Fund, for the Department of Commerce – Arkansas Economic 1
Development Commission; and 2
(12) For a transfer upon the effective date of this s ubsection, the Chief 3
Fiscal Officer of the State shall transfer on his or her books and those of 4
the State Treasurer and the Auditor of the State the sum of twenty million 5
dollars ($20,000,000) to the Arkansas Major Historic Rehabilitation Trust 6
Fund, for the Department of Parks, Heritage, and Tourism - Division of 7
Arkansas Heritage. 8
(b) After all the disbursements, transfers, or funds deposited in Restricted 9
Reserve Fund Set-Aside sub-funds as authorized in this Act, other enactments 10
by the General Assembly for Restricted Reserve Fund Set -Asides or transfers 11
out of the Restricted Reserve Fund to Fund or Fund Accounts are completed, 12
any remaining unobligated balances, future collections, deposits, and 13
transfers authorized in Section 2 of this Act shall be transferred and 14
credited to the General Revenue Allotment Reserve Fund. 15
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SECTION 4. Arkansas Code § 19-5-905(a)(12), concerning the uses of the 17
Securities Reserve Fund, is amended to read as follows: 18
(12) After all distributions and transfers under this section, 19
less one hundred thousand dollars ($100,000) under § 19 -3-521(a)(2), for a 20
transfer by the Chief Fiscal Officer of the State on the last business day of 21
the fiscal year for that fiscal year of the fund balances to the Catastrophic 22
Reserve Fund shall be held in a sub -fund as necessary to be distributed as 23
follows: 24
(A) On September 1, 2025: 25
(i) After any other transfers authorized by the 26
General Assembly, the lesser of the remaining fund balance or twenty -five 27
million dollars ($25,000,000) to the Water and Sewer Treatment Facilities 28
Grant Program Fund; and 29
(ii) Any remaining fund balance after the transfer 30
under subdivision (a)(12)(A)(i) of this section to the General Revenue 31
Allotment Reserve Fund; 32
(B) On July 2, 2026: 33
(i) After any other transfers authorized by the 34
General Assembly, the lesser of the remaining fund balance or twenty -five 35
million dollars ($25,000,000) to the Water and Sewer Treatment Facilities 36 SB636
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Grant Program Fund; and 1
(ii) Any remaining fund balance after the transfer 2
under subdivision (a)(12)(B)(i) of this section to the General Revenue 3
Allotment Reserve Fund; and 4
(C) On July 1, 2027: 5
(i) After any other transfers authorized by the 6
General Assembly, the lesser of the remaining fund balance or twenty -five 7
million dollars ($25,000,000) to the Water and Sewer Treatment Facilities 8
Grant Program Fund; and 9
(ii) Any remaining fund balance after the transfer 10
under subdivision (a)(12)(C)(i) of this section to the General Revenue 11
Allotment Reserve Fund; and 12
(D) For fiscal years beginning on or after July 1, 2028, 13
on the last business day of the fiscal year the remaining fund balance to the 14
General Revenue Allotment Reserve Fund . 15
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SECTION 5. DO NOT CODIFY. Conditions and Audit. (a) Transfer of funds 17
from the "Restricted Reserve Fund" shall be made only after the Chief Fiscal 18
Officer of the State has determined that all criteria or pre -conditions 19
established in the appropriation act to receive the transfer have been met 20
and that a Method of Finance has been filed with the Office of Accounting in 21
the Department of Finance and Administration, if required. 22
(b) Any matching funds as may be provided in law shall be certified to 23
the Chief Fiscal Officer of the State prior to the commencement of the 24
project. 25
(c) Any recipient of the funds appropriated herein are also subject to 26
an audit by the Arkansas Legislative Audit of the Legislative Joint Auditing 27
Committee in order to determine that the use of the funds was in compliance 28
with the intent and appropriated purposes of the General Assembly. 29
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SECTION 6. DO NOT CODIFY. Funding Authority. (a) Any enactment of the 31
95th General Assembly in either regular, fiscal or extraordinary session 32
appropriating, transferring or allocating funds to the "Restricted Reserve 33
Fund" may be deemed to be payable from the "Restricted Reserve Fund". 34
(b) Appropriations which are not enumerated in this Act may be 35
financed from monies accruing to the "Restricted Reserve Fund" to fund 36 SB636
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appropriations authorized by the General Assembly and as set out in law. 1
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SECTION 7. EMERGENCY CLAUSE. It is found and determined by the General 3
Assembly, that the Constitution of the State of Arkansas prohibits the 4
appropriation of funds for more than a one (1) year period; that the 5
effectiveness of this Act on July 1, 2025 is essential to allow transfers 6
which can provide an additional funding mechanism for the operation of state 7
departments, agencies and institutions of higher education, as well as to 8
address unforeseen needs of the state through the disbursement of state funds 9
with the Restricted Reserve Fund as authorized in this Act ; with the 10
exception that Section 3 Subsection (a)(1) and Section 4 in this Act shall be 11
in full force and effect from and after the date of its passage and approval, 12
and that in the event of an extension of the Regular Session, the delay in 13
the effective date of this Act beyond July 1, 2025, with the exception that 14
Section 3 Subsection (a)(1) and Section 4 in this Act shall be in full force 15
and effect from and after the date of its passage and approval, could work 16
irreparable harm upon the proper the proper transfer of funds, administration 17
and provision of essential governmental programs. Therefore, an emergency is 18
hereby declared to exist and this Act being necessary for the immediate 19
preservation of the public peace, health and safety shall be in full force 20
and effect from and after July 1, 2025; with the exception that Section 3 21
Subsection (a)(1) and Section 4 in this Act shall be in full force and effect 22
from and after the date of its passage and approval. 23
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