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*LCW078* 04-21-2026 14:36:16 LCW078
State of Arkansas As Engrossed: H4/21/26 1
95th General Assembly A Bill 2
Fiscal Session, 2026 HOUSE BILL 1023 3
4
By: Joint Budget Committee 5
6
7
For An Act To Be Entitled 8
AN ACT TO MAKE AN APPROPRIATION FOR PERSONAL SERVICES 9
AND OPERATING EXPENSES FOR THE DEPARTMENT OF HUMAN 10
SERVICES - SECRETARY'S OFFICE FOR THE FISCAL YEAR 11
ENDING JUNE 30, 2027; AND FOR OTHER PURPOSES. 12
13
14
Subtitle 15
AN ACT FOR THE DEPARTMENT OF HUMAN 16
SERVICES - SECRETARY'S OFFICE 17
APPROPRIATION FOR THE 2026-2027 FISCAL 18
YEAR. 19
20
21
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
23
SECTION 1. REGULAR SALARIES - SECRETARY OF HUMAN SERVICES. There is 24
hereby established for the Department of Human Services - Secretary's Office 25
for the 2026-2027 fiscal year, the following maximum number of regular 26
employees. 27
28
Maximum Annual 29
Maximum Salary Rate 30
Item Class No. of Fiscal Year 31
No. Code Title Employees 2026-2027 32
(1) ESE08A SECRETARY OF HUMAN SERVICES 1 GRADE EXE04 33
MAX. NO. OF EMPLOYEES 1 34
35
SECTION 2. APPROPRIATION - SECRETARY OF HUMAN SERVICES. There is 36
As Engrossed: H4/21/26 HB1023
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hereby appropriated, to the Department of Human Services, to be payable from 1
the paying account as determined by the Chief Fiscal Officer of the State, 2
for personal services of the Department of Human Services - Secretary's 3
Office for the fiscal year ending June 30, 2027, the following: 4
5
ITEM FISCAL YEAR 6
NO. 2026-2027 7
(01) REGULAR SALARIES $287,042 8
(02) PERSONAL SERVICES MATCHING 68,678 9
TOTAL AMOUNT APPROPRIATED $355,720 10
11
SECTION 3. REGULAR SALARIES - OPERATIONS. There is hereby established 12
for the Department of Human Services - Secretary's Office for the 2026-2027 13
fiscal year, the following maximum number of regular employees. 14
15
Maximum Annual 16
Maximum Salary Rate 17
Item Class No. of Fiscal Year 18
No. Code Title Employees 2026-2027 19
(1) EEX11A CHIEF PROGRAMS DIRECTOR 2 GRADE EXE03 20
(2) EEX22A HUMAN SERVICES DIVISION DIRECTOR 1 GRADE EXE02 21
(3) EEX10A CHIEF OF STAFF II 1 GRADE EXE02 22
(4) EEX08A CHIEF LEGAL COUNSEL II 1 GRADE SPC11 23
(5) FAC09C CHIEF FISCAL OFFICER II 1 GRADE SPC10 24
(6) LAT06C ATTORNEY IV 3 GRADE SPC09 25
(7) LAT07C CHIEF ADMINISTRATIVE LAW JUDGE 1 GRADE SPC09 26
(8) SSP03C DHS DIVISION ADMINISTRATOR 1 GRADE SPC09 27
(9) LAT01C ADMINISTRATIVE LAW JUDGE 3 GRADE SPC08 28
(10) HDH03C HR ADMINISTRATOR II 1 GRADE SPC08 29
(11) FAC12C MEDICAID FISCAL OFFICER 1 GRADE SPC08 30
(12) SSP07C SOCIAL SERVICES ADMINISTRATOR 3 GRADE SPC08 31
(13) LAT05P ATTORNEY III 10 GRADE SPC08 32
(14) CPR02C CHIEF OF COMMUNICATIONS II 1 GRADE SPC07 33
(15) SSP04C DHS DIVISION MANAGER 2 GRADE SPC07 34
(16) FAC11C DIVISION FISCAL ADMINISTRATOR 10 GRADE SPC07 35
(17) FAU01C AUDIT MANAGER 1 GRADE SPC06 36
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(18) FAC10C CONTROLLER 1 GRADE SPC06 1
(19) FAC06C ASSISTANT CONTROLLER 1 GRADE SPC05 2
(20) LAT04P ATTORNEY II 64 GRADE SPC05 3
(21) HDH06C HR MANAGER 1 GRADE SPC04 4
(22) FAC05P ACCOUNTING SUPERVISOR/EXPERT 7 GRADE SPC04 5
(23) FAU02P AUDIT SUPERVISOR/EXPERT 3 GRADE SPC04 6
(24) FAC03P ACCOUNTING COORDINATOR 5 GRADE SPC03 7
(25) LAT03P ATTORNEY I 4 GRADE SPC03 8
(26) FAC02P ACCOUNTANT II 1 GRADE SPC02 9
(27) FAU04P AUDITOR II 15 GRADE SPC02 10
(28) FAC01P ACCOUNTANT I 7 GRADE SPC01 11
(29) FAU03P AUDITOR I 1 GRADE SPC01 12
(30) SSP01C ADULT PUBLIC GUARDIAN ADMIN 1 GRADE SGS12 13
(31) PPR03C PROCUREMENT MANAGER 1 GRADE SGS10 14
(32) FFS03C FISCAL SUPPORT MANAGER 2 GRADE SGS09 15
(33) CPR06C PUBLIC INFORMATION MANAGER 1 GRADE SGS09 16
(34) PQA02C QUALITY ASSURANCE MANAGER 1 GRADE SGS09 17
(35) TCO04P CONSTRUCTION SUPERVISOR/EXPERT 1 GRADE SGS08 18
(36) SEM04P EMERGENCY MANAGEMENT SUPVR/EXPERT 1 GRADE SGS08 19
(37) HDH08P HR SUPERVISOR/EXPERT 11 GRADE SGS08 20
(38) PPR05P PROCUREMENT SUPERVISOR/EXPERT 3 GRADE SGS08 21
(39) CPR08P PUBLIC INFORMATION SUPVR/EXPERT 1 GRADE SGS08 22
(40) FGM03C GRANTS MANAGER 1 GRADE SGS07 23
(41) PAS08I EXECUTIVE ASSISTANT 4 GRADE SGS07 24
(42) FBU01P BUDGET ANALYST 4 GRADE SGS07 25
(43) TCO01P CONSTRUCTION COORDINATOR 2 GRADE SGS07 26
(44) CME02P EDITOR 1 GRADE SGS07 27
(45) FFS05P FISCAL SUPPORT SUPERVISOR/EXPERT 27 GRADE SGS07 28
(46) CME03P GRAPHIC ARTIST 1 GRADE SGS07 29
(47) PHS05P HEALTH PROGRAM COORDINATOR 1 GRADE SGS07 30
(48) HDH05P HR COORDINATOR 2 GRADE SGS07 31
(49) TIS01P INDUSTRIAL SAFETY COORDINATOR 1 GRADE SGS07 32
(50) IIV05P INVESTIGATOR SUPERVISOR/EXPERT 4 GRADE SGS07 33
(51) PPR02P PROCUREMENT COORDINATOR 10 GRADE SGS07 34
(52) CPR05P PUBLIC INFORMATION COORDINATOR 4 GRADE SGS07 35
(53) CTR02P TRAINER 2 GRADE SGS07 36
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(54) ILS02I HEARING OFFICER 12 GRADE SGS06 1
(55) ILS03I LEGAL SUPPORT SPECIALIST 21 GRADE SGS06 2
(56) HBE02P BENEFITS COORDINATOR 1 GRADE SGS06 3
(57) FFS02P FISCAL SUPPORT COORDINATOR 33 GRADE SGS06 4
(58) FGM04P GRANTS SUPERVISOR/EXPERT 4 GRADE SGS06 5
(59) HDH04P HR ANALYST 31 GRADE SGS06 6
(60) TIW02P INVENTORY MANAGER 1 GRADE SGS06 7
(61) CMA04P MARKETING SUPERVISOR/EXPERT 1 GRADE SGS06 8
(62) PPR01P PROCUREMENT ANALYST 12 GRADE SGS06 9
(63) CPR07P PUBLIC INFORMATION SPECIALIST 4 GRADE SGS06 10
(64) PQA03P QUALITY ASSURANCE SPECIALIST 1 GRADE SGS06 11
(65) SSP16P SOCIAL SERVICES SPECIALIST 4 GRADE SGS06 12
(66) PAS13C POLICY COORDINATOR 1 GRADE SGS05 13
(67) PAS01P ADMINISTRATIVE ANALYST 12 GRADE SGS05 14
(68) FGM02P GRANTS COORDINATOR 2 GRADE SGS05 15
(69) IIV03P INVESTIGATOR II 4 GRADE SGS05 16
(70) CMA01P MARKETING COORDINATOR 2 GRADE SGS05 17
(71) CME04P MEDIA SPECIALIST 1 GRADE SGS05 18
(72) TAT09P PRINTER SUPERVISOR/EXPERT 1 GRADE SGS05 19
(73) PPR04P PROCUREMENT SPECIALIST 6 GRADE SGS05 20
(74) PPE02P PROGRAM ELIGIBILITY SPECIALIST I 2 GRADE SGS05 21
(75) PAS14P RECORDS COORDINATOR 2 GRADE SGS05 22
(76) TIW06P SURPLUS PROPERTY AGENT 1 GRADE SGS05 23
(77) PAS02P ADMINISTRATIVE COORDINATOR 39 GRADE SGS04 24
(78) HBE01P BENEFITS ANALYST 1 GRADE SGS04 25
(79) FFS04P FISCAL SUPPORT SPECIALIST 63 GRADE SGS04 26
(80) FGM01P GRANTS ANALYST 2 GRADE SGS04 27
(81) HDH07P HR SPECIALIST 19 GRADE SGS04 28
(82) TIW01P INVENTORY COORDINATOR 1 GRADE SGS04 29
(83) CMA03P MARKETING SPECIALIST 1 GRADE SGS04 30
(84) TAT08P PRINTER 6 GRADE SGS04 31
(85) TIW03P INVENTORY SPECIALIST 8 GRADE SGS03 32
(86) PAS05I CALL CENTER SPECIALIST 2 GRADE SGS02 33
(87) PAS03P ADMINISTRATIVE SPECIALIST 4 GRADE SGS02 34
(88) PAS12P MAILROOM SUPERVISOR/EXPERT 1 GRADE SGS02 35
(89) PAS11P MAILROOM SPECIALIST 3 GRADE SGS01 36
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(90) SIA21P INTERNAL AFFAIRS SUPERVISOR/EXPERT 1 GRADE LES04 1
(91) SIA19P INTERNAL AFFAIRS INVESTIGATOR 1 GRADE LES03 2
(92) IIA03C CHIEF INFORMATION OFFICER III 1 GRADE IST14 3
(93) IDA01C DATA ARCHITECT 1 GRADE IST13 4
(94) IIA04C IT ADMINISTRATOR 4 GRADE IST12 5
(95) IIS05C IT INFRASTRUCTURE ARCHITECT 4 GRADE IST11 6
(96) IIS08C IT INFRASTRUCTURE MANAGER 1 GRADE IST11 7
(97) IIS10C IT INFRASTRUCTURE SUPVR/EXPERT 2 GRADE IST10 8
(98) IIP03P IT SENIOR PROJECT MANAGER 2 GRADE IST10 9
(99) IAS03P APPLICATIONS COORDINATOR 1 GRADE IST09 10
(100) IIS06P IT INFRASTRUCTURE COORDINATOR 7 GRADE IST08 11
(101) IAS01P APPLICATIONS ANALYST I 1 GRADE IST07 12
(102) IDN01P DATA ANALYST 5 GRADE IST07 13
(103) IDM02P DATABASE ANALYST 4 GRADE IST07 14
(104) IIS04P IT INFRASTRUCTURE ANALYST 2 GRADE IST06 15
(105) IIE02P IT SECURITY ANALYST I 2 GRADE IST06 16
(106) IUS05P USER SUPPORT SUPERVISOR/EXPERT 1 GRADE IST06 17
(107) IAS08I WEBSITE SPECIALIST 1 GRADE IST05 18
(108) IDM03P DATABASE SPECIALIST 1 GRADE IST05 19
(109) IUS02P USER SUPPORT COORDINATOR 20 GRADE IST05 20
(110) IUS01P USER SUPPORT ANALYST 19 GRADE IST04 21
(111) IUS04P USER SUPPORT SPECIALIST 13 GRADE IST02 22
MAX. NO. OF EMPLOYEES 643 23
24
SECTION 4. EXTRA HELP - OPERATIONS. There is hereby authorized, for 25
the Department of Human Services - Secretary's Office for the 2026-2027 26
fiscal year, the following maximum number of part-time or temporary 27
employees, to be known as "Extra Help", payable from funds appropriated 28
herein for such purposes: twenty-eight (28) temporary or part-time employees, 29
when needed, at rates of pay not to exceed those provided in the Uniform 30
Classification and Compensation Act, or its successor, or this act for the 31
appropriate classification. 32
33
SECTION 5. APPROPRIATION - OPERATIONS. There is hereby appropriated, 34
to the Department of Human Services, to be payable from the paying account as 35
determined by the Chief Fiscal Officer of the State, for personal services 36
As Engrossed: H4/21/26 HB1023
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and operating expenses of the Department of Human Services - Secretary's 1
Office for the fiscal year ending June 30, 2027, the following: 2
3
ITEM FISCAL YEAR 4
NO. 2026-2027 5
(01) REGULAR SALARIES $38,545,777 6
(02) EXTRA HELP 298,556 7
(03) PERSONAL SERVICES MATCHING 14,131,429 8
(04) OVERTIME 8,383 9
(05) MAINT. & GEN. OPERATION 10
(A) OPER. EXPENSE 5,571,873 11
(B) CONF. & TRAVEL 59,433 12
(C) PROF. FEES 8,861,800 13
(D) CAP. OUTLAY 400,000 14
(E) DATA PROC. 0 15
(06) DATA PROCESSING SERVICES 2,016,710 16
TOTAL AMOUNT APPROPRIATED $69,893,961 17
18
SECTION 6. APPROPRIATION - VARIOUS BUILDING CONSTRUCTION. There is 19
hereby appropriated, to the Department of Human Services, to be payable from 20
the Department of Human Services Renovation Fund, for construction, 21
renovation, maintenance, equipment, and repairs for various buildings 22
operated by the Department of Human Services - Secretary's Office for the 23
fiscal year ending June 30, 2027, the following: 24
25
ITEM FISCAL YEAR 26
NO. 2026-2027 27
(01) CONSTRUCTION $15,914,729 28
29
SECTION 7. APPROPRIATION - CONSOLIDATED COST. There is hereby 30
appropriated, to the Department of Human Services, to be payable from the DHS 31
Consolidated Cost Revolving Fund, for operating expenses of the Department of 32
Human Services - Secretary's Office - Consolidated Cost for the fiscal year 33
ending June 30, 2027, the following: 34
35
ITEM FISCAL YEAR 36
As Engrossed: H4/21/26 HB1023
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NO. 2026-2027 1
(01) MAINT. & GEN. OPERATION 2
(A) OPER. EXPENSE $800,000 3
(B) CONF. & TRAVEL 0 4
(C) PROF. FEES 0 5
(D) CAP. OUTLAY 21,500 6
(E) DATA PROC. 0 7
TOTAL AMOUNT APPROPRIATED $821,500 8
9
SECTION 8. APPROPRIATION - GRANTS PAYING. There is hereby 10
appropriated, to the Department of Human Services, to be payable from the 11
paying account as determined by the Chief Fiscal Officer of the State, for 12
purchase of services of the Department of Human Services - Secretary's Office 13
for the fiscal year ending June 30, 2027, the following: 14
15
ITEM FISCAL YEAR 16
NO. 2026-2027 17
(01) PURCHASE OF SERVICES $129,084 18
19
SECTION 9. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 20
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. 21
SECRETARY'S OFFICE/OFFICE OF CHIEF COUNSEL - PURCHASE OF EVIDENCE. Upon 22
approval by the Chief Fiscal Officer of the State, the Chief Counsel for the 23
Department of Human Services may transfer an amount up to but not to exceed 24
$12,000 and deposit same in a bank account for the purpose of purchasing 25
evidence in the course of investigating the illegal use of food 26
stamps/Electronic Benefit Transfer (EBT) cards. The funds so transferred 27
shall be subject to accounting in a manner substantially similar to that 28
employed by the Arkansas State Police for such transactions; provided 29
however, that information tending to identify participants in such 30
transactions shall be exempt from the Arkansas Freedom of Information Act. 31
The provisions of this section shall be in effect only from July 1, 2025 32
2026 through June 30, 2026 2027. 33
34
SECTION 10. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 35
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. HUMAN 36
As Engrossed: H4/21/26 HB1023
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SERVICES RENOVATION FUND. Department of Human Services Renovation Fund. 1
(a) There is established on the books of the Treasurer of State, Auditor 2
of State, and the Chief Fiscal Officer of the State a fund to be known as the 3
Department of Human Services Renovation Fund. 4
(b) This fund shall be used for constructing, acquiring, renovating, 5
maintaining, repairing, and equipping facilities of the Department of Human 6
Services and for paying disallowances by the federal government. 7
(c) The fund shall consist of: 8
(1) Federal reimbursement received by the Department of Human Services and 9
deposited in the various fund accounts of the department; and 10
(2) General revenues transferred from the Division of Youth Services, the 11
Division of Aging, Adult, and Behavioral Health Services, and the Division of 12
Developmental Disabilities Services for the purposes of repairing, 13
renovating, equipping, acquiring and constructing Department of Human 14
Services facilities with an annual maximum of five million dollars 15
($5,000,000). The projects for which these transfers are authorized must be 16
projects which were unanticipated during the preceding regular session of the 17
Arkansas General Assembly and must be projects which, if not carried out in 18
the interim period between regular sessions of the Arkansas General Assembly 19
would cause greater harm to the facilities, clients or programs of the 20
Department of Human Services than to wait until the next regular session. 21
(3) Other non-general revenue funds as may be available within the Department 22
of Human Services that can be used for the purposes of this fund. 23
(d)(1) At the request of the Secretary of the Department of Human 24
Services, and upon certification of the availability of such funds, the Chief 25
Fiscal Officer of the State shall initiate the necessary transfer documents 26
to reflect the transfer on the books of record of the Treasurer of State, the 27
Auditor of State, the Chief Fiscal Officer of the State, and the Department 28
of Human Services. 29
(2) The Secretary of the Department of Human Services shall submit any 30
transfer plan to and must receive approval of the plan from the Chief Fiscal 31
Officer of the State, the Governor and the Arkansas Legislative Council or 32
Joint Budget Committee prior to the effective date of the transfer. 33
(e) Provided, that any non-general revenue funding that may remain in the 34
fund at the end of any fiscal year shall be carried over into the next fiscal 35
year and all obligated general revenue funding that may remain in the fund at 36
As Engrossed: H4/21/26 HB1023
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the end of any fiscal year shall be carried over into the next fiscal year to 1
satisfy such legal and contractual obligations that have been entered into 2
prior to the end of the fiscal year. 3
(f) Determining the amount of funds appropriated to a state agency is the 4
prerogative of the General Assembly and is usually accomplished by 5
delineating specific line items and by identifying the appropriation and 6
funding attached to that line item. The General Assembly has determined that 7
the Department of Human Services could be operated more efficiently if some 8
flexibility is given to that agency. That flexibility is being accomplished 9
by providing transfer authority in subsection (d) of this section, and since 10
the General Assembly has granted the agency broad powers under the transfer 11
authority concept, it is both necessary and appropriate that the General 12
Assembly maintain oversight of the utilization of the transfer authority by 13
requiring prior approval of the Legislative Council or Joint Budget Committee 14
in the utilization of this transfer authority. Therefore, the requirement of 15
approval by the Legislative Council or Joint Budget Committee is not a 16
severable part of this section. If the requirement of approval by the 17
Legislative Council or Joint Budget Committee is ruled unconstitutional by a 18
court of competent jurisdiction, this entire section is void. 19
The provisions of this section shall be in effect only from July 1, 2025 20
2026 through June 30, 2026 2027. 21
22
SECTION 11. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 23
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. 24
TRANSFER AUTHORITY. The Secretary of the Department of Human Services shall 25
have transfer authority provided by the following: 26
(a) DEPARTMENT OF HUMAN SERVICES RENOVATION FUND. The Secretary of the 27
Department of Human Services is authorized to request fund transfers 28
according to the provisions established by Arkansas Code Ann. 19-27-217, 29
Department of Human Services Renovation Fund, as amended herein; and 30
(b) MATCH TRANSFER. The Secretary of the Department of Human Services, 31
with the approval of the Chief Fiscal Officer of the State, is authorized to 32
effect inter-agency and inter-divisional fund transfers for the purpose of 33
providing the State's matching share for payments made to that Division or 34
Office or its service providers for services eligible for federal 35
reimbursement under programs administered by the Department of Human 36
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Services. The Department of Human Services shall report to the Legislative 1
Council or Joint Budget Committee on a quarterly basis all fund transfers 2
made in accordance with the authority granted by this section; and 3
(c) REALLOCATION OF RESOURCES: (1) The Department of Human Services (DHS) 4
provides hundreds of different services to over 1 million Arkansans. The 5
specific mix of service needs and the funding and staffing required to 6
provide them can vary significantly based on many factors, including natural 7
disasters, changing federal mandates and funding sources, demographic shifts, 8
fluctuating court-ordered services, social trends, and job market variations 9
such as nursing shortages. The impact of these factors through the course of 10
any fiscal year make it very difficult for the Department to accurately 11
predict the exact needs for funding, appropriation and positions in each of 12
its over 100 different appropriations. To ensure that it can respond quickly 13
to changing client needs and make the most effective use of the resources 14
allocated to it, the Department of Human Services shall be authorized to 15
utilize the reallocation of resource authority to make the proper adjustments 16
to the budgets within the Department. Therefore, upon determination by the 17
Secretary of the Department of Human Services that a reallocation of 18
resources within the department is necessary for the efficient and effective 19
operation of the department, the Secretary, with approval of the Governor, 20
shall have the authority to request, from the Chief Fiscal Officer of the 21
State, a transfer of positions, appropriations, line item appropriations, and 22
funds within or between existing and newly created divisions, offices, 23
sections, or units of the department. Provided, however, that no transfer of 24
funds or appropriation that provides direct support or matching support for 25
the Arkansas Medicaid Program shall be made to any other fund account or 26
appropriation that does not directly support the Arkansas Medicaid Program. 27
Further, no positions, funds, or appropriation authorized during the budget 28
process for the Division of Children and Family Services' compliance with 29
initiatives established under the Angela R. consent decree shall be 30
transferred to any other division. Nothing in this provision is intended to 31
prevent the one-time transfers of savings in any other program to the 32
Arkansas Medicaid Program, with the exception of the provisions previously 33
cited for the Division of Children and Family Services – Angela R. consent 34
decree. The Division of Developmental Disabilities – Grants to Community 35
Providers line item of the Developmental Disabilities Services - Grants-in-36
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Aid appropriation may not be decreased. The appropriation, funding, and 1
positions provided for the five Human Development Centers shall remain at a 2
level sufficient to ensure quality care for the Centers' residents. The 3
exemptions provided in this subsection whereby certain DHS Programs and 4
Divisions are protected from appropriation, fund, or position transfers are 5
applicable only to the reallocation or transfer authority granted herein, and 6
not by any reductions which are applicable to all state programs. 7
The Secretary of the Department of Human Services shall submit any 8
requests for transfers to and must receive approval of the requests for 9
transfers from the Chief Fiscal Officer of the State, the Governor, and the 10
Arkansas Legislative Council or Joint Budget Committee prior to the effective 11
date of the transfers. Provided, however, that the Department of Human 12
Services shall be limited to submitting no more than four reallocation of 13
resources transfer requests during any fiscal year. In each Departmental 14
request no single division will request reallocation for more than one 15
purpose as listed in this section. Transfer authority for unforeseen purposes 16
shall further be limited to no more than 5% of the total appropriation, 17
funding, and positions authorized for the Department. Reallocation of 18
resources transfers may include multiple items but shall be limited to the 19
following purposes: 20
i) Medicaid Program; 21
ii) Facilities and institutions costs, including operational expenses and 22
construction/renovation/equipping expenses; 23
iii) Departmental grants and contracts; 24
iv) Court ordered settlements and payments; 25
v) Payment of administrative expenses, including but not limited to, overtime 26
and other costs of personnel for critical services or functions necessary to 27
carry out the mission of the agency; 28
vi) Restructuring efforts as deemed necessary to comply with new and/or 29
unanticipated federal or state mandates; and/or 30
vii) Redirecting internal resources, both direct and/or indirect, to meet 31
client needs and services. 32
Determining the maximum number of employees and the maximum amount of 33
appropriation and general revenue funding for a state agency each fiscal year 34
is the prerogative of the General Assembly. This is usually accomplished by 35
delineating such maximums in the appropriation act(s) for a state agency and 36
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the general revenue allocations authorized for each fund and fund account by 1
amendment to the Revenue Stabilization law. Further, the General Assembly has 2
determined that the Department of Human Services may operate more efficiently 3
if some flexibility is provided to the Department of Human Services 4
authorizing broad powers under the Reallocation of Resources provisions 5
herein. Therefore, it is both necessary and appropriate that the General 6
Assembly maintain oversight by requiring prior approval of the Legislative 7
Council or Joint Budget Committee as provided by this section. The 8
requirement of approval by the Legislative Council or Joint Budget Committee 9
is not a severable part of this section. If the requirement of approval by 10
the Legislative Council or Joint Budget Committee is ruled unconstitutional 11
by a court of competent jurisdiction, this entire section is void. 12
(2) If it is determined that the requested reallocation of resources 13
transfers should be made, the Chief Fiscal Officer of the State shall then 14
initiate the necessary transfer documents to reflect the transfers upon the 15
fiscal records of the Treasurer of State, the Auditor of State, the Chief 16
Fiscal Officer of the State, and the Department of Human Services. In 17
addition, the Chief Fiscal Officer of the State, together with the Co-18
Chairpersons of the Legislative Council or Joint Budget Committee, may 19
approve, on an emergency basis, requests for utilization of this Section 20
without prior approval of the Arkansas Legislative Council or Joint Budget 21
Committee, with any such actions reported at the next meeting of the Arkansas 22
Legislative Council or Joint Budget Committee. 23
The provisions of this section shall be in effect only from July 1, 2025 24
2026 through June 30, 2026 2027. 25
26
SECTION 12. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 27
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL, AND TEMPORARY LAW. Arkansas 28
State Hospital — Insurance reimbursements and unspent set-aside funds for 29
repairs recoupment. 30
(a) An insurance reimbursement received by the Department of Human 31
Services to reimburse funds that were transferred from the EBD or Contingency 32
Set-Aside in the Restricted Reserve Fund for critical storm damage repair for 33
the Arkansas State Hospital shall be transferred, as the insurance 34
reimbursement is received, on the books of the Chief Fiscal Officer of the 35
State, the Treasurer of State, and the Auditor of State from the appropriate 36
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13 04-21-2026 14:36:16 LCW078
fund or fund account into which the department deposited the insurance 1
reimbursement payment to: 2
(1) The EBD or Contingency Set-Aside in the Restricted Reserve 3
Fund if the EBD or Contingency Set-Aside in the Restricted Reserve Fund is 4
currently active with a balance greater than zero dollars ($0.00); or 5
(2) The General Revenue Allotment Reserve Fund if the EBD or 6
Contingency Set-Aside in the Restricted Reserve Fund is no longer active. 7
(b) Any funds received by the department for critical storm damage 8
repair for the Arkansas State Hospital from the EBD or Contingency Set-Aside 9
in the Restricted Reserve Fund that remain upon completion of the storm 10
damage repair project shall be transferred as provided for insurance 11
reimbursements under subsection (a) of this section. 12
(c) The Secretary of the Department of Human Services shall notify the 13
Chief Fiscal Officer of the State and the Performance Evaluation and 14
Expenditure Review Subcommittee of the Legislative Council or, if the General 15
Assembly is in session, the PEER/Review Subcommittee of the Joint Budget 16
Committee, of the following to allow for the transfers provided for in 17
subsections (a) and (b) of this section: 18
(1) The receipt of an insurance reimbursement by the department 19
for critical storm damage repair for the Arkansas State Hospital; and 20
(2) Upon completion of the storm damage repair project, the 21
amount of any remaining funds described in subsection (b) of this section. 22
(d) The department shall report quarterly to the Legislative Council 23
or, if the General Assembly is in session, the Joint Budget Committee: 24
(1) The status of the storm damage repair project; 25
(2) The projected completion time lines for the storm damage 26
repair project; 27
(3) The total amount of the insurance reimbursements received by 28
the department to date for the storm damage repair project; and 29
(4) Any remaining balance of the original five million dollars 30
($5,000,000) transferred to the department from the EBD or Contingency Set-31
Aside in the Restricted Reserve Fund. 32
(e) This section is effective on July 1, 2024, and until the final 33
transfer of funds has been made as provided in this section. 34
35
SECTION 13. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 36
As Engrossed: H4/21/26 HB1023
14 04-21-2026 14:36:16 LCW078
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. DEPARTMENT 1
OF HUMAN SERVICES COMPREHENSIVE AGENCY REVIEW. The Arkansas Legislative 2
Council - Hospital, Medicaid, and Developmental Disabilities Study 3
Subcommittee shall perform a comprehensive review of the Department of Human 4
Services, which shall commence at the direction of the co-chairs of the 5
Arkansas Legislative Council, in consultation with the subcommittee co-6
chairs. This review shall include, but is not limited to: administrative 7
policies and functions, personnel and staffing evaluations, and revenues and 8
expenditures of the department, divisions, and providers. The subcommittee 9
shall prioritize the review as follows: the Shared Services division, the 10
Division of Children and Family Services, and the Division of County 11
Operations, with further prioritization of divisions to be determined by the 12
subcommittee. The review shall include input and recommendations from the 13
Attorney General's Medicaid Fraud Unit and the Department of Inspector 14
General's office. 15
The preliminary recommendations and report shall be completed within 16
six months of the subcommittee‘s initial meeting. Upon completion of this 17
preliminary report, the subcommittee shall provide the department, the 18
Governor, and the Arkansas Legislative Council with a report to include 19
recommendations and desired metrics with expected timelines of completion to 20
meet the desired outcomes provided in the preliminary report. At the 21
direction of the chair of the Arkansas Legislative Council - Hospital, 22
Medicaid, and Developmental Disabilities Study Subcommittee, the subcommittee 23
may add recommendations and approve and review actions by the department in 24
accordance with the preliminary recommendations. 25
The final report and outcomes, including recommending legislation to 26
address findings, shall be presented at the final Arkansas Legislative 27
Council meeting of the 95th General Assembly. 28
The Department of Human Services shall report to the subcommittee 29
monthly the status of implementation of the recommendations with review and 30
approval of all steps taken to meet the metrics and desired outcomes of the 31
department in accordance with the recommendations by the subcommittee and by 32
the Arkansas Legislative Council. 33
The provisions of this section shall be in effect only from July 1, 34
2025 2026 through June 30, 2026 2027. 35
36
As Engrossed: H4/21/26 HB1023
15 04-21-2026 14:36:16 LCW078
SECTION 14. COMPLIANCE WITH OTHER LAWS. Disbursement of funds 1
authorized by this act shall be limited to the appropriation for such agency 2
and funds made available by law for the support of such appropriations; and 3
the restrictions of the State Procurement Law, the General Accounting and 4
Budgetary Procedures Law, the Revenue Stabilization Law, the Regular Salary 5
Procedures and Restrictions Act, or their successors, and other fiscal 6
control laws of this State, where applicable, and regulations promulgated by 7
the Department of Finance and Administration, as authorized by law, shall be 8
strictly complied with in disbursement of said funds. 9
10
SECTION 15. LEGISLATIVE INTENT. It is the intent of the General 11
Assembly that any funds disbursed under the authority of the appropriations 12
contained in this act shall be in compliance with the stated reasons for 13
which this act was adopted, as evidenced by the Agency Requests, Executive 14
Recommendations and Legislative Recommendations contained in the budget 15
manuals prepared by the Department of Finance and Administration, letters, or 16
summarized oral testimony in the official minutes of the Arkansas Legislative 17
Council or Joint Budget Committee which relate to its passage and adoption. 18
19
SECTION 16. EMERGENCY CLAUSE. It is found and determined by the 20
General Assembly, that the Constitution of the State of Arkansas prohibits 21
the appropriation of funds for more than a one (1) year period; that the 22
effectiveness of this Act on July 1, 2026 is essential to the operation of 23
the agency for which the appropriations in this Act are provided, and that in 24
the event of an extension of the legislative session, the delay in the 25
effective date of this Act beyond July 1, 2026 could work irreparable harm 26
upon the proper administration and provision of essential governmental 27
programs. Therefore, an emergency is hereby declared to exist and this Act 28
being necessary for the immediate preservation of the public peace, health 29
and safety shall be in full force and effect from and after July 1, 2026. 30
31
/s/Joint Budget Committee 32
33
34
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