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State of Arkansas 1
95th General Assembly A Bill 2
Fiscal Session, 2026 HOUSE BILL 1062 3
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By: Joint Budget Committee 5
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For An Act To Be Entitled 8
AN ACT TO MAKE AN APPROPRIATION FOR THE MEDICAID 9
TOBACCO SETTLEMENT PROGRAM FOR THE DEPARTMENT OF 10
HUMAN SERVICES FOR THE FISCAL YEAR ENDING JUNE 30, 11
2027; AND FOR OTHER PURPOSES. 12
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Subtitle 15
AN ACT FOR THE DEPARTMENT OF HUMAN 16
SERVICES - MEDICAID TOBACCO SETTLEMENT 17
PROGRAM APPROPRIATION FOR THE 2026-2027 18
FISCAL YEAR. 19
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
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SECTION 1. REGULAR SALARIES - MEDICAL SERVICES - MEDICAID TOBACCO 24
SETTLEMENT PROGRAM. There is hereby established for the Department of Human 25
Services - Division of Medical Services - Medicaid Tobacco Settlement Program 26
for the 2026-2027 fiscal year, the following maximum number of regular 27
employees. 28
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Maximum Annual 30
Maximum Salary Rate 31
Item Class No. of Fiscal Year 32
No. Code Title Employees 2026-2027 33
(1) PHS05P HEALTH PROGRAM COORDINATOR 1 GRADE SGS07 34
MAX. NO. OF EMPLOYEES 1 35
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SECTION 2. REGULAR SALARIES - AGING, ADULT, AND BEHAVIORAL HEALTH 1
SERVICES - MEDICAID TOBACCO SETTLEMENT PROGRAM. There is hereby established 2
for the Department of Human Services - Division of Aging, Adult, and 3
Behavioral Health Services - Medicaid Tobacco Settlement Program for the 4
2026-2027 fiscal year, the following maximum number of regular employees. 5
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Maximum Annual 7
Maximum Salary Rate 8
Item Class No. of Fiscal Year 9
No. Code Title Employees 2026-2027 10
(1) PPE03P PROGRAM ELIGIBILITY SPECIALIST II 1 GRADE SGS06 11
(2) PPE02P PROGRAM ELIGIBILITY SPECIALIST I 15 GRADE SGS05 12
(3) MNU06P REGISTERED NURSE 1 GRADE MED05 13
(4) PHS08P HEALTH PROGRAM SUPERVISOR/EXPERT 1 GRADE SGS08 14
MAX. NO. OF EMPLOYEES 18 15
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SECTION 3. APPROPRIATION - MEDICAL SERVICES - MEDICAID TOBACCO 17
SETTLEMENT PROGRAM. There is hereby appropriated, to the Department of Human 18
Services, to be payable from the Medicaid Expansion Program Account, for 19
personal services and operating expenses of the Department of Human Services 20
- Division of Medical Services - Medicaid Tobacco Settlement Program for the 21
fiscal year ending June 30, 2027, the following: 22
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ITEM FISCAL YEAR 24
NO. 2026-2027 25
(01) REGULAR SALARIES $55,025 26
(02) PERSONAL SERVICES MATCHING 20,741 27
(03) MAINT. & GEN. OPERATION 28
(A) OPER. EXPENSE 9,484 29
(B) CONF. & TRAVEL 2,000 30
(C) PROF. FEES 0 31
(D) CAP. OUTLAY 0 32
(E) DATA PROC. 0 33
TOTAL AMOUNT APPROPRIATED $87,250 34
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SECTION 4. APPROPRIATION - MEDICAL SERVICES - MEDICAID TOBACCO 36
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SETTLEMENT PROGRAM GRANTS. There is hereby appropriated, to the Department 1
of Human Services, to be payable from the Medicaid Expansion Program Account, 2
for grant payments of the Department of Human Services - Division of Medical 3
Services - Medicaid Tobacco Settlement Program Grants for the fiscal year 4
ending June 30, 2027, the following: 5
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ITEM FISCAL YEAR 7
NO. 2026-2027 8
(01) HOSPITAL AND MEDICAL SERVICES $140,426,470 9
(02) PRESCRIPTION DRUGS 5,142,643 10
TOTAL AMOUNT APPROPRIATED $145,569,113 11
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SECTION 5. APPROPRIATION - AGING, ADULT, AND BEHAVIORAL HEALTH SERVICES 13
- MEDICAID TOBACCO SETTLEMENT PROGRAM. There is hereby appropriated, to the 14
Department of Human Services, to be payable from the Medicaid Expansion 15
Program Account, for personal services and operating expenses of the 16
Department of Human Services - Division of Aging, Adult, and Behavioral 17
Health Services - Medicaid Tobacco Settlement Program for the fiscal year 18
ending June 30, 2027, the following: 19
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ITEM FISCAL YEAR 21
NO. 2026-2027 22
(01) REGULAR SALARIES $860,731 23
(02) PERSONAL SERVICES MATCHING 342,509 24
(03) MAINT. & GEN. OPERATION 25
(A) OPER. EXPENSE 98,598 26
(B) CONF. & TRAVEL 0 27
(C) PROF. FEES 0 28
(D) CAP. OUTLAY 0 29
(E) DATA PROC. 0 30
TOTAL AMOUNT APPROPRIATED $1,301,838 31
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SECTION 6. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 33
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. ACCOUNTS. 34
Such appropriations and fund accounts as may be necessary to administer the 35
provisions of this act shall be established on the books of the Chief Fiscal 36
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Officer of the State, State Treasurer, and the Auditor of the State. 1
The provisions of this section shall be in effect only from July 1, 2025 2
2026 through June 30, 2026 2027. 3
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SECTION 7. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 5
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. 6
POSITIONS. (a) Nothing in this act shall be construed as a commitment of the 7
State of Arkansas or any of its agencies or institutions to continue funding 8
any position paid from the proceeds of the Tobacco Settlement in the event 9
that Tobacco Settlement funds are not sufficient to finance the position. 10
(b) State funds will not be used to replace Tobacco Settlement funds when 11
such funds expire, unless appropriated by the General Assembly and authorized 12
by the Governor. 13
(c) A disclosure of the language contained in (a) and (b) of this Section 14
shall be made available to all new hire and current positions paid from the 15
proceeds of the Tobacco Settlement by the Tobacco Settlement Commission. 16
(d) Whenever applicable the information contained in (a) and (b) of this 17
Section shall be included in the employee handbook and/or Professional 18
Services Contract paid from the proceeds of the Tobacco Settlement. 19
The provisions of this section shall be in effect only from July 1, 2025 20
2026 through June 30, 2026 2027. 21
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SECTION 8. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 23
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. TRANSFER 24
RESTRICTIONS. The appropriations provided in this act shall not be 25
transferred under the provisions of Arkansas Code 19-4-513, but only as 26
provided by this act. 27
The provisions of this section shall be in effect only from July 1, 2025 28
2026 through June 30, 2026 2027. 29
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SECTION 9. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 31
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. TRANSFERS 32
OF APPROPRIATIONS. In the event the amount of any of the budget 33
classifications of maintenance and general operation in this act are found by 34
the administrative head of the agency to be inadequate, then the agency head 35
may request, upon forms provided for such purpose by the Chief Fiscal Officer 36
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of the State, a modification of the amounts of the budget classification. In 1
that event, he shall set out on the forms the particular classifications for 2
which he is requesting an increase or decrease, the amounts thereof, and his 3
reasons therefor. In no event shall the total amount of the budget exceed 4
either the amount of the appropriation or the amount of the funds available, 5
nor shall any transfer be made from the capital outlay or data processing 6
subclassifications unless specific authority for such transfers is provided 7
by law, except for transfers from capital outlay to data processing when 8
determined by the Division of Information Systems that data processing 9
services for a state agency can be performed on a more cost-efficient basis 10
by the Division of Information Systems than through the purchase of data 11
processing equipment by that state agency. In considering the proposed 12
modification as prepared and submitted by each state agency, the Chief Fiscal 13
Officer of the State shall make such studies as he deems necessary. The Chief 14
Fiscal Officer of the State shall, after obtaining the approval of the 15
Legislative Council or Joint Budget Committee, approve the requested transfer 16
if in his opinion it is in the best interest of the state. 17
Upon determination by the Secretary of the Department of Human Services 18
that a Reallocation of Resources is necessary for the effective operation of 19
the Medicaid Tobacco Settlement Program Grants, the Secretary, with the 20
approval of the Governor, shall have the authority to request from the Chief 21
Fiscal Officer of the State a transfer of Appropriation. This transfer 22
authority applies only to the Medicaid Tobacco Settlement Program Grants 23
appropriation section of this Act between the Hospital and Medical Services 24
line item and the Prescription Drugs line item. The limitation restrictions 25
applicable to the Department Reallocation of Resources authority applies to 26
this section. 27
The General Assembly has determined that the agency in this act could be 28
operated more efficiently if some flexibility is given to that agency and 29
that flexibility is being accomplished by providing authority to transfer 30
between certain items of appropriation made by this act. Since the General 31
Assembly has granted the agency broad powers under the transfer of 32
appropriations, it is both necessary and appropriate that the General 33
Assembly maintain oversight of the utilization of the transfers by requiring 34
prior approval of the Legislative Council or Joint Budget Committee in the 35
utilization of the transfer authority. Therefore, the requirement of approval 36
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by the Legislative Council or Joint Budget Committee is not a severable part 1
of this section. If the requirement of approval by the Legislative Council or 2
Joint Budget Committee is ruled unconstitutional by a court of competent 3
jurisdiction, this entire section is void. 4
The provisions of this section shall be in effect only from July 1, 2025 5
2026 through June 30, 2026 2027. 6
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SECTION 10. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 8
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. 9
COMPLIANCE WITH OTHER LAWS. Disbursement of funds authorized by this act 10
shall be limited to the appropriation for such agency and funds made 11
available by law for the support of such appropriations; and the restrictions 12
of the State Purchasing Law, the General Accounting and Budgetary Procedures 13
Law, the Regular Salary Procedures and Restrictions Act, or their successors, 14
and other fiscal control laws of this State, where applicable, and 15
regulations promulgated by the Department of Finance and Administration, as 16
authorized by law, shall be strictly complied with in disbursement of said 17
funds. 18
The provisions of this section shall be in effect only from July 1, 2025 19
2026 through June 30, 2026 2027. 20
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SECTION 11. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 22
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. 23
LEGISLATIVE INTENT. It is the intent of the General Assembly that any funds 24
disbursed under the authority of the appropriations contained in this act 25
shall be in compliance with the stated reasons for which this act was 26
adopted, as evidenced by Initiated Act 1 of 2000, the Agency Requests, 27
Executive Recommendations and Legislative Recommendations contained in the 28
budget manuals prepared by the Department of Finance and Administration, 29
letters, or summarized oral testimony in the official minutes of the Arkansas 30
Legislative Council or Joint Budget Committee which relate to its passage and 31
adoption. 32
The provisions of this section shall be in effect only from July 1, 2025 33
2026 through June 30, 2026 2027. 34
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SECTION 12. EMERGENCY CLAUSE. It is found and determined by the 36
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General Assembly, that the Constitution of the State of Arkansas prohibits 1
the appropriation of funds for more than a one (1) year period; that the 2
effectiveness of this Act on July 1, 2026 is essential to the operation of 3
the agency for which the appropriations in this Act are provided, and that in 4
the event of an extension of the legislative session, the delay in the 5
effective date of this Act beyond July 1, 2026 could work irreparable harm 6
upon the proper administration and provision of essential governmental 7
programs. Therefore, an emergency is hereby declared to exist and this Act 8
being necessary for the immediate preservation of the public peace, health 9
and safety shall be in full force and effect from and after July 1, 2026. 10
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