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Arkansas General Assembly· HB 1105Notification that HB1105 is now Act 1004

An act TO MAKE AN APPROPRIATION FOR PERSONAL SERVICES 10 AND OPERATING EXPENSES FOR THE DEPARTMENT OF HUMAN 11 SERVICES - SECRETARY'S OFFICE FOR THE FISCAL YEAR 12 ENDING JUNE 30, 2026, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas             As Engrossed: H3/12/25 H4/10/25
2 95th General Assembly
                                         A Bill

3 Regular Session, 2025                                             HOUSE BILL 1105

4

5 By: Joint Budget Committee

6

7

8                               For An Act To Be Entitled

9              AN ACT TO MAKE AN APPROPRIATION FOR PERSONAL SERVICES

10             AND OPERATING EXPENSES FOR THE DEPARTMENT OF HUMAN

11             SERVICES - SECRETARY'S OFFICE FOR THE FISCAL YEAR

12             ENDING JUNE 30, 2026; AND FOR OTHER PURPOSES.

13

14

15                              Subtitle

16                       AN ACT FOR THE DEPARTMENT OF HUMAN

17                       SERVICES - SECRETARY'S OFFICE

18                       APPROPRIATION FOR THE 2025-2026 FISCAL

19                       YEAR.

20

21

22 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

23

24  SECTION 1. REGULAR SALARIES - SECRETARY OF HUMAN SERVICES. There is

25 hereby established for the Department of Human Services - Secretary's Office

26 for the 2025-2026 fiscal year, the following maximum number of regular

27 employees.

28

29                                                                  Maximum Annual

30                                                      Maximum     Salary Rate

31 Item Class                                           No. of      Fiscal Year

32  No. Code Title                         Employees                  2025-2026

33  (1) SC008 SECRETARY OF HUMAN SERVICES                        1  GRADE SE05

34  MAX. NO. OF EMPLOYEES                                        1

35

36  SECTION 2. APPROPRIATION - SECRETARY OF HUMAN SERVICES. There is

    *LCW012*                                                        04-10-2025 16:54:28 LCW012
    As Engrossed: H3/12/25 H4/10/25                                        HB1105

1 hereby appropriated, to the Department of Human Services, to be payable from

2 the paying account as determined by the Chief Fiscal Officer of the State,

3 for personal services of the Department of Human Services - Secretary's

4 Office for the fiscal year ending June 30, 2026, the following:

5

6 ITEM                                                              FISCAL YEAR

7 NO.                                                               2025-2026

8 (01) REGULAR SALARIES                                             $287,042

9 (02) PERSONAL SERVICES MATCHING                                   68,678

10      TOTAL AMOUNT APPROPRIATED                                   $355,720

11

12      SECTION 3. REGULAR SALARIES - OPERATIONS. There is hereby established

13 for the Department of Human Services - Secretary's Office for the 2025-2026

14 fiscal year, the following maximum number of regular employees.

15

16                                                            Maximum Annual

17                                                Maximum     Salary Rate

18 Item Class                                     No. of      Fiscal Year

19  No. Code Title                              Employees           2025-2026

20  (1) N255N DHS CHIEF DEPUTY DIRECTOR                    2        GRADE SE04

21  (2) L023N DHS DEPUTY DIRECTOR                          2        GRADE SE03

22  (3) N040N DHS CHIEF INFORMATION OFFICER                2        GRADE SE02

23  (4) N233N DHS CHIEF OF BUSINESS OPERATIONS             1        GRADE SE02

24  (5) N232N DHS DEPUTY CHIEF INFORMATION OFFICER         1        GRADE SE02

25  (6) A136C DHS MEDICAID CHIEF FINANCE OFFICER           1        GRADE SE02

26  (7) N027N DHS DEPUTY DIRECTOR ADULT SERVICES           1        GRADE SE01

27  (8) G029N DHS DIRECTOR OF POLICY AND LEGAL             2        GRADE SE01

28  (9) L009C NURSE MANAGER                                1        GRADE MP03

29 (10) D006N STATE SYSTEMS ARCHITECT                      3        GRADE IT10

30 (11) D025N DHS IT SENIOR ENGINEER                       4        GRADE IT09

31 (12) D022N IT SENIOR PROJECT MANAGER                    3        GRADE IT09

32 (13) D123C DB ADMINISTRATOR                             1        GRADE IT08

33 (14) D007C INFORMATION SYSTEMS MANAGER                  8        GRADE IT08

34 (15) D030C INFORMATION SYSTEMS COORDINATOR              3        GRADE IT07

35 (16) D025C STATE IT SECURITY SPECIALIST                 3        GRADE IT06

36 (17) D054C COMPUTER SUPPORT COORDINATOR                 1        GRADE IT05

                                      2             04-10-2025 16:54:28 LCW012
As Engrossed: H3/12/25 H4/10/25                         HB1105

1 (18) D063C COMPUTER SUPPORT SPECIALIST            12  GRADE IT05
                                                        GRADE IT05
2 (19) D061C INFORMATION SYSTEMS COORDINATION SPEC 7    GRADE IT05
                                                        GRADE IT05
3 (20) D057C INFORMATION TECHNOLOGY MANAGER         1   GRADE IT05
                                                        GRADE IT04
4 (21) D052C SOFTWARE SUPPORT ANALYST               7   GRADE IT04
                                                        GRADE IT04
5 (22) D044C SYSTEMS ANALYST                        1   GRADE IT03
                                                        GRADE IT03
6 (23) D062C DATABASE ANALYST                       4   GRADE IT02
                                                        GRADE GS15
7 (24) D068C INFORMATION SYSTEMS ANALYST            1   GRADE GS15
                                                        GRADE GS15
8 (25) D064C WEBSITE DEVELOPER                      1   GRADE GS15
                                                        GRADE GS15
9 (26) D071C COMPUTER SUPPORT ANALYST               2   GRADE GS14
                                                        GRADE GS14
10 (27) D075C SOFTWARE SUPPORT SPECIALIST           3   GRADE GS14
                                                        GRADE GS14
11 (28) D079C COMPUTER SUPPORT TECHNICIAN           9   GRADE GS14
                                                        GRADE GS14
12 (29) R048C DHS CHIEF HUMAN RESOURCES OFFICER     1   GRADE GS14
                                                        GRADE GS14
13 (30) N244N DHS CHIEF OF COMMUNICATION            1   GRADE GS13
                                                        GRADE GS13
14 (31) A131C DHS CHIEF PROCUREMENT OFFICER         1   GRADE GS13
                                                        GRADE GS13
15 (32) N016N DHS DEP DIR ADMINISTRATIVE SVCS       2   GRADE GS13
                                                        GRADE GS13
16 (33) N231N DHS DEPUTY CHIEF COUNSEL              1   GRADE GS13
                                                        GRADE GS13
17 (34) N086N DHS DDS DIR EVAL PLAN & MGMT SYSTEMS  1   GRADE GS13
                                                        GRADE GS13
18 (35) N142N DHS/DAAS DEPUTY DIRECTOR              1   GRADE GS12
                                                        GRADE GS12
19 (36) N102N DHS/DCO ASSISTANT DIRECTOR            1

20 (37) N101N DHS/DCO ASST DEP DIR PGM & ADMN SPT   1

21 (38) N099N DHS/DMS ADD - LONG TERM CARE          1

22 (39) N100N DHS/DMS ADD - MEDICAL SERVICES        4

23 (40) N080N DHS/DMS ASSISTANT DIRECTOR - FISCAL   1

24 (41) N124N DHS/DYS ASSISTANT DIVISION DIRECTOR   2

25 (42) A010C AGENCY CONTROLLER II                  1

26 (43) G290C ASST DEPUTY DIR OF LEGISLATIVE AFRS   1

27 (44) N128N DHS ASST DIR QUALITY ASSURANCE        1

28 (45) D026N DHS ELIGIBILITY SYSTEM PROGRAM MGR    3

29 (46) G054N DHS GENERAL COUNSEL                   1

30 (47) N108N DHS/DCO ASST DEP DIR                  1

31 (48) N107N DHS/OFA ASSISTANT DIR - ACCTNG OPS    2

32 (49) N109N DHS/OFA ASSISTANT DIRECTOR            1

33 (50) G019C GENERAL COUNSEL                       1

34 (51) G004C MANAGING ATTORNEY                     2

35 (52) A021C AGENCY CONTROLLER I                   2

36 (53) G025C ATTORNEY SUPERVISOR                   8

                                    3               04-10-2025 16:54:28 LCW012
As Engrossed: H3/12/25 H4/10/25                         HB1105

1 (54) G024C DEPARTMENT ADMINISTRATIVE LAW JUDGE    2   GRADE GS12
                                                        GRADE GS12
2 (55) G042C DHS ADMINISTRATIVE LAW JUDGE           6   GRADE GS12
                                                        GRADE GS12
3 (56) G101C DHS AREA MANAGER                       1   GRADE GS12
                                                        GRADE GS12
4 (57) P004N DHS DIRECTOR OF PUBLIC RELATIONS       3   GRADE GS12
                                                        GRADE GS11
5 (58) A016C DHS DMS BUSINESS OPERATIONS MANAGER    4   GRADE GS11
                                                        GRADE GS11
6 (59) A014C FISCAL DIVISION MANAGER                4   GRADE GS11
                                                        GRADE GS11
7 (60) R006C HUMAN RESOURCES ADMINISTRATOR          3   GRADE GS11
                                                        GRADE GS10
8 (61) R013C AGENCY HUMAN RESOURCES MANAGER         1   GRADE GS10
                                                        GRADE GS10
9 (62) A031C ASSISTANT CONTROLLER                   7   GRADE GS10
                                                        GRADE GS09
10 (63) G047C ATTORNEY SPECIALIST                   58  GRADE GS09
                                                        GRADE GS09
11 (64) G022C DHS DIRECTOR OF EMERGENCY OPERATIONS  1   GRADE GS09
                                                        GRADE GS09
12 (65) A024C DHS DIVISION CHIEF FISCAL OFFICER     1   GRADE GS09
                                                        GRADE GS08
13 (66) G027N DHS RESEARCH ANALYSIS MANAGER         1   GRADE GS08
                                                        GRADE GS08
14 (67) G076C ADMINISTRATIVE SERVICES MANAGER       5   GRADE GS08
                                                        GRADE GS08
15 (68) G073C ATTORNEY                              1   GRADE GS08
                                                        GRADE GS08
16 (69) A044C AUDIT COORDINATOR                     7   GRADE GS08
                                                        GRADE GS08
17 (70) L010C DHS DMS MEDICAL ASSISTANCE MANAGER    2   GRADE GS08
                                                        GRADE GS08
18 (71) A052C ACCOUNTING COORDINATOR                4   GRADE GS08
                                                        GRADE GS08
19 (72) A050C AGENCY FISCAL MANAGER                 2

20 (73) G099C DHS PROGRAM ADMINISTRATOR             7

21 (74) A038C FISCAL SUPPORT MANAGER                1

22 (75) G109C GRANTS MANAGER                        3

23 (76) P004C PUBLIC INFORMATION MANAGER            1

24 (77) A082C ACCOUNTANT II                         3

25 (78) R021C BUDGET ANALYST                        3

26 (79) A056C DHS FINANCIAL SECTION MANAGER         7

27 (80) G152C DHS PROGRAM MANAGER                   20

28 (81) G129C DHS/DCO PROGRAM MANAGER               3

29 (82) E031C EDUCATION PROGRAM COORDINATOR         1

30 (83) A047C FINANCIAL ANALYST II                  3

31 (84) A066C INTERNAL AUDITOR                      2

32 (85) R014C PERSONNEL MANAGER                     7

33 (86) V007C PROCUREMENT COORDINATOR               5

34 (87) V004C PROCUREMENT MANAGER                   4

35 (88) A041C PROGRAM FISCAL MANAGER                3

36 (89) X062C QUALITY ASSURANCE COORDINATOR         2

                                      4             04-10-2025 16:54:28 LCW012
As Engrossed: H3/12/25 H4/10/25                         HB1105

1 (90) A060C SENIOR AUDITOR                         19  GRADE GS08
                                                        GRADE GS08
2 (91) E023C TRAINING PROJECT MANAGER               2   GRADE GS07
                                                        GRADE GS07
3 (92) A089C ACCOUNTANT I                           7   GRADE GS07
                                                        GRADE GS07
4 (93) G181C ACOM DWS PROGRAM MONITOR               2   GRADE GS07
                                                        GRADE GS07
5 (94) G138C AGENCY ADMINISTRATIVE REVIEW OFFICER   5   GRADE GS07
                                                        GRADE GS07
6 (95) R024C ASSISTANT PERSONNEL MANAGER            11  GRADE GS07
                                                        GRADE GS07
7 (96) A081C AUDITOR                                2   GRADE GS07
                                                        GRADE GS07
8 (97) V008C BUYER SUPERVISOR                       1   GRADE GS07
                                                        GRADE GS07
9 (98) P065C DEVELOPMENT SPECIALIST                 1   GRADE GS07
                                                        GRADE GS07
10 (99) G183C DHS PROGRAM COORDINATOR               7   GRADE GS07
                                                        GRADE GS07
11 (100) M042C DHS STAFF SUPERVISOR                 1   GRADE GS07
                                                        GRADE GS07
12 (101) C010C EXECUTIVE ASSISTANT TO THE DIRECTOR  1   GRADE GS07
                                                        GRADE GS06
13 (102) M040C FAMILY SERVICES PROGRAM COORDINATOR  1   GRADE GS06
                                                        GRADE GS06
14 (103) A076C FINANCE PROGRAM ANALYST              2   GRADE GS06
                                                        GRADE GS06
15 (104) A075C FINANCIAL ANALYST I                  2   GRADE GS06
                                                        GRADE GS06
16 (105) X125C FRAUD INVESTIGATOR COORDINATOR       2   GRADE GS06
                                                        GRADE GS06
17 (106) G147C GRANTS COORDINATOR                   3   GRADE GS06
                                                        GRADE GS06
18 (107) L048C HEALTH PROGRAM SPECIALIST II         1   GRADE GS06
                                                        GRADE GS06
19 (108) S017C MAINTENANCE COORDINATOR              1

20 (109) A065C PAYROLL SERVICES COORDINATOR         1

21 (110) P020C PRODUCTION ARTIST                    1

22 (111) P013C PUBLIC INFORMATION COORDINATOR       3

23 (112) E040C STAFF DEVELOPMENT COORDINATOR        3

24 (113) C037C ADMINISTRATIVE ANALYST               16

25 (114) M045C ADULT PROTECTIVE SERVICES WORKER     4

26 (115) R027C BUDGET SPECIALIST                    14

27 (116) R026C CIVIL RIGHTS/EMPLOYEE RELATIONS COORD 1

28 (117) G170C DHS ADMINISTRATIVE REVIEW OFFICER    6

29 (118) G210C DHS PROGRAM SPECIALIST               13

30 (119) P021C EDITOR                               1

31 (120) A074C FISCAL SUPPORT SUPERVISOR            11

32 (121) X156C FRAUD INVESTIGATOR                   3

33 (122) G180C GRANTS ANALYST                       10

34 (123) G214C GRANTS SPECIALIST                    1

35 (124) P049C GRAPHIC ARTIST                       1

36 (125) L053C HEALTH PROGRAM SPECIALIST I          1

                                       5            04-10-2025 16:54:28 LCW012
         As Engrossed: H3/12/25 H4/10/25                                        HB1105

 1 (126) R025C HUMAN RESOURCES ANALYST                                      13  GRADE GS06
 2 (127) R029C HUMAN RESOURCES RECRUITER
 3 (128) X101C INTERNAL AFFAIRS INVESTIGATOR                                5   GRADE GS06
 4 (129) G179C LEGAL SERVICES SPECIALIST
 5 (130) S033C MAINTENANCE SUPERVISOR                                       2   GRADE GS06
 6 (131) P031C MEDIA SPECIALIST
 7 (132) G178C POLICY DEVELOPMENT COORDINATOR                               8   GRADE GS06
 8 (133) M066C PROGRAM ELIGIBILITY SPECIALIST
 9 (134) A084C PROGRAM/FIELD AUDIT SPECIALIST                               1   GRADE GS06
10 (135) X136C QUALITY ASSURANCE REVIEWER
11 (136) B076C RESEARCH PROJECT ANALYST                                     2   GRADE GS06
12 (137) G202C VOLUNTEER PROGRAM COORDINATOR
13 (138) C050C ADMINISTRATIVE SUPPORT SUPERVISOR                            1   GRADE GS06
14 (139) A088C ASSETS COORDINATOR
15 (140) R033C BENEFITS ANALYST                                             1   GRADE GS06
16 (141) C022C BUSINESS OPERATIONS SPECIALIST
17 (142) V014C BUYER                                                        2   GRADE GS06
18 (143) A091C FISCAL SUPPORT ANALYST
19 (144) L070C HEALTH CARE ANALYST                                          1   GRADE GS06
20 (145) D077C HELP DESK SPECIALIST
21 (146) R032C HUMAN RESOURCES PROGRAM REP                                  4   GRADE GS06
22 (147) C040C LEASING SPECIALIST
23 (148) A090C PAYROLL SERVICES SPECIALIST                                  1   GRADE GS06
24 (149) V015C PURCHASING SPECIALIST
25 (150) V018C WAREHOUSE MANAGER                                            1   GRADE GS05
26 (151) A101C ACCOUNTING TECHNICIAN
27 (152) C056C ADMINISTRATIVE SPECIALIST III                                1   GRADE GS05
28 (153) A098C FISCAL SUPPORT SPECIALIST
29 (154) V020C INVENTORY CONTROL MANAGER                                    1   GRADE GS05
30 (155) C046C LEGAL SUPPORT SPECIALIST
31 (156) C044C MEDICAL BILLING SPECIALIST                                   1   GRADE GS05
32 (157) A097C PAYROLL TECHNICIAN
33 (158) C043C RECORDS MANAGEMENT ANALYST                                   1   GRADE GS05
34 (159) V021C SURPLUS PROPERTY AGENT
35 (160) V025C WAREHOUSE SPECIALIST                                         16  GRADE GS05
36 (161) C073C ADMINISTRATIVE SPECIALIST II
                                                                            3   GRADE GS05
                                                                         6
                                                                            2   GRADE GS05

                                                                            6   GRADE GS05

                                                                            1   GRADE GS05

                                                                            4   GRADE GS05

                                                                            8   GRADE GS05

                                                                            2   GRADE GS05

                                                                            1   GRADE GS04

                                                                            13  GRADE GS04

                                                                            15  GRADE GS04

                                                                            1   GRADE GS04

                                                                            34  GRADE GS04

                                                                            2   GRADE GS04

                                                                            2   GRADE GS04

                                                                            3   GRADE GS04

                                                                            1   GRADE GS04

                                                                            1   GRADE GS04

                                                                            6   GRADE GS03

                                                                            04-10-2025 16:54:28 LCW012
    As Engrossed: H3/12/25 H4/10/25                                        HB1105

1 (162) V027C INVENTORY CONTROL TECHNICIAN      3                   GRADE GS03

2 (163) C062C LOCAL OFFICE ADMINISTRATIVE ASST  1                   GRADE GS03

3 (164) S054C PRINTER                           1                   GRADE GS03

4        MAX. NO. OF EMPLOYEES                  650

5

6        SECTION 4. EXTRA HELP - OPERATIONS. There is hereby authorized, for

7 the Department of Human Services - Secretary's Office for the 2025-2026

8 fiscal year, the following maximum number of part-time or temporary

9 employees, to be known as "Extra Help", payable from funds appropriated

10 herein for such purposes: twenty-eight (28) temporary or part-time employees,

11 when needed, at rates of pay not to exceed those provided in the Uniform

12 Classification and Compensation Act, or its successor, or this act for the

13 appropriate classification.

14

15       SECTION 5. APPROPRIATION - OPERATIONS. There is hereby appropriated,

16 to the Department of Human Services, to be payable from the paying account as

17 determined by the Chief Fiscal Officer of the State, for personal services

18 and operating expenses of the Department of Human Services - Secretary's

19 Office for the fiscal year ending June 30, 2026, the following:

20

21 ITEM                                                             FISCAL YEAR

22 NO.                                                              2025-2026

23 (01) REGULAR SALARIES                                            $38,443,782

24 (02) EXTRA HELP                                                  298,556

25 (03) PERSONAL SERVICES MATCHING                                  14,099,810

26 (04) OVERTIME                                                       8,383

27 (05) MAINT. & GEN. OPERATION

28       (A) OPER. EXPENSE                                          5,571,873

29       (B) CONF. & TRAVEL                                            59,433

30       (C) PROF. FEES                                             8,861,800

31       (D) CAP. OUTLAY                                            400,000

32       (E) DATA PROC.                                                      0

33 (06) DATA PROCESSING SERVICES                                    2,016,710

34       TOTAL AMOUNT APPROPRIATED                                  $69,760,347

35

36       SECTION 6. APPROPRIATION - VARIOUS BUILDING CONSTRUCTION. There is

                                     7          04-10-2025 16:54:28 LCW012
    As Engrossed: H3/12/25 H4/10/25                                      HB1105

1 hereby appropriated, to the Department of Human Services, to be payable from

2 the Department of Human Services Renovation Fund, for construction,

3 renovation, maintenance, equipment, and repairs for various buildings

4 operated by the Department of Human Services - Secretary's Office for the

5 fiscal year ending June 30, 2026, the following:

6

7 ITEM                                                       FISCAL YEAR

8 NO.                                                               2025-2026

9 (01) CONSTRUCTION                                          $15,914,729

10

11       SECTION 7. APPROPRIATION - CONSOLIDATED COST. There is hereby

12 appropriated, to the Department of Human Services, to be payable from the DHS

13 Consolidated Cost Revolving Fund, for operating expenses of the Department of

14 Human Services - Secretary's Office - Consolidated Cost for the fiscal year

15 ending June 30, 2026, the following:

16

17 ITEM                                                      FISCAL YEAR

18 NO.                                                              2025-2026

19 (01) MAINT. & GEN. OPERATION

20       (A) OPER. EXPENSE                                          $800,000

21       (B) CONF. & TRAVEL                                                   0

22       (C) PROF. FEES                                                       0

23       (D) CAP. OUTLAY                                                21,500

24       (E) DATA PROC.                                                       0

25       TOTAL AMOUNT APPROPRIATED                                  $821,500

26

27       SECTION 8. APPROPRIATION - GRANTS PAYING. There is hereby

28 appropriated, to the Department of Human Services, to be payable from the

29 paying account as determined by the Chief Fiscal Officer of the State, for

30 purchase of services of the Department of Human Services - Secretary's Office

31 for the fiscal year ending June 30, 2026, the following:

32

33 ITEM                                                      FISCAL YEAR

34 NO.                                                              2025-2026

35 (01) PURCHASE OF SERVICES                                        $129,084

36

                                     8              04-10-2025 16:54:28 LCW012
    As Engrossed: H3/12/25 H4/10/25                                       HB1105

1   SECTION 9. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS

2 CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW.

3 SECRETARY'S OFFICE/OFFICE OF CHIEF COUNSEL - PURCHASE OF EVIDENCE. Upon

4 approval by the Chief Fiscal Officer of the State, the Chief Counsel for the

5 Department of Human Services may transfer an amount up to but not to exceed

6 $12,000 and deposit same in a bank account for the purpose of purchasing

7 evidence in the course of investigating the illegal use of food

8 stamps/Electronic Benefit Transfer (EBT) cards. The funds so transferred

9 shall be subject to accounting in a manner substantially similar to that

10 employed by the Arkansas State Police for such transactions; provided

11 however, that information tending to identify participants in such

12 transactions shall be exempt from the Arkansas Freedom of Information Act.

13  The provisions of this section shall be in effect only from July 1, 2024

14 2025 through June 30, 2025 2026.

15

16  SECTION 10. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS

17 CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. HUMAN

18 SERVICES RENOVATION FUND. Department of Human Services Renovation Fund.

19  (a) There is established on the books of the Treasurer of State, Auditor

20 of State, and the Chief Fiscal Officer of the State a fund to be known as the

21 Department of Human Services Renovation Fund.

22  (b) This fund shall be used for constructing, acquiring, renovating,

23 maintaining, repairing, and equipping facilities of the Department of Human

24 Services and for paying disallowances by the federal government.

25  (c) The fund shall consist of:

26 (1) Federal reimbursement received by the Department of Human Services and

27 deposited in the various fund accounts of the department; and

28 (2) General revenues transferred from the Division of Youth Services, the

29 Division of Aging, Adult, and Behavioral Health Services, and the Division of

30 Developmental Disabilities Services for the purposes of repairing,

31 renovating, equipping, acquiring and constructing Department of Human

32 Services facilities with an annual maximum of five million dollars

33 ($5,000,000). The projects for which these transfers are authorized must be

34 projects which were unanticipated during the preceding regular session of the

35 Arkansas General Assembly and must be projects which, if not carried out in

36 the interim period between regular sessions of the Arkansas General Assembly

                                     9            04-10-2025 16:54:28 LCW012
    As Engrossed: H3/12/25 H4/10/25                                        HB1105

1 would cause greater harm to the facilities, clients or programs of the

2 Department of Human Services than to wait until the next regular session.

3 (3) Other non-general revenue funds as may be available within the Department

4 of Human Services that can be used for the purposes of this fund.

5   (d)(1) At the request of the Secretary of the Department of Human

6 Services, and upon certification of the availability of such funds, the Chief

7 Fiscal Officer of the State shall initiate the necessary transfer documents

8 to reflect the transfer on the books of record of the Treasurer of State, the

9 Auditor of State, the Chief Fiscal Officer of the State, and the Department

10 of Human Services.

11 (2) The Secretary of the Department of Human Services shall submit any

12 transfer plan to and must receive approval of the plan from the Chief Fiscal

13 Officer of the State, the Governor and the Arkansas Legislative Council or

14 Joint Budget Committee prior to the effective date of the transfer.

15  (e) Provided, that any non-general revenue funding that may remain in the

16 fund at the end of any fiscal year shall be carried over into the next fiscal

17 year and all obligated general revenue funding that may remain in the fund at

18 the end of any fiscal year shall be carried over into the next fiscal year to

19 satisfy such legal and contractual obligations that have been entered into

20 prior to the end of the fiscal year.

21  (f) Determining the amount of funds appropriated to a state agency is the

22 prerogative of the General Assembly and is usually accomplished by

23 delineating specific line items and by identifying the appropriation and

24 funding attached to that line item. The General Assembly has determined that

25 the Department of Human Services could be operated more efficiently if some

26 flexibility is given to that agency. That flexibility is being accomplished

27 by providing transfer authority in subsection (d) of this section, and since

28 the General Assembly has granted the agency broad powers under the transfer

29 authority concept, it is both necessary and appropriate that the General

30 Assembly maintain oversight of the utilization of the transfer authority by

31 requiring prior approval of the Legislative Council or Joint Budget Committee

32 in the utilization of this transfer authority. Therefore, the requirement of

33 approval by the Legislative Council or Joint Budget Committee is not a

34 severable part of this section. If the requirement of approval by the

35 Legislative Council or Joint Budget Committee is ruled unconstitutional by a

36 court of competent jurisdiction, this entire section is void.

                                     10  04-10-2025 16:54:28 LCW012
    As Engrossed: H3/12/25 H4/10/25                                         HB1105

1   The provisions of this section shall be in effect only from July 1, 2024

2 2025 through June 30, 2025 2026.

3

4   SECTION 11. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS

5 CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW.

6 TRANSFER AUTHORITY. The Secretary of the Department of Human Services shall

7 have transfer authority provided by the following:

8   (a) DEPARTMENT OF HUMAN SERVICES RENOVATION FUND. The Secretary of the

9 Department of Human Services is authorized to request fund transfers

10 according to the provisions established by Arkansas Code Ann. 19-5-1020,

11 Department of Human Services Renovation Fund, as amended herein; and

12  (b) MATCH TRANSFER. The Secretary of the Department of Human Services,

13 with the approval of the Chief Fiscal Officer of the State, is authorized to

14 effect inter-agency and inter-divisional fund transfers for the purpose of

15 providing the State's matching share for payments made to that Division or

16 Office or its service providers for services eligible for federal

17 reimbursement under programs administered by the Department of Human

18 Services. The Department of Human Services shall report to the Legislative

19 Council or Joint Budget Committee on a quarterly basis all fund transfers

20 made in accordance with the authority granted by this section; and

21  (c) REALLOCATION OF RESOURCES: (1) The Department of Human Services (DHS)

22 provides hundreds of different services to over 1 million Arkansans. The

23 specific mix of service needs and the funding and staffing required to

24 provide them can vary significantly based on many factors, including natural

25 disasters, changing federal mandates and funding sources, demographic shifts,

26 fluctuating court-ordered services, social trends, and job market variations

27 such as nursing shortages. The impact of these factors through the course of

28 any fiscal year make it very difficult for the Department to accurately

29 predict the exact needs for funding, appropriation and positions in each of

30 its over 100 different appropriations. To ensure that it can respond quickly

31 to changing client needs and make the most effective use of the resources

32 allocated to it, the Department of Human Services shall be authorized to

33 utilize the reallocation of resource authority to make the proper adjustments

34 to the budgets within the Department. Therefore, upon determination by the

35 Secretary of the Department of Human Services that a reallocation of

36 resources within the department is necessary for the efficient and effective

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    As Engrossed: H3/12/25 H4/10/25                                         HB1105

1 operation of the department, the Secretary, with approval of the Governor,

2 shall have the authority to request, from the Chief Fiscal Officer of the

3 State, a transfer of positions, appropriations, line item appropriations, and

4 funds within or between existing and newly created divisions, offices,

5 sections, or units of the department. Provided, however, that no transfer of

6 funds or appropriation that provides direct support or matching support for

7 the Arkansas Medicaid Program shall be made to any other fund account or

8 appropriation that does not directly support the Arkansas Medicaid Program.

9 Further, no positions, funds, or appropriation authorized during the budget

10 process for the Division of Children and Family Services' compliance with

11 initiatives established under the Angela R. consent decree shall be

12 transferred to any other division. Nothing in this provision is intended to

13 prevent the one-time transfers of savings in any other program to the

14 Arkansas Medicaid Program, with the exception of the provisions previously

15 cited for the Division of Children and Family Services � Angela R. consent

16 decree. The Division of Developmental Disabilities � Grants to Community

17 Providers line item of the Developmental Disabilities Services - Grants-in-

18 Aid appropriation may not be decreased. The appropriation, funding, and

19 positions provided for the five Human Development Centers shall remain at a

20 level sufficient to ensure quality care for the Centers' residents. The

21 exemptions provided in this subsection whereby certain DHS Programs and

22 Divisions are protected from appropriation, fund, or position transfers are

23 applicable only to the reallocation or transfer authority granted herein, and

24 not by any reductions which are applicable to all state programs.

25  The Secretary of the Department of Human Services shall submit any

26 requests for transfers to and must receive approval of the requests for

27 transfers from the Chief Fiscal Officer of the State, the Governor, and the

28 Arkansas Legislative Council or Joint Budget Committee prior to the effective

29 date of the transfers. Provided, however, that the Department of Human

30 Services shall be limited to submitting no more than four reallocation of

31 resources transfer requests during any fiscal year. In each Departmental

32 request no single division will request reallocation for more than one

33 purpose as listed in this section. Transfer authority for unforeseen purposes

34 shall further be limited to no more than 5% of the total appropriation,

35 funding, and positions authorized for the Department. Reallocation of

36 resources transfers may include multiple items but shall be limited to the

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    As Engrossed: H3/12/25 H4/10/25                                         HB1105

1 following purposes:

2 i) Medicaid Program;

3 ii) Facilities and institutions costs, including operational expenses and

4 construction/renovation/equipping expenses;

5 iii) Departmental grants and contracts;

6 iv) Court ordered settlements and payments;

7 v) Payment of administrative expenses, including but not limited to, overtime

8 and other costs of personnel for critical services or functions necessary to

9 carry out the mission of the agency;

10 vi) Restructuring efforts as deemed necessary to comply with new and/or

11 unanticipated federal or state mandates; and/or

12 vii) Redirecting internal resources, both direct and/or indirect, to meet

13 client needs and services.

14  Determining the maximum number of employees and the maximum amount of

15 appropriation and general revenue funding for a state agency each fiscal year

16 is the prerogative of the General Assembly. This is usually accomplished by

17 delineating such maximums in the appropriation act(s) for a state agency and

18 the general revenue allocations authorized for each fund and fund account by

19 amendment to the Revenue Stabilization law. Further, the General Assembly has

20 determined that the Department of Human Services may operate more efficiently

21 if some flexibility is provided to the Department of Human Services

22 authorizing broad powers under the Reallocation of Resources provisions

23 herein. Therefore, it is both necessary and appropriate that the General

24 Assembly maintain oversight by requiring prior approval of the Legislative

25 Council or Joint Budget Committee as provided by this section. The

26 requirement of approval by the Legislative Council or Joint Budget Committee

27 is not a severable part of this section. If the requirement of approval by

28 the Legislative Council or Joint Budget Committee is ruled unconstitutional

29 by a court of competent jurisdiction, this entire section is void.

30  (2) If it is determined that the requested reallocation of resources

31 transfers should be made, the Chief Fiscal Officer of the State shall then

32 initiate the necessary transfer documents to reflect the transfers upon the

33 fiscal records of the Treasurer of State, the Auditor of State, the Chief

34 Fiscal Officer of the State, and the Department of Human Services. In

35 addition, the Chief Fiscal Officer of the State, together with the Co-

36 Chairpersons of the Legislative Council or Joint Budget Committee, may

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    As Engrossed: H3/12/25 H4/10/25                                         HB1105

1 approve, on an emergency basis, requests for utilization of this Section

2 without prior approval of the Arkansas Legislative Council or Joint Budget

3 Committee, with any such actions reported at the next meeting of the Arkansas

4 Legislative Council or Joint Budget Committee.

5   The provisions of this section shall be in effect only from July 1, 2024

6 2025 through June 30, 2025 2026.

7

8   SECTION 12. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS

9 CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL, AND TEMPORARY LAW. Arkansas

10 State Hospital -- Insurance reimbursements and unspent set-aside funds for

11 repairs recoupment.

12  (a) An insurance reimbursement received by the Department of Human

13 Services to reimburse funds that were transferred from the EBD or Contingency

14 Set-Aside in the Restricted Reserve Fund for critical storm damage repair for

15 the Arkansas State Hospital shall be transferred, as the insurance

16 reimbursement is received, on the books of the Chief Fiscal Officer of the

17 State, the Treasurer of State, and the Auditor of State from the appropriate

18 fund or fund account into which the department deposited the insurance

19 reimbursement payment to:

20  (1) The EBD or Contingency Set-Aside in the Restricted Reserve

21 Fund if the EBD or Contingency Set-Aside in the Restricted Reserve Fund is

22 currently active with a balance greater than zero dollars ($0.00); or

23  (2) The General Revenue Allotment Reserve Fund if the EBD or

24 Contingency Set-Aside in the Restricted Reserve Fund is no longer active.

25  (b) Any funds received by the department for critical storm damage

26 repair for the Arkansas State Hospital from the EBD or Contingency Set-Aside

27 in the Restricted Reserve Fund that remain upon completion of the storm

28 damage repair project shall be transferred as provided for insurance

29 reimbursements under subsection (a) of this section.

30  (c) The Secretary of the Department of Human Services shall notify the

31 Chief Fiscal Officer of the State and the Performance Evaluation and

32 Expenditure Review Subcommittee of the Legislative Council or, if the General

33 Assembly is in session, the PEER/Review Subcommittee of the Joint Budget

34 Committee, of the following to allow for the transfers provided for in

35 subsections (a) and (b) of this section:

36  (1) The receipt of an insurance reimbursement by the department

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    As Engrossed: H3/12/25 H4/10/25                                         HB1105

1 for critical storm damage repair for the Arkansas State Hospital; and

2   (2) Upon completion of the storm damage repair project, the

3 amount of any remaining funds described in subsection (b) of this section.

4   (d) The department shall report quarterly to the Legislative Council

5 or, if the General Assembly is in session, the Joint Budget Committee:

6   (1) The status of the storm damage repair project;

7   (2) The projected completion time lines for the storm damage

8 repair project;

9   (3) The total amount of the insurance reimbursements received by

10 the department to date for the storm damage repair project; and

11  (4) Any remaining balance of the original five million dollars

12 ($5,000,000) transferred to the department from the EBD or Contingency Set-

13 Aside in the Restricted Reserve Fund.

14  (e) This section is effective on July 1, 2024, and until the final

15 transfer of funds has been made as provided in this section.

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17

18  SECTION 13. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS

19 CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL, AND TEMPORARY LAW.

20 DEPARTMENT OF HUMAN SERVICES COMPREHENSIVE AGENCY REVIEW. The Arkansas

21 Legislative Council - Hospital and Medicaid Study Subcommittee shall perform

22 a comprehensive review of the Department of Human Services, which shall

23 commence at the direction of the co-chairs of the Arkansas Legislative

24 Council, in consultation with the subcommittee co-chairs. This review shall

25 include, but is not limited to: administrative policies and functions,

26 personnel and staffing evaluations, and revenues and expenditures of the

27 department, divisions, and providers. The subcommittee shall prioritize the

28 review as follows: the Shared Services division, the Division of Children and

29 Family Services, and the Division of County Operations, with further

30 prioritization of divisions to be determined by the subcommittee. The review

31 shall include input and recommendations from the Attorney General's Medicaid

32 Fraud Unit and the Department of Inspector General's office.

33  The preliminary recommendations and report shall be completed within

34 six months of the subcommittee`s initial meeting. Upon completion of this

35 preliminary report, the subcommittee shall provide the department, the

36 Governor, and the Arkansas Legislative Council with a report to include

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    As Engrossed: H3/12/25 H4/10/25                                         HB1105

1 recommendations and desired metrics with expected timelines of completion to

2 meet the desired outcomes provided in the preliminary report. At the

3 direction of the chair of the Arkansas Legislative Council - Hospital and

4 Medicaid Study Subcommittee, the subcommittee may add recommendations and

5 approve and review actions by the department in accordance with the

6 preliminary recommendations.

7   The final report and outcomes, including recommending legislation to

8 address findings, shall be presented at the final Arkansas Legislative

9 Council meeting of the 95th General Assembly.

10  The Department of Human Services shall report to the subcommittee

11 monthly the status of implementation of the recommendations with review and

12 approval of all steps taken to meet the metrics and desired outcomes of the

13 department in accordance with the recommendations by the subcommittee and by

14 the Arkansas Legislative Council.

15  The provisions of this section shall be in effect only from July 1,

16 2025 through June 30, 2026.

17

18  SECTION 14. COMPLIANCE WITH OTHER LAWS. Disbursement of funds

19 authorized by this act shall be limited to the appropriation for such agency

20 and funds made available by law for the support of such appropriations; and

21 the restrictions of the State Procurement Law, the General Accounting and

22 Budgetary Procedures Law, the Revenue Stabilization Law, the Regular Salary

23 Procedures and Restrictions Act, or their successors, and other fiscal

24 control laws of this State, where applicable, and regulations promulgated by

25 the Department of Finance and Administration, as authorized by law, shall be

26 strictly complied with in disbursement of said funds.

27

28  SECTION 15. LEGISLATIVE INTENT. It is the intent of the General

29 Assembly that any funds disbursed under the authority of the appropriations

30 contained in this act shall be in compliance with the stated reasons for

31 which this act was adopted, as evidenced by the Agency Requests, Executive

32 Recommendations and Legislative Recommendations contained in the budget

33 manuals prepared by the Department of Finance and Administration, letters, or

34 summarized oral testimony in the official minutes of the Arkansas Legislative

35 Council or Joint Budget Committee which relate to its passage and adoption.

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    As Engrossed: H3/12/25 H4/10/25                                       HB1105

1   SECTION 16. EMERGENCY CLAUSE. It is found and determined by the

2 General Assembly, that the Constitution of the State of Arkansas prohibits

3 the appropriation of funds for more than a one (1) year period; that the

4 effectiveness of this Act on July 1, 2025 is essential to the operation of

5 the agency for which the appropriations in this Act are provided, and that in

6 the event of an extension of the legislative session, the delay in the

7 effective date of this Act beyond July 1, 2025 could work irreparable harm

8 upon the proper administration and provision of essential governmental

9 programs. Therefore, an emergency is hereby declared to exist and this Act

10 being necessary for the immediate preservation of the public peace, health

11 and safety shall be in full force and effect from and after July 1, 2025.

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Every fact on this page links to its source, starting with the official bill record.