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Arkansas Senate Bill SB636

Arkansas 2025 Regular Session

Arkansas Senate Bill SB636 Compare Versions

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11 Stricken language would be deleted from and underlined language would be added to present law.
2-Act 1017 of the Regular Session
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43 State of Arkansas 1
54 95th General Assembly A Bill 2
65 Regular Session, 2025 SENATE BILL 636 3
76 4
87 By: Senator J. Dismang 5
98 By: Representative Jean 6
109 7
1110 For An Act To Be Entitled 8
1211 AN ACT TO TRANSFER FUNDS; DEFINE THE MONIES TO BE 9
1312 AVAILABLE IN THE RESTRICTED RESERVE FUND; AND TO 10
1413 ALLOW THAT ADDITIONAL FUNDS MAY BE MADE AVAILABLE FOR 11
1514 STATE DEPARTMENTS, AGENCIES, AND INSTITUTIONS; TO 12
1615 DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES. 13
1716 14
1817 15
1918 Subtitle 16
2019 AN ACT TO TRANSFER FUNDS; DEFINE THE 17
2120 MONIES TO BE AVAILABLE IN THE RESTRICTED 18
2221 RESERVE FUND; AND ALLOW ADDITIONAL FUNDS 19
2322 TO BE MADE AVAILABLE FOR STATE 20
2423 DEPARTMENTS, AGENCIES AND INSTITUTIONS; 21
2524 AND TO DECLARE AND EMERGENCY. 22
2625 23
2726 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
2827 25
2928 SECTION 1. DO NOT CODIFY. Legislative findings — Nonseverability. 26
3029 (a) The General Assembly finds that: 27
3130 (1) Determining the maximum amount of appropriation and funding 28
3231 for a state agency or institution each fiscal year is the prerogative of the 29
3332 General Assembly; 30
3433 (2) Determining the maximum amount of appropriation and funding 31
3534 for a state agency or institution is usually accomplished by delineating the 32
3635 maximum amounts in the appropriation acts for the state agency or 33
3736 institution, authorizing the distribution of unobligated funds, and in the 34
3837 general revenue allocations authorized for each relevant fund and fund 35
3938 account by amendment to the Revenue Stabilization Law, § 19 -5-101 et seq.; 36 SB636
4039
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4241 (3) The Restricted Reserve Fund has established procedures for 1
4342 the transfer of funds to various funds and fund accounts for the efficient 2
4443 and effective operation of state government; and 3
4544 (4) It is necessary and appropriate that the General Assembly 4
4645 maintain oversight by requiring prior approval of the Legislative Council or, 5
4746 if the General Assembly is in session, the Joint Budget Committee, as 6
4847 provided in § 19-5-1263(c). 7
4948 (b) The requirement of approval by the Legislative Council or if the 8
5049 General Assembly is in session the Joint Budget Committee, is not a severable 9
5150 part of § 19-5-1263. If the requirement of approval by the Legislative 10
5251 Council or if the General Assembly is in session the Joint Budget Committee, 11
5352 is ruled unconstitutional by a court of competent jurisdiction, § 19 -5-1263 12
5453 (c)(d) and (e) are void in their entirety. 13
5554 14
5655 SECTION 2. DO NOT CODIFY. TRANSFERS TO THE RESTRICTED RESERVE FUND. 15
5756 Immediately upon the effective date of this Act, as soon thereafter as is 16
5857 practical or as authorized in this Section the State Treasurer shall transfer 17
5958 and credit to the "Restricted Reserve Fund”, upon certification of the 18
6059 amounts thereof by the Chief Fiscal Officer of the State, the following: 19
6160 (a)(1) All unobligated monies in the EBD or Contingency Set -Aside in the 20
6261 Restricted Reserve Fund as established in Section 3(a)(19) of Act 561 of 21
6362 2023; 22
6463 (2) All unobligated monies in the Adequacy Set -Aside in the 23
6564 Restricted Reserve Fund as established in Section 3(b)(3) of Act 561 of 2023; 24
6665 (3) All unobligated monies in the Infrastructure Investment and Jobs 25
6766 Act Grants Matching Set -Aside as established in Section 3(a)(4) of Act 561 of 26
6867 2023; and 27
6968 (4) All unobligated monies in the Law Enforcement Stipends Set -Aside 28
7069 in the Restricted Reserve Fund as established in Section 3(a)(27); 29
7170 (b) All unobligated and unallocated monies remaining in the 30
7271 “Development and Enhancement Fund” on June 30, 2025 which are not required to 31
7372 finance projects to be financed therefrom pursuant to appropriations enacted 32
7473 by the General Assembly, or which have not been reappropriated or reallocated 33
7574 for financing from the “Development and Enhancement Fund” by the 95th General 34
7675 Assembly; 35
7776 (c)(1) All General Revenue Funds recovered from remaining fund balances 36 SB636
7877
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8079 in the "General Revenue Allotment Reserve Fund" from monies accruing thereto 1
8180 during the 2023-2024 fiscal year which are not required to finance enactments 2
8281 of the 95th General Assembly that do not expire on June 30, 2024, including 3
8382 all General Revenue Funds recovered from remaining fund balances; 4
8483 (2) Any unobligated or unallocated funds remaining on July 2, 2025 in 5
8584 the "General Revenue Allotment Reserve Fund" which are not required to 6
8685 finance enactments of the 95th General Assembly that do not expire on June 7
8786 30, 2025, including all General Revenue Funds recovered from remaining fund 8
8887 balances; 9
8988 (3) All General Revenue Funds recovered from remaining fund balances 10
9089 in the "General Revenue Allotment Reserve Fund" which are not required to 11
9190 finance enactments of the 95th General Assembly that do not expire on June 12
9291 30, 2026, including all General Revenue Funds recovered from remaining fund 13
9392 balances; 14
9493 (d) Those special revenues credited to the Development and Enhancement 15
9594 Fund from estate taxes as set out in Arkansas Code § 19 -6-301(171); and 16
9695 (e) Other revenues as may be transferred or authorized by law. 17
9796 18
9897 SECTION 3. DO NOT CODIFY. TRANSFERS, RESTRICTED RESERVE FUND 19
9998 DISTRIBUTION AND SET -ASIDES. After having made transfers as authorized in 20
10099 this Act, and after having transferred or set -aside the obligations as set 21
101100 out in §19-5-202(b)(2)(B)(iii) as determined by the Chief Fiscal Officer of 22
102101 the State, for those funds transferred and credited to the Restricted Reserve 23
103102 Fund as authorized in Section 2 of this Act, and that are unobligated for 24
104103 other Set-Asides established by the General Assembly, the State Treasurer 25
105104 shall transfer funds or establish sub -fund set-asides, or transfer funds to 26
106105 existing sub-fund set-asides in the Restricted Reserve Fund, referred to and 27
107106 established as "Set-Asides" in the Restrict Reserve fund herein, which shall 28
108107 be funded as funds are available: 29
109108 (a) Set-Aside four hundred thirty -six million seven hundred ninety -four 30
110109 thousand four hundred thirty -three dollars ($436,794,433) or so much as is 31
111110 available for the "Restricted Reserve Fund Set -Asides" as enumerated in 32
112111 subsections (a)(2) through (a)(12) of this section, not inclusive of funds 33
113112 authorized in subsection (a)(1) that is to be transferred effective upon 34
114113 passage and approval of this Act, for purpose as set out in each Set -Aside, 35
115114 to be funded in the following order; 36 SB636
116115
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118117 (1) For a fund transfer upon the effective date of this subsection, the 1
119118 Chief Fiscal Officer of the State shall transfer on his or her books and 2
120119 those of the State Treasurer and the Auditor of the State the sum of one 3
121120 hundred and thirty-six million dollars ($136,000,000) from the General 4
122121 Revenue Allotment Reserve Fund to the State Captive Insurance Program Trust 5
123122 Fund; 6
124123 (2) Medicaid Sustainability Set -Aside, for the Department of Human 7
125124 Services for transfers from time to time as determined by the Chief Fiscal 8
126125 Officer of the State for Medicaid Expenses, as authorized in 19 -5-1263 (c), 9
127126 in a sum not to exceed $100,000,000; 10
128127 (3) Children's Educational Freedom Account Set -Aside, for the Department 11
129128 of Education - Division of Elementary and Secondary Education, for transfers 12
130129 from time to time to the Arkansas Children's Educational Freedom Account 13
131130 Fund, as authorized in 19 -5-1263 (c), in a sum not to exceed $90,000,000; 14
132131 (4)(A) Various General Discretionary Majority Vote Set -Aside, for 15
133132 transfers from time to time as determined by the Chief Fiscal Officer of the 16
134133 State, in a sum not to exceed $45,994,433; 17
135134 (B) Funds transferred to the Various General Discretionary Majority 18
136135 Vote Set-Aside herein shall be in addition to those remaining balances 19
137136 currently available as established in Section 3(a)(18) of Act 561 of 2023 and 20
138137 any other funds made available by the General Assembly; 21
139138 (C) Notwithstanding other provisions of law as set out in 19 -5-1263(c) 22
140139 the Various General Discretionary Majority Vote Set -Aside authorized in 23
141140 subsections (a)(4) herein shall only require a majority affirmative vote as 24
142141 set out in the rules of the Legislative Council or the Joint Budget Committee 25
143142 during a legislative session of the General Assembly for prior approval of 26
144143 all disbursements; 27
145144 (5)(A) Educational Facilities Set -Aside, for the Department of Education - 28
146145 Division of Public School Academic Facilities and Transportation, Educational 29
147146 Facilities Partnership Fund Account, Academic Facilities Partnership Program, 30
148147 as authorized in 19-5-1263 (c), in a sum not to exceed $45,000,000; 31
149148 (B) Funds transferred to the Educational Facilities Set -Aside herein 32
150149 shall be in addition to those remaining balances currently available as 33
151150 established in Section 3(a)(1) of Act 561 of 2023 and any other funds made 34
152151 available by the General Assembly; 35
153152 (C) All funds held in the Educational Facilities Set -Aside in the 36 SB636
154153
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156155 Restricted Reserve Fund shall be invested and reinvested at the direction of 1
157156 the State Board of Finance to maximize returns using any investments 2
158157 authorized for use by the Treasurer of State; and Interest Earnings or other 3
159158 earnings on moneys in the fund shall be allocated and retained in addition to 4
160159 existing balances in the Educational Facilities Set -Aside; 5
161160 (6)(A) Teacher Academy Scholarship Set -Aside, for the Department of 6
162161 Education - Division of Higher Education, for transfers from time to time for 7
163162 the Arkansas Teacher Academy Scholarship Program Fund, as authorized in 19 -5-8
164163 1263 (c), in a sum not to exceed $12,000,000; 9
165164 (B) Funds transferred to the Teacher Academy Scholarship Set -Aside 10
166165 herein shall be in addition to those remaining balances currently available 11
167166 as established in Sections 3(a)(8) and 3(b)(4) of Act 561 of 2023 and any 12
168167 other funds made available by the General Assembly; 13
169168 (7)(A) Motor Vehicle Set -Aside, for transfers from time to time as 14
170169 determined by the Chief Fiscal Officer of the State, as authorized in 19 -5-15
171170 1263 (c), in a sum not to exceed $4,700,000; 16
172171 (B) Funds transferred to the Motor Vehicle Set -Aside herein shall be in 17
173172 addition to those remaining balances currently available as established in 18
174173 Sections 3(a)(9) of Act 561 of 2023 and any other funds made available by the 19
175174 General Assembly; 20
176175 (8) Economic Stimulus Programs Set -Aside, for transfers from time to time 21
177176 to the Department of Commerce - Arkansas Economic Development Commission to 22
178177 fund or fund accounts as determined by the Chief Fiscal Officer of the State 23
179178 for Site Infrastructure Grants and Economic Stimulus Activities throughout 24
180179 the state, as authorized in 19 -5-1263 (c), in a sum not to exceed 25
181180 $50,000,000; 26
182181 (9) Arkansas School for the Deaf/Blind Set -Aside, for transfers from time 27
183182 to time as determined by the Chief Fiscal Officer of the State, as authorized 28
184183 in 19-5-1263 (c), in a sum not to exceed $35,000,000; 29
185184 (10) State Capitol HVAC Upgrade Set -Aside, for the Secretary of State, for 30
186185 transfers from time to time as determined by the Chief Fiscal Officer of the 31
187186 State, as authorized in 19 -5-1263 (c), in a sum not to exceed $9,100,000; 32
188187 (11) For a transfer upon the effective date of this subsection, the Chief 33
189188 Fiscal Officer of the State shall transfer on his or her books and those of 34
190189 the State Treasurer and the Auditor of the State the sum of twenty -five 35
191190 million dollars ($25,000,000) to the Economic Development Incentive Quick 36 SB636
192191
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194193 Action Closing Fund, for the Department of Commerce – Arkansas Economic 1
195194 Development Commission; and 2
196195 (12) For a transfer upon the effective date of this s ubsection, the Chief 3
197196 Fiscal Officer of the State shall transfer on his or her books and those of 4
198197 the State Treasurer and the Auditor of the State the sum of twenty million 5
199198 dollars ($20,000,000) to the Arkansas Major Historic Rehabilitation Trust 6
200199 Fund, for the Department of Parks, Heritage, and Tourism - Division of 7
201200 Arkansas Heritage. 8
202201 (b) After all the disbursements, transfers, or funds deposited in Restricted 9
203202 Reserve Fund Set-Aside sub-funds as authorized in this Act, other enactments 10
204203 by the General Assembly for Restricted Reserve Fund Set -Asides or transfers 11
205204 out of the Restricted Reserve Fund to Fund or Fund Accounts are completed, 12
206205 any remaining unobligated balances, future collections, deposits, and 13
207206 transfers authorized in Section 2 of this Act shall be transferred and 14
208207 credited to the General Revenue Allotment Reserve Fund. 15
209208 16
210209 SECTION 4. Arkansas Code § 19-5-905(a)(12), concerning the uses of the 17
211210 Securities Reserve Fund, is amended to read as follows: 18
212211 (12) After all distributions and transfers under this section, 19
213212 less one hundred thousand dollars ($100,000) under § 19 -3-521(a)(2), for a 20
214213 transfer by the Chief Fiscal Officer of the State on the last business day of 21
215214 the fiscal year for that fiscal year of the fund balances to the Catastrophic 22
216215 Reserve Fund shall be held in a sub -fund as necessary to be distributed as 23
217216 follows: 24
218217 (A) On September 1, 2025: 25
219218 (i) After any other transfers authorized by the 26
220219 General Assembly, the lesser of the remaining fund balance or twenty -five 27
221220 million dollars ($25,000,000) to the Water and Sewer Treatment Facilities 28
222221 Grant Program Fund; and 29
223222 (ii) Any remaining fund balance after the transfer 30
224223 under subdivision (a)(12)(A)(i) of this section to the General Revenue 31
225224 Allotment Reserve Fund; 32
226225 (B) On July 2, 2026: 33
227226 (i) After any other transfers authorized by the 34
228227 General Assembly, the lesser of the remaining fund balance or twenty -five 35
229228 million dollars ($25,000,000) to the Water and Sewer Treatment Facilities 36 SB636
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232231 Grant Program Fund; and 1
233232 (ii) Any remaining fund balance after the transfer 2
234233 under subdivision (a)(12)(B)(i) of this section to the General Revenue 3
235234 Allotment Reserve Fund; and 4
236235 (C) On July 1, 2027: 5
237236 (i) After any other transfers authorized by the 6
238237 General Assembly, the lesser of the remaining fund balance or twenty -five 7
239238 million dollars ($25,000,000) to the Water and Sewer Treatment Facilities 8
240239 Grant Program Fund; and 9
241240 (ii) Any remaining fund balance after the transfer 10
242241 under subdivision (a)(12)(C)(i) of this section to the General Revenue 11
243242 Allotment Reserve Fund; and 12
244243 (D) For fiscal years beginning on or after July 1, 2028, 13
245244 on the last business day of the fiscal year the remaining fund balance to the 14
246245 General Revenue Allotment Reserve Fund . 15
247246 16
248247 SECTION 5. DO NOT CODIFY. Conditions and Audit. (a) Transfer of funds 17
249248 from the "Restricted Reserve Fund" shall be made only after the Chief Fiscal 18
250249 Officer of the State has determined that all criteria or pre -conditions 19
251250 established in the appropriation act to receive the transfer have been met 20
252251 and that a Method of Finance has been filed with the Office of Accounting in 21
253252 the Department of Finance and Administration, if required. 22
254253 (b) Any matching funds as may be provided in law shall be certified to 23
255254 the Chief Fiscal Officer of the State prior to the commencement of the 24
256255 project. 25
257256 (c) Any recipient of the funds appropriated herein are also subject to 26
258257 an audit by the Arkansas Legislative Audit of the Legislative Joint Auditing 27
259258 Committee in order to determine that the use of the funds was in compliance 28
260259 with the intent and appropriated purposes of the General Assembly. 29
261260 30
262261 SECTION 6. DO NOT CODIFY. Funding Authority. (a) Any enactment of the 31
263262 95th General Assembly in either regular, fiscal or extraordinary session 32
264263 appropriating, transferring or allocating funds to the "Restricted Reserve 33
265264 Fund" may be deemed to be payable from the "Restricted Reserve Fund". 34
266265 (b) Appropriations which are not enumerated in this Act may be 35
267266 financed from monies accruing to the "Restricted Reserve Fund" to fund 36 SB636
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270269 appropriations authorized by the General Assembly and as set out in law. 1
271270 2
272271 SECTION 7. EMERGENCY CLAUSE. It is found and determined by the General 3
273272 Assembly, that the Constitution of the State of Arkansas prohibits the 4
274273 appropriation of funds for more than a one (1) year period; that the 5
275274 effectiveness of this Act on July 1, 2025 is essential to allow transfers 6
276275 which can provide an additional funding mechanism for the operation of state 7
277276 departments, agencies and institutions of higher education, as well as to 8
278277 address unforeseen needs of the state through the disbursement of state funds 9
279278 with the Restricted Reserve Fund as authorized in this Act ; with the 10
280279 exception that Section 3 Subsection (a)(1) and Section 4 in this Act shall be 11
281280 in full force and effect from and after the date of its passage and approval, 12
282281 and that in the event of an extension of the Regular Session, the delay in 13
283282 the effective date of this Act beyond July 1, 2025, with the exception that 14
284283 Section 3 Subsection (a)(1) and Section 4 in this Act shall be in full force 15
285284 and effect from and after the date of its passage and approval, could work 16
286285 irreparable harm upon the proper the proper transfer of funds, administration 17
287286 and provision of essential governmental programs. Therefore, an emergency is 18
288287 hereby declared to exist and this Act being necessary for the immediate 19
289288 preservation of the public peace, health and safety shall be in full force 20
290289 and effect from and after July 1, 2025; with the exception that Section 3 21
291290 Subsection (a)(1) and Section 4 in this Act shall be in full force and effect 22
292291 from and after the date of its passage and approval. 23
293292 24
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295-APPROVED: 4/22/25 26
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