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*LCW079* 03/30/2026 2:22:26 PM LCW079
State of Arkansas 1
95th General Assembly A Bill 2
Fiscal Session, 2026 SENATE BILL 20 3
4
By: Joint Budget Committee 5
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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 - DIVISION OF MEDICAL SERVICES FOR THE 11
FISCAL YEAR ENDING JUNE 30, 2027; AND FOR OTHER 12
PURPOSES. 13
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15
Subtitle 16
AN ACT FOR THE DEPARTMENT OF HUMAN 17
SERVICES - DIVISION OF MEDICAL SERVICES 18
APPROPRIATION FOR THE 2026-2027 FISCAL 19
YEAR. 20
21
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 23
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SECTION 1. REGULAR SALARIES - OPERATIONS. There is hereby established 25
for the Department of Human Services - Division of Medical Services for the 26
2026-2027 fiscal year, the following maximum number of regular 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) EEX22A HUMAN SERVICES DIVISION DIRECTOR 1 GRADE EXE02 33
(2) SSP03C DHS DIVISION ADMINISTRATOR 1 GRADE SPC09 34
(3) SSP07C SOCIAL SERVICES ADMINISTRATOR 2 GRADE SPC08 35
(4) LAT05P ATTORNEY III 1 GRADE SPC08 36
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(5) FAC04C ACCOUNTING MANAGER 1 GRADE SPC06 1
(6) FFS03C FISCAL SUPPORT MANAGER 1 GRADE SGS09 2
(7) PQA02C QUALITY ASSURANCE MANAGER 1 GRADE SGS09 3
(8) ILS04I RULES & REGULATIONS COORDINATOR 6 GRADE SGS08 4
(9) PHS08P HEALTH PROGRAM SUPERVISOR/EXPERT 12 GRADE SGS08 5
(10) PPR05P PROCUREMENT SUPERVISOR/EXPERT 2 GRADE SGS08 6
(11) PQA04P QUALITY ASSURANCE SUPVR/EXPERT 2 GRADE SGS08 7
(12) PAS08I EXECUTIVE ASSISTANT 2 GRADE SGS07 8
(13) CME02P EDITOR 1 GRADE SGS07 9
(14) PHS05P HEALTH PROGRAM COORDINATOR 12 GRADE SGS07 10
(15) PCR03P CLAIMS REVIEW SUPERVISOR/EXPERT 5 GRADE SGS06 11
(16) PPR01P PROCUREMENT ANALYST 1 GRADE SGS06 12
(17) PAS01P ADMINISTRATIVE ANALYST 3 GRADE SGS05 13
(18) FBU03P BUDGET SPECIALIST 1 GRADE SGS05 14
(19) SSP08P SOCIAL SERVICES ADVISOR 1 GRADE SGS05 15
(20) PAS02P ADMINISTRATIVE COORDINATOR 3 GRADE SGS04 16
(21) PCR02P CLAIMS REVIEW SPECIALIST 3 GRADE SGS03 17
(22) PAS03P ADMINISTRATIVE SPECIALIST 1 GRADE SGS02 18
(23) MPA01P PHARMACIST 4 GRADE MED09 19
(24) MNU07C REGISTERED NURSE MANAGER 1 GRADE MED07 20
(25) MNU08P REG. NURSE SUPERVISOR/EXPERT 3 GRADE MED06 21
(26) MNU06P REGISTERED NURSE 9 GRADE MED05 22
(27) IIS05C IT INFRASTRUCTURE ARCHITECT 1 GRADE IST11 23
(28) IIP03P IT SENIOR PROJECT MANAGER 1 GRADE IST10 24
(29) IIS06P IT INFRASTRUCTURE COORDINATOR 1 GRADE IST08 25
(30) IIP02P IT PROJECT MANAGER 1 GRADE IST08 26
(31) IDM02P DATABASE ANALYST 1 GRADE IST07 27
(32) IUS02P USER SUPPORT COORDINATOR 2 GRADE IST05 28
(33) IUS01P USER SUPPORT ANALYST 1 GRADE IST04 29
(34) PHS07P HEALTH PROGRAM SPECIALIST 3 GRADE SGS06 30
MAX. NO. OF EMPLOYEES 91 31
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SECTION 2. EXTRA HELP - OPERATIONS. There is hereby authorized, for 33
the Department of Human Services - Division of Medical Services for the 2026-34
2027 fiscal year, the following maximum number of part-time or temporary 35
employees, to be known as "Extra Help", payable from funds appropriated 36
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herein for such purposes: ten (10) temporary or part-time employees, when 1
needed, at rates of pay not to exceed those provided in the Uniform 2
Classification and Compensation Act, or its successor, or this act for the 3
appropriate classification. 4
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SECTION 3. APPROPRIATION - OPERATIONS. There is hereby appropriated, 6
to the Department of Human Services, to be payable from the paying account as 7
determined by the Chief Fiscal Officer of the State, for personal services 8
and operating expenses of the Department of Human Services - Division of 9
Medical Services for the fiscal year ending June 30, 2027, the following: 10
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ITEM FISCAL YEAR 12
NO. 2026-2027 13
(01) REGULAR SALARIES $6,483,248 14
(02) EXTRA HELP 201,892 15
(03) PERSONAL SERVICES MATCHING 2,227,427 16
(04) OVERTIME 2,241 17
(05) MAINT. & GEN. OPERATION 18
(A) OPER. EXPENSE 1,713,290 19
(B) CONF. & TRAVEL 40,099 20
(C) PROF. FEES 800,000 21
(D) CAP. OUTLAY 0 22
(E) DATA PROC. 0 23
(06) DATA PROCESSING SERVICES 1,299,600 24
TOTAL AMOUNT APPROPRIATED $12,767,797 25
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SECTION 4. APPROPRIATION - GRANTS. There is hereby appropriated, to 27
the Department of Human Services, to be payable from the paying account as 28
determined by the Chief Fiscal Officer of the State, for grant payments of 29
the Department of Human Services - Division of Medical Services for the 30
fiscal year ending June 30, 2027, the following: 31
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ITEM FISCAL YEAR 33
NO. 2026-2027 34
(01) ARKIDS B PROGRAM $167,661,480 35
(02) HOSPITAL AND MEDICAL SERVICES 8,336,005,717 36
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(03) PRESCRIPTION DRUGS 625,636,547 1
(04) PRIVATE NURSING HOME CARE 1,048,963,434 2
(05) CHILD AND FAMILY LIFE INSTITUTE 2,100,000 3
(06) INFANT INFIRMARY 327,608 4
(07) PUBLIC NURSING HOME CARE 217,529,350 5
TOTAL AMOUNT APPROPRIATED $10,398,224,136 6
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SECTION 5. APPROPRIATION - NURSING HOME CLOSURE COSTS. There is hereby 8
appropriated, to the Department of Human Services - Division of Medical 9
Services, to be payable from the Long-Term Care Trust Fund, for the payment 10
of relocation costs of residents in long-term care facilities, maintenance 11
and operation of a facility pending correction of deficiencies or closure, 12
and reimbursement of residents for personal funds lost for the fiscal year 13
ending June 30, 2027, the following: 14
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ITEM FISCAL YEAR 16
NO. 2026-2027 17
(01) EXPENSES $4,500,000 18
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SECTION 6. APPROPRIATION - LONG-TERM CARE FACILITY RECEIVERSHIP. There 20
is hereby appropriated, to the Department of Human Services, to be payable 21
from the Long Term Care Facility Receivership Fund Account, for the payment 22
of expenses of long-term care facility receivers as authorized by law of the 23
Department of Human Services - Division of Medical Services Long-Term Care 24
Facility Receivership for the fiscal year ending June 30, 2027, the 25
following: 26
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ITEM FISCAL YEAR 28
NO. 2026-2027 29
(01) EXPENSES $100,000 30
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SECTION 7. APPROPRIATION - NURSING HOME QUALITY GRANTS. There is 32
hereby appropriated, to the Department of Human Services, to be payable from 33
the Long-Term Care Trust Fund, for Nursing Home Quality Care Grants of the 34
Department of Human Services - Division of Medical Services - Nursing Home 35
Quality Grants for the fiscal year ending June 30, 2027, the following: 36
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1
ITEM FISCAL YEAR 2
NO. 2026-2027 3
(01) NURSING HOME QUALITY GRANTS AND AID $4,000,000 4
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SECTION 8. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 6
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. 7
MEDICAL SERVICES - GENERAL MEDICAID RATE METHODOLOGY PROVISIONS. 8
(a) Rates established by the Division of Medical Services for the services 9
or programs covered by this Act shall be calculated by the methodologies 10
approved by the Centers for Medicare and Medicaid Services (CMS). The 11
Division of Medical Services shall have the authority to reduce or increase 12
rates based on the approved methodology. Further, the Division of Medical 13
Services shall have the authority to increase or decrease rates for good 14
cause including, but not limited to: (1) Identification of provider(s) who 15
can render needed services of equal quality at rates less than traditionally 16
charged and who meet the applicable federal and state laws, rules and 17
regulations pertaining to the provision of a particular service; 18
(2) Identification that a provider or group of providers has consistently 19
charged rates to the Arkansas Medicaid Program greater than to other 20
purchasers of medical services of similar size; 21
(3) The Division determines that there has been significant changes in the 22
technology or process by which services are provided by a provider or group 23
of providers which has affected the costs of providing services, or; 24
(4) A severe economic downturn in the Arkansas economy which has affected the 25
overall state budget of the Division of Medical Services. 26
The Division of Medical Services shall make available to requesting 27
providers, the CMS's inflationary forecasts (CMS Market Basket Index). Rates 28
established with cost of living increases based on the CMS Market Basket 29
Index or other indices will be adjusted annually except when the state budget 30
does not provide sufficient appropriation and funding to affect the change or 31
portion thereof. 32
(b) Any rate methodology changes proposed by the Division of Medical 33
Services both of a general and specific nature, shall be subject to prior 34
approval by the Legislative Council or Joint Budget Committee. 35
Determining the maximum number of employees and the maximum amount of 36
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appropriation and general revenue funding for a state agency each fiscal year 1
is the prerogative of the General Assembly. This is usually accomplished by 2
delineating such maximums in the appropriation act(s) for a state agency and 3
the general revenue allocations authorized for each fund and fund account by 4
amendment to the Revenue Stabilization law. Further, the General Assembly has 5
determined that the Department of Human Services – Division of Medical 6
Services may operate more efficiently if some flexibility is provided to the 7
Department of Human Services – Division of Medical Services authorizing broad 8
powers under this section. Therefore, it is both necessary and appropriate 9
that the General Assembly maintain oversight by requiring prior approval of 10
the Legislative Council or Joint Budget Committee as provided by this 11
section. The requirement of approval by the Legislative Council or Joint 12
Budget Committee is not a severable part of this section. If the requirement 13
of approval by the Legislative Council or Joint Budget Committee is ruled 14
unconstitutional by a court of competent jurisdiction, this entire section is 15
void. 16
The provisions of this section shall be in effect only from July 1, 2025 17
2026 through June 30, 2026 2027. 18
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SECTION 9. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 20
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. FUND 21
USAGE AUTHORIZED. The Arkansas Children's Hospital may request the Department 22
of Human Services - Division of Medical Services to retain in the Department 23
of Human Services Grant Fund account an amount not to exceed $2,100,000 from 24
funds made available by this Act in the Child and Family Life Institute line 25
item of the Grants appropriation to be used to match federal funds used for 26
supplemental Medicaid payments to Arkansas Children's Hospital. These 27
retained funds shall not be recovered to transfer to the General Revenue 28
Allotment Reserve Fund. 29
The provisions of this section shall be in effect only from July 1, 2025 30
2026 through June 30, 2026 2027. 31
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SECTION 10. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 33
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. ARKANSAS 34
HEALTH AND OPPORTUNITY FOR ME AND ARKANSAS HEALTH INSURANCE MARKETPLACE 35
RESTRICTIONS. (a) As used in this section, "Arkansas Health and Opportunity 36
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for Me" means Arkansas Health and Opportunity for Me established under the 1
Arkansas Health and Opportunity for Me Act of 2021, Arkansas Code § 23-61-2
1001 et seq. 3
(b)(1) Determining the maximum number of employees, the maximum amount 4
of appropriation, for what purposes an appropriation is authorized, and 5
general revenue funding for a state agency each fiscal year is the 6
prerogative of the General Assembly. 7
(2) The purposes of subdivision (b)(1) of this section are 8
typically accomplished by: 9
(A) Identifying the purpose in the appropriation act; 10
(B) Delineating such maximums in the appropriation act for 11
a state agency; and 12
(C) Delineating the general revenue allocations authorized 13
for each fund and fund account by amendment to the Revenue Stabilization Law, 14
Arkansas Code § 19-20-101 et seq. 15
(3) It is both necessary and appropriate that the General 16
Assembly restrict the use of appropriations authorized in this act. 17
(c)(1) Except as provided in this subsection, the Department of Human 18
Services shall not allocate, budget, expend, or utilize any appropriation 19
authorized by the General Assembly for the purpose of advertisement, 20
promotion, or other activities designed to promote or encourage enrollment in 21
the Arkansas Health Insurance Marketplace or Arkansas Health and Opportunity 22
for Me, including without limitation: 23
(A) Unsolicited communications mailed to potential 24
recipients; 25
(B) Television, radio, or online commercials; 26
(C) Billboard or mobile billboard advertising; 27
(D) Advertisements printed in newspapers, magazines, or 28
other print media; and 29
(E) Internet websites and electronic media. 30
(2) This subsection does not prohibit the department from: 31
(A) Direct communications with: 32
(i) Licensed insurance agents; and 33
(ii) Persons licensed by the department; 34
(B) Solicited communications with potential recipients; 35
(C)(i) Responding to an inquiry regarding the coverage for 36
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which a potential recipient might be eligible, including without limitation 1
providing educational materials or information regarding any coverage for 2
which the individual might qualify. 3
(ii) Educational materials and information 4
distributed under subdivision (c)(2)(C)(i) of this section shall contain only 5
factual information and shall not contain subjective statements regarding the 6
coverage for which the potential recipient might be eligible; and 7
(D) Using an Internet website for the exclusive purpose of 8
enrolling individuals in the Arkansas Health Insurance Marketplace or 9
Arkansas Health and Opportunity for Me. 10
(d) The Department of Human Services shall not apply for or accept any 11
funds, including without limitation federal funds, for the purpose of 12
advertisement, promotion, or other activities designed to promote or 13
encourage enrollment in the Arkansas Health Insurance Marketplace or Arkansas 14
Health and Opportunity for Me. 15
(e)(1) Except as provided in subdivision (e)(2) of this section, the 16
Department of Human Services shall not: 17
(A)(i) Except as provided in subdivision (e)(1)(A)(ii) of 18
this section, allocate, budget, expend, or utilize an appropriation 19
authorized by the General Assembly for the purpose of funding activities of 20
navigators, guides, certified application counselors, and certified licensed 21
producers under the Arkansas Health Insurance Marketplace Navigator, Guide, 22
and Certified Application Counselors Act, Arkansas Code § 23-64-601 et seq. 23
(ii) Subdivision (e)(1)(A)(i) of this section does 24
not apply to regulatory and training responsibilities related to navigators, 25
guides, certified application counselors, and certified licensed producers; 26
and 27
(B) Apply for or accept any funds, including without 28
limitation federal funds, for the purpose of funding activities of 29
navigators, guides, certified application counselors, and certified licensed 30
producers under the Arkansas Health Insurance Marketplace Navigator, Guide, 31
and Certified Application Counselors Act, Arkansas Code § 23-64-601 et seq. 32
(2) Subdivision (e)(1) of this section does not apply to 33
certified application counselors at health related institutions, including 34
without limitation the University of Arkansas for Medical Sciences. 35
(f) An appropriation authorized by the General Assembly shall not be 36
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subject to the provisions allowed through reallocation of resources or 1
transfer of appropriation authority for the purpose of transferring an 2
appropriation to any other appropriation authorized for the Department of 3
Human Services to be allocated, budgeted, expended, or utilized in a manner 4
prohibited by this section. 5
(g) The provisions of this section are severable, and the invalidity 6
of any subsection or subdivision of this section shall not affect other 7
provisions of the section that can be given effect without the invalid 8
provision. 9
(h) This section expires on June 30, 2026 2027. 10
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SECTION 11. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 12
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. MEDICAL 13
SERVICES – COMMUNITY AND EMPLOYMENT SUPPORTS MEDICAID WAIVER. 14
(a) Of the funding allocated to the Department of Human Services Grants 15
Fund Account under § 19-23-102, the first thirty-seven million six hundred 16
thousand dollars ($37,600,000) shall be set aside in its own subfund by the 17
Department of Human Services and shall be used only for home and community-18
based services to individuals with intellectual and developmental 19
disabilities under the Community and Employment Supports Medicaid Waiver 20
Program or a successor Medicaid Waiver program that provides home and 21
community-based services to individuals with intellectual and developmental 22
disabilities. 23
(b) At the close of the fiscal year ending June 30, 2026 2027, any 24
unexpended balance of monies set aside as established in subsection (a) 25
herein shall be transferred forward and made available for the same purpose 26
for the fiscal year ending June 30, 2027 2028. 27
(c) The provisions of this section shall be in effect only from July 1, 28
2025 2026 through June 30, 2026 2027. 29
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SECTION 12. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 31
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. MEDICAID 32
PROGRAM TRUST FUND DISTRIBUTION AND BALANCE REPORT. (a) The Department of 33
Human Services shall submit monthly an “Arkansas Medicaid Program Trust Fund 34
Distribution and Balance" report to the Arkansas Legislative Council PEER 35
Subcommittee or, if meeting in a Legislative Session, the Joint Budget 36
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Committee PEER/Review Subcommittee no later than ten days prior to the 1
Subcommittee's scheduled meeting date. 2
(b) The report shall summarize the current total fund balance and the 3
past five Fiscal Year ending total fund balances of the Arkansas Medicaid 4
Program Trust Fund. 5
(c) The report shall contain, cumulatively over the course of the 6
fiscal year, by month for each distribution from the Arkansas Medicaid 7
Program Trust Fund and its subfunds, the following: 8
(1) The amount of the distribution; 9
(2) The date of the distribution; 10
(3) The fund code to which the distribution was made; 11
(4) The appropriation line item name from which the funds are 12
distributed; and 13
(5) The purpose of the distribution. 14
(d) The provisions of this section shall be in effect only from July 1, 15
2025 2026 through June 30, 2026 2027. 16
17
SECTION 13. COMPLIANCE WITH OTHER LAWS. Disbursement of funds 18
authorized by this act shall be limited to the appropriation for such agency 19
and funds made available by law for the support of such appropriations; and 20
the restrictions of the State Procurement Law, the General Accounting and 21
Budgetary Procedures Law, the Revenue Stabilization Law, the Regular Salary 22
Procedures and Restrictions Act, or their successors, and other fiscal 23
control laws of this State, where applicable, and regulations promulgated by 24
the Department of Finance and Administration, as authorized by law, shall be 25
strictly complied with in disbursement of said funds. 26
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SECTION 14. LEGISLATIVE INTENT. It is the intent of the General 28
Assembly that any funds disbursed under the authority of the appropriations 29
contained in this act shall be in compliance with the stated reasons for 30
which this act was adopted, as evidenced by the Agency Requests, Executive 31
Recommendations and Legislative Recommendations contained in the budget 32
manuals prepared by the Department of Finance and Administration, letters, or 33
summarized oral testimony in the official minutes of the Arkansas Legislative 34
Council or Joint Budget Committee which relate to its passage and adoption. 35
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SECTION 15. EMERGENCY CLAUSE. It is found and determined by the 1
General Assembly, that the Constitution of the State of Arkansas prohibits 2
the appropriation of funds for more than a one (1) year period; that the 3
effectiveness of this Act on July 1, 2026 is essential to the operation of 4
the agency for which the appropriations in this Act are provided, and that in 5
the event of an extension of the legislative session, the delay in the 6
effective date of this Act beyond July 1, 2026 could work irreparable harm 7
upon the proper administration and provision of essential governmental 8
programs. Therefore, an emergency is hereby declared to exist and this Act 9
being necessary for the immediate preservation of the public peace, health 10
and safety shall be in full force and effect from and after July 1, 2026. 11
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