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Chapter 1 General Provisions

Subchapter 1 — General Provisions

[Reserved.]

Subchapter 2 — Fiscal Duties of Department of Finance and Administration

Cross References. Department of Finance and Administration, § 25-8-101 et seq.

Effective Dates. Acts 1955, No. 315, § 12: Apr. 1, 1955. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that: (1) because of the many demands for public funds for essential and vital public services, there is a continual and pressing need for efficiency in the operation of the fiscal affairs of our state government, and for maintaining the state and all of its agencies on a sound financial basis, thereby making the establishment of the Office of State Comptroller an immediate and vital necessity; and, (2) because it is imperative that the State Comptroller have adequate time before the commencement of the new biennial period, on July 1, 1955, within which to prepare and distribute the manuals of procedure and other regulations for the control of the expenditure of public funds; therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in force from and after April 1, 1955.”

Acts 1971, No. 585, § 34: approved Apr. 6, 1971. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that in order to establish an orderly procedure which will insure the monthly and quarterly distribution of funds for the necessary services and operations of the state government, as provided for in this act, it is necessary that the provisions of this act become effective immediately; that under the provisions of this act seriously needed improvements for many of our public institutions are contemplated, and only the provisions of this act will provide such funds which will be adequate to alleviate this situation; and that only the provisions of this act will correct many of our financial difficulties, and which otherwise may deprive the citizens of this state from receiving the benefits for which the operation of state government contemplates. Therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage.”

Acts 2001, No. 1453, § 49: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that proper and effective management requires that changes to the state's finance and accounting laws begin on the first day of the fiscal year and that if there is an extended recess of the General Assembly, the required ninety day period may extend past July 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 153: July 1, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Arkansas Building Authority, the Arkansas Science and Technology Authority, the Department of Rural Services, and the Division of Land Surveys of the Arkansas Agriculture Department are inefficiently structured; that this inefficient structuring causes an excessive and unnecessary cost to the taxpayers of the this state; and that this act is essential to alleviating that financial burden. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2015.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-1-201. Chief Fiscal Officer of the State.

The Secretary of the Department of Finance and Administration shall be the Chief Fiscal Officer of the State.

History. Acts 1971, No. 585, § 17; A.S.A. 1947, § 13-202; Acts 2019, No. 910, § 3427.

Publisher's Notes. Acts 1971, No. 38, § 5, created the Department of Finance and Administration to replace the State Administration Department, which previously had transferred to it the functions, etc., of the Office of State Comptroller by Acts 1967, No. 468, § 2, abolishing the position of State Comptroller. See § 25-8-101.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration”.

19-1-202. Secretary.

The Secretary of the Department of Finance and Administration shall be at least thirty (30) years of age, of good moral character, and of demonstrated ability in the field of his or her employment.
Before entering upon his or her duties of employment, the Secretary of the Department of Finance and Administration shall take, subscribe, and file in the office of the Secretary of State an oath or affirmation to support the United States Constitution and the Arkansas Constitution and to faithfully discharge the duties of the employment upon which he or she is about to enter.
1. The Secretary of the Department of Finance and Administration shall furnish bond to the state, with a corporate surety thereon, in the penal sum of ten thousand dollars ($10,000), conditioned upon the faithful performance of his or her duties and for the proper accounting for all funds received and disbursed by him or her.
2. The Secretary of the Department of Finance and Administration shall be the disbursing agent for the Department of Finance and Administration but shall not be required to furnish additional bond as that disbursing agent, nor shall he or she be required to furnish additional bond as disbursing agent of other appropriations for which he or she may be designated disbursing agent under or pursuant to any law of this state unless so directed by the General Assembly.
3. The Secretary of the Department of Finance and Administration, if he or she deems it advisable, may require other employees of his or her office to furnish bond, in such penal sums as he or she shall determine.
4. 1. The original of the bond of the Secretary of the Department of Finance and Administration shall be filed in the office of the Secretary of State, and an executed counterpart thereof shall be filed in the office of the Auditor of State.
  2. Any bonds which may be required of employees shall be filed with the Secretary of the Department of Finance and Administration.

History. Acts 1955, No. 315, § 3; 1971, No. 707, § 1; A.S.A. 1947, § 13-203; Acts 2019, No. 910, § 3428.

A.C.R.C. Notes. The operation of subsection (c) of this section was suspended by adoption of a self-insured fidelity bond program for public officers, officials, and employees, effective July 20, 1987, pursuant to § 21-2-701 et seq. The subsection may again become effective upon cessation of coverage under that program. See § 21-2-703.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a); and substituted “Secretary of the Department of Finance and Administration” for “director” in (b) and throughout (c).

19-1-203. Deputy director.

The Deputy Director of the Department of Finance and Administration, acting under the authority granted to him or her by the Secretary of the Department of Finance and Administration, and under the laws relating to budget and accounting procedure, shall:

Prepare and publish all necessary rules for carrying out the budget and accounting laws of the state and have the authority to require of any state agency the necessary fiscal information for carrying out such laws;
Acting in behalf of the Governor and the secretary, prepare the preliminary budget information biennially to be submitted to the Legislative Council and to the members of the General Assembly for consideration of the budget requirements of all state agencies; and
Be prepared, when called upon to do so, to appear before the Legislative Council and committees of the General Assembly for the purpose of supplying information and reporting upon the financial condition of the state or any of its agencies.

History. Acts 1955, No. 315, § 7; A.S.A. 1947, § 13-208; Acts 2001, No. 1453, § 1; 2019, No. 315, § 1690; 2019, No. 910, § 3429.

Amendments. The 2019 amendment by No. 315 substituted “rules” for “regulations” in (1).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration”.

Cross References. Deputy Director of the Department of Finance and Administration as Director of Budgets and Accounting, § 25-8-104.

19-1-204. Personnel.

Except as otherwise provided for by this subchapter, all of the personnel of the Department of Finance and Administration shall be employed by and serve at the pleasure of the Secretary of the Department of Finance and Administration.
Nothing contained in this subchapter shall be so construed as to inhibit the rights of any employees of the department who shall have gained civil service or merit system status under any law of this state.

History. Acts 1955, No. 315, § 7; A.S.A. 1947, § 13-207; 2019, No. 910, § 3430.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a).

19-1-205. Office.

The Building Authority Division shall assign to the Department of Finance and Administration and divisions of the department suitable office space with the necessary conveniences for the transaction of the department's business and the safekeeping of the department's records.

History. Acts 1955, No. 315, § 4; A.S.A. 1947, § 13-204; Acts 2009, No. 251, § 1; 2015 (1st Ex. Sess.), No. 7, § 9; 2015 (1st Ex. Sess.), No. 8, § 9; 2019, No. 910, § 6079.

A.C.R.C. Notes. Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 1, provided: “Transfer of the Arkansas Building Authority to the Department of Finance and Administration.

“(a)(1) The Arkansas Building Authority is transferred to the Department of Finance and Administration by a type 2 transfer under § 25-2-105.

“(2) For the purposes of this act, the Department of Finance and Administration shall be considered a principal department established by Acts 1971, No. 38.

“(b) All authority, powers, duties, functions, records, personnel, property, unexpended balances of appropriations, allocations, and other funds, including the functions of budgeting or purchasing, are transferred to the Department of Finance and Administration, except as specified by this act.

“(c) All powers, duties, and functions, including rulemaking, regulation, and licensing, promulgation of rules, rates, regulations, and standards, and the rendering of findings, orders, and adjudications are transferred to the Director of the Department of Finance and Administration.

“(d) The members of the Arkansas Building Authority Council, and their successors, shall continue to be selected in the manner and serve for the terms provided by the statutes applicable to the council except as specified in this act.

“(e) The Arkansas Code Revision Commission shall make appropriate name changes in the Arkansas Code to implement this act.”

Amendments. The 2009 amendment substituted “Arkansas Building Authority” for “officer or board having custody of the public buildings,” deleted “in the State Capitol Building” following “office space,” and made minor stylistic changes.

The 2015 amendment by Acts 2015 (1st Ex. Sess.), Nos. 7 and 8 substituted “Building Authority Division of the Department of Finance and Administration” for “Arkansas Building Authority”.

The 2019 amendment deleted “of the Department of Finance and Administration” following “Building Authority Division”.

19-1-206. Seal.

The Governor shall procure an official seal for the Department of Finance and Administration. Every paper executed by the Secretary of the Department of Finance and Administration or by any other employee of the department and sealed with its official seal shall be received in evidence in any court or other tribunal and may be recorded in the same manner and with like effect as deeds regularly acknowledged.

History. Acts 1955, No. 315, § 4; A.S.A. 1947, § 13-204; Acts 2019, No. 910, § 3431.

Research References

Ark. L. Rev.

Documentary Evidence — Arkansas, 15 Ark. L. Rev. 79.

19-1-207. General accounting system.

The Secretary of the Department of Finance and Administration shall:

Have the duty and responsibility of enforcing the general accounting and fiscal procedures of the State of Arkansas which have been placed upon him or her by law;
Exercise supervision over the general accounting system of the state and of state agencies; and
Maintain in his or her office a system of accounts and control which will at all times reflect:
1. The unencumbered balance of all funds and accounts carried on the books of the Auditor of State and the Treasurer of State;
2. The distribution and allotment of state revenues; and
3. A detailed record of the receipts and expenditures of all State Treasury funds.

History. Acts 1955, No. 315, § 7; A.S.A. 1947, § 13-207; Acts 2019, No. 910, § 3432.

Cross References. Monitoring of state expenditures, § 19-4-1301 et seq.

19-1-208. Rules.

The Secretary of the Department of Finance and Administration is vested with the authority to make such reasonable rules, not inconsistent with the law, as shall be necessary or desirable for the orderly discharge of the duties vested in the Department of Finance and Administration.

History. Acts 1955, No. 315, § 7; A.S.A. 1947, § 13-207; Acts 2019, No. 315, § 1691; 2019, No. 910, § 3433.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “Rules” in the section heading; and deleted “and regulations” following “rules”.

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration”.

Case Notes

Rule-making Authority.

Section 26-51-404(b)(24)(B) plainly indicates that I.R.C. § 72 does not apply to annuity income received from employment-related retirement plans. In contrast, the Emergency Income Tax Rule provides that § 72 would apply to annuity income received from employment-related retirement plans; because an inconsistency existed, the Emergency Rule is inconsistent with the law, and infringes a legislative function, and as a result, the Emergency Rule is outside the scope of the director of the Department of Finance and Administration's rule-making authority as set forth in this section. Weiss v. Maples, 369 Ark. 282, 253 S.W.3d 907 (2007).

19-1-209. Publications required.

The Secretary of the Department of Finance and Administration shall publish and furnish copies to all state agencies of such rules as are issued by him or her, pursuant to the provisions of law, providing for a general accounting procedure.
The secretary shall also publish, not less often than biennially, a financial report covering the fiscal affairs of the state and state agencies and shall make the report available to:
1. Members of the General Assembly;
2. State agencies; and
3. Others having an interest therein.

History. Acts 1955, No. 315, § 7; A.S.A. 1947, § 13-207; Acts 2019, No. 315, § 1692; 2019, No. 910, §§ 3434, 3435.

Amendments. The 2019 amendment by No. 315 substituted “rules” for “regulations” in (a).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a); and substituted “secretary” for “director” in the introductory language of (b).

19-1-210. Recordkeeping.

For the purpose of effectively carrying out the fiscal procedures provided for by law, the Secretary of the Department of Finance and Administration shall have the authority to install such recordkeeping and other procedures in his or her own office and in other state offices and departments as he or she shall deem necessary or advisable.
The secretary shall have the authority to require from any state agency any fiscal information which will be necessary for providing adequate records in his or her office and shall prescribe uniform records and forms for all vouchers and other documents which are to be transmitted to the Department of Finance and Administration.

History. Acts 1955, No. 315, § 7; A.S.A. 1947, § 13-207; Acts 2019, No. 910, § 3436.

19-1-211. Investigations.

1. In any matter within the jurisdiction of the Department of Finance and Administration, the Secretary of the Department of Finance and Administration shall have the power to make investigations and may delegate that power to any division or section head of the department.
2. For this purpose, the secretary shall have the power to subpoena witnesses and require the production of any books, records, papers, or documents that may be material or relevant as evidence and to administer oaths to and take the testimony of witnesses.
1. In case of disobedience to any subpoena or other process, the secretary may invoke the aid, with the written approval of the Governor, of the Pulaski County Circuit Court in requiring the testimony of witnesses and the production of evidence, books, records, papers, or documents.
2. 1. In case of refusal to obey the subpoena issued to any person, firm, or corporation, the circuit court shall issue an order calling such person, firm, or corporation to appear before the secretary or other employee designated by the secretary and to produce all books and papers so ordered and give evidence touching the matter in question.
  2. Any failure to obey the order of the circuit court may be punished by the circuit court as contempt of the circuit court.
A subpoena for a witness may be issued by the secretary or by any division or section head of the department in whom any such authority may have been vested by the secretary and shall be served as provided by law for the service of other subpoenas.
1. 1. The failure or refusal of any witness to appear or to produce any books, papers, or documents required by the secretary and to submit them for inspection or the refusal to answer any relevant question propounded by the secretary shall constitute a violation punishable by a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500).
  2. Each failure or refusal by any witness to appear or produce any such books, papers, or documents shall constitute a separate offense.
2. False testimony given in any such inquiry shall constitute perjury punishable as provided by law.

History. Acts 1955, No. 315, § 7; A.S.A. 1947, § 13-207; Acts 2005, No. 1994, § 100; 2019, No. 910, § 3437.

Amendments. The 2005 amendment substituted “witnessess may” for “witnessess shall” in (c); and substituted “violation” for “misdemeanor” in (d)(1)(A).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(1); and substituted “secretary” for “director” in (a)(2), throughout (b), twice in (c), and twice in (d)(1)(A).

19-1-212. Duty to avoid deficit.

It shall be the duty and responsibility of the Secretary of the Department of Finance and Administration to:

Keep advised at all times as to the revenues and other income available for the operation, maintenance, and improvement of all state agencies;
Exercise the powers conferred upon him or her by law to see that the state and all state agencies are maintained on a basis of accounting recommended by the Governmental Accounting Standards Board for governmental purposes;
See that no obligation shall be incurred which shall not be payable when the obligation shall become due; and
Exercise his or her powers to see that the funds on hand and estimated to become available to each state agency shall be sufficient to maintain the state and all of its agencies on a sound financial basis without incurring a deficit.

History. Acts 1955, No. 315, § 7; A.S.A. 1947, § 13-207; Acts 2001, No. 1453, § 2; 2019, No. 910, § 3438.

19-1-213. Leasing of state property.

The Secretary of the Department of Finance and Administration may lease, with approval of the Governor, any state property, real or personal, which is not needed for public use, and the leasing of which is not prohibited by law, where the authority to lease the property is not vested in any other state agency.
No property shall be leased under this section for a term exceeding two (2) years.

History. Acts 1955, No. 315, § 7; 1973, No. 876, § 31; A.S.A. 1947, § 13-207; Acts 2019, No. 910, § 3439.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a).

19-1-214. Federal gifts and surplusage.

The Secretary of the Department of Finance and Administration may enter into any contract with the United States Government or with any agency thereof for the purpose of accepting gifts and for the acquisition of surplus materials or property upon such terms and conditions as may be agreed upon without regard to the provisions of this subchapter or any other law that requires advertisement for bids or the soliciting or receiving of competitive bids.

History. Acts 1955, No. 315, § 7; 1973, No. 876, § 31; A.S.A. 1947, § 13-207; Acts 2019, No. 910, § 3440.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” and “United States Government” for “United States of America”.

Cross References. Federal grants, aids, and reimbursement procedures, § 19-7-601 et seq.

Subchapter 3 — Fiscal Impact Statements

Effective Dates. Acts 1977, No. 221, § 6: Feb. 21, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that the cities and towns and counties of this State are faced with financial crises as a result of having rules, regulations, and orders of regulatory bodies, and Acts of the General Assembly imposed on them with great fiscal impact without anyone knowing the full extent of such fiscal impact; and that such financial crises constitute such an emergency that the immediate passage of this Act is necessary in order to provide financial relief to such cities and towns and counties. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1985, No. 806, § 3: Apr. 3, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 221 of 1977, which requires the filing of a Fiscal Impact Statement with respect to bills that impose new or increased cost obligations on municipalities or counties, is not accomplishing the purposes for which it was initially enacted, and that this Act is designed to accomplish procedures more in keeping with the rules and procedures of the two houses of the General Assembly with respect to the consideration of bills which require Fiscal Impact Statements on new or additional costs imposed on municipalities or counties, and that the immediate passage of this Act is necessary to provide for the enactment of said procedure prior to the adjournment of this Regular Session. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

19-1-301. Definition.

As used in this subchapter, unless the context otherwise requires, “fiscal impact statement” means a realistic statement of the estimated financial cost of implementing or complying with the proposed law, rule, policy, order, or administrative law upon municipalities or counties to which the proposed law, rule, policy, order, or administrative law applies.

History. Acts 1977, No. 221, § 1; A.S.A. 1947, § 13-2301; Acts 2019, No. 315, § 1693.

Amendments. The 2019 amendment deleted “regulation” following “proposed law” twice.

19-1-302. Before adoption of rule, etc.

No rule, policy, order, or administrative law which would have a fiscal impact on any municipality or county in this state shall be valid unless, thirty (30) days prior to its adoption by a board, commission, agency, department, officer, or other authority of the government of the State of Arkansas, excepting the General Assembly, the courts, and the Governor, the board, commission, agency, department, officer, or other authority has filed a fiscal impact statement with the Secretary of State.
Any municipality or county which will be affected by the proposed rule, policy, order, or administrative law upon request shall immediately be furnished with a copy of the fiscal impact statement by the board, commission, agency, department, officer, or other authority.

History. Acts 1977, No. 221, § 2; A.S.A. 1947, § 13-2302; Acts 2019, No. 315, § 1694.

Amendments. The 2019 amendment substituted “rule” for “regulation” in the section heading; deleted “regulation” following “No” in (a); and deleted “regulation” following “proposed” in (b).

19-1-303. Bills imposing new or additional costs on municipality or county — Fiscal impact statements — Definition.

1. Any bill filed with the Senate that requires an expenditure of public funds by a municipality or county, or otherwise imposes a new or increased cost obligation on any municipality or county, shall have a fiscal impact statement attached to it, prepared by the author of the bill and filed with the bill at the time of its introduction. A copy of such fiscal impact statement shall be placed on the desk of each member of the Senate committee to which the bill is referred before the bill may be called up for final action in the committee. A copy of it shall also be placed on the desk of each member of the Senate before a final vote may be taken on it for final passage.
2. If the author of any Senate or House of Representatives bill affected by this section shall fail to file a fiscal impact statement, any member of the Senate committee to which the bill is referred may object to its being called up for final action in the committee until a fiscal impact statement is made available to the committee. If such an objection is made by a member of the Senate committee, the chair of the committee shall refer the bill to the appropriate state agency or to the legislative staff for the preparation of a fiscal impact statement, to be returned to the committee in writing not later than five (5) days from the date of the request.
3. If any such Senate or House bill is called up for final passage in the Senate and a fiscal impact statement has not been provided by the author of the bill or by the committee to which the bill was referred, any member of the Senate may object to the bill's being called up for final passage until a fiscal impact statement is prepared and made available on the desk of each member of the Senate at least one (1) day prior to the bill's being called up for final passage. If such an objection is made, the presiding officer of the Senate shall cause the bill to be referred to the appropriate state agency or to the designated legislative staff for the preparation of a fiscal impact statement, which shall be filed in writing with the Senate not later than five (5) days from the date of the request.
1. When any House or Senate bill requiring an expenditure of public funds or otherwise imposing a new or increased cost obligation on any municipality or county is pending before any committee of the House of Representatives, any member of the committee may request that a fiscal impact statement for the bill be placed on the desk of each member of the committee before the bill is called up for final action in the committee. If the request is made, the chair of the committee shall refer the bill to the appropriate state agency or to the legislative staff for the preparation of a fiscal impact statement, to be returned to the committee in writing not later than five (5) days from the date of the request.
2. Any time before the bill is read the third time in the House of Representatives, a member of the House of Representatives may request that a fiscal impact statement for the bill be prepared and placed on the desk of each member. When a member of the House of Representatives so requests a fiscal impact statement on any bill, the Speaker of the House of Representatives shall furnish the member a fiscal impact statement signature form which shows the number of the bill for which the statement is requested and the date and time the request was made. If the member returns the form containing the signature of the requesting member and the signatures of at least nine (9) other House of Representatives members within thirty (30) minutes of the time shown on the form, the fiscal impact statement shall be prepared and placed on the desk of each member of the House of Representatives before the bill is read the third time.
3. If a bill is called up for final passage in the House of Representatives and a fiscal impact statement has not been provided for the bill, any member of the House of Representatives in which the bill is being considered may move that a final vote on the passage of the bill be delayed until a fiscal impact statement is prepared and made available on the desk of each member of the House of Representatives at least one (1) full day prior to the bill’s being called up for final passage. If the motion is made and is adopted by a majority vote of the membership of the House of Representatives, the Speaker of the House of Representatives shall cause the bill to be referred to the appropriate state agency or to the designated legislative staff for the preparation of a fiscal impact statement, which shall be filed with the House of Representatives within five (5) days of the date of the request.
Failure of the sponsor of a bill to provide the fiscal impact statement required in this section shall not prohibit the consideration of it in the committee to which referred or on the floor of the house in which the bill is called up for final passage if no objection to it is made at the time such action is taken.
Nothing in this section shall prohibit a committee to which a bill is referred or the house in which the bill is being considered from suspending the requirement of the filing of a fiscal impact statement on any such bill in the same manner as provided for the suspension of the rules in the house in which the bill is being considered.
Copies of fiscal impact statements prepared in compliance with this section shall be made available upon request for them to representatives of municipal or county governments. A fiscal impact statement filed or prepared in compliance with this section is declared to be a public record within the meaning of the Freedom of Information Act of 1967, § 25-19-101 et seq.
For the purposes of this section, the term “fiscal impact statement” means a realistic statement of the estimated financial cost to municipalities or counties of implementing or complying with a proposed law and rules promulgated under it.

History. Acts 1985, No. 806, § 1; A.S.A. 1947, § 13-2304; Acts 1992 (1st Ex. Sess.), No. 43, § 1; 2019, No. 315, § 1695.

Publisher's Notes. Acts 1985, No. 806, § 1, and Acts 1992 (1st Ex. Sess.), No. 43, § 1, are also codified as § 10-2-114.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (f).

Subchapter 4 — Officers' Surety Bonds

Cross References. Arkansas Governmental Compliance Act, § 10-4-301 et seq.

Effective Dates. Acts 1955, No. 338, § 15: Apr. 1, 1955. Emergency clause provided: “It has been found and is hereby declared by the General Assembly that general revenues of the State are declining and that the investment provisions of this act will provide additional revenues immediately needed for the efficient operation of the State Government. Therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after April 1, 1955.”

Acts 1987, No. 1014, § 5: Apr. 14, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1226 of the Extended Session 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

19-1-401. Exceptions.

All constitutional officers other than the Treasurer of State are exempt from the provisions of this subchapter.

History. Acts 1955, No. 338, § 12; 1977, No. 940, § 1; A.S.A. 1947, § 13-412.

19-1-402. Treasurer of State.

The bond for the Treasurer of State shall be one million dollars ($1,000,000).
The original of the bond required by this section to be filed by the Treasurer of State shall be filed in the office of the Secretary of State, and a copy shall be filed with the Auditor of State.

History. Acts 1955, No. 338, § 12; 1975, No. 677, §§ 1, 4; 1975 (Extended Sess., 1976), No. 1226, § 2; 1977, No. 940, § 1; A.S.A. 1947, §§ 13-412, 13-412.3; reen. Acts 1987, No. 1014, § 2.

A.C.R.C. Notes. The operation of this section was suspended by adoption of a self-insured fidelity bond program for state officers, officials, and employees, effective July 20, 1987, pursuant to § 21-2-701 et seq. The section may again become effective upon cessation of coverage under that program. See § 21-2-703.

Part of this section was reenacted by Acts 1987, No. 1014, § 2. Acts 1987, No. 834 provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

19-1-403. County and municipal officials and employees.

1. All county officials and employees, municipal officials and employees, and all other officers and employees of any political subdivision of this state who are required by law to furnish bond and who receive and disburse cash funds from bank accounts shall obtain a surety bond from a corporate surety authorized to do business in this state in the minimum amounts to be computed as follows:
  1. On the first one hundred thousand dollars ($100,000), or any part thereof, of receipts of the office, ten percent (10%) of the amount;
  2. On the next two hundred thousand dollars ($200,000), or any part thereof, of receipts of the office, seven and one-half percent (7½%) of the amount;
  3. On the next two hundred thousand dollars ($200,000), or any part thereof, of receipts of the office, five percent (5%) of the amount;
  4. On the next five hundred thousand dollars ($500,000), or any part thereof, of receipts of the office, two and one-half percent (2½%) of the amount; and
  5. On all amounts in excess of one million dollars ($1,000,000), one percent (1%).
2. These amounts shall be based on the total cash receipts of the office for the preceding calendar or fiscal year. However, in no event shall the penal amount of any bond be less than the amount as computed in this subsection.
3. The bonds shall be conditioned that the officer or employee shall faithfully perform the duties of his or her office or employment and properly account for all cash funds received and disbursed by him or her as an officer or employee.
1. All county officials and employees, municipal officials and employees, and all other officers and employees of any political subdivision of this state who are required by law to furnish bond and who receive or approve the disbursement of any funds appropriated and disbursed through the State Treasury shall obtain a bond in the following minimum amounts based on the disbursements of the agency during the preceding calendar or fiscal year:
  1. On the first one hundred thousand dollars ($100,000), or any part thereof, of disbursements, five percent (5%) of the amount;
  2. On the next four hundred thousand dollars ($400,000), or any part thereof, of disbursements, two and one-half percent (2½%) of the amount; and
  3. On all disbursements in excess of five hundred thousand dollars ($500,000), one-half of one percent (½ of 1%) of the amount.
2. The provisions of subsection (a) of this section shall apply in determining the bond requirements of all officers and employees handling both cash funds and moneys appropriated and disbursed from the State Treasury.
3. The bond shall be conditioned that the officer or employee shall faithfully perform the duties of his or her office or employment and properly account for the disbursement of funds.
The maximum amount of any bond required under subsections (a) and (b) of this section shall not exceed five hundred thousand dollars ($500,000).
The Legislative Auditor shall inform municipal and county officials of the requirements set forth in this subchapter regarding the determination of the amount of bond for the officials. However, it shall not be the duty of the Legislative Auditor to set the bond of municipal and county officials.
1. The original of each bond required by this section to be filed by a county officer or employee shall be filed in the office of the circuit clerk in the county involved.
2. The original of each bond required by this section to be filed by municipal officials and employees shall be filed in the office of the municipal clerk of the municipality involved.

History. Acts 1955, No. 338, § 12; 1975, No. 677, §§ 1, 4; 1975 (Extended Sess., 1976), No. 1226, § 2; 1977, No. 940, § 1; A.S.A. 1947, §§ 13-412, 13-412.3.

A.C.R.C. Notes. The operation of this section was suspended by adoption of a self-insured fidelity bond program for public officers, officials, and employees, effective July 20, 1987, pursuant to § 21-2-701 et seq. The section may again become effective upon cessation of coverage under that program. See § 21-2-703.

19-1-404. County judges.

1. The county judge in each county shall furnish bond in an amount computed in accordance with the provisions of § 19-1-403(b).
2. The bond shall be conditioned that the officer shall faithfully perform the duties of the office and properly account for all funds disbursed by him or her as county judge.
The original bond shall be filed with the circuit clerk of the respective county.

History. Acts 1975, No. 677, § 2; 1975 (Extended Sess., 1976), No. 1226, § 1; A.S.A. 1947, § 13-412.1; reen. Acts 1987, No. 1014, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 1014, § 1. Acts 1987, No. 834, provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

The operation of this section was suspended by adoption of a self-insured fidelity bond program for public officers, officials, and employees, effective July 20, 1987, pursuant to § 21-2-701 et seq. The section may again become effective upon cessation of coverage under that program. See § 21-2-703.

19-1-405. State agency employees as disbursing agents.

1. In the event the executive head of any state agency designates some full-time employee to act as his or her agent in the disbursement of funds under his or her control, the agent shall furnish additional bond to be fixed by the Secretary of the Department of Finance and Administration.
2. The executive head of the state agency shall notify the secretary and the Auditor of State in writing of the designation and shall furnish to the secretary and the Auditor of State a sample of the signature of the agent.
In the event appropriations are made available to a state agency or to a nongovernment agency or activity and no disbursing agent is provided for by law, then the secretary and the Auditor of State shall designate a person to act as disbursing agent and fix the amount of bond for such purposes.

History. Acts 1975, No. 677, § 3; A.S.A. 1947, § 13-412.2; Acts 2019, No. 910, § 3441.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(1); and substituted “secretary” for “director” twice in (a)(2) and in (b).

Subchapter 5 — Investment of Public Funds

Effective Dates. Acts 1943, No. 273, § 4: Mar. 18, 1943. Emergency clause provided: “It is hereby ascertained and declared that the National Government is at war, and that in order to finance the war it must in a large measure rely upon the sale of its bonds. The enactment of this act is necessary for the successful conclusion of the war and for the preservation of the public peace, health and safety. An emergency is declared to exist, and this act shall take effect from and after its passage and approval.”

Acts 1973, No. 106, § 6: Feb. 12, 1973. Emergency clause provided: “It has been found and it is hereby declared by the General Assembly of the State of Arkansas that the present laws governing investment of public funds are inadequate and that due to these inadequacies such funds are in many instances not invested though available for investment, with resulting loss of substantial income. Therefore an emergency is declared to exist, and this Act, being immediately necessary for the preservation of the public peace, health and safety, shall be in effect upon its passage and approval.”

19-1-501. “Eligible investment securities” defined.

As used in this subchapter, “eligible investment securities” means:

A direct or guaranteed obligation of the United States that is backed by the full faith and credit of the United States Government;
A direct obligation of an agency, instrumentality, or government-sponsored enterprise created by act of the United States Congress and authorized to issue securities or evidences of indebtedness, regardless of whether the securities or evidences of indebtedness are guaranteed for repayment by the United States Government;
A bond or other debt of the state, a school district, a county government, a municipal government, or an authority of a governmental entity that:
1. Is issued for an essential governmental purpose or is guaranteed by a state agency; and
2. Has a debt rating from a nationally recognized credit rating agency of “A” or better at the time of purchase; and
A bond from the State of Israel that is guaranteed and backed by the full faith and credit of the government of Israel as the sovereign debt of the State of Israel.

History. Acts 1943, No. 273, § 2; 1973, No. 106, § 2; A.S.A. 1947, § 13-902; Acts 2011, No. 629, § 1; 2017, No. 644, § 1.

Amendments. The 2011 amendment rewrote the section.

The 2017 amendment added (4).

19-1-502. Provisions supplemental.

This subchapter does not repeal any prior legislation or affect any statute pertaining to the conversion of funds of public officials and agencies into investments authorized under this subchapter but is supplemental to present law and confers additional powers.

History. Acts 1943, No. 273, § 3; A.S.A. 1947, § 13-903; Acts 2011, No. 629, § 1.

Amendments. The 2011 amendment rewrote the section.

19-1-503. Construction.

This subchapter does not affect the power of counties, municipalities, improvement districts, and other public bodies to make a deposit of funds in the form of a demand deposit, a savings deposit, or a time deposit as authorized by law.
The adoption of this subchapter does not affect or impair the power of counties, municipalities, improvement districts, and other public bodies to make investments of funds in their possession or under their control as authorized by other laws.

History. Acts 1973, No. 106, § 3; A.S.A. 1947, § 13-904; Acts 2011, No. 629, § 1.

Amendments. The 2011 amendment substituted “a demand deposit, a savings deposit, or a time deposit” for “certificates of deposit” in (a) and made stylistic changes.

19-1-504. Investments permitted.

1. With the approval of the county or municipal depository board, a treasurer may convert any funds in the treasurer's possession or under the treasurer's control and not presently needed for other purposes into one (1) or more of the following investments:
  1. Eligible investment securities having a maturity of not longer than five (5) years from the date of acquisition unless, as documented at the time of acquisition, the investment is to fund or support a specific purpose and there are no expectations that the investment will be sold before maturity;
  2. An Arkansas bank certificate of deposit or a certificate of deposit authorized under § 19-8-111;
  3. An account established by a local government joint investment trust authorized under the Local Government Joint Investment Trust Act, § 19-8-301 et seq.; or
  4. An Arkansas financial institution repurchase agreement for eligible investment securities in which the seller agrees to repurchase the investment at a price including interest earned during the holding period as determined by the repurchase agreement.
2. The following entities may convert funds that are in the possession of the entity or under the control of the entity and that are not presently needed for other purposes into an investment listed in subdivision (a)(1) of this section:
  1. A county board or commission;
  2. A municipal board or commission, including without limitation a board of trustees of a policemen's pension and relief fund, a board of trustees of a firemen's relief and pension fund, a waterworks commission, and a sewer committee; and
  3. A drainage district, levee district, and improvement district, including without limitation a waterworks district, electric light district, municipal improvement district, and suburban improvement district.
3. This subsection does not apply to funds of a school district.
1. Unless otherwise provided by a signed written agreement between the school district or districts and the county treasurer, funds of a school district shall be invested by the:
  1. School district treasurer when the school district has a treasurer; or
  2. County treasurer when the school district does not have a treasurer.
2. To the extent directed by the board of directors of the school district, investments shall be in:
  1. General obligation bonds of the United States;
  2. Bonds, notes, debentures, or other obligations issued by an agency of the United States Government;
  3. General obligation bonds of the state; or
  4. Bank certificates of deposit.
A school district may invest moneys held for the repayment of a federally recognized qualified zone academy bond under 26 U.S.C. § 1397E, as it existed on January 1, 2005, in a guaranteed investment contract or forward delivery agreement in which the school district is guaranteed a certain rate of interest on its investment if the guaranteed investment contract or the forward delivery agreement is entered into between the school district and the purchaser of the qualified zone academy bond.
A treasurer or other custodian of public funds who is authorized to purchase and hold eligible investment securities may use a brokerage account to acquire, sell, and hold the investment if the investment is established with a broker-dealer that:
1. Has offices in the state;
2. Is registered with the State Securities Department;
3. Is a member of the Financial Industry Regulatory Authority, Inc.; and
4. Is a member of the Securities Investor Protection Corporation.
Unless restrictions are established by the donor, a private donation to a city of the first class, a city of the second class, or an incorporated town may be invested in accordance with the prudent investor rule established under § 28-71-105.

History. Acts 1943, No. 273, § 1; 1973, No. 106, § 1; A.S.A. 1947, § 13-901; Acts 1995, No. 402, § 1; 1997, No. 800, § 1; 2005, No. 2205, § 1; 2009, No. 251, § 2; 2011, No. 629, § 1.

Amendments. The 2005 amendment added (c).

The 2009 amendment substituted “1397E, as it existed on January 1, 2005” for “1379E” in (c).

The 2011 amendment rewrote (a); substituted “state” for “State of Arkansas” in (b)(2)(C); and added (d) and (e).

Cross References. State Treasury Management Law, § 19-3-501 et seq.

Deposit of school funds, § 6-20-222.

19-1-505. Additional authority of certain cities.

1. A city that has real property assessed valuation in excess of three hundred million dollars ($300,000,000) may invest the city's funds in securities under § 23-47-401 and according to the investment policy adopted by the governing body of the city.
2. The investment policy adopted by the city's governing body may authorize a maturity term exceeding the term stated in § 19-1-504(a)(1)(A).
1. Each investment shall be made with the judgment and care under prevailing circumstances that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation but for investment, considering the probable safety of the capital and the probable income to be derived.
2. Investment of funds shall be governed by the following investment objectives in order of priority:
  1. Preservation and safety of the principal;
  2. Liquidity; and
  3. Yield.
In determining whether an investment officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration:
1. The investment of city funds and funds under the officer's control and over which the officer had responsibility, rather than a consideration as to the prudence of a single investment; and
2. Whether the investment decision is consistent with the written investment policy of the city.

History. Acts 2011, No. 629, § 1.

Subchapter 6 — State Fiscal Management Responsibility Act

Effective Dates. Acts 2015, No. 557, § 9: Aug. 1, 2015.

19-1-601. Title.

This subchapter may be known and cited as the “State Fiscal Management Responsibility Act”.

History. Acts 1991, No. 280, § 1.

19-1-602. Intent and purpose.

The General Assembly has enacted various laws relating to the receipting, disbursing, depositing, and accounting for public funds, as well as laws relating to establishing salaries, and the purchasing of commodities by various state agencies. In addition, the Department of Finance and Administration or other appropriate agency has issued rules pertaining to the administration of these various laws.
It is the intent of the General Assembly that all state officers and employees comply with the provisions of these laws and rules. Presently, most of these laws and rules do not provide penalty provisions for violations thereof.
It is the purpose of this subchapter to provide procedures and civil penalties regarding violations of the fiscal responsibility and management laws of the state.

History. Acts 1991, No. 280, § 2; 2019, No. 315, § 1696.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in the second sentence of (a); and substituted “rules” for “regulations” twice in (b).

19-1-603. Definitions.

As used in this subchapter:

“Agency” means any state agency, bureau, board, commission, council, department, institution, or office of the State of Arkansas;
“Executive agencies” means all agencies other than constitutional, judicial, and legislative officers, agencies, and departments;
“Fiscal responsibility and management laws” means the following laws and rules applicable thereto, as amended:
1. General Accounting and Budgetary Procedures Law, § 19-4-101 et seq.;
2. State procurement laws, Arkansas Code Title 19, Chapter 11;
3. Attendance and leave laws, § 21-4-101 et seq.;
4. Regular Salary Procedures and Restrictions Act, §§ 19-4-1601 and 21-5-101;
5. Uniform Classification and Compensation Act, § 21-5-201 et seq.;
6. Higher Education Expenditure Restriction Act, § 6-63-301 et seq.;
7. Accounts and Notes Receivable Abatement Act for the State of Arkansas, § 19-2-301 et seq.;
8. Revenue Stabilization Law, § 19-5-101 et seq.;
9. Revenue Classification Law, § 19-6-101 et seq.;
10. Depositories for public funds, § 19-8-101 et seq.;
11. Public works, § 22-9-101 et seq.; and
12. State Fiscal Management Responsibility Act, § 19-1-601 et seq.;
“Knowingly” means that a person is aware or should have been aware that his or her conduct will violate the fiscal responsibility and management laws; and
“Public officer or employee” means any officer or employee of the State of Arkansas.

History. Acts 1991, No. 280, § 3; 1995, No. 1296, § 67; 2015, No. 557, § 2; 2019, No. 315, § 1697.

Amendments. The 2015 amendment, in (3)(B), substituted “State procurement” for “Arkansas purchasing” at the beginning and substituted “Arkansas Code Title 19, Chapter 11” for “§ 19-11-101 et seq.”.

The 2019 amendment substituted “rules” for “regulations” in the introductory language of (3).

19-1-604. Existing remedies not impaired.

The provisions of this subchapter do not limit or diminish any civil rights or administrative procedures available to any public officer or employee.

History. Acts 1991, No. 280, § 16.

19-1-605. Civil procedures apply.

All actions and procedures under the provisions of this subchapter are civil in nature and shall be governed by the appropriate rules and laws regarding civil actions and remedies.

History. Acts 1991, No. 280, § 15; 2019, No. 315, § 1698.

Amendments. The 2019 amendment deleted “regulations” following “rules”.

19-1-606. Investigation of violations.

Upon discovery or notification of an alleged violation of the fiscal responsibility and management laws, each agency shall investigate the allegation and take appropriate administrative action. The director of each agency or, in the case of a constitutional office, the constitutional officer, is responsible for complying with the provisions of this subchapter.

History. Acts 1991, No. 280, § 4.

19-1-607. Documentation and notification of violation — Remedial action.

After completing the investigation, if the agency determines that there has been a violation of the fiscal responsibility and management laws, the facts and circumstances relating to a violation and any corrective or remedial action taken shall be documented and placed in the personnel files of the public officer or employee involved in the violation.
The agency shall notify the public officer or employee of its findings and any corrective or remedial action to be taken. Notification shall be made in a manner ensuring actual notice to the public officer or employee. The public officer or employee shall be notified that the failure to make corrective or remedial action within thirty (30) days after the date of notification creates the rebuttable presumption that the violation was committed knowingly.
The public officer or employee violating a fiscal responsibility and management law shall be given not more than thirty (30) days after notification to effect corrective or remedial action recommended by the agency. Failure to make corrective or remedial action within thirty (30) days after notification creates the rebuttable presumption that the violation was committed knowingly.

History. Acts 1991, No. 280, §§ 5-7.

19-1-608. Notification of Department of Finance and Administration — Review.

Within thirty (30) days after the expiration of the time period for the public officer or employee to effect corrective or remedial action, the agency shall transfer to the Secretary of the Department of Finance and Administration a document containing a summary of the violation and any corrective remedial action taken.
1. The secretary shall review the summaries of violations received. The secretary may:
  1. Accept the summary and approve the corrective or remedial action by the agency;
  2. Request additional information regarding the violation and corrective or remedial action by the agency; or
  3. Impose additional corrective or remedial action upon public officers and employees of executive agencies as provided in § 19-1-609.
2. Quarterly, the secretary shall submit a summary of all violations of the fiscal responsibility and management laws, including any corrective or remedial action by the agency or the secretary, to the Governor and members of the General Assembly.

History. Acts 1991, No. 280, §§ 8, 9; 2019, No. 910, § 3442.

19-1-609. Executive agencies.

Before the Secretary of the Department of Finance and Administration may impose additional corrective or remedial action regarding public officers or employees of executive agencies, the secretary shall conduct an investigation regarding any violation. The public officer or employee shall be notified and given the opportunity for a hearing conducted by the secretary regarding any violation.
The secretary may impose any one (1) or more of the following as additional corrective or remedial action:
1. Oral or written warnings or reprimands;
2. Suspension with or without pay for specified periods of time; or
3. Termination of employment.

History. Acts 1991, No. 280, § 14; 2019, No. 910, § 3443.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a); and substituted “secretary” for “director” throughout the section.

19-1-610. Investigation and suit by Attorney General.

The Secretary of the Department of Finance and Administration, the Legislative Joint Auditing Committee, or the Legislative Council may request the office of the Attorney General to review any information concerning any violation of the fiscal responsibility and management laws of the state in order to determine whether legal action is appropriate.
The Attorney General may file a civil suit in the circuit court against the public officer or employee violating the fiscal responsibility and management laws. Venue shall be in the county where the violation occurred. However, if the violation occurred outside the borders of the state, venue shall be in Pulaski County.

History. Acts 1991, No. 280, §§ 10, 11; 2019, No. 910, § 3444.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a).

19-1-611. Civil penalty.

If the public officer or employee is found by the court to have knowingly violated the fiscal responsibility and management laws, the court shall impose a civil penalty upon the public officer or employee of not less than one hundred dollars ($100), nor more than one thousand dollars ($1,000) for each violation, and may subject the public officer or employee to the payment of damages resulting as a direct consequence of any violation.

History. Acts 1991, No. 280, § 12.

19-1-612. Recovery of costs.

If the public officer or employee is found by the court to have knowingly violated the provisions of the fiscal responsibility and management laws, the Attorney General shall be allowed to recover costs and attorney's fees associated with the civil suit from the public officer or employee. Any costs or fees recovered by the Attorney General under this section shall be deposited into the State Treasury.

History. Acts 1991, No. 280, § 13.

Subchapter 7 — Fiscal Impact Statements

Effective Dates. Acts 1997, No. 112, § 40: Feb. 7, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 10 of the First Extraordinary Session of 1995 abolished the Joint Interim Committee on Education and in its place established the House Interim Committee and Senate Interim Committee on Education; that various sections of the Arkansas Code refer to the Joint Interim Committee on Education and should be corrected to refer to the House and Senate Interim Committees on Education; that this act so provides; and that this act should go into effect immediately in order to make the laws compatible as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

19-1-701. Definition.

As used in this subchapter, “fiscal impact statement” means a realistic statement of the purpose of a proposed law, or a rule promulgated under a law, and the estimated financial cost to the state or any local school district of implementing or complying with the proposed law or rule.
A fiscal impact statement shall be developed with the guidance of the Office of Economic and Tax Policy of the Bureau of Legislative Research and with the approval of the Division of Elementary and Secondary Education.

History. Acts 1995, No. 1253, § 1; 2009, No. 251, § 3; 2011, No. 856, § 1; 2019, No. 315, § 1699; 2019, No. 910, § 2252.

Publisher's Notes. Acts 1995, No. 1253, § 1, is also codified as § 10-2-127(a).

Amendments. The 2009 amendment deleted “Office of Economic and Tax Policy of the” preceding “Bureau” in (b).

The 2011 amendment inserted “Office of Economic and Tax Policy of the” in (b).

The 2019 amendment by No. 315 substituted “rule” for “regulation” twice in (a).

The 2019 amendment by No. 910 substituted “Division of Elementary and Secondary Education” for “Department of Education” in (b).

19-1-702. Fiscal impact statements required for rules.

Thirty-five (35) days prior to the adoption of any rule or other proposal that will impose a new or increased cost obligation for education on the state or any local school district, the board, commission, agency, department, officer, or other authority, excepting the General Assembly and the courts, shall give notice of such rule or proposal and shall file a fiscal impact statement with the Secretary of State and the House Committee on Education and the Senate Committee on Education.

History. Acts 1995, No. 1253, § 2; 1997, No. 112, § 28; 2019, No. 315, § 1700.

Amendments. The 2019 amendment substituted “rules” for “regulations” in the section heading; and substituted “rule” for “regulation” twice.

19-1-703. Fiscal impact statements required for bills.

Any bill filed in the House of Representatives or Senate that will impose a new or increased cost obligation for education on the state or any local school district shall have a fiscal impact statement attached to it, prepared by the author of the bill and filed with the chair of the committee to which the bill is referred:
1. At least seven (7) days before the bill may be called up for final action in the committee during a regular session of the General Assembly;
2. At least seven (7) days before the bill may be called up for final action in the committee during a fiscal session; and
3. At least one (1) day before the bill may be called up for final action in the committee during a special session.
If the author of any House or Senate bill affected by this section shall fail to comply with subsection (a) of this section, any member of the House of Representatives or Senate committee to which the bill is referred may object and thereby prevent its being called up for final action in the committee until a fiscal impact statement is made available. An affirmative vote of two-thirds (2/3) of a quorum present and voting shall override such objection.
1. 1. If any such House or Senate bill is called up for final passage in the House of Representatives or Senate and a fiscal impact statement has not been provided by the author of the bill, or by the committee to which the bill was referred, any member of the House of Representatives or Senate may object to the bill's being called up for final passage until a fiscal impact statement is prepared and made available on the desk of each member of the House of Representatives or Senate at least one (1) day prior to the bill's being called up for final passage.
  2. An affirmative vote of two-thirds (2/3) of a quorum present and voting shall override such objection.
2. If an objection is made without override, the presiding officer of the House of Representatives or Senate shall cause the bill to be referred to the Office of Economic and Tax Policy of the Bureau of Legislative Research for the preparation of a fiscal impact statement, which shall be filed with the presiding officer not later than five (5) days from the date of the request.
Failure of the author of a bill to provide the fiscal impact statement required in this section shall not prohibit consideration of the bill in the committee to which it is referred or on the floor of the house in which the bill is called up for final passage, if no objection to it is made at the time such action is taken.

History. Acts 1995, No. 1253, § 3; 2009, No. 962, § 37.

Publisher's Notes. Acts 1995, No. 1253, § 3, is also codified as § 10-2-127(b) and (c).

Amendments. The 2009 amendment inserted present (a)(2) and redesignated the following subdivision as (a)(3); deleted “of the General Assembly” at the end of (a)(3); and made related changes.

Chapter 2 State Revenues — Receipts and Expenditures Generally

Research References

Am. Jur. 63C Am. Jur. 2d, Pub. Funds, § 1 et seq.

C.J.S. 81A C.J.S., States, § 340 et seq.

Subchapter 1 — General Provisions

Effective Dates. Acts 1913, No. 234, § 6: approved Mar. 29, 1913. Emergency clause provided: “This Act being necessary for the immediate preservation of the public peace, health and safety shall be in force from and after its passage.”

Acts 1923, No. 777, § 8: June 30, 1923. Emergency clause provided: “All laws and parts of laws in conflict herewith and especially sections 4504, 4505, and 4506 of Crawford and Moses' Digest are hereby repealed, and this act being necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, and same shall take effect and be in force June 30, 1923.”

Acts 1927, No. 186, § 4: effective on passage.

19-2-101. Receipts for all funds coming into State Treasury.

It shall be the duty of the Secretary of State, the Insurance Commissioner, the Commissioner of State Lands, the Attorney General, the Bank Commissioner, and the Auditor of State to issue their receipts respectively for all moneys coming into the State Treasury through their departments, respectively, on account of:
1. Fees of every kind and character;
2. Sale of books, charters, and articles of incorporation;
3. Commissions of notaries public, justices of the peace, and county, city, and town officers, in addition to nomination fees, etc.;
4. Insurance taxes and fees;
5. Jitney and chauffeur licenses;
6. Affidavits of loss, license tags, deeds, patents, field notes, maps, and charts;
7. Franchise taxes, back taxes, and sand and gravel taxes;
8. All matters pertaining to the duties of the Attorney General when money belonging to the state is to be collected;
9. Bank examination fees; and
10. Any and all fees coming through the Bank Commissioner's office.
1. Each of the departments is authorized to accept personal checks when tendered in payment of any of the items mentioned in subsection (a) of this section and issue their receipts, respectively, for them.
2. 1. The checks shall be endorsed by the heads of the respective departments to the Treasurer of State and paid into the State Treasury daily, if anything has been collected, with an itemized statement of all items for which payment was made.
  2. No officer endorsing these checks shall become personally liable by reason of the officer's endorsement in case the checks are rejected by the drawee.

History. Acts 1923, No. 777, §§ 1, 2; Pope's Dig., §§ 5562, 5563; A.S.A. 1947, §§ 13-601, 13-604.

19-2-102. Duplicate receipts given by Treasurer of State.

The Treasurer of State shall grant duplicate receipts under the seal of his or her office for all sums of money which shall be paid into the State Treasury. The person receiving the receipts shall deposit one (1) of them with the Auditor of State, who shall credit the person accordingly and charge the Treasurer of State with the amount.

History. Rev. Stat., ch. 18, § 23; C. & M. Dig., § 4494; Pope's Dig., § 5530; A.S.A. 1947, § 13-603.

19-2-103. Time for making payments.

All payments for the expenses of the departments of the state government shall be due and payable in the normal course of business.
All payments whatever of contingent expenses shall be due and payable as they may accrue.

History. Acts 1877, No. 38, § 3, p. 33; C. & M. Dig., § 4497; Pope's Dig., § 5533; A.S.A. 1947, § 13-616; Acts 2001, No. 1453, § 3.

19-2-104. Expenditures, contracts, or obligations in excess of appropriations prohibited.

1. No officer, employee, or agent of the State of Arkansas, nor any board of regents or board of trustees, nor any other person or authority who may make expenditures of money appropriated for the different state institutions or who may direct the expenditure of such money so appropriated shall expend or direct the expenditure of moneys or funds in excess of the amount appropriated and becoming a part of any appropriation by executive approval for the particular purpose named in the act making the appropriations.
2. No officer, employee, agent, person, board, or authority shall make any contract that will exceed the amount appropriated and becoming a part of any appropriation act by executive approval for the particular purpose named in the act making the appropriation.
3. No officer, agent, person, board, or authority shall incur any obligation for any purpose in excess of the amount appropriated and becoming a part of any appropriation by executive approval for the particular purpose named in the act making the appropriation, except as provided.
Any person violating a provision of this section shall be guilty of a violation and upon conviction shall be fined in any sum not less than fifty dollars ($50.00) nor more than two hundred dollars ($200).

History. Acts 1913, No. 234, §§ 1, 5; C. & M. Dig., §§ 2838, 2842, 9245, 9249; Pope's Dig., §§ 3562, 3566, 11931, 11935; A.S.A. 1947, §§ 13-625, 13-626; Acts 2005, No. 1994, § 101.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (b).

Cross References. Director of Department of Finance and Administration to prevent expenditure in excess of appropriation, § 19-1-212.

Research References

Ark. L. Rev.

Official Misconduct under the Arkansas Criminal Code, 30 Ark. L. Rev. 160.

19-2-105. Deficiencies in excess of appropriations unlawful.

It shall be unlawful for the head or any subordinate in charge of any state department, board, bureau, or other state-maintained institution to cause, permit to occur, or allow to exist any deficiency in excess of regular appropriation made for maintenance of the department, board, bureau, or other state-maintained institution.
1. Any person violating this section shall be deemed guilty of a misdemeanor.
2. Upon conviction, an offender shall be fined in any sum not to exceed five hundred dollars ($500) or imprisoned not more than ninety (90) days, or both fined and imprisoned, and shall be discharged from office.

History. Acts 1927, No. 186, §§ 1, 3; Pope's Dig., §§ 3567, 3569; A.S.A. 1947, §§ 13-627, 13-628.

Subchapter 2 — Receipts Generally

Cross References. Penalty for payment of taxes, licenses, or fees with check returned unpaid, § 26-18-208.

Effective Dates. Acts 1923, No. 777, § 8: June 30, 1923. Emergency clause provided: “All laws and parts of laws in conflict herewith and especially sections 4504, 4505, and 4506 of Crawford and Moses' Digest are hereby repealed, and this act being necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, and same shall take effect and be in force June 30, 1923.”

19-2-201. Acceptance of checks.

The Treasurer of State is authorized and directed to accept checks for the remittance due the state.

History. Acts 1923, No. 777, § 3; Pope's Dig., § 5564; A.S.A. 1947, § 13-605.

19-2-202. Proceedings on bad checks.

Where remittance is made by check to the Treasurer of State and the check is returned unpaid, it shall be the duty of the Treasurer of State to make a duplicate of the check and carry it as a cash item, delivering the original to the Attorney General for collection after adding a penalty of twenty-five percent (25%) to the amount of the check.
1. It shall be the duty of the Attorney General to take such action as shall be deemed proper for the collection of a rejected check, together with twenty-five percent (25%) of the face amount of the check as penalty, for the punishment of the maker of that check under the criminal laws of this state.
2. The penalty shall be credited to the same fund as was the original amount of the check delivered to the Attorney General by the Treasurer of State pursuant to subsection (a) of this section.
If for any reason the Attorney General is unable to collect either the principal or penalty on a rejected check, as contemplated by this section, then, as soon as such fact is ascertained, it shall be the duty of the Treasurer of State to cancel the receipt for it, taking credit therefor, and notifying the Auditor of State of the cancellation; and the Auditor of State shall likewise credit the Treasurer of State with it.
Any state official issuing a certificate of authority or making book entries affecting any transaction, payment for which was made with bad checks, is authorized and directed to cancel them upon receipt of the Attorney General's notice of inability to collect on such checks as specified in subsection (c) of this section.

History. Acts 1923, No. 777, §§ 4-7; Pope's Dig., §§ 5565-5568; A.S.A. 1947, §§ 13-606 — 13-609.

Case Notes

Tax Redemption Deed.

The Commissioner of State Lands was authorized to cancel tax redemption deed because of the worthlessness of a check given by the grantee in payment thereof, and absent evidence to the contrary, he is presumed to have complied with the terms of the statute authorizing such action and to have performed his duties according to law. Field v. Brown, 206 Ark. 545, 176 S.W.2d 155 (1943).

19-2-203. Receipts by Department of Finance and Administration — Additional penalty.

If any person, firm, corporation, partnership, or business makes payment to the Department of Finance and Administration for any license or fees imposed by the laws of this state by means of a check, draft, or order drawn on any bank, person, firm, or corporation, and the check, draft, or order is returned by the bank, person, firm, or corporation without having been paid in full, then the Secretary of the Department of Finance and Administration is authorized and empowered to impose a penalty. The penalty shall be in the amount of either ten percent (10%) of the face amount of the check, draft, or order or twenty dollars ($20.00), whichever is greater, against the maker or drawer of the check, draft, or order.
This penalty is cumulative to any other penalties provided by law.

History. Acts 1981, No. 853, § 1; A.S.A. 1947, § 13-607.1; Acts 1997, No. 702, § 2; 2019, No. 910, § 3445.

19-2-204. Refusal to accept personal checks.

Effective January 1, 2000, no state agency, board, commission, or institution may refuse to accept personal checks unless and until it has filed with the Legislative Council a written statement justifying the agency's policy to not accept personal checks.

History. Acts 1999, No. 515, § 1.

Subchapter 3 — Accounts and Notes Receivable Abatement

Effective Dates. Acts 1983, No. 497, § 9: July 1, 1983. Emergency clause provided: “It has been found and determined by the Seventy-Fourth General Assembly that the provisions of this Act are necessary for the efficient and effective administration of accounting for resources of State agencies in accordance with accepted governmental accounting principles. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1983.”

Acts 1985, No. 908, § 4: Apr. 15, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that the collection of the accounts receivable due the State institutions is vital to maintaining the revenues for the operation of State government and should be diligently and actively pursued. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation and collection of the public funds shall be in full force and effect from and after its passage and approval.”

19-2-301. Title.

This subchapter may be known as the “Accounts and Notes Receivable Abatement Act for the State of Arkansas”.

History. Acts 1983, No. 497, § 1; A.S.A. 1947, § 13-367.

19-2-302. Purpose.

The purpose of this subchapter is to establish procedures for the various state agencies, authorities, boards, commissions, departments, and institutions of higher education to charge-off or cancel uncollectible moneys owed to them.

History. Acts 1983, No. 497, § 2; A.S.A. 1947, § 13-368.

19-2-303. Definitions.

As used in this subchapter:

“Abatement” means a complete or partial cancellation of a tax levied, special assessment, service charge, student loan, note receivable, or other amounts for which asset recognition criteria have been met;
“Accounts receivable” means an asset account upon the books of record reflecting amounts owing on open account from persons or organizations for taxes levied, special assessments, service charges, goods and services furnished by a state agency, or other amounts for which asset recognition criteria have been met but does not include amounts due from other state agencies;
“Notes receivable” means an unconditional written promise, signed by the maker, to pay a certain sum in money on demand or at a fixed or determinable future time either to the bearer or to the order of a person designated therein;
“Special assessment” means a compulsory levy made against certain properties or business entities to defray part or all of the cost of a specific improvement or service deemed to primarily benefit or regulate those upon whom the assessment is levied;
“State agency” means a state agency, board, authority, commission, department, or institution of higher education created by or receiving an appropriation by the General Assembly; and
“Tax” means a compulsory charge levied by the State of Arkansas for the purpose of financing services performed for the common benefit of its citizens.

History. Acts 1983, No. 497, § 3; A.S.A. 1947, § 13-369.

19-2-304. Recording of amounts due.

Each state agency shall record upon its books of record the amounts due it for delivery of goods and services, licenses, unpaid taxes, student loans, special assessments, accounts receivable, and notes receivable that are recognized by the state agency as due and payable or recognized as current-year income or as an asset that is due and payable upon a date ascertained.

History. Acts 1983, No. 497, § 4; A.S.A. 1947, § 13-370.

19-2-305. Referring of outstanding debts for collection.

A state agency shall diligently and actively pursue the collection of the state agency’s accounts and notes receivable.
Diligently and actively pursuing the collection of these accounts may include, but is not limited to:
1. Contacting a debtor by phone or letter within a reasonable time after an account is deemed delinquent;
2. 1. Referring an account to a licensed collection agency or an attorney for collection with a remuneration not exceeding fifty percent (50%) for accounts of five hundred dollars ($500) or less and not exceeding thirty-three and one-third percent (331/3%) for accounts in excess of five hundred dollars ($500).
  2. If an agency is unable to procure the services of a collection agency or attorney for the collection of any account in excess of five hundred dollars ($500) for a fee of one-third (1/3) of the amount recovered as authorized in this subsection, the agency may report this fact to the Legislative Joint Auditing Committee, and the Legislative Joint Auditing Committee may authorize the agency to pay a higher fee for collecting the account, not to exceed fifty percent (50%);
3. Pursuing setoff of debt against income tax refunds as allowed by §§ 26-36-301 — 26-36-320; or
4. Pursuing all other available means of collection if deemed feasible and economically justifiable by the agency.

History. Acts 1983, No. 497, § 5; 1985, No. 908, § 1; A.S.A. 1947, § 13-371.

19-2-306. Abatement of debt.

If after the state agency has pursued collection of the debt owed it as set out in this subchapter and the debt or partial debt is decreed to be uncollectible, then the debt shall be referred to the Chief Fiscal Officer of the State for abatement.
The Chief Fiscal Officer of the State shall satisfy himself or herself that all efforts to collect the indebtedness have been fulfilled, and he or she may then, by written approval, declare the debt or remaining debt uncollectible and notify the state agency and Legislative Joint Auditing Committee of abatement of the debt.

History. Acts 1983, No. 497, § 6; A.S.A. 1947, § 13-372.

19-2-307. Rules.

The Secretary of the Department of Finance and Administration is authorized to promulgate such rules as deemed necessary to implement the provisions and intent of this subchapter.

History. Acts 1983, No. 497, § 7; A.S.A. 1947, § 13-373; Acts 2019, No. 315, § 1701; 2019, No. 910, § 3446.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “Rules” in the section heading; and deleted “and regulations” following “rules”.

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration”.

Subchapter 4 — Expenditures Generally

Publisher's Notes. Former §§ 19-2-401 — 19-2-403, concerning restrictions on and increases in expenditures, were repealed by Acts 1987, No. 646, § 5. The sections were derived from the following sources:

19-2-401. Acts 1979, No. 618, § 3; A.S.A. 1947, § 13-643.

19-2-402. Acts 1979, No. 618, § 1; A.S.A. 1947, § 13-641.

19-2-403. Acts 1979, No. 618, § 2; 1983, No. 801, § 17; 1983, No. 881, § 1; A.S.A. 1947, § 13-642.

Effective Dates. Acts 1987, No. 245, § 6: July 1, 1987. Emergency clause provided: “It is hereby found and determined by the Seventy-Sixth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1987 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1987 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1987.”

Acts 1989 (1st Ex. Sess.), No. 210, § 6: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1989 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1989 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1989.”

Acts 1999, No. 236, § 5: Feb. 24, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that the requirement of saving 5% of the appropriation is not accomplishing savings and that the cost of administering the program is significant with little or no benefit. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

19-2-401 — 19-2-403. [Repealed.]

Publisher's Notes. Former §§ 19-2-401 — 19-2-403, concerning exemptions, restrictions on expenditure of appropriations, and increase in expenditures by executive proclamation, were repealed by Acts 1999, No. 236, § 1. They were derived from the following sources:

19-2-401. Acts 1993, No. 494, § 3; 1997, No. 1362, § 44.

19-2-402. Acts 1993, No. 494, § 1; 1997, No. 1362, § 45.

19-2-403. Acts 1993, No. 494, § 2.

19-2-404. Emergency expenditures.

1. In the event of riots, threatened riots, sabotage, public insurrection, threatened insurrection, storm, flood, famine, or other public calamity which jeopardizes the public peace, health, and safety of citizens of Arkansas that calls for immediate action, the Governor is delegated and authorized by the General Assembly to declare an emergency to exist and to issue a proclamation declaring an emergency to exist.
2. Other requests for utilization of this appropriation shall be submitted for prior review by the Governor to a Governor's Emergency Fund Review Committee, meeting in committee, composed of the cochairs and co-vice chairs of the Legislative Joint Auditing Committee and the cochairs and co-vice chairs of the Legislative Council.
A proclamation or request, as approved by the Governor or the Governor's Emergency Fund Review Committee, shall include:
1. The nature and location of the emergency;
2. The name of the department or agency which, in the Governor's opinion, is best able to alleviate or obviate the conditions which have arisen or are about to arise because of the emergency; and
3. The amount of funds required for the emergency, such amount or so much thereof as shall have been set forth in each proclamation to be extended upon vouchers drawn by the disbursing agent of the department or agency named in the proclamation.
The original of the proclamation shall be filed with the Secretary of State, and an executed counterpart of it shall be filed with the Auditor of State, the Treasurer of State, and the Department of Finance and Administration.
Any expenditures made in accordance with the authorizations provided for in this section may be reimbursed to the Miscellaneous Revolving Fund by transfers authorized by the Chief Fiscal Officer of the State from funds or fund accounts supporting the benefiting agencies. However, in the case of the Governor's proclamations and emergencies of a nature where no specific state agency is the beneficiary, then the expenditures shall be borne by the Miscellaneous Revolving Fund.

History. Acts 1987, No. 245, §§ 1, 3; 1989 (1st Ex. Sess.), No. 210, § 1.

Publisher's Notes. Acts 1989 (1st Ex. Sess.), No. 210, § 2, contains the appropriation referred to in subdivision (a)(2).

Case Notes

Determination of Public Emergency.

What constituted a public emergency was to be determined by the Governor within the requirements of Acts 1961, No. 395, § 1, and any such emergency proclamation would have been subject to attack under the position that no emergency existed. Hooker v. Parkin, 235 Ark. 218, 357 S.W.2d 534 (1962) (decision under prior law).

Subchapter 5 — Canceled Checks

Effective Dates. Acts 1999, No. 648, § 13: Mar. 16, 1999. Emergency clause provided: “It is hereby found and determined that the information and documentation required by this act is essential for the proper functioning of state agencies, boards, commissions, institutions of higher education, counties, municipalities, school districts, educational cooperatives, improvement districts, and other public officials and public offices; that a delay in the effective date of this act could work irreparable harm upon the proper administration and provision of essential governmental programs and operations. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

19-2-501. Purpose.

The State of Arkansas and its political subdivisions have the responsibility to properly account for all financial transactions. In order to help fulfill this responsibility, the State of Arkansas and other public entities are required to maintain books and records of transactions. The State of Arkansas and its political subdivisions recognize that through the use of computers and electronic data, banking and the flow of information are continuing to change. With this change, it is important that the State of Arkansas and its political subdivisions continue to receive evidentiary information concerning financial transactions. The purpose of this subchapter is to permit public entities to accept photographic copies or digital images of financial transactions and to require financial institutions to furnish the needed documentation in a readable, meaningful, permanent format.

History. Acts 1999, No. 648, § 1.

19-2-502. Definition.

As used in this subchapter, “public entity” means state agencies, including all constitutional offices and agencies, boards, and commissions, state institutions of higher education, municipalities, counties, school districts, education service cooperatives, improvement districts, and other public officials or public offices. Public entities shall maintain records of all transactions with financial institutions.

History. Acts 1999, No. 648, § 2; 2007, No. 617, § 39.

Amendments. The 2007 amendment substituted “education service cooperatives” for “educational cooperatives.”

19-2-503. Eligibility to accept public funds.

In order for a financial institution to be eligible to be a depository of public funds, the financial institution must furnish the public entity documentation, as required in this subchapter, of transactions with or through that institution.

History. Acts 1999, No. 648, § 3.

19-2-504. Transaction summaries.

On a monthly basis, financial institutions shall furnish public entities with statements summarizing all transactions of the public entity. Unless the public entity and the financial institution have a written agreement to receive digital images or copies in compliance with the provisions of this subchapter, the financial institutions shall return all original canceled checks to the public entity along with the transaction summary or statement.

History. Acts 1999, No. 648, § 4.

19-2-505. Approval by Arkansas Legislative Audit.

A financial institution desiring to provide public entities with images of canceled checks as provided in this subchapter shall provide a sample of imaged documents in one (1) or more of the following formats to Arkansas Legislative Audit for review:
1. Stored on a CD-ROM or similar tangible digital media;
2. Accessible through the internet; or
3. On paper.
Upon receipt of imaged documents submitted under subsection (a) of this section, Arkansas Legislative Audit shall immediately review and notify the financial institution whether or not the imaged documents are in compliance with this subchapter.

History. Acts 1999, No. 648, § 5; 2019, No. 255, § 1.

Amendments. The 2019 amendment inserted designations (a) and (b); added (a)(1) through (a)(3); in the introductory paragraph of (a), deleted “on paper or by digital media” following “checks”, and substituted “in one (1) or more of the following formats” for “or the digital media”; and in (b), inserted “of imaged documents submitted under subsection (a) of this section”, and deleted “or digital media” following the second occurrence of “documents”.

19-2-506. Digital images or copies of documentation.

After a financial institution has received written notification from Arkansas Legislative Audit that the submitted samples of its imaged documents under § 19-2-505 comply with this subchapter and upon agreement with the public entity, the financial institution may provide the public entity canceled check images in the format and quality approved by Arkansas Legislative Audit.
The canceled check images of financial transactions provided to the public entity by the financial institution under this subchapter shall be legible and show both the front and back images of the canceled checks.
1. If a financial institution provides canceled check images on tangible digital media under this subchapter, the images shall be provided on a read-only CD-ROM or other agreed upon digital media that would provide a permanent and tamper-proof record.
2. 1. If particular software is needed to view or search the digital images provided under this subchapter, the financial institution shall provide the software to the public entity and, upon request, to Arkansas Legislative Audit.
  2. Software provided under subdivision (c)(2)(A) of this section shall make canceled check images clear and readable.
3. Before delivery of a CD-ROM or other tangible digital media to a public entity, a financial institution shall perform random verification of the legibility of the contents of the data.
1. If a financial institution provides canceled check images to a public entity through internet access to online banking documents under this subchapter, the financial institution may provide Arkansas Legislative Audit read-only internet access to the public entity's online banking documents.
2. Read-only internet access granted under subdivision (d)(1) of this section shall permit viewing and copying of each public entity's bank statements, canceled check images, deposit slips, and other financial transaction documentation made available to the public entity.
3. 1. If particular software is needed to view or search images made available under this subsection, the financial institution shall provide the necessary software to the public entity and, upon request, to Arkansas Legislative Audit.
  2. Software provided under subdivision (d)(3)(A) of this section shall make canceled check images clear and readable.
4. An online banking document made available to a public entity under this subsection shall be available for read-only internet access for at least five (5) years after the document is made available to the public entity online.
If a financial institution provides canceled check images on paper under this subchapter, the images shall be of such clarity and size that the details may be read without the aid of a magnifying device.
1. If a financial institution provides canceled check images under this subchapter, the financial institution shall implement one (1) of the following procedures to provide verification of the authenticity of the records retained by the public entity:
  1. A duplicate copy of the check images on paper and statements mailed to Arkansas Legislative Audit on a monthly basis;
  2. The use of an identifying mark unique to the financial institution on the paper images of checks sent to the public entity;
  3. The delivery of a duplicate copy of the check images stored on tangible digital media, conforming to the digital imaging specifications stated in this subchapter, to Arkansas Legislative Audit on a monthly basis;
  4. The provision to Arkansas Legislative Audit of read-only internet access to the public entity's online banking documents in accordance with the requirements of this subchapter; or
  5. Any other authenticating method approved by Arkansas Legislative Audit.
2. A financial institution may elect which of the procedures listed in subdivision (f)(1) of this section it shall implement to provide authentication of images relating to the accounts of each public entity.
A financial institution shall be able to, and, at the request of Arkansas Legislative Audit, shall provide duplicate copies of any checks and statements delivered to a public entity:
1. With the same clarity and size as the imaged documents previously delivered; and
2. In the format requested by Arkansas Legislative Audit if the format is currently available to the financial institution.

History. Acts 1999, No. 648, § 6; 2019, No. 255, § 1.

Amendments. The 2019 amendment rewrote the section.

19-2-507. Request of records by Legislative Auditor.

Upon request by the Legislative Auditor, a financial institution shall provide a copy of a public entity's financial information directly to Arkansas Legislative Audit staff without delay or approval from the public entity.
The financial institutions may provide the digital transaction statements and digital canceled check images to Arkansas Legislative Audit in a media format allowed under the provisions of this subchapter for public entities or other media mutually agreed upon by the financial institution and Arkansas Legislative Audit.
No bank shall be liable for making available to Arkansas Legislative Audit staff any of the information required under the provisions of this subchapter.
Any cost associated with providing this information to Arkansas Legislative Audit shall be borne by the public entity being audited or investigated.

History. Acts 1999, No. 648, § 7.

19-2-508. [Repealed.]

Publisher's Notes. This section, concerning compliance, was repealed by Acts 2009, No. 251, § 4. The section was derived from Acts 1999, No. 648, § 8.

19-2-509. Effect on other laws.

The provisions of this subchapter do not change, amend, or repeal any laws or rules regarding a financial institution's normal obligations and responsibilities to maintain customer financial records.

History. Acts 1999, No. 648, § 9; 2019, No. 315, § 1702.

Amendments. The 2019 amendment substituted “rules” for “regulations”.

Chapter 3 State Treasury Management

Research References

Am. Jur. 63C Am. Jur. 2d, Pub. Funds, § 1 et seq.

C.J.S. 81A C.J.S., States, § 340 et seq.

Subchapter 1 — General Provisions [Reserved]

19-3-101. [Repealed.]

Publisher's Notes. This section, concerning the State Board of Finance, was repealed by Acts 2013, No. 1088, § 5. The section was derived from Acts 1955, No. 338, § 1; 1965 (1st Ex. Sess.), No. 12, § 12; A.S.A. 1947, § 13-401.

Subchapter 2 — State Treasury Management Law

19-3-201 — 19-3-223. [Repealed.]

Publisher's Notes. This subchapter, concerning the State Treasury Management Law, was repealed by Acts 1997, No. 847, § 4. The subchapter was derived from the following sources:

19-3-201. Acts 1965 (1st Ex. Sess.), No. 12, § 1; A.S.A. 1947, § 13-421.

19-3-202. Acts 1965 (1st Ex. Sess.), No. 12, § 2; A.S.A. 1947, § 13-422.

19-3-203. Acts 1965 (1st Ex. Sess.), No. 12, § 3; A.S.A. 1947, § 13-423.

19-3-204. Acts 1965 (1st Ex. Sess.), No. 12, § 5; A.S.A. 1947, § 13-425.

19-3-205. Acts 1965 (1st Ex. Sess.), No. 12, § 6; A.S.A. 1947, § 13-426.

19-3-206. Acts 1965 (1st Ex. Sess.), No. 12, § 7; A.S.A. 1947, § 13-427.

19-3-207. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-208. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-209. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-210. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-211. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-212. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-213. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428; Acts 1993, No. 745, § 1.

19-3-214. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428; Acts 1993, No. 745, § 2.

19-3-215. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-216. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428; Acts 1993, No. 745, § 3.

19-3-217. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-218. Acts 1965 (1st Ex. Sess.), No. 12, § 8; 1973, No. 121, § 8; A.S.A. 1947, § 13-428.

19-3-219. Acts 1965 (1st Ex. Sess.), No. 12, § 9; 1968 (2nd Ex. Sess.), No. 5, § 1; 1969, No. 620, § 16; 1973, No. 121, § 9; 1980 (1st Ex. Sess.), No. 57, § 2; 1980 (1st Ex. Sess.), No. 65, § 2; 1985, No. 341, §§ 1, 2; A.S.A. 1947, §§ 13-429, 13-429.1; Acts 1993, No. 745, §§ 4, 5; 1993, No. 888, § 1; 1995, No. 1236, § 1.

19-3-220. Acts 1981, No. 161, § 2; A.S.A. 1947, § 13-429.2.

19-3-221. Acts 1981, No. 161, § 3; A.S.A. 1947, § 13-429.3.

19-3-222. Acts 1965 (1st Ex. Sess.), No. 12, § 10; 1973, No. 121, § 10; A.S.A. 1947, § 13-430.

19-3-223. Acts 1965 (1st Ex. Sess.), No. 12, § 11; A.S.A. 1947, § 13-431.

For present law, see § 19-3-501 et seq.

Subchapter 3 — Long-Term Investment

19-3-301 — 19-3-309. [Repealed.]

Publisher's Notes. This subchapter, concerning long-term investment, was repealed by Acts 1997, No. 847, § 4. The subchapter was derived from the following sources:

19-3-301. Acts 1973, No. 121, § 1; A.S.A. 1947, § 13-432.

19-3-302. Acts 1973, No. 121, § 2; A.S.A. 1947, § 13-433.

19-3-303. Acts 1973, No. 121, § 11; A.S.A. 1947, § 13-439.

19-3-304. Acts 1973, No. 121, § 7; A.S.A. 1947, § 13-438.

19-3-305. Acts 1973, No. 121, § 3; A.S.A. 1947, § 13-434.

19-3-306. Acts 1973, No. 121, § 12; A.S.A. 1947, § 13-440.

19-3-307. Acts 1973, No. 121, § 4; 1979, No. 4, § 1; 1979, No. 416, § 1; 1980 (1st Ex. Sess.), No. 57, § 1; 1980 (1st Ex. Sess.), No. 65, § 1; 1985, No. 342, § 1; A.S.A. 1947, § 13-435; Acts 1993, No. 745, § 6.

19-3-308. Acts 1973, No. 121, § 5; 1979, No. 416, § 2; A.S.A. 1947, § 13-436.

19-3-309. Acts 1973, No. 121, § 6; A.S.A. 1947, § 13-437.

For present law, see § 19-3-601 et seq.

Subchapter 4 — Temporary Loans to Local Governments

Effective Dates. Acts 1977 (1st Ex. Sess.), No. 15, § 5: Aug. 15, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that legislation being considered by the Seventy-First General Assembly to remove the penalty provisions for failure to pay property taxes in installments may result in substantial financial hardship to cities, counties, and school districts, and may adversely affect their cash flow or monies available for the normal operation of essential governmental and public school purposes; and that the immediate passage of this Act is necessary to establish a procedure for making temporary loans to such cities, counties, and school districts to maintain their cash flow levels. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

19-3-401. Legislative intent.

The General Assembly recognizes that legislation considered by the First Extraordinary Session of the Seventy-First General Assembly may remove the penalty requirements for failure to pay property taxes by installments and that this action may result in a reduction of property tax revenues available to cities, counties, and school districts, thereby imposing a financial hardship upon the cities, counties, and school districts during portions of their calendar or fiscal year. It is, therefore, the intent of this subchapter to authorize the State Board of Finance, in the manner provided in this subchapter, to make temporary loans to cities, counties, and school districts to assist in maintaining their average cash flow in the event there is a material reduction in their cash flow resulting from legislation enacted by the First Extraordinary Session of the Seventy-First General Assembly.

History. Acts 1977 (1st Ex. Sess.), No. 15, § 1; A.S.A. 1947, § 13-441.

19-3-402. Procedure for obtaining and repaying loans.

The State Board of Finance is authorized to make temporary loans to cities, counties, and school districts from average daily balances in the State Treasury available to the board for investment purposes. For any city, county, or school district to be eligible to receive temporary loans under the provisions of this subchapter, the city, county, or school district shall prepare a schedule from each of the five (5) preceding calendar or fiscal years. This schedule shall reflect the average monthly cash flow derived from property tax sources and the proportion of property taxes available during each month as they relate to the aggregate amount of property taxes collected and available to the city, county, or school district during the calendar or fiscal year, and the city, county, or school district shall average such monthly cash flow percentages for the five-year period.
If the board determines that the cash flow of the city, county, or school district has fallen below the monthly average percentage cash flow for property taxes available to the city, county, or school district for the prior five (5) fiscal years and that the current level of cash flow is not adequate to enable the city, county, or school district to maintain an adequate level of services, the board may make temporary loans to the city, county, or school district. These loans may be in an aggregate amount no greater than the difference between average monthly percentage cash flow of the city, county, or school district for the preceding five (5) years for such period and the actual percentage cash flow in the current tax year computed on the basis of taxes collected in relation to the estimated tax collections for the tax year.
1. All these loans shall be repaid to the board upon their maturity, which shall, in no event, be beyond the last day of the calendar year in which the loan is made.
2. In the event any city, county, or school district shall fail or refuse to pay any such loan in accordance with the repayment schedule agreed to by the board or as set forth in this section, the board shall certify this fact and the amount of the unpaid loan to the Treasurer of State. The Treasurer of State shall withhold it from the next moneys available for distribution to the city, county, or school district from state general revenues and shall transfer the amount from the County Aid Fund, the Municipal Aid Fund, or the Public School Fund, as the case may be, to the appropriate State Treasury account or source from which the loan was made.

History. Acts 1977 (1st Ex. Sess.), No. 15, § 2; A.S.A. 1947, § 13-442.

19-3-403. Rules.

The State Board of Finance may promulgate appropriate rules for the administration of this subchapter, including the establishment of the necessary forms and loan instruments to be used in connection with making loans under the provisions of this subchapter.

History. Acts 1977 (1st Ex. Sess.), No. 15, § 3; A.S.A. 1947, § 13-443; Acts 2019, No. 315, § 1703.

Amendments. The 2019 amendment deleted “and regulations” following “Rules” in the section heading; and deleted “and regulations” following “rules”.

Subchapter 5 — State Treasury Management Law

A.C.R.C. Notes. Acts 2013, No. 1088, § 4, provided: “Grace period.

“Upon application and for good cause the State Board of Finance may allow an entity that was a bank depository or investment depository on the effective date of this act until January 1, 2014, to comply with:

“(1) An eligibility requirement established after the effective date of this act; or

“(2) A requirement of § 19-3-501 et seq. established by this act.”

Effective Dates. Acts 1997, No. 847, § 5: May 31, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 becomes effective on June 1, 1997 and that this act should become effective prior to the effective date of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. Also, Act 89 of 1997 enabling the Arkansas Banking Code and the companion bill, Senate Bill 359 amending the Arkansas Banking Code to opt in interstate branching go into effect May 31, 1997. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after May 31, 1997.”

Acts 2005, No. 873, § 2: Mar. 15, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that state fund investment limitations are detrimental to the economic growth of this state; that additional investment authority is needed to provide the Treasurer of State and the State Board of Finance with the flexibility to make sound and beneficial investment decisions; and that this act is immediately necessary to enable additional state funds to be invested as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2016 (3rd Ex. Sess.), No. 1, § 23: July 1, 2016, §§ 1-8, 13, 15, and 18-21. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that Arkansas bridges and roads are in need of repair and proper maintenance; that the repair and proper maintenance of Arkansas bridges and roads are necessary for the preservation of the public peace, health, and safety; that increased funding is essential to the repair and proper maintenance of Arkansas bridges and roads; that this act is designed to provide the necessary funding that is essential to the repair and proper maintenance of Arkansas bridges and roads, and this act is necessary because without this increased funding, the repair and proper maintenance of Arkansas bridges and roads may not be performed. Therefore, an emergency is declared to exist, and Sections 1-8, 13, 15, 18-21 of this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2016.”

Acts 2017, No. 291, § 3: June 30, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act amends the dates of the Treasurer of State's reporting requirements in an effort to achieve more accurate and efficient reporting; that the next reporting cycle begins at the beginning of the next fiscal year on July 1, 2017; that it is in the best interests of the state to have accurate and efficient reporting by the Treasurer of State; that the provisions of this act should be effective before the next billing cycle to allow the Treasurer of State to implement this act; and that this act is necessary because it will allow for the Treasurer of State to provide more accurate and efficient reporting in the next reporting cycle. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on June 30, 2017.”Acts 2017, No. 555, § 8: July 1, 2017. Emergency clause provided: “It is found and determined by the General Assembly that this act amends the investment and transfer authority of the Treasurer of State; that this act affects the ability of the Treasurer of State to invest and transfer state funds; and that this act should become effective as soon as possible to allow for implementation of the new provisions to benefit the State of Arkansas. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2017.”

19-3-501. Title.

This subchapter shall be known and may be cited as the “State Treasury Management Law”.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment substituted “shall be known and may be cited as” for “may be referred to and cited as”.

19-3-502. Definitions.

As used in this subchapter:

“Bank” means:
1. A state bank, a national bank, or an out-of-state state-chartered bank that has received a certificate of authority under § 23-48-1001; and
2. A foreign bank organized under the laws of a territory of the United States, Puerto Rico, Guam, American Samoa, or the United States Virgin Islands if the deposits of the foreign bank are insured by the Federal Deposit Insurance Corporation;
“Bank depository” means a bank or savings and loan association that accepts a deposit of funds from the State Treasury;
“Capital base” means the sum of a bank's capital stock, surplus, and undivided profits, plus any additions and less any subtractions which the Bank Commissioner may by rule prescribe;
“Cash Account” means the asset account in the State Treasury consisting of all cash:
1. In the hands of the Treasurer of State; and
2. On deposit in the name of the Treasurer of State in a bank depository;
“Certificate of Deposit Account” means the asset account in the State Treasury consisting of all, but only, certificates of deposit acquired by the Treasurer of State through the State Treasury Certificate of Deposit Investment Program;
“Fund account” means a specifically named liability account in the State Treasury to which moneys are credited upon receipt and charged upon withdrawal that:
1. Is created or authorized by law; and
2. Reflects the amount of money owed to an agency or instrumentality of the State of Arkansas;
“Gross treasury fund balances” means the aggregate total amount of the balances standing to the credit of all funds on the records of the Treasurer of State;
“Investment depository” means a person or entity that accepts money or securities from the State Treasury for investment purposes;
“National bank” means a national banking association organized to carry on the business of banking under Title 12, Chapter 2, of the United States Code;
“Safekeeping Account” means the account in the State Treasury administered by the Treasurer of State for the benefit of other government entities consisting of all securities received by the Treasurer of State from the administrators of the several state retirement systems and other trust accounts;
“Savings and loan association” means a corporation carrying on the business of a savings and loan association or a building and loan association under a charter issued by this state or any federal savings association or federal savings bank that is chartered under federal law;
“Securities Account” means the asset account in the State Treasury consisting of all securities held by the Treasurer of State through its investment of gross state fund balances;
1. “Securities broker” means a person or entity that:
  1. Buys or sells an investment for the State Treasury; or
  2. Receives any form of compensation or remuneration in connection with the purchase or sale of an investment of State Treasury funds.
2. “Securities broker” includes a stock broker, a securities broker, an investment adviser, and any other person or entity that facilitates or helps to facilitate a transaction concerning an investment of State Treasury funds;
“State bank” means a state bank as defined in § 23-45-102;
“State Treasury” means all moneys, securities, and gross treasury fund balances administered by the Treasurer of State;
“Trust Deposit Account” means the asset account in the State Treasury consisting of all, but only, certificates of deposit administered by the Treasurer of State for the benefit of the several retirement systems and other trust fund accounts;
“Trust fund account” means a specifically named liability account designated by law as a trust fund in the State Treasury to which moneys are credited upon receipt and debited upon withdrawal, representing the balance owed by the State Treasury to agencies and instrumentalities of the State of Arkansas; and
“Trust Investment Account” means the asset account in the State Treasury consisting of all, but only, securities administered by the Treasurer of State for the benefit of the several retirement systems and other trust fund accounts.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2; 2019, No. 315, § 1704.

Amendments. The 2013 amendment rewrote the section.

The 2019 amendment substituted “rule” for “regulation” in (3).

19-3-503. State Treasury accounts.

The Treasurer of State may create and rename accounts to ensure the proper accounting and administration of the State Treasury.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment rewrote the section.

19-3-504. Record and report of financial transactions.

1. 1. The State Board of Finance shall:
    1. Establish the record-keeping requirements of the Treasurer of State for the State Treasury; and
    2. Require that:
      1. The liability accounts of the State Treasury be recorded in amounts and sufficient detail to allow the identification of the governmental entity to which funds are owed;
      2. The asset accounts of the State Treasury be recorded in amounts and sufficient detail to identify the type of assets owned; and
      3. All accounts of the State Treasury be recorded using a basis of accounting approved by the board that is consistent with generally accepted accounting principles.
  2. The record-keeping requirements under subdivision (a)(1)(A) of this section:
    1. May exceed the requirements of this section; and
    2. Shall include without limitation records showing:
      1. The identity of each fund and category of funds; and
      2. A comparison of:
        
        Liquidity requirements established by the board and the State Treasury's actual liquidity; and
        
        The target rate of investment return established by the board and the State Treasury's actual rate of investment return.
2. 1. Each fund account shall be listed separately on the records of the Treasurer of State under its major group heading.
  2. For each fund account, each group, and each major group, the records shall reflect each day:
    1. 1. Summary financial transactions for the day and cumulative summary financial transactions for the current fiscal year.
      2. The summaries required by subdivision (a)(2)(B)(i)(a) of this section shall include:
        
        A statement of:
        
        Direct receipts;
        
        Transfer receipts;
        
        Disbursements by warrant redemption; and
        
        Disbursements by transfer; and
        
        The amount of uncollected checks legally charged off;
        
        Limit the items of summary financial information that may be included in the records or reports of the Treasurer of State; or
        
        Exclude other primary, subsidiary, or auxiliary records as may be required by law, kept by the Treasurer of State, or as may be required of the Treasurer of State by the Chief Fiscal Officer of the State in the performance of the duties of the Treasurer of State.
    2. The credit balance at the close of business; and
    3. The composition of gross treasury fund balances.
3. Additionally, the records shall reflect in summary form the total principal amount of securities held in trust in the Safekeeping Account.
4. The enumeration of requirements in this subsection does not:
1. A daily and a monthly report of the information required by subsection (a) of this section shall be:
  1. Prepared by the Treasurer of State and delivered to the Chief Fiscal Officer of the State; and
  2. Open to public inspection during normal business hours.
2. A report of the information required by subsection (a) of this section shall be delivered in electronic format annually to the Legislative Council, Arkansas Legislative Audit, and the Governor on:
  1. January 10 for the six-month period ending the immediately preceding December 31; and
  2. July 10 for the immediately preceding fiscal year.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2; 2017, No. 291, § 1.

Amendments. The 2013 amendment rewrote the section.

The 2017 amendment rewrote (b)(2).

19-3-505. Disposition of moneys received by Treasurer of State.

1. The Treasurer of State shall issue receipts to depositors of moneys into the State Treasury.
2. On the day of receipt or as soon as practical, the moneys shall be credited to the appropriate fund as provided by law.
1. After credit to the appropriate funds, the moneys shall be:
  1. Commingled with all other moneys in the State Treasury; and
  2. Deposited into bank depositories to the credit of the account of the Treasurer of State or invested as prescribed in this subchapter.
2. This subsection does not prohibit the Treasurer of State from keeping cash of the State Treasury in the Treasurer of State's office in reasonable amounts necessary for the transaction of the day-to-day business of the office with persons and firms other than bank depositories.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment rewrote the section.

19-3-506. Custodian of moneys and securities — Internal controls — Annual audit.

1. The Treasurer of State shall:
  1. Be custodian of all moneys, securities, and certificates of deposit at any time held in the State Treasury; and
  2. Maintain all moneys and securities consistent with generally accepted accounting principles.
2. However, control of the disposition of securities is vested in the respective administrators of the several trust accounts for whom the securities are held.
To ensure the financial integrity of the State Treasury, the Treasurer of State shall:
1. Establish and maintain effective internal controls over financial reporting and record keeping, including the monitoring of ongoing activities, and comply with the Arkansas Constitution and applicable laws, rules, contracts, and agreements;
2. Establish and maintain effective internal controls to prevent and detect fraud;
3. With respect to State Treasury funds or other public funds, notify Arkansas Legislative Audit of all known fraud or suspected fraud or all known or suspected illegal acts involving the management or other employees of the Treasurer of State, the State Board of Finance, a bank depository, an investment depository, or a securities broker;
4. Inform Arkansas Legislative Audit and the Chief Fiscal Officer of the State of any known material violations of the Arkansas Constitution or applicable statutes, rules, contracts, or agreements;
5. Prepare records and reports in accordance with guidelines and timelines established by the Chief Fiscal Officer of the State to permit incorporation into the state's financial statements and to permit the audit of the state's financial statements and the records, reports, and financial statements of the Treasurer of State in a timely manner; and
6. Make all financial records and related information available to Arkansas Legislative Audit, including the identification of significant personal or financial relationships between a director, officer, or employee of a bank depository, investment depository, or securities broker and an officer or employee of the Treasurer of State or board.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2; 2017, No. 263, § 1.

Amendments. The 2013 amendment rewrote the section.

The 2017 amendment substituted “Arkansas Legislative Audit” for “the Division of Legislative Audit” and “State Board of Finance” for “board” in (b)(3).

19-3-507. Bank depositories generally.

Subject to the conditions and limitations provided in §§ 19-3-508 — 19-3-517, a bank or savings and loan association may be designated as a bank depository.
1. A bank or savings and loan association is not required to act as a bank depository.
2. However, the acceptance of a deposit of State Treasury funds requires a bank depository to observe §§ 19-3-508 — 19-3-517.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment rewrote the section.

19-3-508. Deposits in ineligible institutions.

The Treasurer of State shall not deposit State Treasury funds into an institution that is not eligible to be a bank depository under § 19-3-507 unless deposits in the institution are required to be made by other law or by resolution of a state board or commission duly adopted pursuant to the authority and requirement of other law.
The prohibition of subsection (a) of this section does not apply to funds payable from the State Treasury that are required by paying agents to meet debt service requirements of bond obligations incurred by law.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment, in (a), substituted “shall not deposit State Treasury funds into an institution that is not eligible to be a bank depository” for “may not deposit any State Treasury funds in any institution not considered eligible to be a depositor”, and “the institution” for “such institutions”; and rewrote (b).

19-3-509. Maximum amount of deposits and investments — Protection of State Treasury funds.

The maximum amount of moneys and securities from the State Treasury held by a bank depository shall not exceed an amount equal to the total amount of the capital base of the bank depository.
An investment depository and a securities broker shall provide the Treasurer of State and State Board of Finance proof of:
1. Securities investor protection coverage for each investment of State Treasury funds; and
2. Compliance with fidelity bond requirements of the United States Securities and Exchange Commission.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment added “and investments — Protection of State Treasury funds” to the end of the section heading; rewrote (a); and added (b).

19-3-510. Types of accounts for deposits.

1. Funds from the State Treasury deposited into a bank depository or an investment depository shall be credited to accounts in the name of the Treasurer of State.
2. Except as provided in § 19-3-512, the Treasurer of State may establish accounts as demand deposit accounts, certificates of deposit, or other accounts.
The certificate of deposit account in a bank depository or an investment depository shall consist of funds from the State Treasury deposited under the State Treasury Certificate of Deposit Investment Program and trust funds deposited for various trust funds.
The demand deposit account in a bank depository or an investment depository shall consist of:
1. All federal funds, as described in § 19-7-101 et seq.;
2. Trust funds to the extent that the trust funds are not invested in securities and certificates of deposit; and
3. State funds to the extent that the state funds are not invested in securities.
Funds from the State Treasury shall not be deposited into a bank depository or an investment depository except under the terms of a written agreement entered into between the Treasurer of State and the bank depository or investment depository that complies with applicable state law and rules and federal law, rules, and regulations.

History. Acts 1997, No. 847, § 1; 2009, No. 251, § 5; 2013, No. 1088, § 2; 2019, No. 315, § 1705.

Amendments. The 2013 amendment rewrote the section.

The 2019 amendment inserted “law and rules” following “state” in (d).

19-3-511. Term of deposit — Interest.

At a meeting called and held before the start of the term of a certificate of deposit, the State Board of Finance shall determine the interest rate to be paid on certificates of deposit invested through the State Treasury Certificate of Deposit Investment Program.
The Treasurer of State and each bank depository shall enter into an agreement establishing the term or renewal term of the certificate of deposit.
1. Notice of the date and time of the meeting shall be given by the Secretary of the State Board of Finance and published in a newspaper of statewide circulation at least five (5) days but no more than fifteen (15) days before the meeting.
2. At the meeting a person desiring to be heard shall be given the opportunity to express his or her views on any matter under consideration by the board.
3. After considering all views expressed and the views of the board members, the board shall fix the rate of interest to be used by the Treasurer of State and paid by bank depositories during the next term.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment rewrote the section.

19-3-512. Estimate and investment of funds not needed for immediate cash requirements.

1. No less than quarterly, the State Board of Finance in conjunction with the Chief Fiscal Officer of the State shall determine the amount of funds from the State Treasury available for deposit by the Treasurer of State into the State Treasury Certificate of Deposit Investment Program.
2. The board shall direct the investment of all moneys that exceed the cash requirements needed to satisfy outstanding warrants and other liquid obligations for the succeeding quarter.
1. At least ten (10) days before making the determination required by subsection (a) of this section and after reviewing current holdings in the State Treasury and all available revenue forecasts, appropriations, expenditure budgets, year-to-date expenditure reports, prior year expenditure trends, and any other pertinent information, the Chief Fiscal Officer of the State shall advise the board of the estimated amount of cash reserves expected to be needed by the Treasurer of State to purchase warrants in the next fiscal quarter.
2. The board shall direct the Treasurer of State:
  1. To purchase warrants in the next fiscal quarter; and
  2. In the type and amount for deposit and investment of all holdings exceeding cash reserves for warrant purposes.
The Treasurer of State, acting ministerially, may do all things necessary to accomplish the purposes and intent of this section.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment substituted “and investment of funds not needed for immediate cash requirements” for “of deposits not needed for operations” in the section heading; rewrote (a)(1); and added (a)(2); inserted present (b) and redesignated former (b) as (c); and, in (c), substituted “may do all things” for “shall have the authority to take such action and do such things as shall be” and deleted “expressed” preceding “purposes”.

19-3-513. Interest income on deposits.

Interest from time to time due by a bank depository on Cash Account demand deposit accounts and Certificate of Deposit Account certificates of deposit shall be paid to the Treasurer of State as directed by the Treasurer of State.
The interest income shall be classified as trust fund income, and the net amount of the interest income shall be credited to the Securities Reserve Fund.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment, in (a), substituted “by a bank depository on Cash Account demand” for “by each depository on demand”, inserted “Certificate of Deposit Account” and substituted “paid to the Treasurer of State as directed by” for “paid and transmitted on each due date to and in the manner authorized and prescribed by”; and, in (b), substituted “The interest” for “All such interest” and “of the interest income” for “thereof”.

19-3-514. List of deposits.

1. On or before the tenth day following the end of each calendar quarter, the Treasurer of State shall prepare a list of all bank depositories.
2. For each bank depository, the list shall include the amounts of State Treasury funds on time deposit and on demand deposit on the last day of business of the calendar quarter.
The list shall be maintained for public inspection at the Treasurer of State's office.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment redesignated (a) as (a)(1) and (2); in (a)(1), deleted “year” following “quarter” and inserted “bank” preceding “depositories”; and, in (a)(2), added “For each bank depository, the list shall include” at the beginning, deleted “in each such depository” preceding “on the last”, and substituted “calendar quarter” for “quarter year”.

19-3-515. Charges on deposits.

1. The Treasurer of State, acting ministerially, may contract with a bank depository or investment depository to pay processing fees for handling funds of the State Treasury if it is deemed to be in the best interest of the State of Arkansas.
2. The processing fees shall be paid by state warrant from appropriations to the Treasurer of State.
Unless authorized by its contract with the Treasurer of State, a bank depository or investment depository shall not make any charge for handling funds of the State Treasury.
A bank depository or investment depository shall not use compensating deposit balances to offset processing fees.
A claim for a charge or processing fee in violation of this section is void.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment redesignated (a) as (a)(1); in (a)(1), substituted “may contract with a bank depository or investment depository” for “shall have the authority to enter into an agreement with any financial institution handling state funds” and “funds of the State Treasury” for “such funds”; added (a)(2); rewrote (b); and added (c) and (d).

19-3-516. Discontinuance as bank depository.

A bank depository that refuses to cash upon presentation by the payee within thirty (30) days of issuance a state warrant of five hundred dollars ($500) or less drawn upon the State Treasury or a bank check of five hundred dollars ($500) or less issued by a state agency shall:
1. Be discontinued immediately as a bank depository; and
2. For a period of time determined by the State Board of Finance, be ineligible for reinstatement as a bank depository.
This section does not prevent a bank depository from:
1. Taking a reasonable time to make proper identification of the persons and signatures of payees named in warrants or checks; or
2. Seeking indemnification for losses from cashing warrants or checks for persons other than the payees named in the warrants or checks.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment rewrote the section.

19-3-517. Effect of proper deposits.

The deposit of State Treasury funds in accordance with §§ 19-3-507 — 19-3-516 relieves the Treasurer of State and the surety on the Treasurer of State's bond of liability for the loss of the funds by reason of the default or insolvency of a bank depository.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment deleted “the provisions of” preceding “§§ 19-3-507”, substituted “relieves” for “shall relieve”, deleted “any and all” preceding “liability”, substituted “the funds” for “such funds”, “a bank” for “any bank” and deleted “of State Treasury funds” following “depository”.

19-3-518. Investments in securities and bank certificates of deposit.

1. Trust fund accounts in the State Treasury may be invested in:
  1. Certificates of deposit of banks and savings and loan associations; and
  2. Securities eligible under other law.
2. 1. The administrator of a trust fund account shall review, from time to time, the flow of moneys through the trust fund account in the State Treasury to determine the estimated surplus moneys in the trust fund account that exceed the immediate requirements of the trust fund account.
  2. 1. 1. After taking into consideration the amount of the estimated surplus moneys under subdivision (a)(2)(A) of this section, the administrator shall certify to the Treasurer of State the amount of surplus moneys and the period of time during which the surplus moneys are not required.
      2. The Treasurer of State shall invest the amount certified in certificates of deposit issued by eligible banks and savings and loan associations.
      3. If the Treasurer of State is unable to place the certified amount in certificates of deposit, then the remainder may be placed in securities with the administrator's approval.
    2. 1. Moneys required for a purchase under this subdivision (a)(2)(B) shall be withdrawn from the Cash Account and paid to the bank depository issuing the certificate of deposit or the investment depository selling the securities.
      2. The principal amount of the certificate of deposit shall be debited to the Trust Deposit Account.
        
        The principal amount of a security shall be debited to the Trust Investment Account.
    3. The certificates of deposit shall be secured by the Treasurer of State in accordance with the collateralization and investment policies of the State Board of Finance.
    4. 1. Interest on bank certificates of deposit shall be paid at competitive rates according to the investment policy established by the State Board of Finance.
      2. All interest income derived from certificates of deposit or securities shall be credited as trust fund income to the trust fund used to purchase a certificate of deposit or security.
3. 1. The Securities Reserve Fund shall be maintained on demand deposit in depository banks.
  2. This subsection does not apply to the Securities Reserve Fund.
1. 1. The State Board of Finance may direct that a portion of state funds in the State Treasury be invested in certificates of deposit in the State Treasury Certificate of Deposit Investment Program as provided in § 19-3-519.
  2. The remaining portion of state funds in the State Treasury may be invested in:
    1. Certificates of deposit;
    2. Direct obligations of the United States Government;
    3. Obligations of agencies and instrumentalities created and authorized by act of the United States Congress to issue securities or evidences of indebtedness, regardless of guarantee of repayment by the United States Government;
    4. Obligations in which the principal and interest are fully guaranteed by:
      1. The United States Government; or
      2. An agency or an instrumentality created by an act of the United States Congress and authorized by the United States Congress to issue the guarantee;
    5. Obligations in which the principal and interest are fully secured, insured, or covered by a commitment or agreement to purchase the obligation by:
      1. The United States Government; or
      2. An agency or instrumentality created by an act of the United States Congress and authorized by the United States Congress to issue the commitment or agreement;
    6. General obligations of the states of the United States and of the political subdivisions, municipalities, commonwealths, territories, or insular possessions of the states of the United States;
    7. Obligations issued by the State Board of Education under authority of the Arkansas Constitution or applicable statutes;
    8. Warrants of a political subdivision or municipality of the State of Arkansas having maturities not exceeding one (1) year;
    9. Prerefunded municipal bonds, if the principal and interest of the municipal bonds are fully secured by the principal and interest of a direct obligation of the United States Government;
    10. The sale of federal funds with a maturity of not more than one (1) business day;
    11. Demand, savings, or time deposits or accounts of a depository institution chartered by the United States, a state of the United States, or the District of Columbia if funds invested in the demand, savings, or time deposits or accounts are fully insured by a federal deposit insurance agency;
    12. Repurchase agreements that are fully collateralized by securities stated in subdivisions (b)(1)(B)(ii)-(v) of this section if the repurchase agreement provides for taking delivery of the collateral directly or through an authorized custodian;
    13. A securities or other interest in an open-end type investment company or investment trust registered under the Investment Company Act of 1940 and that is defined as a “money market fund” under 17 C.F.R. § 270.2a-7 if:
      1. The portfolio of the investment company or investment trust is limited principally to United States Government obligations and to repurchase agreements fully collateralized by United States Government obligations; and
      2. The investment company or investment trust takes delivery of the collateral either directly or through an authorized custodian; or
    14. As approved by the guidelines established by the State Treasury investment policy approved by the State Board of Finance, a corporate obligation with an investment grade rating of at least BBB, A2, P2, or an equivalent rating as indicated by at least two (2) nationally recognized statistical rating organizations.
2. 1. 1. Moneys required for a purchase under subdivision (b)(1) of this section shall be withdrawn from the Cash Account and paid to the seller of the securities.
    2. The cost of the securities shall be debited to the Securities Account.
  2. The proceeds of the sale or redemption of securities withdrawn from the Securities Account shall be debited in the Cash Account in the State Treasury.
  3. 1. For all purchases, sales, and redemptions of securities under this subsection, discounts and premiums shall be credited or charged, as appropriate, to the Securities Reserve Fund.
    2. Discounts and premiums that are increments and all interest received on securities held in the Securities Account shall be classified as trust fund income and credited to the Securities Reserve Fund by the Treasurer of State.
3. 1. All purchases and sales of securities by the Treasurer of State shall be made through securities brokers:
    1. Specifically approved by the State Board of Finance; or
    2. Meeting criteria established by the State Board of Finance.
  2. All purchases and sales of securities by the Treasurer of State shall be made using a competitive procedure that:
    1. Is approved by the State Board of Finance; and
    2. Has the goals of:
      1. Obtaining the optimal price and value for the securities; and
      2. Not showing preference toward any securities broker.
  3. 1. However, the State Board of Finance may subscribe for obligations offered by the United States Department of the Treasury.
    2. An obligation offered by the United States Department of the Treasury held in the State Treasury may be exchanged for another obligation offered by the United States Department of the Treasury if an exchange privilege has been extended by the United States Department of the Treasury.
4. [Repealed.]
5. 1. All or any part of the bonds of local industrial development corporations, authorized and issued under the Arkansas Industrial Development Act, § 15-4-101 et seq., and all or any part of the bonds of municipalities and counties, authorized and issued under the Municipalities and Counties Industrial Development Revenue Bond Law, § 14-164-201 et seq., at any time held in the Securities Account in the State Treasury, may be sold at public sale or at private sale as the State Board of Finance shall determine.
  2. However, in a private sale, the sales price of the bonds or obligations shall not be less than the amount paid for the bonds or obligations.
6. The State Board of Finance shall provide ministerial authority to the Treasurer of State to take whatever action becomes necessary in regard to securities held in the Securities Account to provide the requisite amount of cash necessary in demand deposit accounts to carry out the business of the state or to correct any miscalculations that have arisen.
7. 1. A purchase, exchange, or receipt of an obligation by the State Treasury shall not cancel the obligation purchased, exchanged, or received.
  2. The obligation shall be held in trust for the use and benefit of the state fund used to purchase the obligation, subject only to the right of the State Board of Finance to sell or exchange the obligation if the best interest of the state is served.
8. 1. The State Board of Finance shall meet at fiscal quarters to evaluate, discuss, and review the advice of the Chief Fiscal Officer of the State under § 19-3-512 and authorize the deposit and investment of State Treasury funds to be made during the period before the next meeting of the State Board of Finance.
  2. The deposit and investment of funds and the purchase and sale of permissible securities may be made at any time it is advantageous to the State Treasury by the Treasurer of State under the guidelines in the State Treasury investment policy established by the State Board of Finance.
9. 1. In order to increase investment income with minimal risk, the Treasurer of State may loan securities held in the Securities Account if, at the time the loan is executed, at least one hundred two percent (102%) of the full market value of the security loaned is collateralized by cash or securities guaranteed by the United States Government or an agency of the United States Government.
  2. At all times during the term of the loan, the collateral shall equal or exceed one hundred percent (100%) of the full market value of all securities on loan.
  3. For purposes of this subdivision (b)(9), the full market value of the collateral shall be determined on a daily basis.
1. The State Board of Finance may invest federal funds, as described in § 19-7-101 et seq., the same as state funds that are authorized by subsection (b) of this section.
2. The proceeds of investing federal funds shall be used for the same purpose authorized for other moneys accruing to the benefit of the Securities Reserve Fund under § 19-3-521.
1. The State Board of Finance may invest funds deposited into the State Treasury by state agencies, boards, and commissions that were previously held as cash funds in a bank depository or investment depository to enhance investment opportunities and earnings.
2. The State Board of Finance may invest interest-bearing funds the same as state funds under subsection (b) of this section.
3. The interest earned on investments under this subsection shall be credited under subdivision (d)(4) of this section to the interest-bearing fund.
4. The State Board of Finance shall establish the method of computing the participants' rate of return and earning to determine the distribution to each participant.
5. On the second business day that the State Treasury is open after the twenty-fifth day of the month, the Treasurer of State shall transfer to the participants of the fund interest earned on all State Treasury funds invested as authorized under this section during the preceding month less the proportionate share of any assessments for the expenses of administration.

History. Acts 1997, No. 847, § 1; 2001, No. 1453, § 25; 2005, No. 873, § 1; 2009, No. 251, § 6; 2013, No. 1088, § 2; 2017, No. 426, §§ 7-9; 2017, No. 555, §§ 2, 3; 2019, No. 882, §§ 1, 2.

Amendments. The 2013 amendment rewrote the section.

The 2017 amendment by No. 426 deleted (b)(1)(B)(xiv) (b) ; repealed (b)(4); and deleted “and all or any part of the obligations of development finance corporations authorized and issued under the Arkansas Development Finance Corporation Act, § 15-4-901 et seq.” preceding “at any time” in (b)(5)(A).

The 2017 amendment by No. 555 substituted “securities stated in subdivisions (b)(1)(B)(ii)-(v) of this section” for “direct obligations of the United States Government or the general obligations of a state or political subdivision of a state of the United States” in (b)(1)(B)(xii); added (d)(4); redesignated former (d)(4) as (d)(5); and rewrote (d)(5).

The 2019 amendment substituted “rating of at least BBB, A2, P2, or an equivalent rating” for “rating of BBB or higher” in (b)(1)(B)(xiv); substituted “through securities brokers” for “upon receipt of not less than three (3) quotation bids from securities brokers” in the introductory language of (b)(3)(A); inserted (b)(3)(B); and redesignated former (b)(3)(B) as (b)(3)(C).

U.S. Code. The Investment Company Act of 1940, referred to in this section, is codified as 15 U.S.C. §§ 80b-1 to 80b-21.

19-3-519. State Treasury Certificate of Deposit Investment Program — Definitions.

The policy of the State Board of Finance to set aside an amount to be invested in certificates of deposit that mature no sooner than one hundred eighty (180) days shall be known as the “State Treasury Certificate of Deposit Investment Program”.
The following institutions may participate in the program:
1. National banks that have their principal offices in Arkansas or are legally operating branches in Arkansas;
2. Banks chartered in the State of Arkansas;
3. Banks chartered by other states that are legally operating branches in Arkansas;
4. Savings and loan associations or savings banks chartered by the United States that have their principal offices in Arkansas or are legally operating branches in Arkansas; and
5. Savings and loan associations chartered by the State of Arkansas.
1. Institutions that have their principal offices in Arkansas shall designate a representative at the principal office responsible for transacting business with the Treasurer of State.
2. Institutions that do not have their principal offices in Arkansas shall designate a principal branch and a representative at the principal branch responsible for transacting business with the Treasurer of State.
1. Semiannually, or as required by the board, each participating institution shall compute and report to the Treasurer of State its Arkansas deposits, Arkansas loans, the loan-to-deposit ratio for Arkansas loans and Arkansas deposits, and its capital base.
2. Each participating institution shall report to the board information required by the board to determine the institution's suitability as a bank depository.
As used in this section:
1. “Arkansas deposits” means deposits received by banks and credited to accounts whose account holders have Arkansas as their principal place of business or permanent home addresses; and
2. “Arkansas loans” means the sum of:
  1. Loans made to individual borrowers residing in the State of Arkansas;
  2. Loans made to corporations or other legal entities doing business in Arkansas for which an address within Arkansas is used for transacting business;
  3. Bonds issued or loans made to the State of Arkansas or its instrumentalities;
  4. Bonds issued or loans made to political subdivisions of the State of Arkansas; and
  5. Bonds issued by Arkansas corporations.
The board shall promulgate rules establishing the minimum capital requirements for a bank depository.
The Treasurer of State shall establish procedures to be reviewed and approved by the board establishing guidelines for the deposit and allocation of certificates of deposit among participating institutions.
1. Interest on funds invested under this section shall be paid by participating institutions at rates established by the board.
2. The rates shall not exceed the maximum rate, if any, that banks are permitted to pay on time certificates of deposit for the same period of time by regulations of the Federal Reserve System or the Federal Deposit Insurance Corporation.
1. Moneys required for a purchase under this section shall be withdrawn from the Cash Account and paid to the issuer of the certificate of deposit.
2. The principal amount of the certificate of deposit shall be credited to the Certificate of Deposit Account.
The certificates of deposit shall be secured as required by the board.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment rewrote the section.

19-3-520. Minimum balance to be maintained.

Since it is the intent of the General Assembly that the State Treasury have sufficient cash available at all times to redeem all state warrants presented for payment, the State Board of Finance shall immediately sell securities in the manner prescribed in § 19-3-518(b) when the cash balance maintained on demand deposit in bank depositories falls below the amount necessary to meet operating requirements, excluding trust funds.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment substituted “State Treasury” for “Treasurer of State”, deleted “any and” preceding “all state warrants”, substituted “shall” for “is authorized and directed to” and “when” for “whenever” preceding “the cash balance”.

19-3-521. Securities Reserve Fund.

1. In addition to the purposes for which the Securities Reserve Fund may be used under this subchapter, the Securities Reserve Fund shall be used to absorb any losses in:
  1. Securities held in the Securities Account in the State Treasury; and
  2. The Treasurer of State's account in bank depositories.
2. 1. The balance in the Securities Reserve Fund shall always be available to absorb the losses stated in subdivision (a)(1) of this section.
  2. However, moneys in the Securities Reserve Fund in excess of one hundred thousand dollars ($100,000) shall be available at all times to the Chief Fiscal Officer of the State as authorized by § 19-5-905, there to be used as provided by law.
1. If a loss is sustained in relation to securities held at any time in the Securities Account or in the Treasurer of State's account in any bank depository and the credit balance in the Securities Reserve Fund is insufficient to absorb the loss, the Chief Fiscal Officer of the State shall transfer moneys from the Budget Stabilization Trust Fund to the Securities Reserve Fund of an amount that, when added to the credit balance in the Securities Reserve Fund, equals the amount of the loss.
2. It is the intent of the General Assembly that a loss shall not be sustained by an account used to make an investment or deposit.
1. On a quarterly basis, interest earned on federal funds received under the State and Local Fiscal Assistance Act of 1972, 31 U.S.C. § 6701 et seq., shall be transferred at the direction of the Chief Fiscal Officer of the State from the Securities Reserve Fund to the federal funds established for the purpose of holding these moneys in trust.
2. Interest to be transferred shall be a pro rata share of total earned interest based on the proportion of the balances of the total federal funds established for the purpose of holding the State and Local Fiscal Assistance Act of 1972, 31 U.S.C. § 6701 et seq., moneys in trust to the balances of all investments of the State Treasury.

History. Acts 1997, No. 847, § 1; 2009, No. 251, §§ 7, 8; 2013, No. 1088, § 2; 2016 (3rd Ex. Sess.), No. 1, § 4; 2017, No. 555, § 4.

A.C.R.C. Notes. Acts 2016 (3rd Ex. Sess.), No. 1, § 1, provided: “This act shall be known and may be cited as the ‘Arkansas Highway Improvement Plan of 2016’.”

Amendments. The 2009 amendment substituted “Budget Stabilization Trust Fund” for “State Budget Revolving Fund” in (a)(2) and (b)(1); in (a)(2), substituted “the Securities Reserve Fund” for “that fund” in the first sentence and for “this fund” in the second sentence; redesignated (b); and made minor stylistic changes.

The 2013 amendment deleted “several” preceding “purposes” in (a)(1); substituted “Securities” for “Relation to securities at any time” in (a)(1)(A); redesignated (a)(2) as (a)(2)(A) and (B); substituted “to absorb the losses stated in subdivision (a)(1) of this section” for “for such purposes” in (a)(2)(A); rewrote (b)(2); redesignated (c) as (c)(1) and (2); and made stylistic changes.

The 2016 (3rd Ex. Sess.) amendment substituted “as authorized by § 19-5-905” for “for transfer to the Budget Stabilization Trust Fund” in (a)(2)(B).

The 2017 amendment deleted “average daily” preceding “balances” twice in (c)(2).

19-3-522. Servicing state debt — Definition.

Unless otherwise specifically provided by law, the Secretary of the State Board of Finance shall be disbursing officer of appropriations made for meeting the debt service requirements of the direct general obligation bonds of this state at any time outstanding.
As used in this section, “debt service requirements” means the maturing principal of, interest on, and paying agents' fees in connection with the payment of the bonds.
The secretary, without fail, shall cause notice of the call to be published not less than thirty (30) days before the first date upon which such bonds may be called, with publication to be by one (1) insertion in a newspaper published in each of the cities of Little Rock, Arkansas; St. Louis, Missouri; and in a financial newspaper published in the Borough of Manhattan, City of New York, State of New York.

History. Acts 1997, No. 847, § 1; 2013, No. 1088, § 2.

Amendments. The 2013 amendment, in (b), substituted “As used in this section” for “The term” and deleted “as used in this section” preceding “means”; redesignated the last sentence of (b) as (c); and, in (c), deleted “shall” preceding “without fail” and inserted “shall” preceding “cause”.

19-3-523. Purchase of bonds by Treasurer of State.

The Treasurer of State may purchase bonds from the State of Israel that are guaranteed and backed by the full faith and credit of the government of Israel as the sovereign debt of the State of Israel.
The moneys that the Treasurer of State may use in the purchase of any bonds from the State of Israel shall be those funds available for investment under this subchapter.

History. Acts 2017, No. 644, § 2.

Subchapter 6 — State Treasury Money Management Trust

Effective Dates. Acts 2017, No. 296, § 4: Feb. 28, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that that this act amends the investment authority of the Treasurer of State and the ability of other participants to invest in the State Treasury Money Management Trust; that this act affects the ability of the Treasurer of State to invest state funds and take immediate advantage of investment opportunities to benefit the state and public entities of the state; and that this act is immediately necessary to allow for implementation of the new investment authority provisions to take full advantage of investment opportunities to benefit the State of Arkansas. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto”.

Acts 2019, No. 325, § 4: Mar. 6, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that under the current provisions of the Unclaimed Property Act, § 18-28-201 et seq., the Auditor of State may not deposit unclaimed property funds with the State Treasurer for investment purposes; and that the unclaimed property funds are currently held in the Unclaimed Property Proceeds Trust Fund accruing minute interest; that the authority to invest funds in the State Treasury Money Management Trust will generate a greater financial return to be used for the benefit of the state. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto”.

Cross References. Deposit of public funds, § 19-8-101 et seq.

Revenue Classification Law, § 19-6-101 et seq.

19-3-601. Title.

This subchapter may be cited as the “State Treasury Money Management Trust Act”.

History. Acts 1997, No. 1179, § 1.

19-3-602. Purpose.

The purpose of this subchapter is to create the State Treasury Money Management Trust administered by the Treasurer of State for the deposit of moneys in order to permit the joint investment of participants' money so as to enhance investment opportunities and earnings.

History. Acts 1997, No. 1179, § 2; 2017, No. 296, § 1.

Amendments. The 2017 amendment substituted “Money Management Trust” for “Money Trust Management Fund” and deleted “not currently needed” following “deposit of moneys”.

19-3-603. Authorized deposits.

An entity listed below may deposit money to the State Treasury Money Management Trust for the purpose of investment:

State agency's cash funds as defined in § 19-4-801;
Local governments:
1. Any city, county, school district, or community college district of this state; and
2. Any department, instrumentality, or agency of these entities;
The Treasurer of State may invest in the State Treasury Money Management Trust to the extent State Treasury funds are not being utilized for certificates of deposit under the State Treasury Certificate of Deposit Investment Program or for trust certificates of deposit pursuant to the State Treasury Management Law, § 19-3-501 et seq.; and
The Auditor of State may invest funds subject to the unclaimed property provisions of the Unclaimed Property Act, § 18-28-201 et seq., in the State Treasury Money Management Trust.

History. Acts 1997, No. 1179, § 4; 2017, No. 296, § 1; 2019, No. 325, § 3.

Amendments. The 2017 amendment rewrote the section heading; and substituted “Money Management Trust” for “Money Trust Management Fund” in the introductory language and in (3).

The 2019 amendment made a stylistic change in the introductory language and added (4).

19-3-604. Fund provisions.

The investment policy and all other policies, documents, rules, and procedures established or approved by the State Board of Finance under § 19-3-701 et seq. apply to the administration of this subchapter by the Treasurer of State.
The Treasurer of State may invest or deposit funds in the State Treasury Money Management Trust as authorized in § 19-3-518.
1. Moneys deposited into the State Treasury Money Management Trust by participants other than the State Treasury are not and shall not become part of State Treasury funds.
2. The State Treasury Money Management Trust shall operate as a segregated account for custodial, depository, and accounting purposes.
3. 1. A participant may deposit at will into and, up to the balance of the participant's account, obtain moneys upon demand from the State Treasury Money Management Trust.
  2. A demand for funds by a participant under this subdivision (c)(3) shall be made by notice as prescribed by the board.
Each participant who elects to deposit money into the State Treasury Money Management Trust shall provide the account information required by the board, including without limitation the identity of any person authorized to conduct transactions on behalf of the participant.
Any loss of principal or interest realized as the result of a participant's demand for withdrawal of funds shall be incurred by the participant requesting the withdrawal and deducted on the day the withdrawal is made.
1. The Treasurer of State may:
  1. Assess reasonable charges against the account of a participant in the State Treasury Money Management Trust for reimbursement of administration and operational expenses; and
  2. Charge a reasonable fee for managing the State Treasury Money Management Trust.
2. The board shall set any charge or fee imposed under this subsection.
3. Charges and fees received under this subsection shall be deposited into the State Treasury in a fund for the benefit of the Treasurer of State.
All interest and earnings received on the money of the State Treasury Money Management Trust shall be credited to the State Treasury Money Management Trust for distribution to the participants of the State Treasury Money Management Trust after any charges or fees due under subsection (f) of this section are deducted.
After deducting any charges or fees due under subsection (f) of this section, on the second business day that the State Treasury is open after the twenty-fifth day of the month, the Treasurer of State shall distribute the monthly earnings of the State Treasury Money Management Trust during the preceding month.
The board shall establish the method of computing a participant's rate of return, earnings, charges, fees, and expenses to determine the distribution for each participant.
The monthly sum of a participant's daily earnings, after deducting administrative charges and fees under subsection (f) of this section, shall be credited to the participant's account and reinvested, unless otherwise instructed by the participant, on the distribution date stated in subsection (h) of this section.

History. Acts 1997, No. 1179, § 5; 2013, No. 1088, § 3; 2017, No. 296, § 1.

Amendments. The 2013 amendment rewrote (a).

The 2017 amendment rewrote the section.

19-3-605. Prudent investor rule.

The Treasurer of State shall apply the prudent investor rule while serving in a fiduciary capacity for State Treasury Money Management Trust participants. The prudent investor rule means that in making investments, the fiduciaries shall exercise the judgment and care under the prevailing circumstances that an institutional investor of ordinary prudence, discretion, and intelligence exercises in the management of large investments entrusted to it, not for speculation but for investment, considering the permanent disposition of funds, and the probable safety of capital as well as probable income.

History. Acts 1997, No. 1179, § 6; 2017, No. 296, § 1.

Amendments. The 2017 amendment substituted “Money Management Trust” for “Money Trust Management Fund”.

19-3-606. Loan of securities.

In order to increase investment income with minimal risk, the Treasurer of State may loan securities held under this subchapter, but only if at the time the loan is executed at least one hundred two percent (102%) of the full market value of the security loaned is collateralized by cash or securities guaranteed by the United States Government or an agency of the United States Government.
At all times during the term of the loan, the collateral shall be equal to not less than ninety-eight percent (98%) of the full market value calculated on the total value of all securities on loan.
For purposes of this section, the value of the collateral shall be determined on a daily basis.

History. Acts 1997, No. 1179, § 7; 2017, No. 296, § 1; 2019, No. 388, § 1.

Amendments. The 2017 amendment substituted “under this section” for “by the State Treasury Money Trust Management Fund” in (a).

The 2019 amendment, in (a), substituted “subchapter” for “section”, and “of the United States Government” for “thereof”.

Subchapter 7 — State Board of Finance

19-3-701. State Board of Finance — Creation — Members.

The State Board of Finance is created.
The board shall be composed of the following members:
1. The Governor;
2. The Treasurer of State;
3. The Auditor of State;
4. The Bank Commissioner;
5. The Secretary of the Department of Finance and Administration;
6. The Securities Commissioner;
7. One (1) person with knowledge and experience in commercial banking;
8. One (1) person who:
  1. Holds or has held a Series 7 licensure as a general securities representative; and
  2. Has at least five (5) years of experience as a general securities representative;
9. One (1) certified public accountant who:
  1. Is licensed in Arkansas; and
  2. Has at least five (5) years of experience as a certified public accountant; and
10. One (1) member of the general public.
A board member listed in subdivisions (b)(7)-(10) of this section:
1. Shall serve a four-year term and may be reappointed, except that the board member shall serve an initial term of either one (1) year, two (2) years, three (3) years, or four (4) years as determined by lot in order to establish staggered terms in which the term of one (1) of the four (4) board members expires each year;
2. Shall be paid a stipend of one hundred dollars ($100) from funds appropriated to the Treasurer of State for participation in each board meeting;
3. Shall not have a direct financial interest in a transaction between an investment depository or bank depository and the:
  1. Board; or
  2. Treasurer of State;
4. Shall not be related within the second degree of consanguinity or affinity to a constitutional officer or a member of the General Assembly;
5. Shall abstain from voting on an issue that affects the board member or the procedures, profits, or funding of a business or organization of which the board member is a member; and
6. May be removed for cause by a majority vote of the board.
1. A member listed in subdivisions (b)(7) and (8) of this section shall be appointed and may be reappointed by the President Pro Tempore of the Senate.
2. A member listed in subdivisions (b)(9) and (10) of this section shall be appointed and may be reappointed by the Speaker of the House of Representatives.
The Governor shall be Chair of the State Board of Finance, and the Treasurer of State shall be the secretary, executive officer, and disbursing agent of the board.

History. Acts 2013, No. 1088, § 1; 2019, No. 910, § 3447.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (b)(5).

19-3-702. Definitions.

As used in this subchapter:

“Bank depository”, “investment depository”, “securities broker”, and “State Treasury” have the meanings provided in § 19-3-502; and
1. “Direct financial interest” means the direct compensation or other remuneration to a person or a family member of a person that is attributable to an investment or a deposit of money or securities from the State Treasury.
2. “Direct financial interest” does not include compensation from the investment or deposit of a person's own money or securities.

History. Acts 2013, No. 1088, § 1.

19-3-703. Meetings — Quorum — Staff.

1. Meetings of the State Board of Finance shall be held:
  1. At least quarterly:
    1. Upon the call of the Governor or by any three (3) or more members; and
    2. Upon advance notice to each member; and
  2. At a place that is convenient for the board.
2. The meetings shall be conducted in accordance with the Freedom of Information Act of 1967, § 25-19-101 et seq., and complete records of the proceedings shall be kept.
1. Seven (7) members shall constitute a quorum for the transaction of business.
2. The affirmative vote of a majority of members present is required to adopt a motion or resolution.
The staff of an elected or appointed official of the board may provide any assistance requested by the board.

History. Acts 2013, No. 1088, § 1.

19-3-704. Powers and duties.

In addition to any other function, power, or duty imposed by law, the State Board of Finance shall establish, maintain, and enforce all policies and procedures concerning the management and investment of funds in the State Treasury and the State Treasury Money Management Trust, including without limitation:
1. Record keeping and reporting requirements that reflect:
  1. Daily, monthly, and year-to-date balances of all funds, accounts, and groups of accounts within the State Treasury; and
  2. The performance of all deposits and investments compared to the target rate of return established by the board;
2. A collateralization policy;
3. Eligibility requirements for a bank depository, an investment depository, a securities broker, and, before accepting an application to hire an investment consultant under subsection (c) of this section, an investment consultant;
4. An investment policy;
5. Liquidity requirements for the State Treasury; and
6. Qualifications, ethical standards, a conflict of interest policy, and criminal background check requirements that are no less stringent than the requirements of § 19-3-705 for all employees of the board or Treasurer of State who handle State Treasury funds or participate in decisions concerning the deposit or investment of State Treasury funds.
1. The board shall select the chief compliance officer within the Treasurer of State's office based upon nominations received from the Treasurer of State.
2. The chief compliance officer shall:
  1. Be employed by the board;
  2. Work with and at the direction of the Treasurer of State consistent with the policies and directives of the board; and
  3. Serve at the pleasure of the board.
The board may hire an investment consultant to examine the investment policies and investment practices for the State Treasury and make recommendations to the board, including without limitation recommendations concerning:
1. An appropriate range for asset allocation;
2. A target rate of return;
3. The propriety of using money managers and, if desired, recommendations concerning money managers; and
4. Adjustments to improve investment policies, investment allocations, or investment returns.
The positions listed in subsections (b) and (c) of this section shall be funded by the appropriation for the Treasurer of State.
The board may make, amend, adopt, and enforce rules and policies to regulate board procedure and execute board functions.

History. Acts 2013, No. 1088, § 1; 2017, No. 296, § 2; 2019, No. 882, § 3.

Amendments. The 2017 amendment substituted “Money Management Trust” for “Money Trust Management Fund” in the introductory language of (a).

The 2019 amendment substituted “compliance” for “investment” in (b)(1) and the introductory language of (b)(2).

19-3-705. Employees — Qualifications, ethical standards, and background checks.

An employee of the State Board of Finance or Treasurer of State listed in § 19-3-704(b) or § 19-3-704(c) or who handles State Treasury funds or participates in decisions or making recommendations concerning the deposit or investment of State Treasury funds:
1. Shall meet minimum standards of expertise and experience established by the board;
2. Shall not have a direct financial interest in a bank depository, investment depository, or securities broker; and
3. Shall file on or before January 31 with the board for the preceding calendar year the written statement of financial interest required by § 21-8-701(d).
1. 1. The board shall obtain a state and federal criminal background check to be conducted by the Identification Bureau of the Department of Arkansas State Police and the Federal Bureau of Investigation for:
    1. Each employee listed in § 19-3-704(b) or § 19-3-704(c); and
    2. An employee or prospective employee of the board or Treasurer of State who handles or will handle State Treasury funds or participates or will participate in making decisions or recommendations concerning the deposit or investment of State Treasury funds.
  2. The background check shall be obtained on or before:
    1. September 1, 2013, for an existing employee; and
    2. The start of employment for a prospective employee.
2. The state and federal criminal background check shall conform to the applicable federal standards and shall include the taking of fingerprints.
3. The employee or prospective employee shall sign a consent to the release of information for the state and federal criminal background check.
4. The Treasurer of State shall be responsible for the payment of any fee associated with the state and federal criminal background check.
5. Upon completion of the state and federal criminal background check, the Identification Bureau of the Department of Arkansas State Police shall forward to the Chief Fiscal Officer of the State for review by the board all releasable information obtained concerning the employee or prospective employee.
The board or Treasurer of State shall not employ an individual who has:
1. Been convicted of a felony or a gambling offense in a state or federal court of the United States;
2. Been convicted of a crime involving moral turpitude;
3. Entered into a plea agreement to avoid felony prosecution;
4. Been or is currently subject to an administrative order by the State Bank Department or State Securities Department;
5. Failed without justification to file the statement of financial interest required by this section; or
6. A conflict of interest that violates the board's policy established under § 19-3-704.

History. Acts 2013, No. 1088, § 1.

Chapter 4 State Accounting and Budgetary Procedures

A.C.R.C. Notes. References to “this chapter” in subchapters 1-20 may not apply to §§ 19-4-307, 19-4-408, subchapter 21, and subchapter 22 which were enacted subsequently.

Research References

C.J.S. 81A C.J.S., States, § 340 et seq.

Subchapter 1 — General Provisions

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, in the enactment of the General Accounting Procedures Law of Arkansas, the Sixtieth General Assembly declared it to be the public policy that the State and all of its agencies be maintained in a sound financial basis, to provide for the adequate accounting for all fiscal transactions of the State, to provide for establishing rules, regulations and procedures for budget preparation, presentation, enactment, execution and defining powers and duties of the Chief Fiscal Officer and State Auditor and the State Treasurer in connection with the foregoing; and

“Whereas, in order to carry out the public policy, purposes, intent and provisions of the General Accounting Procedures Law of Arkansas and in order to accept, adapt and comply with the modern-day technological changes and innovations in budgetary, accounting, and fiscal procedures, it is necessary for the General Assembly to enact legislation providing for the same; and

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation to the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

“Whereas, it is the responsibility of the General Assembly to determine the programs, projects and services for which the State's revenues shall be expended and the priorities which should govern such expenditures; and

“Whereas, in order to discharge its responsibility the General Assembly and its interim committees, including the Legislative Council, has need of accurate data in order to make its determinations wisely; and

“Whereas, the General Assembly recognizes and accepts the principles, purposes and intent of the Revenue Stabilization Law of Arkansas and the General Accounting Procedures Law of Arkansas as they presently exist and further recognizes the validity of their provisions by virtue of Arkansas Supreme Court decisions; and

“Whereas, it is not the intention of the General Assembly to deviate from the purposes and intent of the Revenue Stabilization Law of Arkansas, but it is the intent of the General Assembly to strengthen the purpose of the Revenue Stabilization Law and the General Accounting Procedures Law of Arkansas by enacting the following legislation which embodies the holdings of prior Arkansas Supreme Court decisions affecting the General Accounting Procedures Law of Arkansas, now therefore … .”

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1999, No. 973, § 8: Mar. 30, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly, that funds provided by the General Assembly for the operations of the Department of Finance and Administration — Management Services Division are, due to unforeseen circumstances, insufficient for the Department of Finance and Administration — Management Services Division to continue to provide essential governmental services; that the provisions of this act will provide the necessary monies for the Department of Finance and Administration — Management Services Division to continue such services; and that a delay in the effective date of this Act could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

19-4-101. Title.

This chapter shall be referred to and may be cited as the “General Accounting and Budgetary Procedures Law”.

History. Acts 1973, No. 876, § 1; A.S.A. 1947, § 13-327.

Case Notes

Cited: Wells v. Heath, 274 Ark. 45, 622 S.W.2d 163 (1981).

19-4-102. Purpose.

General Policy.
1. It is the policy of the State of Arkansas to:
  1. Maintain on a sound financial basis the state and all of its agencies, boards, commissions, departments, and institutions, all referred to in this chapter as “agencies” unless otherwise necessary;
  2. Provide adequate accounting for all fiscal transactions; and
  3. Provide for uniformity in budget preparation, presentation, and execution.
2. For these purposes, the general provisions of this chapter are intended to:
  1. Establish uniformity in operating and capital budget preparation, presentation, and execution by establishing certain duties, responsibilities, and functions of the executive and legislative branches of the state government;
  2. Prohibit deficit spending by establishing standards for the execution of budgets approved by the General Assembly;
  3. Provide methods of internal accounting control by establishing and supervising the accounting systems of state agencies;
  4. Establish an adequate classification and coding system for all revenue receipts and disbursements;
  5. Establish methods of voucher examination and approval for expenditures of funds deposited into the State Treasury and, if necessary, other depositories;
  6. Establish uniform procedures for the preparation of disbursing documents;
  7. Establish procedures for forecasting economic conditions, establish an adequate technique of revenue estimating, and provide for tax research and a method for standardization of statistics;
  8. Develop methods for improvement and economy in organization and administration of agencies;
  9. Authorize the promulgation of reasonable rules not inconsistent with applicable laws to achieve the purposes and intent of this chapter; and
  10. Further define the powers and duties of the Secretary of the Department of Finance and Administration, sometimes referred to as the “Chief Fiscal Officer of the State”, the Auditor of State, and the Treasurer of State in connection with general accounting, budgetary, and fiscal procedures.
Comprehensive Budgeting and Financial Management System. It is also the purpose of this chapter to establish a comprehensive system of state budgeting and financial management which will further the capacity of the General Assembly to plan and finance the services which it determines the state should provide for its citizens and which will further the capacity of the Governor to make budgetary recommendations to the General Assembly and to execute the laws of this state. The system shall include procedures for:
1. The orderly establishment, continuing review, and periodic revision of programs, financial goals, and policies of the state;
2. The development, coordination, and review of long-range programs and their financing that will implement goals and policies authorized by the General Assembly and the Governor;
3. The preparation, analysis, presentation, enactment, and execution of budgets that authorize specific programs, policies, and goals and that focus attention on state services and their costs;
4. The evaluation of alternatives to existing programs, policies, and goals that would provide more economic, efficient, or effective state services; and
5. An evaluation and reporting system which will provide measurements of the effectiveness of program performance.

History. Acts 1973, No. 876, § 2; A.S.A. 1947, § 13-328; Acts 2019, No. 315, § 1706; 2019, No. 910, § 3448.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (a)(2)(I).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(2)(J).

19-4-103. Penalty.

With respect to all matters for which penalties have not otherwise been provided in this act, any person who shall knowingly violate any of the provisions of this act shall be guilty of a violation and upon conviction shall be fined in any amount not to exceed one thousand dollars ($1,000).

History. Acts 1973, No. 876, § 29; A.S.A. 1947, § 13-355; Acts 2005, No. 1994, § 102.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor.”

Meaning of “this act”. Acts 1973, No. 876, codified as §§ 19-1-213, 19-1-214, 19-4-101 — 19-4-105, 19-4-201 et seq.,19-4-301 — 19-4-306, 19-4-401 — 19-4-406, 19-4-501 — 19-4-507, 19-4-517 —19-4-525, 19-4-601 — 19-4-604, 19-4-607 — 19-4-609, 19-4-701 — 19-4-711, 19-4-901 — 19-4-905, 19-4-907, 19-4-1101, 19-4-1103 — 19-4-1109, 19-4-1201 — 19-4-1207, 19-4-1209, 19-4-1210, 19-4-1401 — 19-4-1405, 19-4-1407 — 19-4-1412, 19-4-1501 — 19-4-1503, 19-4-1601 — 19-4-1605, 19-4-1607, 19-4-1608, 19-4-1610 — 19-4-1614, 19-4-1801, 19-4-1802, 19-4-1806, 19-4-1807, 19-4-1901 — 19-4-1908, 19-4-2001 — 19-4-2004, 25-8-106.

19-4-104. Rules.

The Chief Fiscal Officer of the State is empowered to make, amend, and enforce such reasonable rules, not inconsistent with law, as he or she shall deem necessary and proper to effectively carry out the provisions of this chapter and the public policy as set forth in § 19-4-102. Rules promulgated shall be published in an administrative procedures manual and distributed to the various state agencies.

History. Acts 1973, No. 876, § 28; A.S.A. 1947, § 13-354; Acts 2019, No. 315, § 1707.

Amendments. The 2019 amendment deleted “and regulations” following “Rules” in the section heading; and deleted “and regulations” following “rules” twice.

19-4-105. Continuing studies and investigations — Duties of Secretary of the Department of Inspector General and Internal Audit Section — Exemption of internal audit documentation from Freedom of Information Act of 1967.

The Secretary of the Department of Inspector General is directed to make continuing studies and investigations of the operation of state agencies and to make recommendations to the General Assembly, the Legislative Council, and the Governor about improvements which should be made in order to:
1. Safeguard against excessive expenditures of appropriations and funds;
2. Promote economy, efficiency, and control in the operation of state agencies; and
3. Accomplish the purposes of this chapter as intended by the General Assembly.
The Internal Audit Section created under the Department of Finance and Administration by Governor's Executive Order 99-08 and transferred to the Department of Inspector General by a cabinet-level department transfer under § 25-43-1002 shall conduct its audits using the suggested standards for the professional practice of internal auditing as adopted by the Institute of Internal Auditors.
The Internal Audit Section shall:
1. Review the financial and operating controls and the transactions of state agencies to determine the level of conformity with established laws, standards, rules, and procedures;
2. Review the various functions within an enterprise to appraise the efficiency and economy of operations and the effectiveness with which those functions achieve the stated objectives, including without limitation a review of established internal control activities;
3. Investigate reported occurrences of fraud, embezzlement, theft, waste, abuse, or mismanagement of state resources;
4. Recommend controls to prevent occurrences of fraud, embezzlement, theft, waste, abuse, or mismanagement of state resources;
5. Assist state agencies to resolve areas of concern;
6. Assist state agencies in establishing appropriate internal controls that will prevent errors or irregularities;
7. Provide objective analysis, appraisals, and recommendations concerning the activities it reviews; and
8. Perform other functions as directed by the Governor or the secretary.
After an audit is completed, the Internal Audit Section shall file a written final report concerning the actions and determinations made under this section with:
1. The secretary;
2. The Governor;
3. The State Board of Finance; and
4. Arkansas Legislative Audit.
Employees of the Internal Audit Section shall:
1. Be employed by the secretary as employees of the Department of Inspector General; and
2. Serve at the pleasure of the secretary.
1. All internal audit documentation, including notes, memoranda, preliminary drafts of audit reports, and other data gathered in the preparation of internal audit reports by the Internal Audit Section, are privileged and confidential and are exempt from the Freedom of Information Act of 1967, § 25-19-101 et seq., except as provided in subdivision (f)(2) of this section.
2. 1. The exemption shall not apply to completed internal audits of the Internal Audit Section after a final report of the internal audit has been presented to:
    1. The secretary;
    2. The Governor or the Governor's designee;
    3. The board; or
    4. Arkansas Legislative Audit.
  2. The final report and copies of any supporting documentation shall then be open to public inspection and copying, except for documents that are exempt from disclosure under other law.
1. The Internal Audit Section shall conduct an annual project review and efficiency study of the Arkansas Department of Transportation to include without limitation a review of the processes, procedures, procurement processes, projects, appeals procedures and expenditures.
2. The results of a study under this section shall be reported to the Legislative Council no later than October 1 of each year, with the first report to be submitted by October 1, 2021.

History. Acts 1973, No. 876, § 2; A.S.A. 1947, § 13-328; Acts 2001, No. 1083, § 1; 2015, No. 1283, § 1; 2019, No. 298, § 2; 2019, No. 315, § 1708; 2019, No. 910, § 5259.

A.C.R.C. Notes. Acts 2019, No. 298, § 1, provided: “Arkansas Department of Transportation — Legislative Council study.

“(a)(1) The Legislative Council or the Executive Subcommittee of the Legislative Council shall hire one (1) or more consultants to assist it in conducting a study of the processes and functioning of the Arkansas Department of Transportation, including without limitation the department's processes, procedures, procurement procedures, projects, expenditures, and appeals processes.

“(2) The purpose of the study is to examine and identify areas of potential improvement within the overall functioning of the department and to recommend legislation to the General Assembly for consideration in order to:

“(A) Maximize the department's use of taxpayer dollars;

“(B) Improve the efficiency and overall functioning of the department; and

“(C) Ensure responsiveness of the department to the needs of the State of Arkansas and its citizens with regard to improvement of the state highways and roads.

“(3) In order to achieve the purposes of the study as set forth in subdivision (a)(2) of this section, the Legislative Council shall:

“(A) Compare the procurement processes of the department with the requirements of the Arkansas Procurement Law, § 19-11-201, et seq.;

“(B) Study and consider the best practices for functioning of state highway departments through consideration of practices in surrounding or comparable states;

“(C) Audit the expenditures and procurement processes of the department in order to find ways to improve or create efficiencies in those areas; and

“(D) Consider and adopt recommended legislation based on the results of the study by the Legislative Council and its consultant.

“(4) The Director of State Highways and Transportation shall fully cooperate in the conduct of the study by providing:

“(A) Access to the Legislative Council, a consultant of the Legislative Council, and the Bureau of Legislative Research to any requested documents and records for purposes of the study; and

“(B) Timely responses to requests of the Legislative Council, a consultant of the Legislative Council, and the Bureau of Legislative Research.

“(b) On or before December 1, 2020, the Legislative Council shall file with the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives a final report of its activities, findings, and recommendations, including recommended legislation related to the study”.

Amendments. The 2015 amendment rewrote the section heading; inserted (b) through (e); redesignated former (b) as (f); deleted “created within the Department of Finance and Administration by Governor’s Executive Order 98-08” following “Internal Audit Section” in (f)(1); and, in (f)(2)(A), inserted the (i) and (ii) designations and added (iii) through (v).

The 2019 amendment by No. 298 added (g).

The 2019 amendment by No. 315 substituted “rules” for “regulations” in (c)(1).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Inspector General” for “Chief Fiscal Officer of the State” in the section heading, the introductory language of (a), in (d)(1), and (f)(2)(A)(i); deleted former (a)(3), and redesignated former (a)(4) as (a)(3); inserted “and transferred to the Department of Inspector General by a cabinet-level department transfer under § 25-43-1002” in (b); rewrote (c)(8); deleted (d)(5); rewrote (e); deleted (f)(2)(A)(v); and made stylistic changes.

19-4-106. Legislative staff consultation.

The Department of Finance and Administration shall consult with the Legislative Auditor and the director of the budget function of the Bureau of Legislative Research throughout each stage of planning and implementation for any new statewide accounting system. This required consultation and involvement is to ensure that those capabilities to provide the required services to members and committees of the General Assembly are incorporated into the system.

History. Acts 1999, No. 973, § 2.

Subchapter 2 — Duties and Responsibilities Generally

Preambles. Acts 1973, No. 876, contained a preamble which read:

Acts 1981, No. 741, § 8: Mar. 28, 1981. Emergency clause provided: “It is hereby found and determined by the Seventy-Third General Assembly that certain amendments to Act 876 of 1973, the General Accounting and Budgetary Procedures Law, are essential to the continued financial operations of State government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 365, § 15: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly that the clarification of certain fiscal transactions of the State is needed in order to more accurately reflect the condition of the State's assets at all times and to maintain the fiscal integrity of the State. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

Identical Acts 2009, Nos. 605 and 606, § 27: Mar. 25, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the people of the State of Arkansas overwhelmingly approved the establishment of lotteries at the 2008 General Election; that lotteries will provide funding for scholarships to the citizens of this state; that the failure to immediately implement this act will cause a reduction in lottery proceeds that will harm the educational and economic success of potential students eligible to receive scholarships under the act; and that the state lotteries should be implemented as soon as possible to effectuate the will of the citizens of this state and implement lottery-funded scholarships as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 218, § 34: Feb. 26, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the stability of the Arkansas Scholarship Lottery is critical to the success of the Arkansas Academic Challenge Scholarship Program; that changes to the operational structure of the lottery are needed to improve the creditability and function of the lottery; and that this act is immediately necessary to ensure that the transition of lottery administration is as undisruptive as possible. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

19-4-201. Authority of Governor.

The Governor shall direct the execution of the state budget as approved by the General Assembly. The Governor or Governor-elect shall:
1. Review the budget requests and estimates of resources;
2. Evaluate long-range programs and consider possible alternatives to existing state agency programs, policies, and goals; and
3. Formulate and recommend for consideration by the Legislative Council and the General Assembly a proposed comprehensive state budget of programs and proposed financing which shall include all estimated receipts and expenditures of the state government.
1. Proposed expenditures shall not exceed estimated available resources. Should the Governor or Governor-elect propose increased taxes in order to finance all proposed programs, two (2) sets of budgets must be submitted to the Legislative Council and the General Assembly, one (1) set based on the resources available from the then-existing tax laws and another showing the additional expenditures proposed to be financed from recommended tax increases.
2. 1. Budget requests for administration and operation of the legislative branch, the judicial branch, the elective constitutional offices, the Arkansas Department of Transportation, the Office of the Arkansas Lottery, and the Arkansas State Game and Fish Commission shall be submitted directly to the Legislative Council without any recommendation by the Governor.
  2. Each budget request submitted under subdivision (b)(2)(A) of this section shall:
    1. Include all of the information required for other public entities under this chapter;
    2. Be in substantially the same format as budget requests for other public entities under this chapter; and
    3. Include a detailed listing of any unappropriated funds, including without limitation the sources of the funds, the fund balances, and the expenditures of the funds for the previous fiscal year.
In order to carry out the provisions of this section, the Governor or Governor-elect shall:
1. Have the power, and it shall be his or her duty, to provide for hearings, if required, with the administrative head or any other persons having knowledge thereof, of any agency submitting a budget request in order for him or her to make his or her determinations and recommendations; and
2. Appear or appoint a designated representative to appear before the General Assembly or any committees or interim committees thereof to present his or her recommendations for the forthcoming budgetary period.

History. Acts 1973, No. 876, § 3; A.S.A. 1947, § 13-329; Acts 2009, No. 605, § 14; 2009, No. 606, § 14; 2015, No. 218, § 13; 2017, No. 707, § 41; 2019, No. 678, § 3.

A.C.R.C. Notes. Acts 2019, No. 678, § 1, provided: “Title. This act shall be known and may be cited as the ‘Government Financial Disclosure and Accountability Act of 2019’”.

Acts 2019, No. 678, § 2, provided: “Legislative intent.

“(a) It is the intent of the General Assembly:

“(1) To provide for additional transparency in the budgeting and expenditure procedures used by constitutional officers and agencies;

“(2) To require additional financial disclosures to better enable the General Assembly to responsibly appropriate state funds;

“(3) To ensure that the state and the public have the necessary information to determine whether state funds are being used in an appropriate and fiscally responsible manner;

“(4) That, to the extent this act conflicts with any provision of the Arkansas Constitution, the Arkansas Constitution applies; and

“(5) To require that cash funds have an appropriation authorized by the General Assembly and that budget requests submitted during budget hearings include the information necessary for the General Assembly to make informed appropriation decisions.

“(b) It is not the intent of the General Assembly to:

“(1) Make the constitutional officers and agencies state agencies for purposes of state accounting and budgetary procedures;

“(2) Require the constitutional officers and agencies to submit annual operations plans that are the same as the annual operations plans required for state agencies;

“(3) Apply the procurement laws in Arkansas Code, Title 19, Chapter 11, to the constitutional officers and agencies to the extent that the procurement laws do not already apply; or

“(4) Require legislative approval of any expenditure of an office or agency if such approval would conflict with the Arkansas Constitution”.

Amendments. The 2009 amendment by identical acts Nos. 605 and 606 inserted “the Arkansas Lottery Commission” in (b)(2), and made a related change.

The 2015 amendment substituted “Office of the Arkansas Lottery” for “Arkansas Lottery Commission” in (b)(2).

The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department” in (b)(2).

The 2019 amendment redesignated (b)(2) as (b)(2)(A) and added (b)(2)(B).

19-4-202. Authority of Legislative Council.

Meetings.
1. At any time they deem it advisable, the cochairs of the Legislative Council shall have the authority to call into meeting the membership of the Legislative Council for consideration of budget matters.
2. For preliminary budget studies, the Legislative Council shall have the authority to call before it the Chief Fiscal Officer of the State, the Director of the Bureau of Legislative Research, the Legislative Auditor, and any constitutional officer or administrative head of any state agency for the purpose of making available to the Legislative Council any information it deems advisable.
3. The Legislative Council shall have the power to visit and inspect any agency for the purpose of obtaining first-hand information as to the condition and needs of the agency and may appoint committees from its membership for the purpose of reporting upon these findings.
Budget Estimates.
1. The Legislative Council shall require from the Chief Fiscal Officer of the State, not later than sixty (60) days prior to the convening of the General Assembly, the budget estimates and recommendations prepared by him or her.
2. From time to time when called upon by the Legislative Council, the Chief Fiscal Officer of the State or his or her representative shall appear before the Legislative Council or attend meetings of the Legislative Council when required to do so for the purpose of preparing or submitting additional information on budget matters.
Assisting Governor-Elect.
1. It shall be the duty and responsibility of the Chief Fiscal Officer of the State and any administrative head of any agency, when requested to do so, to lend any reasonable aid, assistance, or personnel and to supply any reports or information when required to the Governor-elect for the purpose of assisting him or her in the preparation of his or her budget recommendations to be submitted to the Legislative Council.
2. The Legislative Council shall call upon the Governor-elect or any newly elected constitutional officer, or their designated representatives, for the purpose of submitting any final recommendations or modifications of the proposed budget requests.
Recommendations.
1. The Legislative Council, acting upon the facts submitted to it and from such other studies and hearings as the Legislative Council shall deem advisable, shall proceed to modify, revise, approve, or disallow the budget requests. The Legislative Council shall make its recommendations with respect to the approved items of the budget and publish them in a report to be made available to every member of the General Assembly when it convenes in regular session.
2. The Legislative Council shall have the authority, in recommending the proposed state budget to the General Assembly, to recommend the form of the appropriation bills to be submitted and may draw or cause to be drawn the bills conforming to these recommendations for presentation to the General Assembly.

History. Acts 1973, No. 876, § 4; A.S.A. 1947, § 13-330.

Cross References. Budget briefings by Legislative Council, § 10-3-308.

19-4-203. Authority of General Assembly.

The General Assembly and the Joint Budget Committee shall:

Consider the current programs and financial plan included in the budget requests and the proposed resources for financing recommended by the Governor or Governor-elect including proposed goals and policies, recommended budgets, revenue proposals, and long-range programs;
Adopt or recommend programs and alternatives to the financial plan recommended by the Governor or Governor-elect as it deems appropriate;
Adopt or recommend legislation to authorize implementation of a comprehensive program and financial plan;
Provide for a postaudit of financial transactions, program performance, and execution of legislative policy decisions;
Provide for hearings, if required, with the administrative head or any other persons having knowledge thereof of any state agency submitting a budget request, in order to make determinations and formulate recommendations;
If found necessary, visit and inspect any agency; and
Propose the form of appropriation bills and write or direct the writing thereof.

History. Acts 1973, No. 876, § 5; A.S.A. 1947, § 13-331.

19-4-204. Recommendations by Governor.

Budgetary Programs and Financial Plans.
1. The Governor or Governor-elect shall formulate the programs and financial plans to be recommended to the Legislative Council and the General Assembly after considering the state agency-proposed programs and financial plans and other programs and alternatives he or she deems appropriate.
2. The program and financial plan submitted by him or her shall include:
  1. His or her goals and policies;
  2. Recommended plans to implement the goals and policies;
  3. Recommended budgets for each year for which an appropriation is being requested; and
  4. Recommended revenue measures to finance the budget.
Presentation to General Assembly.
1. The Governor or Governor-elect shall present the proposed comprehensive program and financial plan to the Legislative Council for their timely consideration and in a message to a joint session of the General Assembly. The message shall be accompanied by an explanatory report which summarizes recommended goals, policies, plans, and appropriations.
2. The explanatory report shall be furnished to each member of the General Assembly and each agency. The report shall contain the following information:
  1. The coordinated programs, goals, and objectives that the Governor or Governor-elect recommends to guide the decisions on program plans and budget appropriations;
  2. The program and budget recommendations of the Governor or Governor-elect for each year of the succeeding biennium;
  3. A summary of state receipts in the previous fiscal year, an estimate for the current fiscal year, and an estimate for each year of the succeeding biennium;
  4. A summary of expenditures during the last fiscal year, those estimated for the current fiscal year, and those recommended by the Governor or Governor-elect for each year for which appropriations are requested; and
  5. Any additional information which will facilitate understanding the Governor's or Governor-elect's proposed program and financial plan by the General Assembly and the public.

History. Acts 1973, No. 876, § 7; A.S.A. 1947, § 13-333.

19-4-205. Legislative review.

The General Assembly, the Legislative Council, and the Joint Budget Committee shall consider the Governor's or Governor-elect's recommendations and determine the comprehensive program and financial plan to support the services to be provided the citizens of the state, while keeping authorized expenditures within the estimated receipts and other available resources.

History. Acts 1973, No. 876, § 8; A.S.A. 1947, § 13-334.

19-4-206. Conservation of appropriations in changes of administration.

Proportionate Amounts. In those instances in which any constitutional or elective official of the State of Arkansas is due to retire from office and another constitutional official is to take his or her place, the appropriations and funds provided by the General Assembly for the operation of any such office shall be conserved so as to provide his or her successor in office with a proportionate amount of available appropriations and funds for the remainder of the fiscal year during which the change of office takes place. For the purpose of carrying out the provisions of this section it is provided that:
1. No constitutional official shall cause, or cause to be incurred, any obligation or issue any voucher against the appropriations of his or her agency in excess of a true proportion which his or her time of service during the fiscal year of retirement bears to the fiscal year. For the purpose of establishing the time of service of any such official, the time of retirement shall be construed to be that established by the Arkansas Constitution and statutes of this state for the retirement of the constitutional and elective officials of this state;
2. 1. Within thirty (30) days after each general election, the Auditor of State shall notify all retiring constitutional officials that they will be required to file in his or her office a statement, duly sworn to, setting out:
    1. The total of all vouchers issued against the appropriations of the agency;
    2. A list of all outstanding obligations; and
    3. A detailed list of all proposed expenditures to be made prior to the time of retirement.
  2. In the event that the Auditor of State is retiring, the Chief Fiscal Officer of the State shall notify the Auditor of State to file the aforementioned statement required of the Auditor of State with the office of the Chief Fiscal Officer of the State; and
3. The Auditor of State shall not issue any warrant in payment of the voucher of any agency coming under the provisions of this section in excess of the proportion provided for in this section. The Auditor of State shall be liable under his or her official bond for issuing any such warrant in excess of such proportion. However, in cases of calamity or emergency, the Governor may, by proclamation, authorize any agency to exceed the limitations of this section. Under such conditions the Auditor of State and the disbursing officer shall be relieved of any liability under this section if, in making the proclamation, the Governor states the reasons for the emergency and the probable amount of the excess obligations which the agency is authorized to incur.
Purpose. It is the purpose of this section to provide for the conservation of appropriations for the normal operations of agencies, and the provisions of this section are not applicable to appropriations for improvements or to special appropriations.

History. Acts 1973, No. 876, § 17; 1981, No. 741, § 2; 1985, No. 365, § 8; A.S.A. 1947, § 13-343.

Subchapter 3 — Chief Fiscal Officer of the State

A.C.R.C. Notes. References to “this subchapter” in §§ 19-4-301 — 19-4-306 may not apply to § 19-4-307 which was enacted subsequently.

Acts 2016, No. 266, § 20, provided: “EMPLOYEE COMPENSATION REPORT. The Department of Finance and Administration Office of Budget shall prepare and submit to the Arkansas Legislative Council or Joint Budget Committee a report reflecting the amount of appropriation and funding necessary for the Department of Correction to sufficiently budget for the expenditure of payments to employees for all Holiday Liability, Straight Time Liability, Overtime, and Hazardous Duty Compensation incurred, including the current balances of said liabilities. This report shall be included in the summary budget information manual submitted during the biennial budget process.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Preambles. Acts 1973, No. 876, contained a preamble which read:

19-4-301. Duties and responsibilities generally.

The Chief Fiscal Officer of the State shall carry out the following duties and responsibilities:

Assist the Governor or Governor-elect in the preparation of the comprehensive program and financial plan, including the coordination and analysis of state agency programs, goals, and objectives;
Develop procedures to produce the information needed for effective policy decision-making by the General Assembly and the Governor or Governor-elect;
Assist agencies in developing their statement of goals and objectives, their preparation of program plans and budget requests, and their systems of evaluating and reporting of program performance;
Provide the General Assembly or its interim committees with any information they may request;
Between sessions of the General Assembly, keep the Legislative Council and any interim committees of the General Assembly that request this information informed of the actual expenditures of agencies as compared to their approved budgets and of the actual performance of these agencies as compared to that predicted in the program budget requests, along with the reasons for any deviations which exist; and
Administer his or her responsibilities under the program budget provisions of this chapter so that the policy decisions and budget determinations of the General Assembly and Governor are effectively implemented.

History. Acts 1973, No. 876, § 6; A.S.A 1947, § 13-332.

19-4-302. Budget information forms.

To accomplish his or her duties and responsibilities, the Secretary of the Department of Finance and Administration, in cooperation with the Legislative Council, shall design budget information forms so that comparative data of the last fiscal year, the current fiscal year, and the next biennium are presented so that state agencies can best express budgetary and program information that will be most useful to the Governor or Governor-elect and the General Assembly in order to facilitate program formulation, execution, and accountability by:

Focusing attention upon the general character and relative importance of the program to be accomplished or upon the service to be rendered and what the program or service will cost;
Employing functional classifications, where practical to do so, in order to present budgets by broad program categories;
Presenting budget requests by organizational units;
Grouping expenditures and budget estimates by major objects of expenditures;
Stating goals and objectives of agency programs;
Presenting proposed plans to implement the goals and objectives, including proposed modification of existing program services and establishment of new program services, and the estimated resources required to implement the goals and objectives;
Including a report of the receipts during the prior fiscal year, an estimate of the receipts during the current fiscal year, and an estimate for each year of the succeeding biennium;
Presenting requested legislation required to implement the proposed programs and financial plans; and
Supplying any other information necessary to carry out the purposes of this chapter.

History. Acts 1973, No. 876, § 6; A.S.A. 1947, § 13-332; Acts 2019, No. 910, § 3449.

19-4-303. Budget estimates.

The Secretary of the Department of Finance and Administration, in cooperation with the Legislative Council, shall:

Prepare a budget calendar or time schedule so that the submission and presentation of budget estimates will be accomplished within the desired time limits; and
Prepare a budget instructional manual to establish uniformity for presentation of budget estimates by state agencies.

History. Acts 1973, No. 876, § 6; A.S.A. 1947, § 13-332; Acts 2019, No. 910, § 3450.

19-4-304. Regular and fiscal session preparations.

Immediately after July 1 of each even-numbered calendar year, or earlier if determined necessary, the Secretary of the Department of Finance and Administration shall:
1. Issue budget information forms, budget estimating instructions, and a budget calendar which has been approved by the Legislative Council, plus a budget policy letter from the Governor containing some or all of the following:
  1. Establishing maximum limitations on expenditures for the year in which estimates are being requested;
  2. Setting out the policies which will determine the Governor's priorities in the allocation of available resources;
  3. Outlining the effects of economic changes pertaining to price levels, population changes, and pending federal legislation; and
  4. Containing a review of current fiscal conditions and a prognostication of fiscal conditions for the future;
2. 1. Visit and inspect the properties and facilities of any or all state agencies and request the administrative head or any employee of the agency to appear before him or her to explain any matters concerning the budgetary and program requirements of the agency.
  2. If any agency fails or refuses to furnish any information with respect to budget estimates or program formulation, as and when it shall be requested by the Chief Fiscal Officer of the State, then he or she shall have the authority to prepare and submit his or her own recommendations as to the budgetary or program requirements of the agency;
3. Assist agencies in the preparation of their budget proposals. This assistance may include:
  1. Technical assistance;
  2. Organization of materials;
  3. Centrally collected accounting, budgeting, personnel, and purchasing information standards and guidelines;
  4. Population and other required data; and
  5. Any other assistance that will help the agencies produce the information necessary for efficient agency management and decision making by the General Assembly and the Governor or the Governor-elect;
4. Analyze the budget estimates to evaluate and assess the priority and accuracy of agency requests in relation to policy and program objectives and the financial condition of the state and make recommendations for modifications and revision of the budget request if, in their opinion, the facts before them would justify such proposed revisions. The Chief Fiscal Officer of the State in making recommended changes shall not alter the original request unless requested to do so by the administrative head of the agency affected but shall report the original request, together with his or her own recommendations and the reasons therefor, to the Governor, so that all agency budget estimates may be made available to the Governor or Governor-elect, the Legislative Council, and the General Assembly for their consideration;
5. Prepare an estimate of the general and special revenues for the next fiscal year, along with comparative data for the then-current fiscal year and past fiscal year; and
6. Submit the budget studies, together with his or her recommendations, to the Legislative Council and to the Governor or Governor-elect for such further recommendations as the Governor or Governor-elect may care to make.
The secretary shall submit the annual revenue forecast to the Legislative Council:
1. By December 1 of the year preceding a fiscal session that is held in a year in which the preferential primary election will be held in May under § 7-7-203;
2. By February 1 of a year preceding a fiscal session that is held in a year in which the preferential primary election is held in March under § 7-7-203; and
3. No later than sixty (60) days before the start of a regular session.

History. Acts 1973, No. 876, § 6; A.S.A. 1947, § 13-332; Acts 2009, No. 962, § 38; 2015 (1st Ex. Sess.), No. 5, § 4; 2019, No. 545, § 9; 2019, No. 910, §§ 3451, 3452.

A.C.R.C. Notes. Acts 2015 (1st Ex. Sess.), No. 5, § 5, provided:

“(a) This act is cumulative of existing laws and shall not repeal but merely suspend any law in conflict with the act.

“(b) The provisions of this act are temporary and expire on December 31, 2016.

“(c) On and after December 31, 2016, the provisions of law suspended by this act shall be in full force and effect.

“(d) The expiration of this act shall not affect rights acquired under it or affect suits then pending.”

Amendments. The 2015 amendment by Acts 2015 (1st Ex. Sess.), No. 5, in (b)(1), substituted “February” for “December” and “year of” for “year preceding”.

The 2019 amendment by No. 545 added “that is held in a year in which the preferential primary election will be held in May under § 7-7-203” in (b)(1); added (b)(2); and redesignated former (b)(2) as (b)(3).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in the introductory language of (a); and substituted “secretary” for “director” in the introductory language of (b).

19-4-305. Preliminary budget report.

The Chief Fiscal Officer of the State shall prepare the described preliminary budget report so that it shall include the following:

The budget requests as submitted by the legislative branch, the judicial branch, the elective constitutional officers, the Arkansas Department of Transportation, and the Arkansas State Game and Fish Commission;
The budget requests of all other state agencies, as submitted by each agency, together with the Chief Fiscal Officer of the State's analysis of the budget estimates and the executive recommendations;
A recapitulation and summary of all budget information as required in this subchapter and the recommendations of the Chief Fiscal Officer of the State; and
A detailed statement of the revenues and other sources of income of the state government for the past complete fiscal year, the estimated revenues of the state under existing laws, and the Governor's proposals for revisions in any tax laws necessary to balance the budget.

History. Acts 1973, No. 876, § 6; A.S.A. 1947, § 13-332; Acts 2017, No. 707, § 42.

Amendments. The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department” in (1).

19-4-306. Review and control of budgets.

The Chief Fiscal Officer of the State, in cooperation with the Legislative Council, shall devise the necessary procedures, forms, and timetables to assure the same comprehensive review of all state agency requests for capital expenditures as outlined in this subchapter for operating budgets. In addition, the Chief Fiscal Officer of the State shall institute the necessary budgetary and accounting controls over those capital budgets approved by the General Assembly to assure full compliance with all applicable state laws.

History. Acts 1973, No. 876, § 6; A.S.A. 1947, § 13-332.

19-4-307. Employment classification information.

At the same time a state agency submits a budget request for presession budget hearings of the Legislative Council and the Joint Budget Committee, the agency shall also submit the following information for each employment classification:
1. The total number of persons currently employed;
2. The number of white male employees;
3. The number of white female employees;
4. The total number of Caucasian employees;
5. The number of black male employees;
6. The number of black female employees;
7. The number of other employees who are members of racial minorities; and
8. The total number of minorities currently employed.
An agency's budget request shall not be considered by the Legislative Council or Joint Budget Committee in a presession budget hearing unless the information required by this section is filed along with the budget request.

History. Acts 1993, No. 358, § 1.

A.C.R.C. Notes. References to “this chapter” in subchapters 1-20 may not apply to this section which was enacted subsequently.

References to “this subchapter” in §§ 19-4-301 — 19-4-306 may not apply to this section which was enacted subsequently.

Subchapter 4 — Auditor of State and Treasurer of State

Preambles. Acts 1973, No. 876, contained a preamble which read:

“Whereas, it is necessary for the Executive Department of the State to exercise close supervision of budget preparation and presentation of the General Assembly and to exercise close supervision over the execution of those appropriations approved by the General Assembly to avoid deficit spending and to realize maximum benefits from its resources so as to discharge the State Government's obligation to its citizenry; and

Acts 1983, No. 305, § 3: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that the destruction of records provision of this Act should become operable at the beginning of the next fiscal year which is July 1, 1983, and that unless this emergency clause is adopted to provide such effective date its effective date will be unknown and in all probability would not be July 1, 1983. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect on and after July 1, 1983.”

Acts 1993, No. 540, § 9: Mar. 16, 1993. Emergency clause provided: “It is hereby found and determined by the Seventh-Ninth General Assembly that the effective operation of Arkansas public schools is dependent upon the immediate receipt of funds, and this Act will alleviate problems attendant to the delay in the receipt of funds. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2007, No. 269, § 2: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the storage of original warrants for a prolonged period places a burden on the operations of the Auditor of State and that the provisions of this act will provide a more cost-efficient and effective method of storing warrants, which will correspondingly improve access to warrants. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2007.”

19-4-401. Duties generally.

Except as otherwise provided in this chapter, the offices of the Auditor of State and the Treasurer of State shall continue to perform the duties imposed by law upon these offices.

History. Acts 1973, No. 876, § 27; A.S.A. 1947, § 13-353.

19-4-402. Auditor of State as disbursing officer.

The Auditor of State shall act as disbursing officer for the appropriations made for:

Circuit judges;
Prosecuting attorneys;
Retired circuit and chancery judges; and
The Lieutenant Governor.

History. Acts 1973, No. 876, § 27; A.S.A. 1947, § 13-353; Acts 2005, No. 1962, § 78.

Amendments. The 2005 amendment deleted “and chancery” following “Circuit” in (1).

19-4-403. Issuance of warrants.

The Auditor of State shall issue his or her warrants in payment of the vouchers presented to him or her by the Chief Fiscal Officer of the State only after he or she shall have satisfied himself or herself that the provisions of this chapter have been complied with. For this purpose, the Auditor of State shall have the authority to conduct any further examination and preaudit of the vouchers which he or she may deem necessary. A single warrant may contain payments from multiple appropriations, classifications of appropriation, and funds.

History. Acts 1973, No. 876, § 27; A.S.A. 1947, § 13-353; Acts 2001, No. 1453, § 5.

19-4-404. Books, forms, and receipts.

In order to provide for uniformity in fiscal procedure, the Auditor of State and the Treasurer of State are directed to establish and set up in their respective books such income, appropriation, disbursement, and fund accounts as shall be prescribed by the Chief Fiscal Officer of the State or as otherwise provided by law.
The forms of all vouchers and other prescribed forms used in connection with the disbursement of funds in the State Treasury shall be prescribed by the Chief Fiscal Officer of the State, with the approval of the Auditor of State, or as otherwise provided by law.
All forms of receipts and other prescribed forms used in connection with the recording of the receipts of the Treasurer of State shall be prescribed by the Chief Fiscal Officer of the State, with the approval of the Treasurer of State, or as otherwise provided by law.

History. Acts 1973, No. 876, § 27; A.S.A. 1947, § 13-353.

19-4-405. Examination of records.

It is the duty of the Auditor of State to examine and verify the disbursement and redemption records of the Treasurer of State daily and compare them with the records in his or her own office and with the Auditor of State's redeemed warrants.
As each redeemed warrant is examined and found to compare with the disbursement records, it shall be stamped over the signature of the Auditor of State. The stamp shall contain the words “VOID, STATE AUDITOR”, and shall be at least one-half inch by one and one-half inches (½" x 1½") in size.

History. Acts 1973, No. 876, § 27; A.S.A. 1947, § 13-353.

19-4-406. Storage of warrants.

1. The Auditor of State shall place all redeemed warrants in a secure place or vault in the Auditor of State's office, subject to the inspection by any interested citizen.
2. 1. Except as provided in subdivision (a)(2)(B) of this section, the Auditor of State shall keep a warrant intact and without further alteration for a period of one (1) year from the close of the fiscal year in which the warrant was issued.
  2. 1. If the Auditor of State makes an electronic copy of the warrant, the original warrant shall be kept for three (3) months.
    2. The electronic copy of the warrant shall be maintained for a period of ten (10) years from the close of the fiscal year in which the warrant was issued.
If the Legislative Auditor or the State Historian requests retention of an original warrant or the electronic copy of a warrant in excess of the time periods provided under subsection (a) of this section, the warrant shall be retained by the Auditor of State for such period of time as required by the Legislative Auditor or the State Historian.
If federal law or regulations require the retention of certain warrants for a period longer than the period prescribed in this section, warrants shall be retained for the period prescribed by the federal law or regulations.

History. Acts 1973, No. 876, § 27; 1983, No. 305, § 1; A.S.A. 1947, § 13-353; Acts 2007, No. 269, § 1; 2009, No. 251, § 9.

Amendments. The 2007 amendment added the (a)(1) and (a)(2) designations; rewrote (a)(2); and in (b), substituted “request retention of an original warrant or the electronic copy of a warrant in excess of the time periods provided under subsection (a) of this section” for “do not authorize the destruction.”

The 2009 amendment, in (b), substituted “or the” for “and” preceding “State Historian” in two places, substituted “the warrant” for “the warrants and vouchers,” and made a related change.

19-4-407. Electronic warrants transfer system.

The Chief Fiscal Officer of the State, the Treasurer of State, and the Auditor of State may establish an electronic warrants transfer system directly into payee's accounts in financial institutions in payment of any account allowed against the state.
The Chief Fiscal Officer of the State, the Treasurer of State, and the Auditor of State, by joint rules, shall establish the standards and procedures for administering the system, to include that the electronic warrants transfer shall be in such form that a single instrument shall serve as electronic warrants transfer.
A single electronic warrants transfer may contain payments to multiple payees, appropriations, characters, and funds.

History. Acts 1991, No. 421, §§ 1-3.

19-4-408. Distributions to public school districts.

1. The Chief Fiscal Officer of the State, the Treasurer of State, and the Auditor of State shall establish an electronic warrants transfer system to distribute certain funds directly to an account in a financial institution, as designated by the public school district's treasurer.
2. The determination of the categories of funds to be distributed shall be made by the Commissioner of Education.
3. 1. The public school district shall accept distributions by the electronic warrants transfer system.
  2. 1. A public school district with a district treasurer may choose to have funds first distributed to the county treasurer or directly to the school district treasurer.
    2. If a school district with a district treasurer chooses direct distribution of funds to the school district treasurer, the State of Arkansas shall forward all state and federal funds for the district to the district treasurer, whether they are in the form of state warrants or electronic warrants transfers.
    3. If a school district uses the county treasurer as its treasurer, the State of Arkansas shall forward all state and federal funds for the district to the county treasurer, whether they are in the form of state warrants or electronic warrants transfers.
The Chief Fiscal Officer of the State, the Treasurer of State, and the Auditor of State, by joint rules, shall establish the standards and procedures for administering the system, to include that the electronic warrants transfer shall be in such form that a single instrument shall serve as electronic warrants transfer.
A single electronic warrants transfer may contain payments to multiple public school districts, appropriations, characters, and funds.

History. Acts 1993, No. 540, §§ 1-5; 1995, No. 232, § 8.

A.C.R.C. Notes. References to “this chapter” in subchapters 1-20 may not apply to this section which was enacted subsequently.

Subchapter 5 — Financial Management System

Cross References. Procedures for administering unanticipated miscellaneous federal funds, § 19-7-501 et seq.

Preambles. Acts 1973, No. 876, contained a preamble which read:

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this act being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1977, No. 486, § 6: Mar. 18, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly that certain general accounting and budgetary procedures are outdated and should be changed in order to properly exercise fiscal responsibility in administering the affairs of state government, and that the immediate passage of this Act is necessary to implement such changes. Therefore an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1977, No. 813, § 6: Mar. 28, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly that certain general accounting and budgetary procedures are outdated and should be changed in order to properly exercise fiscal responsibility in administering the affairs of state government, and that the immediate passage of this Act is necessary to implement such changes. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 833, § 12: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the aforementioned sections of the General Accounting and Budgetary Procedures Law of Arkansas requires amendment to conform with legislation, and for more effective operations of state government. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1981, No. 924, § 2: Mar. 30, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that it would be beneficial to the public colleges and universities and to the State Employees Health Insurance Program for colleges and universities to be permitted to participate in such program and that any delay in making such participation available to colleges and universities unnecessarily restricts management and financial planning for the future. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 702, § 3: Mar. 23, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that procedures are needed whereby the State Treasurer may allow for reconciling items which may occur in the normal course of business, and that the immediate passage of this Act is necessary to enable the State Treasurer to perform the duties of the said Office in a business-like manner. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 646, § 6: July 1, 1987. Emergency clause provided: “It is hereby found and determined by the Seventy-Sixth General Assembly, that the clarification of certain fiscal transactions of the State is needed in order to more accurately reflect the condition of the State's assets at all times and to maintain the fiscal integrity of the State. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1987.”

Acts 1997, No. 342, § 51: Mar. 5, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that previous General Assemblies have provided appropriations for the projects provided or enumerated in this act; that certain appropriations will expire before the adjournment of the General Assembly; and that if such appropriations expire, the projects and programs authorized herein will cease thereby depriving the citizens of the State of the benefits to be derived from such projects. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1997, No. 1211, § 40: July 1, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1997 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1997 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1997.”

Acts 1999, No. 1280, § 19: Apr. 9, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that provisions contained in this bill be enacted into law. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 221, § 7: Feb. 13, 2001. Emergency clause provided: “It is hereby found and determined by the Eighty-third General Assembly that the current incremental line-item system of budgeting is ineffective in evaluating agency performance; that to implement a replacement system in a reasonable time is a difficult task and that to delay the implementation could cause the inability to meet critical deadlines. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2005, No. 237, § 3[4]: Feb. 17, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that ability to automate the performance-based budgeting process was an important component of the Arkansas Administrative Statewide Information System; that SAP, the vendor contracted to provide the performance-based budgeting component of the Arkansas Administrative Statewide Information System, failed to deliver the component as required by contract; that the state was unable to automate the performance-based budgeting process; that, additionally, the performance-based budgeting model does not accurately reflect state agency goals and objectives; that the performance-based budgeting process is burdensome to state agencies; that state resources could be used more efficiently if performance-based budgeting is eliminated; and that the immediate elimination of performance-based budgeting will benefit the state agency appropriation process of the Eighty-fifth General Assembly. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 365, § 29: July 1, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the fiscal year for employees begins on July 1 of every year and that the implementation of the Uniform Classification and Compensation Act is necessary to ensure the continued services and operations of the state. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2017.”

Case Notes

Cited: Wells v. Heath, 269 Ark. 473, 602 S.W.2d 665 (1980).

19-4-501. General requirements.

In order to provide necessary financial information for the Governor, members and committees of the General Assembly, and other interested state agencies, the Chief Fiscal Officer of the State is directed to establish a comprehensive financial management system for appropriated and cash funds of agencies.
The financial management system shall provide for an adequate control over receipts, expenditures, and balances to the end that information may always be currently available as to the financial condition of the state and its various subdivisions. The system shall:
1. Include a modified accrual system embracing encumbrance accounting;
2. Conform with generally accepted governmental accounting principles; and
3. Provide a reporting system whereby actual expenditures are compared to those predicted in the agency's annual operations plan described in subchapter 6 of this chapter.
In obtaining any necessary fiscal information, the Chief Fiscal Officer of the State shall have the authority to make an examination of the books and records of any agency to determine the financial condition of the agency and to report on it.

History. Acts 1973, No. 876, § 12; A.S.A. 1947, § 13-338.

19-4-502. Duties of Chief Fiscal Officer of the State generally.

The Chief Fiscal Officer of the State shall:

Review postaudits of state agencies conducted by the Legislative Joint Auditing Committee and advise the Governor and the Attorney General or prosecuting attorney for legal action, if appropriate, of any improper or illegal practices;
Assist the various agencies in complying with the recommendations of the Legislative Joint Auditing Committee for improving their accounting systems;
Establish a uniform chart of accounts and issue an accounting procedures manual governing statewide accounting and reporting policies and procedures;
Prepare analysis and evaluation reports of the financial management system and fiscal control procedures to determine compliance with generally accepted governmental accounting principles;
Adapt the financial management system to meet the particular needs of each agency while maintaining the overall integrity of the system and comparability of coding and reporting for all agencies utilizing the system; and
Design accounting and reporting forms for use by agencies in effecting proper fiscal control procedures.

History. Acts 1973, No. 876, § 12; 1985, No, 365, § 1; A.S.A. 1947, § 13-338.

19-4-503. Deposit of funds into State Treasury.

The Chief Fiscal Officer of the State shall have the authority, upon request of a state agency having funds on deposit in a depository other than the State Treasury, to authorize the agency to deposit the moneys into the State Treasury.
The Chief Fiscal Officer of the State shall determine the classification of the funds and shall designate or create the State Treasury fund into which the moneys are to be deposited.
The appropriation acts which appropriated the cash moneys shall be construed to be in conformity with Arkansas Constitution, Article 5, § 29, and Arkansas Constitution, Article 16, § 12, for withdrawing moneys from the State Treasury.
All moneys deposited into the State Treasury under the provisions of this section shall be deposited as nonrevenue receipts and shall not be subjected to the provisions of § 19-5-205(e) unless the source of the revenue is specifically classified in § 19-6-201 or § 19-6-301.
If any moneys classified as trust funds under the provisions of this section earn interest, then that interest shall be credited to the trust fund.

History. Acts 1973, No. 876, § 12; 1977, No. 486, § 2; A.S.A. 1947, § 13-338.

19-4-504. Requisites of system.

The financial management system shall at all times:

Reflect the unencumbered balances of all State Treasury funds, fund accounts, and accounts and appropriations payable from the State Treasury;
Reflect the appropriations and allotments as approved by the General Assembly;
Reflect the distribution and allocation of the state revenues under the Revenue Stabilization Law, § 19-5-101 et seq., and other revenue laws of the state; and
Provide a record of the expenditures, disbursements, and receipts of all state agencies.

History. Acts 1973, No. 876, § 12; A.S.A. 1947, § 13-338.

19-4-505. State accounting system to conform to generally accepted accounting principles — Legislative intent.

It is the intent of the General Assembly that the state accounting system, as authorized in this subchapter, shall be established in conformity with generally accepted accounting principles as recognized by the Governmental Accounting Standards Board, the American Institute of Certified Public Accountants, the Financial Accounting Standards Board, and any successor governing boards. However, the Chief Fiscal Officer of the State shall consult the Legislative Joint Auditing Committee before proposing, adopting, or recommending compliance with any of the generally accepted accounting principles that conflict with law. It is further recognized that the state accounting system should comply with recognized principles of accounting for and reporting of public moneys in order to properly and fairly discharge to the taxpayers our responsibility of adequately accounting for their moneys.

History. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338; Acts 2001, No. 1453, § 6.

19-4-506. Accounting and reporting capabilities.

A governmental accounting system must make it possible both to:

Present fairly and with full disclosure the financial position and results of financial operations of the funds and account groups of the governmental unit in conformity with generally accepted accounting principles; and
Determine and demonstrate compliance with finance-related legal and contractual provisions.

History. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-507. Fund accounting systems.

Governmental accounting systems should be organized and operated on a fund basis. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special rules, restrictions, or limitations.

History. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338; Acts 2019, No. 315, § 1709.

Amendments. The 2019 amendment substituted “rules” for “regulations” in the second sentence.

19-4-508 — 19-4-516. [Repealed.]

Publisher's Notes. These sections, concerning types of funds, number of funds, accounting for fixed assets and long-term liabilities, valuation of fixed assets, depreciation of fixed assets, accrual basis in governmental accounting, budgeting, budgetary control, and budgetary reporting, transfer, revenue, expenditure, and expense account classifications, and common terminology and classification, were repealed by Acts 2001, No. 1453, § 7. These sections were derived from the following sources:

19-4-508. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-509. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-510. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-511. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-512. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-513. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-514. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-515. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-516. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-517. Interim and annual financial reports.

Appropriate interim financial statements and reports of financial position, operating results, and other pertinent information should be prepared to facilitate management control of financial operations, legislative oversight, and where necessary or desired, for external reporting purposes.
A comprehensive annual financial report covering all funds and account groups of the governmental unit, including appropriate combined, combining, and individual fund statements; notes to the financial statements; schedules; narrative explanations; and statistical tables should be prepared and published.
General purpose financial statements may be issued separately from the comprehensive annual financial report. These statements should include the basic financial statements and notes to the financial statements that are essential to fair presentation of financial position and operating results and changes in financial position of proprietary funds and similar trust funds.

History. Acts 1973, No. 876, § 12; 1979, No. 833, § 3; A.S.A. 1947, § 13-338.

19-4-518. Design of system.

The financial management system shall be designed to record assets, liabilities, net assets, revenues, expenditures, and other similar transactions in accordance with generally accepted accounting principles. The financial management system shall provide a suitable analysis of the operation, maintenance, and improvement of all state agencies and their functions. This system shall furnish a breakdown and itemization of all financial transactions in accordance with the appropriations and allotments of the General Assembly, federal grants, and bank funds of the agencies.
The Chief Fiscal Officer of the State shall prepare a general ledger manual covering the system of classifying financial transactions and shall supply all agencies with a copy of this manual.

History. Acts 1973, No. 876, § 12; A.S.A. 1947, § 13-338; Acts 2001, No. 1453, § 8.

19-4-519. Appropriations code manual.

After the General Assembly has enacted the various appropriation measures for the support and operation of state government and its agencies, the Chief Fiscal Officer of the State shall prepare a complete code manual setting out all of the appropriations of the General Assembly, the purpose of the appropriations and the funds, fund accounts, or accounts from which the appropriations are made and shall classify them in accordance with the titles and definitions as enumerated in this chapter.
After establishing the appropriation items and classifying them under the provisions of this chapter in strict conformity to the intent and purposes of the appropriation acts and within the limitations of the revenues and funds available for these purposes, it shall then be unlawful for the Chief Fiscal Officer of the State or any disbursing officer of any state agency to transfer from an appropriation item, the purpose of which is defined under the provisions of this chapter, to any other appropriation item of a different classification and purpose as defined in this subchapter except when permitted by law.

History. Acts 1973, No. 876, § 12; A.S.A. 1947, § 13-338; Acts 2001, No. 221, § 4; 2003, No. 1463, § 8; 2005, No. 237, § 2.

Publisher's Notes. Acts 2005, No. 237 contained two sections designated as “Section 2.”

Amendments. The 2005 amendment repealed (c).

Cross References. Meeting by Joint Budget Committee and House Interim Budget Committee during the interim, § 10-3-509.

Review and approval of annual operations plans, § 19-4-607.

19-4-520. Classification of appropriations.

1. For the purpose of establishing the proper accounts, for budgetary control, for accounting, and for other provisions of this chapter, the appropriations of the General Assembly shall be classified under one (1) or more of the classifications prescribed in §§ 19-4-521 — 19-4-525.
2. The purposes for which these appropriations may be used are defined as prescribed in §§ 19-4-521 — 19-4-525, but not necessarily limited thereto.
However, the state's financial management system may invoke additional budget control using features of the system that are in addition to the appropriations of the General Assembly.

19-4-521. Personal services — Definition.

The personal services classification shall be for regular full-time, part-time, and extra-help employees, employer matching costs, employer special or extra compensation, overtime earnings, and other employee benefits that are legally authorized:

Regular Salaries. This subclassification shall be applicable to all salaries and compensation, except as provided in this section, for state employees when the number of employees and maximum amounts of compensation are statutorily authorized as provided by Arkansas Constitution, Article 16, § 4, irrespective of the financial resources compensating such employees within this subclassification and when the method of salary disbursing of the institutions of higher education involves payment from state agency bank funds of the institution, subject to reimbursement to the institution for such amounts as are properly payable from funds in the State Treasury. However, the state's financial management system may include in the subclassification of regular salaries the following:
1. Extra Salaries. This description includes all special remuneration received by state employees in addition to regular salary that is authorized by law. Any state agency which receives an appropriation for extra salaries may pay eligible employees at the following rates:
  1. Physicians who are certified by the American specialty boards, at a rate of pay not to exceed four thousand five hundred dollars ($4,500) per fiscal year;
  2. Physicians who are eligible to be certified by the American specialty boards, at a rate of pay not to exceed two thousand five hundred dollars ($2,500) per fiscal year; and
  3. Physicians certified in child psychiatry or forensic psychiatry, an additional two thousand five hundred dollars ($2,500) per fiscal year will be allowed with the total additional compensation not to exceed seven thousand dollars ($7,000) per fiscal year;
2. Special Compensation. This description includes special remuneration when authorized by law for employee suggestion awards; and
3. The payment of extra salaries and special compensation when authorized by law shall be considered to be in addition to the maximum amounts of compensation set by law for regular salaries;
Extra Help.
1. This subclassification shall be used for payment of all salaries and compensation of part-time or temporary employees, as authorized by law, who are employed one thousand five hundred (1,500) hours per fiscal year or less.
2. This subclassification may be used to pay part-time or temporary employees who are employed for more than one thousand five hundred (1,500) hours per fiscal year if specific authorization is provided by law and if such use is within standards established by the Secretary of the Department of Finance and Administration.
3. In no case shall any extra-help funds be used for the purposes of paying additional compensation to a full-time state employee.
4. “State employee” means any employee occupying a regular salaried position for a state agency, board, commission, department, or institution of higher education;
Overtime. This subclassification is applicable for payment of services performed in excess of normal hours of work during a specific time when specifically authorized by law; and
Personal Services Matching.
1. This subclassification shall represent the state agency's proportion of the amounts necessary to contribute the state agency's share or to match the deductions from the salaries of state employees for:
  1. Social Security;
  2. Retirement;
  3. Group employee insurance programs;
  4. Workers' compensation;
  5. Unemployment compensation contributions; and
  6. A state contribution for state employee retirees who are eligible to participate in the health and life insurance programs offered by the state as defined by § 21-5-411 and as authorized by the Chief Fiscal Officer of the State.
2. The Chief Fiscal Officer of the State may make appropriate reclassifications of the state agency's appropriation for maintenance and general operation to effect the payment of personal services matching as described in this section.

History. Acts 1973, No. 876, § 12; 1977, No. 813, § 1; 1979, No. 833, §§ 1, 2; 1981, No. 741, § 1; 1981, No. 924, § 1; 1983, No. 628, § 1; 1985, No. 365, §§ 2, 3, 12; A.S.A. 1947, § 13-338; Acts 1987, No. 646, § 1; 1999, No. 1280, § 11; 2001, No. 1453, § 10; 2005, No. 251, § 2; 2017, No. 365, § 2; 2019, No. 910, § 3453.

Amendments. The 2005 amendment inserted “fiscal” preceding “year” throughout (1)(A) and (2); and inserted “per fiscal year” at the end of (1)(A)(iii).

The 2017 amendment substituted “one thousand five hundred (1,500)” for “one thousand (1,000)” in (2)(A) and (2)(B).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (2)(B).

19-4-522. Maintenance and general operation.

The maintenance and general operation classification shall cover items of expense necessary for the proper and efficient operation of the state agency, authority, board, commission, department, or institution of higher education, except as otherwise classified in this subchapter.
It is recognized that in those instances where the maintenance and general operation line-item classification is not subclassified, the state agency is authorized to expend moneys for operations in compliance with the intent of this subchapter.
In the event an appropriation for maintenance and general operation authorized for a state agency, board, department, or institution is restricted in its use by budget classification as set out in subsection (d) of this section, transfers between such classifications may be made subject to the procedures set out as follows:
1. In the event the amount of any of the budget classifications of maintenance and general operation in an agency's appropriation act are found by the administrative head of the agency to be inadequate, then the agency head may request, upon forms provided for such purpose by the Chief Fiscal Officer of the State, a modification of the amounts of the budget classification. In that event, he or she shall set out on the forms the particular classifications for which he or she is requesting an increase or decrease, the amounts thereof, and his or her reasons therefor. In no event shall the total amount of the budget exceed either the amount of the appropriation or the amount of the funds available, nor shall any transfer be made from the capital outlay or data processing subclassification unless specific authority for such transfers is provided by law, except for transfers from capital outlay to data processing when determined by the Division of Information Systems that data processing services for a state agency can be performed on a more cost-efficient basis by the division than through the purchase of data processing equipment by that state agency;
2. In considering the proposed modification as prepared and submitted by each state agency, the Chief Fiscal Officer of the State shall make such studies as he or she deems necessary. If the requested transfer would, when added to other transfers previously approved during the fiscal year for the same classification with the same appropriation, result in a deviation of any kind in the affected classifications of less than five percent (5%) up to a maximum of two thousand five hundred dollars ($2,500) from the classifications established by law, the Chief Fiscal Officer of the State shall approve the requested transfer if in his or her opinion it is in the best interest of the state. If the requested transfer would, when added to other transfers previously approved during the fiscal year for the same classification within the same appropriation, result in a deviation of five percent (5%) or more, or more than two thousand five hundred dollars ($2,500), the Chief Fiscal Officer of the State shall submit the request, along with his or her recommendation, to the Legislative Council for its advice prior to approving the request; and
3. In the event any state agency shall expend or obligate any approved budget in excess of the maximum classification, the Chief Fiscal Officer of the State shall study the reasons for such excess expenditures and shall take immediate steps to correct such excess spending as he or she deems necessary after notification of such actions has been sent to the Legislative Council.
Maintenance and general operation may be further categorized into the following subclassifications and the expenses thereof to be used according to the subclassification:
1. Operating Expenses. This subclassification shall entail the following, but not necessarily be limited thereto:
  1. Postage, telephone, and telegraph;
  2. Transportation of commodities or objects;
  3. Printing;
  4. State-owned motor vehicle expenses;
  5. Advertising;
  6. Minor and major repairs;
  7. Maintenance contracts;
  8. Utilities and fuel;
  9. Insurance premiums, surety and performance bonds, and association dues and memberships;
  10. Contractual services not otherwise classified;
  11. Consumable supplies, materials, and commodities;
  12. Books, publications, and newspapers;
  13. Court costs;
  14. Equipment not capitalized;
  15. Applicable petty cash reimbursements, laundry, and taxes;
  16. Travel, subsistence, meals, lodging, transportation of state employees or officials, and nonstate employees traveling on official business;
  17. 1. Uniforms the agency requires its employees to wear as part of the job.
    2. Clothing items purchased for its employees and not required to be worn during working hours, or which are purchased for the promotion of the agency, shall not be subclassified as an operating expense;
  18. Such other items of operating expense as shall be provided by the appropriation act or under reasonable rules and procedures issued by the Chief Fiscal Officer of the State; and
  19. Debt service on equipment or measures required by a guaranteed energy cost savings contract executed under the Guaranteed Energy Cost Savings Act, § 19-11-1201 et seq., or an energy efficiency project financed under the State Entity Energy Efficiency Project Bond Act, § 15-5-1801 et seq.;
2. Conference and Travel Expenses. This subclassification shall include:
  1. The costs of an employee attending a conference, seminar, or training program; and
  2. The costs of a state agency-sponsored or hosted conference, seminar, or training program where the expenses are not otherwise classified according to this section;
3. Professional Fees. This subclassification shall include the expenses for contractual agreements entered into by the state agency with an individual, partnership, corporation, or anyone other than a state employee to provide a particular document, report, speech, study, or commodity other than those contractual agreements that by their nature would be classified elsewhere in this subchapter;
4. Capital Outlay. This subclassification is to include the following expenses, but is not necessarily limited thereto by virtue of other classifications recognized by this subchapter:
  1. Purchase of land, buildings, equipment, furniture, and fixtures; and
  2. Contractual agreements, all of which are to be capitalized from the maintenance and general operation classification of appropriation; and
5. Data Processing. This subclassification includes purchase of data processing services from the division, or others, and other expenses that are not necessarily classified elsewhere in this section by virtue of the appropriation based upon budgets presented for consideration.
Notwithstanding this section or any other law to the contrary, state-supported colleges and universities may utilize maintenance and operation appropriations for the payment of moving expenses of employees, including new hires.

History. Acts 1973, No. 876, § 12; 1977, No. 813, § 1; 1979, No. 833, §§ 1, 2; 1981, No. 741, § 1; 1981, No. 924, § 1; 1983, No. 628, § 1; 1985, No. 365, §§ 2, 3, 12; A.S.A. 1947, § 13-338; Acts 1987, No. 646, § 2; 1997, No. 342, § 40; 1997, No. 1211, § 29; 2001, No. 163, § 1; 2001, No. 1453, § 11; 2013, No. 554, § 1; 2013, No. 1252, § 5; 2019, No. 315, § 1710; 2019, No. 910, §§ 6080, 6081.

A.C.R.C. Notes. Acts 2016, No. 38, § 4, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 38, § 5, provided:

“TRANSFERS OF APPROPRIATION. In the event the amount of any of the budget classifications of maintenance and general operation in this act are found by the administrative head of the agency to be inadequate, then the agency head may request, upon forms provided for such purpose by the Chief Fiscal Officer of the State, a modification of the amounts of the budget classification. In that event, he or she shall set out on the forms the particular classifications for which he or she is requesting an increase or decrease, the amounts thereof, and his or her reasons therefor. In no event shall the total amount of the budget exceed either the amount of the appropriation or the amount of the funds available, nor shall any transfer be made from the capital outlay or data processing subclassifications unless specific authority for such transfers is provided by law, except for transfers from capital outlay to data processing when determined by the Department of Information Systems that data processing services for a state agency can be performed on a more cost-efficient basis by the Department of Information Systems than through the purchase of data processing equipment by that state agency. In considering the proposed modification as prepared and submitted by each state agency, the Chief Fiscal Officer of the State shall make such studies as he or she deems necessary. The Chief Fiscal Officer of the State shall, after obtaining the approval of the Legislative Council or Joint Budget Committee, approve the requested transfer if in his or her opinion it is in the best interest of the state.

“The General Assembly has determined that the agency in this act could be operated more efficiently if some flexibility is given to that agency and that flexibility is being accomplished by providing authority to transfer between certain items of appropriation made by this act. Since the General Assembly has granted the agency broad powers under the transfer of appropriations, it is both necessary and appropriate that the General Assembly maintain oversight of the utilization of the transfers by requiring prior approval of the Legislative Council in the utilization of the transfer authority. Therefore, the requirement of approval by the Legislative Council is not a severable part of this section. If the requirement of approval by the Legislative Council is ruled unconstitutional by a court of competent jurisdiction, this entire section is void.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 123, § 7, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 125, § 3, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 127, § 4, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 127, § 5, provided:

“TRANSFERS OF APPROPRIATIONS. In the event the amount of any of the budget classifications of maintenance and general operation in this act are found by the administrative head of the agency to be inadequate, then the agency head may request, upon forms provided for such purpose by the Chief Fiscal Officer of the State, a modification of the amounts of the budget classification. In that event, he shall set out on the forms the particular classifications for which he is requesting an increase or decrease, the amounts thereof, and his reasons therefor. In no event shall the total amount of the budget exceed either the amount of the appropriation or the amount of the funds available, nor shall any transfer be made from the capital outlay or data processing subclassifications unless specific authority for such transfers is provided by law, except for transfers from capital outlay to data processing when determined by the Department of Information Systems that data processing services for a state agency can be performed on a more cost-efficient basis by the Department of Information Systems than through the purchase of data processing equipment by that state agency. In considering the proposed modification as prepared and submitted by each state agency, the Chief Fiscal Officer of the State shall make such studies as he deems necessary. The Chief Fiscal Officer of the State shall, after obtaining the approval of the Legislative Council, approve the requested transfer if in his opinion it is in the best interest of the state.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 134, § 4, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 191, § 9, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 191, § 10, provided:

“Upon determination by the Director of the Department of Human Services that a Reallocation of Resources is necessary for the effective operation of the Medicaid Expansion Program Grants, the director, with the approval of the Governor, shall have the authority to request from the Chief Fiscal Officer of the State a transfer of Appropriation. This transfer authority applies only to Section 5 Medicaid Expansion Program Grants of this Act between Hospital and Medical Services Item (01) and Prescription Drugs Item (02). The limitation restrictions applicable to the Department Reallocation of Resources authority applies to this section.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 224, § 4, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 224, § 5, provided:

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2017, No. 120, § 7, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2017 through June 30, 2018.”

Acts 2017, No. 121, § 4, provided:

“TRANSFER RESTRICTIONS. The appropriations provided in this act shall not be transferred under the provisions of Arkansas Code 19-4-522, but only as provided by this act.

“The provisions of this section shall be in effect only from July 1, 2017 through June 30, 2018.”

Amendments. The 2013 amendment by No. 554 added (d)(1)(S).

The 2013 amendment by No. 1252 added “or an energy efficiency project financed under the State Entity Energy Efficiency Project Bond Act” to the end of (d)(1)(S).

The 2019 amendment by No. 315 deleted “regulations” following “rules” in (d)(1)(R).

The 2019 amendment by No. 910 substituted “Division of Information Systems” for “Department of Information Systems” twice in the last sentence of (c)(1) and in (d)(5).

Case Notes

Printing and Duplicating Equipment.

The exercise by the Department of Correction of an option to purchase certain printing and duplicating equipment based upon an appropriations law authorizing the expenditure of a greater amount on “maintenance and general operation” satisfied the requirements of Ark. Const., Art. 5, § 29, and Ark. Const., Art. 16, § 12, as to sufficient specificity since §§ 19-4-520 — 19-4-525 place all appropriations under six separate headings, including “maintenance and general operation” and since this section further defines this classification to include equipment; thus, the purchase of equipment was a proper expenditure of funds appropriated for maintenance and general operation. Wells v. Heath, 274 Ark. 45, 622 S.W.2d 163 (1981).

19-4-523. Grants, assistance, and special aid.

This classification shall be applicable to all appropriations made by the General Assembly from state, federal, or other moneys for educational assistance, welfare grants, rehabilitation services, aid to counties and municipalities, and to all other special appropriations which have for their purpose the appropriating of state, federal, or other moneys for public benefits.

History. Acts 1973, No. 876, § 12; 1977, No. 813, § 1; 1979, No. 833, §§ 1, 2; 1981, No. 741, § 1; 1981, No. 924, § 1; 1983, No. 628, § 1; 1985, No. 365, §§ 2, 3, 12; A.S.A. 1947, § 13-338.

19-4-524. Construction and permanent improvements.

The construction and permanent improvements classification shall be determined by the language of the appropriation acts which make available funds for construction and new improvements. For the purpose of classifying the expenditures under any such appropriation, all the necessary expenses in connection therewith shall be deemed to be part of the construction costs. Such items of expense shall be deemed to include, but are not necessarily limited to, the following:
1. Advertising for bids;
2. Architects, engineers, and other professional services in connection with the proposed projects; and
3. The payment of estimates on the various contracts in connection with such construction programs. All construction and improvements of whatever nature shall be subject to the provisions of §§ 19-4-1401 — 19-4-1412 and to the rules promulgated by the Chief Fiscal Officer of the State. No state agency for which appropriations have been made by the General Assembly for construction or improvements shall make any contract or incur any indebtedness payable from such appropriations unless and until there are sufficient funds on hand, for the benefit of any agency, to pay for the proposed obligations under such contracts. However, any such agency shall have the power to accept and use grants and donations and to use its unobligated cash income or other funds available to it for the purpose of supplementing the appropriations for construction purposes. The appropriations and funds otherwise provided by the General Assembly for personal services, maintenance, and general operation of the agency shall not be used in connection with any proposed construction projects for which specific appropriations have been made by the General Assembly, except for minor repairs and maintenance.
The restrictions of this section shall not apply to contracts approved by the State Highway Commission for construction of roads and bridges in the highway system.
The Chief Fiscal Officer of the State is authorized to reclassify but not consolidate an agency's appropriation for construction to effect the payment of construction-related costs in the appropriate classification as described in this subchapter using the state's financial management system to invoke budget control.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in the second sentence of (a)(3).

19-4-525. Special appropriations.

All other appropriations made by the General Assembly which do not come under any of the classifications mentioned in this section shall be considered to be special appropriations and shall be used only for the specific purposes for which such appropriations are made. Except as otherwise provided by law, an agency receiving a special appropriation may not expend funds from any appropriation other than from the special appropriation for the special purpose covered by the special appropriation. However, the state's financial management system may invoke additional budget control using features of the system that are in addition to the appropriations of the General Assembly.
In order to allow for full disclosure of investment transactions, to make available special reports on investment transactions, and to isolate investment expenditures from normal expenditures, the Chief Fiscal Officer of the State is authorized to establish separate appropriation codes for investments and to transfer to such appropriations from the investment line item as established in the agency appropriation acts.

19-4-526. [Repealed.]

Publisher's Notes. This section, concerning budget classification transfers, was repealed by Acts 1995, No. 1296, § 68. The section was derived from Acts 1979, No. 164, §§ 1, 2; A.S.A. 1947, § 13-338.1.

19-4-527. Authority of Treasurer of State to use certain funding for operations.

The Treasurer of State is authorized to utilize the funding for maintenance and general operations provided for in the Constitutional Officers Fund and State Central Services Fund to allow for reconciling items which may occur in the operations of the office.
Policies and procedures for proper accounting of reconciling items shall be developed by the Treasurer of State with the advice and approval of the Legislative Joint Auditing Committee.

History. Acts 1983, No. 702, §§ 1, 2; A.S.A. 1947, § 13-338.4.

Cross References. Transfer of funds, § 19-5-106.

Subchapter 6 — Annual Operations Plans of State Agencies

Publisher's Notes. Acts 1973, No. 876, § 11, as amended by Acts 1977, No. 486, § 1, provided, in part, that the Chief Fiscal Officer of the State, after consultation with the Legislative Council, should develop a plan for the orderly implementation of the provisions of this subchapter by the various state agencies affected.

Preambles. Acts 1973, No. 876, contained a preamble which read:

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1989, No. 183, § 4: Feb. 22, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that State agencies are devoting too much time and effort into the preparation of a multitude of reports; that the annual report required by § 19-4-609 is in many instances redundant to other reports and is itself not cost effective nor efficient; that Arkansas Code 19-4-609 requires each State agency to transmit an annual productivity report no later than August 1 of each year; and that this Act should go into effect immediately in order to alert each State agency that the report will not be required hereafter. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 1354, § 51: Apr. 14, 1997. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act affects the method of selection of alternate members of the Legislative Council and Legislative Joint Auditing Committee and that this act is immediately necessary for proper continuity and efficiency in State government. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

19-4-601. Responsibility generally.

Except as limited by appropriations and funding by the General Assembly and other provisions of law, state agencies shall have the authority and responsibility to administer their programs as authorized by the General Assembly and shall be responsible for their proper management.

History. Acts 1973, No. 876, § 9; A.S.A. 1947, § 13-335.

19-4-602. Compliance and approval required.

No state agency may increase the salaries of its employees, employ additional employees, expend money, or incur any obligations except in accordance with law and with a properly approved annual operations plan which includes a quarterly fiscal program.
Appropriations subject to the provisions of this subchapter shall not be available for expenditures or encumbrance until the state agency has complied with the provisions of this subchapter.

History. Acts 1973, No. 876, § 9; A.S.A. 1947, § 13-335.

19-4-603. Exemptions generally.

Appropriations for retirement benefits, refunds, and Social Security requirements of the teacher and public employees retirement systems shall be excluded from the provisions of this subchapter.

History. Acts 1973, No. 876, § 11; A.S.A. 1947, § 13-337.

19-4-604. State-supported institutions of higher education.

At least thirty (30) days prior to the commencing of each fiscal year, the Chief Fiscal Officer of the State shall make studies for the purpose of estimating the anticipated amounts of general revenues to be available for distributions under the provisions of the Revenue Stabilization Law, § 19-5-101 et seq., for the fiscal year. The Chief Fiscal Officer of the State shall compute the estimated amounts of general revenues to be available for allocation to the respective State Treasury accounts in accordance with their percentage distributions of general revenues under the provisions of the Revenue Stabilization Law, § 19-5-101 et seq.
The Chief Fiscal Officer of the State shall certify to each of the respective state-supported institutions of higher education, at least thirty (30) days prior to the commencement of each fiscal year, the estimated amounts of general revenues to be available for distribution to the State Treasury account for their respective institutions. The Chief Fiscal Officer of the State shall include in each certification the quarterly allocations thereof that are estimated to be available for expenditures based upon these estimates.
Upon receipt of the estimated amounts to be available for expenditure and after reviewing the quarterly allocation thereof as submitted by the Chief Fiscal Officer of the State, any such institution may request revisions in the proposed quarterly allotments as certified by the Chief Fiscal Officer of the State.
The Chief Fiscal Officer of the State, with the advice and consent of the Division of Higher Education, shall approve requested revisions in the proposed quarterly allotments if he or she shall determine that:
1. The proposed revisions in quarterly allotments do not exceed the aggregate of the estimated funds to be available from estimates of anticipated revenues and fund balances in the institution's account in the State Treasury for the fiscal year; and
2. The revised quarterly allotments will not impose an undue hardship upon other allotments of revenues and other financial commitments to be met from the distributions of general revenues during the fiscal year.
The Chief Fiscal Officer of the State shall periodically review the estimates of projected general revenue collections anticipated to be available during a fiscal year. The Chief Fiscal Officer of the State may make revisions in the amounts certified to the respective institutions of higher education based upon these estimates and may revise the quarterly amounts certified to each agency based upon the revised estimates.
Institutions of higher education may, from time to time, request revisions in the quarterly allotments of moneys where needs of the institution require revisions thereof.
Any unexpended balances remaining at the end of each fiscal year shall be transferred forward and made available for the support of the institutions of higher education for the following fiscal year.
The budget execution provisions set forth in this section shall be applicable to all state-supported institutions of higher education, and except for the annual fiscal program requirements, the provisions of §§ 19-4-601, 19-4-602, and 19-4-607 — 19-4-609 shall not apply to these institutions; they shall be governed by the provisions of this section and by procedures established under authority of § 6-61-209.
The division shall coordinate with the Chief Fiscal Officer of the State for administering the provisions of this section.

History. Acts 1973, No. 876, § 11; 1977, No. 486, § 1; A.S.A. 1947, § 13-337; Acts 1995, No. 1296, § 69; 2019, No. 910, §§ 2253, 2254.

Amendments. The 2019 amendment substituted “Division of Higher Education” for “Department of Higher Education” in the introductory language of (d) and in (i).

19-4-605, 19-4-606. [Repealed.]

Publisher's Notes. These sections, concerning strategic planning and performance budgeting and accountability system, were repealed by Acts 2005, No. 237, § 2[3], which contained two sections designated as “Section 2.” The repealed sections were derived from the following sources:

19-4-605. Acts 1973, No. 876, § 9; A.S.A. 1947, § 13-335; Acts 2001, No. 221, § 1; 2003, No. 1463, §§ 1, 9.

19-4-606. Acts 1973, No. 876, § 9; A.S.A. 1947, § 13-335; Acts 2001, No. 221, § 2; 2003, No. 1463, §§ 2-7, 10, 11.

19-4-607. Review and approval of annual operations plans.

Each state agency other than the elected constitutional officers, the legislative branch and its staff offices, the judicial branch and its staff offices, the Arkansas Department of Transportation, the Office of the Arkansas Lottery, the state-supported institutions of higher education, and the Arkansas State Game and Fish Commission shall prepare an annual operations plan for the operation of each of its assigned programs for submission to the Chief Fiscal Officer of the State.
The annual operations plan shall be prepared in the form and content determined by the Chief Fiscal Officer of the State and shall be transmitted to the Department of Finance and Administration on the date prescribed by the Chief Fiscal Officer of the State.
In years when the General Assembly meets in regular session, the annual operations plan shall be prepared after adjournment of the regular session and shall take fully into consideration all applicable laws, including appropriations, and shall be submitted to the Department of Finance and Administration on a date set by the Chief Fiscal Officer of the State but prior to July 1 of that year.
The Chief Fiscal Officer of the State shall:
1. Review each annual operations plan to determine that:
  1. It is consistent with the policy decisions of the General Assembly and the Governor;
  2. Appropriations and funding have been provided by the General Assembly;
  3. It reflects proper planning and efficient management methods; and
  4. Appropriations and funding have been made for the planned purpose and will not be exhausted before the end of the fiscal year; and
2. 1. 1. Approve the annual operations plan if he or she is satisfied that it meets all requirements.
    2. Otherwise, he or she shall require necessary revisions of the plan in whole or in part.
  2. However, nothing in this section shall be construed to allow the Chief Fiscal Officer of the State to substitute his or her individual judgment as to the operation or necessity of any program of any state agency for the judgment of the executive head or board or commission charged with the responsibility for the operation and control of that agency.
Each annual operations plan shall indicate:
1. The appropriation and funding provided by the General Assembly;
2. A detailed budget by quarters; and
3. Any other supporting or related information required by the Chief Fiscal Officer of the State or requested by a legislative interim committee, including the Legislative Council.

History. Acts 1973, No. 876, § 9; A.S.A. 1947, § 13-335; Acts 1997, No. 1354, § 36; 2001, No. 221, § 3; 2009, No. 605, § 15; 2009, No. 606, § 15; 2015, No. 218, § 14; 2017, No. 707, § 43.

Amendments. The 2009 amendment by identical acts Nos. 605 and 606 inserted “the Arkansas Lottery Commission” in (a), and made a related change.

The 2015 amendment substituted “Office of the Arkansas Lottery” for “Arkansas Lottery Commission” in (a).

The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department” in (a).

Cross References. Appropriations code manual, § 19-4-519.

Meeting by Joint Budget Committee and House Interim Budget Committee during the interim, § 10-3-509.

19-4-608. Fiscal controls.

In order to provide proper fiscal controls, the Chief Fiscal Officer of the State shall assure the implementation of the procedures set out in this section:

The annual operations plan of each state agency shall contain a quarterly fiscal program indicating the proposed expenditures and anticipated resources for each quarter of the ensuing fiscal year. Anticipated resources shall be based upon forecasted resources estimated to be available by the Chief Fiscal Officer of the State. In the event a revision of forecasted resources is made during a fiscal year, those agencies affected by the revised forecast shall submit a new quarterly fiscal program based upon the revised forecast;
The Chief Fiscal Officer of the State shall review and approve the quarterly fiscal program if he or she finds that the forecasted resources will be adequate for financing the proposed program during the fiscal year and for each quarter or other appropriate period within the fiscal year;
In the event an agency incurs expenses at a level that would exceed the proposed expenditures in their quarterly fiscal program, the Chief Fiscal Officer of the State may require the submission of a revised quarterly fiscal program which reduces expenditures for the remainder of the fiscal year to a total which is within the level of the estimated resources available to the agency. Remaining appropriations will be unavailable to the agency until the revised program has been submitted and approved; and
In case the Chief Fiscal Officer of the State determines that the estimated revenues or other sources of income for any agency will be less than was anticipated and that consequently the funds available for the remainder of the fiscal year will be less than the amount estimated, he or she shall reduce the amount of available appropriation to the level of expected revenue after notice to the agency.

History. Acts 1973, No. 876, § 9; A.S.A. 1947, § 13-335; Acts 2001, No. 1453, § 14.

19-4-609. Productivity reporting.

Each state agency, other than the elected constitutional officers, shall institute and maintain a program to increase the productivity and cost effectiveness of the employees for which the state agency is responsible.
1. On or before the twentieth day of each month, each executive, judicial, legislative, and other state agency shall provide to the Bureau of Legislative Research the following information as of the last day of the immediately preceding month:
  1. The number of appropriated positions, including without limitation all positions appropriated in a state agency's current appropriation act and any additional positions approved during the interim;
  2. The number of temporary transition pool positions created in the interim and active for the month;
  3. 1. The number of full-time employees, including part-time employees in full-time positions.
    2. If two (2) or more part-time employees share a full-time position, only one (1) employee shall be included in the number;
  4. The number of vacant positions that are budgeted;
  5. The number of vacant positions that are unbudgeted;
  6. The number of appropriated extra-help positions, including without limitation all extra-help positions appropriated in a state agency's current appropriation act and any extra-help positions approved during the interim;
  7. The number of extra-help employees;
  8. The number of vacant extra-help positions;
  9. The total amount of overtime paid out during the month;
  10. The total amount of straight time paid out during the month;
  11. The total number of compensatory time hours taken during the month; and
  12. Any other information requested by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.
2. On or before the twentieth day of each month, each institution of higher education shall provide to the Bureau of Legislative Research the following information as of the last day of the immediately preceding month:
  1. The number of appropriated full-time positions, including without limitation all full-time positions appropriated in an institution of higher education's current appropriation act and any additional full-time positions approved during the interim, including without limitation provisional, pool, and nine-month positions;
  2. 1. The number of full-time employees regardless of funding source, including without limitation those in provisional, pool, and nine-month positions.
    2. Nine-month staff and faculty who are removed from the payroll but are still considered to be employed by the institution of higher education and are assumed to return the next semester shall be included in the number during the months that they are not on the payroll;
  3. The number of appropriated full-time positions that are vacant;
  4. The number of part-time and extra-help positions that are appropriated and any additional part-time and extra-help positions approved during the interim;
  5. 1. The number of part-time and extra-help employees, including without limitation faculty and graduate assistants.
    2. Contract workers and students in work-study positions shall not be included in the number;
  6. The total amount of overtime paid out during the month;
  7. The total amount of straight time paid out during the month;
  8. The total number of compensatory time hours taken during the month; and
  9. Any other information requested by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.
3. The information required under this section shall be compiled by each state agency and institution of higher education on forms developed by the Bureau of Legislative Research and submitted to the Legislative Council on a calendar-quarterly basis as two (2) separate reports:
  1. One (1) report containing an average for each state agency for the quarter; and
  2. One (1) report containing an average for each institution of higher education for the quarter.
4. Each executive, judicial, legislative, and other state agency and each institution of higher education shall provide in the fourth quarter of each fiscal year a list of all positions vacant for at least one (1) year.

History. Acts 1973, No. 876, § 10; 1985, No. 110, § 1; A.S.A. 1947, § 13-336; Acts 1989, No. 183, § 1; 2005, No. 1686, § 1; 2015, No. 370, § 1.

Amendments. The 2005 amendment inserted “and each institution of higher education” in (b)(1); added present (b)(1)(F) and (b)(2); and redesignated former (b)(2) as present (b)(3).

The 2015 amendment rewrote (b).

Subchapter 7 — Expenditures Generally

Preambles. Acts 1973, No. 876, contained a preamble which read:

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 2005, No. 645, § 2: Mar. 3, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that in order to more effectively manage and administer state budgetary matters, the Chief Fiscal Officer of the State needs the flexibility to determine the fiscal year funds from which the payment is made for a pay period that begins in one (1) fiscal year and ends in the subsequent fiscal year; that positions that start during a pay period that covers two (2) fiscal years create budgetary and accounting issues; that the Chief Fiscal Officer needs the flexibility to determine the start date for these positions; and that this act is immediately necessary in order to provide for appropriate budgetary and accounting measures before the end of the current fiscal year. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

19-4-701. Fiscal periods of state.

For the purpose of this chapter, relating to the appropriation and disbursement of funds, the fiscal year of the state shall commence on July 1 and shall end on June 30 of the following year; and the biennial period, or “biennium”, shall commence on July 1 following the adjournment of the regular session of the General Assembly and end on June 30 two (2) years thereafter.
1. The definition of the fiscal year, for the purposes of this chapter, shall not be construed to affect special appropriations where no fiscal period is defined in the act making such special appropriation or affect the bond year for other fiscal transactions.
2. 1. In the case of special appropriations where the emergency clause has been adopted by the General Assembly and where no period of time is mentioned in the act making the appropriation, the appropriation shall be construed to be available for a two-year period from and after the effective date of the act.
  2. In the case of special appropriations where the emergency clause has not been adopted and where no period of time is mentioned in the act making the appropriation, the appropriation shall be construed to become available ninety (90) days after the adjournment of the General Assembly. It shall be available for a two-year period from and after the date the appropriation became available.

History. Acts 1973, No. 876, § 13; A.S.A. 1947, § 13-339.

Case Notes

Attorney's Fees.

Where attorney's fees were awarded against the state, a motion for an extension of time to pay fees was not granted where the state had funds to cover the fees owed and there were no state-law restrictions. Jeffers v. Clinton, 762 F. Supp. 257 (E.D. Ark. 1991).

19-4-702. Time limits for presenting vouchers.

1. 1. A state agency may pay carryover obligations of the state that were incurred on or before June 30 of the current fiscal year up to forty-five (45) days after the end of the current fiscal year.
  2. The carryover obligations must be supported by purchase documents with corresponding receipts for the goods or services that have been recorded as received in the state's financial management system by June 30 of the fiscal year previous to the fiscal year in which the carryover obligations are requested to be paid.
2. The payments of the carryover obligations shall be charged against appropriations and fund cash balances of the fiscal year in which the obligations were incurred.
3. Any payments for carryover obligations that are not supported by the documents as required in this subsection, or which are requested to be paid after forty-five (45) days following June 30 of the fiscal year previous to the fiscal year in which the carryover obligations are requested to be paid, shall be charged to the appropriations and fund cash balances of the then-current fiscal year.
In the event such voucher or vouchers are approved for payment, the Auditor of State shall issue his or her warrants in payment of them not later than two (2) weeks following the receipt of the vouchers from the Department of Finance and Administration.
1. In the event of a just claim against any state agency, when the claim is submitted too late for payment in the manner prescribed in this section and the state agency affected has an appropriation for the same purpose for the fiscal period following that period in which the claim was incurred, then the disbursing agent may draw his or her voucher in the payment of the claim against the new appropriation, but only in the event there were sufficient funds and appropriations for the prior year to cover the claim.
2. Otherwise, the claim must be submitted to the Arkansas State Claims Commission for payment.
1. 1. In the event a biweekly pay period for personal services, as defined in §§ 19-4-521 and 19-4-1607, commences in the closing period of one (1) fiscal period and either ends in the following fiscal year or is paid in the following fiscal year, then the payment of the obligation may be made in whole from the appropriation for either fiscal period, as determined by the Chief Fiscal Officer of the State.
  2. However, in no event shall any obligation be incurred unless there are funds on hand or estimated to become available to meet the obligation when it becomes due.
2. 1. For purposes of wages and compensation, the Chief Fiscal Officer of the State may determine the starting date of authorized job classifications and positions to coincide with the payment of the obligation under subdivision (d)(1) of this section.
  2. However, the determination under subdivision (d)(2)(A) of this section shall not cause any state fiscal year to be charged with fewer than twenty-six (26) or more than twenty-seven (27) biweekly pay periods.
1. All state agencies may carry over from the first fiscal year of any biennium to the second fiscal year of the biennium any unexpended appropriations and funds to the extent necessary to pay for items or commodities ordered at least ninety (90) days prior to the end of the first fiscal year but not received until after the end of the first fiscal year, if the purchase of such items and commodities is substantiated by a written contract resulting from the receipt of a formal bid.
2. 1. All state agencies may carry over from the first fiscal year of any biennium to the second fiscal year of the biennium any unexpended maintenance and operation appropriations and funds, as defined under § 19-4-522, to the extent necessary to pay for renovation and minor and major repairs under the jurisdiction of the Building Authority Division which were under contract at least ninety (90) days prior to the end of the first fiscal year but which will not be completed until after the end of the first fiscal year and are substantiated by written contracts.
  2. This carryover provision shall apply only to appropriations and funds involving maintenance and operations.
3. This subsection shall be supplemental to any other authority granted any state agency by law to carry forward unexpended fund balances from one (1) fiscal year to another.

History. Acts 1973, No. 876, § 13; 1977, No. 486, § 3; 1979, No. 833, § 4; 1985, No. 365, § 4; A.S.A. 1947, § 13-339; Acts 2001, No. 71, § 1; 2001, No. 1453, § 15; 2005, No. 645, § 1; 2019, No. 910, § 6082.

Amendments. The 2005 amendment inserted the subdivision (1)(A) and (1)(B) designations in (d); in present (d)(1)(A), inserted “either” following “fiscal period and” and “or is paid in the following fiscal year”; and added (d)(2).

The 2019 amendment deleted “of the Department of Finance and Administration” following “Building Authority Division” in (e)(2)(A).

19-4-703. Redemption of warrants.

No warrant issued by the Auditor of State shall be payable by the Treasurer of State unless it shall have been presented for payment within the twelve (12) months immediately following the close of the fiscal year or other appropriate fiscal period against which appropriation the warrant was charged.

History. Acts 1973, No. 876, § 13; A.S.A. 1947, § 13-339.

19-4-704. No obligations without appropriations.

No obligations will be paid from appropriated funds until the General Assembly shall have made an appropriation for that purpose; nor shall any state agency enter into any contract which would contemplate that payments under the contracts would be made beyond the expiration of the biennial period unless the General Assembly, prior to the expiration of the biennial period, makes an appropriation for that purpose, or in the case of multiyear contracts for commodities or services, a determination in writing has been made prior to use that:
1. Estimated requirements cover the period of the contract and are reasonably firm and continuing; and
2. Such a contract would serve the best interests of the state by encouraging effective competition or otherwise promoting economies in state procurement.
In no event shall any obligations be incurred unless there are sufficient funds or an approved federal grant on hand, or estimated to become available, to meet the obligations when they become due.

History. Acts 1973, No. 876, § 13; 1985, No. 365, § 6; A.S.A. 1947, § 13-339.

19-4-705. Obligations limited to funds available.

No state agency for which regular operating appropriations are made on a fiscal-year basis shall incur any obligations under the appropriations unless there are funds on hand or an approved federal grant, or estimated to become available, during the fiscal year for the payment of the obligation; nor shall any agency create any obligation in one (1) fiscal year which will make it necessary to use the revenues of the following fiscal year in order to meet the obligation except in the case of multiyear contracts for commodities or services and as provided in § 19-4-707.
In the event an agency had bank funds which are not required by law to be deposited into the State Treasury, the agency shall have the authority to create additional obligations to the extent of the bank funds on hand, or which are estimated to become available during the fiscal period. However, the agency shall not create any obligations, in the aggregate, which would make the total of such obligations exceed the total of all funds available to the agency during the fiscal period, except in the case of multiyear contracts for commodities or services and as provided in § 19-4-707.

History. Acts 1973, No. 876, § 13; 1985, No. 365, § 6; A.S.A. 1947, § 13-339.

19-4-706. Interest and carrying charges.

State agencies, including exempt agencies, may enter into contracts which contemplate the payment of interest, late charges, but only when such late charges are incurred sixty (60) days after payment is due, or carrying charges under such rules as may be promulgated by the State Procurement Director.

History. Acts 1973, No. 876, § 25; 1985, No. 365, § 13; A.S.A. 1947, § 13-351; Acts 1997, No. 1066, § 1; 2019, No. 315, § 1712.

Amendments. The 2019 amendment substituted “rules” for “regulations”.

19-4-707. Obligations for improvements.

Notwithstanding the fact that no disbursements may be made during any fiscal period in excess of the appropriations made available by the General Assembly for the fiscal period, it is provided that contracts for improvements including major repairs, alterations, and construction of new buildings and facilities may be let to the extent of the appropriations made available for those purposes for the biennial period. However, no such contracts may be let in amounts exceeding the probable funds available or which are estimated to become available during the period.

History. Acts 1973, No. 876, § 13; A.S.A. 1947, § 13-339.

19-4-708. Depletion of agency funds.

In the event any state agency shall incur obligations in such manner that the funds allocated or belonging to the agency are depleted and the agency is unable to pay all of its outstanding commitments without incurring a deficit, then the Chief Fiscal Officer of the State may suspend all exemptions under the Arkansas Procurement Law, § 19-11-201 et seq., with respect to the agency. Under these circumstances, the Chief Fiscal Officer of the State may notify the agency that all future obligations of any kind whatsoever must be approved by the Chief Fiscal Officer of the State before they become valid obligations against the funds of the agency.

History. Acts 1973, No. 876, § 13; A.S.A. 1947, § 13-339.

19-4-709. Statement of financial condition.

The Chief Fiscal Officer of the State may require, from time to time as he or she shall deem necessary, a statement from any state agency setting out the prospective funds which are estimated to become available and a statement of the outstanding obligations and of the proposed expenditures of that agency for the remainder of the fiscal period.
If, in the Chief Fiscal Officer of the State's judgment, any agency has incurred or is about to incur a deficit, the Chief Fiscal Officer of the State shall call upon the agency to stop incurring obligations, under penalty of its disbursing bond.

History. Acts 1973, No. 876, § 13; A.S.A. 1947, § 13-339.

19-4-710. Interagency transfers — Definition.

To prevent the duplication of recording expenditures and revenues resulting from interagency transactions, the Chief Fiscal Officer of the State, after securing the approval of the proposed procedures by the Legislative Auditor, may provide for an interagency transfer of moneys or recognize a journal entry to charge the expenditure to the disbursing agency without creating a warrant and to identify the cash receipt by the receiving agency.
Budget manuals prepared for the General Assembly for the biennial state budget shall identify the original revenue source of interagency transfers of funds.
As used in this section, “interagency transfer” means:
1. The purchase of services or commodities by one (1) state agency from another state agency, or within a state agency; or
2. Other transfers of funds under § 19-5-106 or other provision of law.

History. Acts 1973, No. 876, § 13; 1977, No. 486, § 3; 1979, No. 833, § 4; 1985, No. 365, § 5; A.S.A. 1947, § 13-339; Acts 2001, No. 1453, § 16; 2005, No. 1172, § 1.

Amendments. The 2005 amendment inserted present (b); redesignated former (b) as present (c); inserted the subdivision (1) designation in present (c) and made related changes; in present (c), deleted “The phrase ‘interagency transfers’” from the beginning and substituted “‘interagency transfer’ means” for “is defined and limited to the”; and added (c)(2).

19-4-711. Transfer of responsibilities.

In the event that a state agency or its responsibilities, or a part of its responsibilities, is transferred by law within a biennium to another agency, the Chief Fiscal Officer of the State shall transfer all or part of the line-item appropriations, personnel positions, and moneys necessary to accomplish the transfer of responsibilities, subject to the same restrictions and procedures applicable to the original appropriations and funds from which transferred.

History. Acts 1973, No. 876, § 13; 1977, No. 486, § 3; 1979, No. 833, § 4; 1985 No. 365, § 5; A.S.A. 1947, § 13-339.

Subchapter 8 — Expenditure of Cash Funds

Effective Dates. Acts 1977, No. 713, § 20: Mar. 24, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly that various divisions of the Department of Correction are in dire need of appropriation in order to help maintain normal operations and preserve the health and safety of the citizens of Arkansas. It is therefore resolved that an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1991, No. 21, § 6: Feb. 1, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly, that certain provisions of previous enactments of the Arkansas General Assembly providing for the preexpenditure voucher examination and approval of cash funds of the various State Agencies were not incorporated into the Arkansas Code of 1987 Annotated; that such provisions are vitally necessary in order to ensure that the expenditure of Cash Funds are processed in such a manner as to protect the financial integrity of the State; and that this Act will restore such previous enactments of law. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 1000, § 30: July 2, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that the laws of this State concerning the insurance matters covered in this Omnibus Act are inadequate for the protection of the public. Further, the laws of this State as to Small Employer Health Insurance are not consistent with federal laws, particularly the Health Insurance Portability and Accountability Act of 1996 of the U.S. Congress; and the immediate passage of this Act is necessary in order to provide for the protection of the public. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in effect from and after July 2, 1997. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2003, No. 656, § 10: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that proper and effective management requires that changes to the finance and accounting laws of the state begin on the first day of the fiscal year; that the changes being made are important to the financial well being of the state particularly during the difficult financial climate the state is currently facing; and that this act is immediately necessary to allow for the finance and accounting changes to go into effect on the first day of the fiscal year for the proper and effective management of this state. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2003.”

Acts 2009, No. 1405, § 57: Apr. 9, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the people of the State of Arkansas overwhelmingly approved the establishment of lotteries at the 2008 General Election; that the Eighty-seventh General Assembly adopted Acts 605 and 606 of 2009 that implemented lotteries and made corresponding revisions to the Arkansas Academic Challenge Scholarship Program; that this bill amends provisions of Acts 605 and 606 of 2009 pertaining to lotteries and the Arkansas Academic Challenge Scholarship Program; and that the failure to immediately implement this act will cause a reduction in lottery proceeds that will harm the educational and economic success of potential students eligible to receive scholarships under the act. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 296, § 4: Feb. 28, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that that this act amends the investment authority of the Treasurer of State and the ability of other participants to invest in the State Treasury Money Management Trust; that this act affects the ability of the Treasurer of State to invest state funds and take immediate advantage of investment opportunities to benefit the state and public entities of the state; and that this act is immediately necessary to allow for implementation of the new investment authority provisions to take full advantage of investment opportunities to benefit the State of Arkansas. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

19-4-801. Definitions.

As used in this subchapter:

“Cash funds” means all moneys, negotiable instruments, certificates of indebtedness, stocks, and bonds held by or owned by any state agency which are not on deposit with or in the trust of the Treasurer of State; and
1. “State agency” means all boards, commissions, departments, agencies, institutions, offices or officers, state-supported institutions of higher education, and any other office or unit of government of the State of Arkansas created or established pursuant to law or pursuant to any action of the Governor, functioning under appropriation made by the General Assembly or functioning as a representative of the state without appropriation of the General Assembly.
2. “State agency” shall not include the:
  1. Governor;
  2. Secretary of State;
  3. Attorney General;
  4. Treasurer of State;
  5. Auditor of State;
  6. Commissioner of State Lands;
  7. Supreme Court and its justices;
  8. Circuit courts and circuit judges;
  9. Prosecuting attorneys;
  10. Arkansas State Game and Fish Commission;
  11. Arkansas Department of Transportation;
  12. 1. Office of the Arkansas Lottery.
    2. However, the office shall be considered a state agency for the purposes of § 19-4-810 et seq.;
  13. General Assembly; and
  14. Respective staffs of the officers and agencies listed in this subdivision (2)(B).

History. Acts 1975, No. 5, §§ 1, 2; A.S.A. 1947, §§ 13-356, 13-357; Acts 2005, No. 1962, § 79; 2009, No. 605, § 16; 2009, No. 606, § 16; 2009, No. 1405, § 25; 2015, No. 218, § 15; 2017, No. 707, § 44.

Amendments. The 2015 amendment substituted “Office of the Arkansas Lottery” for “Arkansas Lottery Commission” in (2)(B)(xii) (a) ; and, in (2)(B)(xii) (b) , substituted “office” for the “Arkansas Lottery Commission” and substituted “et seq.” for “— 19-4-816”.

The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department” in (2)(B)(xi).

Cross References. Debt service accounts, § 12-27-122.

Case Notes

Cited: Hadley v. North Ark. Cmty. Tech. College, 76 F.3d 1437 (8th Cir. 1996).

19-4-802. Authorization of General Assembly.

Cash funds of the various state agencies as defined in § 19-4-801 shall be budgeted and proposed expenditures approved by enactments of the General Assembly.
The General Assembly shall budget, approve, and appropriate expenditures of cash funds by the enactment of separate appropriation bills setting forth the purpose for which the moneys are to be expended and the dollar amount to be expended for such purpose.
State agencies as defined in § 19-4-801 shall be required to submit such budgetary information as may be requested by the Legislative Council and shall undertake whatever budgetary procedures the Legislative Council may establish for the appropriation of cash funds.
State agencies as defined in § 19-4-801 shall be required to post all financial transactions of cash funds in the state's financial management system in accordance with procedures established by the Chief Fiscal Officer of the State.

History. Acts 1975, No. 5, § 4; A.S.A. 1947, § 13-359; 2001, No. 1453, § 17.

19-4-803. Exemptions.

The following are exempt from this subchapter:
1. Funds required by the terms of a bond indenture to be held by paying agents for the payment of interest and principal on such bonds;
2. Petty cash funds held by the various state agencies;
3. Memorials, endowments, bequests, gifts, and donations made to any state agency other than for normal operation of the agency;
4. Canteen funds of state agencies other than institutions of higher education, wherein the profits earned are used for the benefit of the people served by that agency through the purchase of services or goods other than normal salary or maintenance expenses of the agency;
5. The Benefit Fund of the Division of Workforce Services;
6. The Revenue Bond Guaranty Reserve Account of the Arkansas Economic Development Council;
7. The Illegal Drug Purchase Account and the Confidential Accounts of the Division of Arkansas State Police;
8. Patient funds, when the institution is acting in a trust capacity or when the funds are utilized for patient activities other than normal agency-provided services;
9. The State Treasury Money Management Trust; and
10. Any other funds determined by the Chief Fiscal Officer of the State or the General Assembly, to be held in trust and on deposit in a financial institution other than the State Treasury.
The Division of Correction Plasma Center is exempt from provisions of this subchapter.
The Arkansas Comprehensive Health Insurance Pool, created under the Comprehensive Health Insurance Pool Act, § 23-79-501 et seq., and its board of directors, and the Arkansas Property and Casualty Insurance Guaranty Fund and its advisory association, referenced under the Arkansas Property and Casualty Insurance Guaranty Act, § 23-90-101 et seq., and the Arkansas Life and Health Insurance Guaranty Association and its board of directors, referenced under the Arkansas Life and Health Insurance Guaranty Association Act, § 23-96-101 et seq., are hereby exempt from the provisions of this subchapter.
The Tobacco Settlement Cash Holding Fund administered by the State Board of Finance shall be exempt from the provisions of this subchapter.

History. Acts 1975, No. 5, § 7; 1975, No. 265, § 1; 1977, No. 713, § 14; A.S.A. 1947, §§ 13-356.1, 13-362; Acts 1997, No. 540, § 39; 1997, No. 1000, § 17; 1997, No. 1179, § 3; Init. Meas. 2000, No. 1, § 19; Acts 2009, No. 251, § 10; 2013, No. 1146, § 1; 2017, No. 296, § 3; 2019, No. 910, §§ 974, 975.

Amendments. The 2013 amendment repealed former (b).

The 2017 amendment substituted “Money Management Trust” for “Money Trust Management Fund” in (a)(9).

The 2019 amendment substituted “Division of Workforce Services” for “Department of Workforce Services” in (a)(5); and substituted “Division of Correction Plasma Center” for “Department of Correction Plasma Center” in (b).

Case Notes

Cited: Hadley v. North Ark. Cmty. Tech. College, 76 F.3d 1437 (8th Cir. 1996).

19-4-804. [Repealed.]

Publisher's Notes. This section, concerning the duties of the Pre-Audit section, was repealed by Acts 2001, No. 1453, § 18. The section was derived from Acts 1975, No. 5, § 6; A.S.A. 1947, § 13-361.

19-4-805. Investment of fund balances.

The state-supported institutions of higher education shall have the right to determine the depositories and the nature of investments of any of their cash funds which are not currently needed for operating purposes. In making these determinations, these institutions shall seek to obtain the highest possible rate of return for their investments.
All cash fund agencies other than the state-supported institutions of higher education shall request and abide by the recommendations of the State Board of Finance as to the best investment decisions for any idle cash balances.

History. Acts 1975, No. 5, §§ 8, 9; A.S.A. 1947, §§ 13-363, 13-364.

19-4-806. Petty cash accounts.

State agencies operating under the provisions of this subchapter are authorized to establish petty cash accounts. These accounts must be approved by the Chief Fiscal Officer of the State and only minor expenditures or emergency purchases shall be made therefrom.
State-supported institutions of higher education and other agencies that can demonstrate the need for large petty cash accounts during brief periods of time, such as student registration periods, are authorized short-term petty cash accounts.

History. Acts 1975, No. 5, § 10; A.S.A. 1947, § 13-365; Acts 2003, No. 656, § 1.

19-4-807 — 19-4-809. [Repealed.]

Publisher's Notes. These sections, concerning reporting cash fund transactions, funds not on deposit in State Treasury, and expenditures subject to voucher examination and approval, were repealed by Acts 2001, No. 1453, § 19. These sections were derived from the following sources:

19-4-807. Acts 1971, No. 277, §§ 1, 2; A.S.A. 1947, §§ 13-309.2, 13-309.3.

19-4-808. Acts 1969, No. 620, § 14; A.S.A. 1947, § 13-309.1.

19-4-809. Acts 1991, No. 21, § 1.

19-4-810. Voucher examination and approval — Responsibilities of state agency executive administrators.

Responsibilities of State Agency Executive Administrator. It shall be the responsibility of each executive head of a state agency handling cash funds to establish adequate internal administrative procedures and controls to ensure prompt and accurate payment of obligations to be liquidated from such funds in order to promote good public relations and to take advantage of all available discounts.
It shall also be the responsibility of the state agency executive head to establish a system of pre-audit within his or her agency to ensure that checks and vouchers, before being released by the state agency, are prepared in accordance with all applicable purchasing and fiscal laws on the subject by performing the following functions. He or she shall determine that:
1. Services, materials, supplies, and equipment received comply with specifications indicated on purchase documents;
2. Quantities received, as being indicated on the invoice, agree with those shown on the receiving report;
3. Unit prices agree with those indicated on the purchase documents;
4. The extensions and footings of the invoice are correct;
5. The voucher or check is prepared in sufficient time to take advantage of all available discounts being offered;
6. Sufficient legislative authorization for expenditures and funds is available for payment of the obligation; and
7. The obligation was incurred in conformity with all purchasing and fiscal laws applicable to state agencies operating out of the State Treasury.

History. Acts 1991, No. 21, § 1.

19-4-811, 19-4-812. [Repealed.]

Publisher's Notes. These sections, concerning voucher examination and approval, were repealed by Acts 2001, No. 1453, § 20. These sections were derived from the following sources:

19-4-811. Acts 1991, No. 21, § 1.

19-4-812. Acts 1991, No. 21, § 1.

19-4-813. Erroneous or improper payments.

The responsibility for recovery of erroneous or improper payments shall be with the state agency head, the bonded disbursing officer, or his or her designated bonded assistant; and the Chief Fiscal Officer of the State shall not be liable under his or her surety bond for any erroneous or improper payments so made.

History. Acts 1991, No. 21, § 1.

19-4-814. Supporting documentation.

Requirements for supporting documentation for disbursements shall be determined as follows:

In connection with purchasing procedures, the Chief Fiscal Officer of the State shall prescribe and define the necessary documents and other evidence which shall be retained by the agency for the purpose of determining whether the proper purchasing procedures have been complied with;
In all instances where the evidences of indebtedness are represented by vendor's invoices, the agency shall retain in the permanent file of the business office of the agency the original invoice and corresponding documentation of actual payment in accordance with procedures established by the Chief Fiscal Officer of the State;
In connection with printing contracts, provided by the Arkansas Constitution and laws of this state, the supporting documentation shall be those prescribed by the Auditor of State or by the Department of Finance and Administration, as appropriate;
In connection with the laws or rules governing travel, where individuals are reimbursed for expenses incurred for travel in connection with their official duties, the supporting papers shall be the forms or statements of such expenses prescribed by the Chief Fiscal Officer of the State. In the case of per diem or other expenses established by law, the disbursing officer shall attach to the voucher issued in payment of such allowances a citation of his or her authority for making such payments;
Any indebtedness or expense incurred in connection with an approved resolution of any state board or commission shall be made a part of the permanent minutes of such board or commission, and copies of such resolution or minutes authorizing any indebtedness or expense shall be attached to the voucher issued in payment of any such indebtedness or expense; and
In instances where the General Assembly has authorized grants to public schools, public welfare recipients, counties, municipalities, and for other purposes specifically provided by law, for payments made to individuals under retirement systems, and for income tax refunds, the Chief Fiscal Officer of the State shall prescribe the forms of the vouchers to be used and the procedure to be followed in making such payments.

History. Acts 1991, No. 21, § 1; 2001, No. 1453, § 21; 2019, No. 315, § 1713.

Amendments. The 2019 amendment substituted “rules” for “regulations” in the first sentence of (4).

19-4-815. Original of supporting documentation to be retained by the agency.

The original evidences of indebtedness, including documents prepared in connection with purchasing procedure, and all other original contracts, invoices, statements, receipts, petty cash tickets, bank statements, cancelled checks drawn upon bank accounts, and other original supporting papers shall be retained in the permanent file of the business office of each state agency, or attached to the office copy of the agency's voucher, and such documents shall be kept in a safe place subject to audit and shall not be destroyed until authorization is given for their destruction by the Legislative Auditor.
With the approval of the Legislative Auditor of the state, a state agency may retain evidences to satisfy record retention policies of indebtedness and other contracts, invoices, statements, receipts, petty cash tickets, bank statements, cancelled checks drawn upon bank accounts, and other supporting papers by microform or a form of stored images in a computer system or other form of computer technology in lieu of retaining the originals of such documents.

History. Acts 1991, No. 21, § 1; 1997, No. 541, § 1; 2001, No. 1453, § 22.

19-4-816. Contracts for procurement of commodities and services.

Each state agency which is authorized by law or under the purchasing procedures of this state to enter into contract for the procurement of property, commodities, or services shall keep on file in its respective place of business a copy of such contract for public inspection or audit and shall make a copy of any such contract available to the Chief Fiscal Officer of the State when so required by him or her.

History. Acts 1991, No. 21, § 1; 2001, No. 1453, § 23.

19-4-817. Constitutional officers and agencies.

Beginning with fiscal year 2021, cash funds of the following constitutional officers and departments shall be budgeted and proposed expenditures approved by enactments of the General Assembly:
1. The Governor;
2. The Secretary of State;
3. The Attorney General;
4. The Treasurer of State;
5. The Auditor of State;
6. The Commissioner of State Lands;
7. The Supreme Court and its justices;
8. The Arkansas State Game and Fish Commission;
9. The Arkansas Department of Transportation;
10. The General Assembly; and
11. The respective staffs of the officers listed in this subsection.
The General Assembly shall budget, approve, and appropriate expenditures of cash funds by the enactment of separate appropriation bills setting forth the purpose for which the moneys are to be expended and the dollar amount to be expended for that purpose.
The constitutional officers and agencies listed in subsection (a) of this section shall submit any budgetary information requested by the Legislative Council and shall undertake whatever budgetary procedures the Legislative Council may establish for the appropriation of cash funds.
The constitutional officers and agencies listed in subsection (a) of this section shall not be charged a service charge under § 19-5-206 when complying with this section.
This section does not provide the General Assembly with the authority to approve expenditures of the Arkansas State Game and Fish Commission or the Arkansas Department of Transportation, which shall be subject only to review and appropriation by the General Assembly.

History. Acts 2019, No. 678, § 4.

A.C.R.C. Notes. Acts 2019, No. 678, § 1, provided: “Title. This act shall be known and may be cited as the ‘Government Financial Disclosure and Accountability Act of 2019’”.

Acts 2019, No. 678, § 2, provided: “Legislative intent.

“(a) It is the intent of the General Assembly:

“(1) To provide for additional transparency in the budgeting and expenditure procedures used by constitutional officers and agencies;

“(2) To require additional financial disclosures to better enable the General Assembly to responsibly appropriate state funds;

“(3) To ensure that the state and the public have the necessary information to determine whether state funds are being used in an appropriate and fiscally responsible manner;

“(4) That, to the extent this act conflicts with any provision of the Arkansas Constitution, the Arkansas Constitution applies; and

“(b) It is not the intent of the General Assembly to:

“(1) Make the constitutional officers and agencies state agencies for purposes of state accounting and budgetary procedures;

“(2) Require the constitutional officers and agencies to submit annual operations plans that are the same as the annual operations plans required for state agencies;

“(3) Apply the procurement laws in Arkansas Code, Title 19, Chapter 11, to the constitutional officers and agencies to the extent that the procurement laws do not already apply; or

“(4) Require legislative approval of any expenditure of an office or agency if such approval would conflict with the Arkansas Constitution”.

Subchapter 9 — Travel Rules

Cross References. Use and disposition of state motor vehicles, § 22-8-101 et seq.

Preambles. Acts 1973, No. 876, contained a preamble which read:

Effective Dates. Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1974 (1st Ex. Sess.), No. 16, § 3: July 3, 1974. Emergency clause provided: “It has been found and determined by the Sixty-Ninth General Assembly, meeting in Extraordinary Session, that due to inflationary price increases, State employees traveling on official business for the State are not being adequately reimbursed for their travel expenses, consequently, State employees are subsidizing the State from their salary, that the immediate passage of this Act is necessary in order to adequately reimburse State employees traveling in behalf of the State. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 890, § 3: Apr. 16, 1979. Emergency clause provided: “It is hereby found and determined by the Seventy-Second General Assembly that the reimbursement provided for state employees is inadequate and that revisions are needed immediately so that the employees are not unjustly penalized. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after the effective date of its passage and approval.”

Acts 1983, No. 490, § 3: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly that essential services exist which are better facilitated by the use of passenger motor vehicles by various State Agencies; there also exists the need to provide such services in the most efficient manner possible; and by limiting in this Act the maximum number of passenger motor vehicles allowed for State agencies, both purposes will be accomplished; and the July 1, 1983, effective date of this Act is necessary in order to coincide with appropriations made for the various State Agencies, Authorities, Boards, Commission, Departments and Institutions of Higher Education for such purposes as provided in this Act. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1983.”

Acts 1985, No. 649, § 46: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1985 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1985 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

Acts 1985, No. 888, § 26: July 1, 1985, except §§ 18, 20, and 21, effective Apr. 15, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly that the amendments to the Revenue Stabilization Law are essential to the continued operation of State government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1985. Provided, however, that Sections 18, 20 and 21 of this Act shall become effective from and after the passage and approval of this Act.”

Acts 1987, No. 81, § 3: Feb. 19, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that a number of State employees are required to travel to and from their residences in a State-owned motor vehicle; that in those instances the employees should not be required to reimburse the State for the use of those motor vehicles; that the present law does require them to reimburse the State $0.15 per mile for each mile in excess of ten (10) miles; that the present law is inequitable and unfair; that this Act eliminates the inequity and the inequity will continue until this Act goes into effect. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 790, § 5: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1989 is essential to the operation of the agency for which the appropriations in this Act are provided; and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1989 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1989.”

Acts 1989 (1st Ex. Sess.), No. 252, § 13: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1989 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1989 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1989.”

Acts 1991, No. 1222, § 6: Apr. 10, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly, that due to the increased cost of travel, the rate of reimbursement for use of privately owned motor vehicles needs to be increased; that due to the increase in the cost of meals and lodging borne by employees of the State of Arkansas, the per diem needs to be increased. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1997, No. 795, § 6: July 1, 1997. Emergency clause provided: “It is found and determined by the Eighty-First General Assembly that the appropriate reimbursement of travel expenses borne by employees of the State of Arkansas should be provided for and that the provisions of this Act are necessary for proper fiscal administration. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1997.”

Acts 1999, No. 1398, § 37: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1999 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1999 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1999.”

Acts 2001, No. 739, § 4: Became law without the Governor's signature. Noted July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that various changes in law are needed for the institutions of higher education including the authorization of additional positions due to additional funds received other than general revenue for various programs and additional vehicles to maintain efficient operations of campuses. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2001, No. 1669, § 38: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2001 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2001 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2001.”

Acts 2005, No. 1869, § 29: July 1, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas, that changes in law are needed for the institutions of higher education including the authorization of additional vehicles to maintain efficient operations of campuses. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2005.”

Acts 2005, No. 2123, § 38: July 1, 2005. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2005 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2005 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2005.”

Acts 2007, No. 711, § 2: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that various changes in law are needed for the institutions of higher education, including the authorization of additional vehicles to maintain efficient operations of campuses; and that this act is necessary because the use of the vehicles is to begin at the onset of fiscal year 2008. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2007.”

Acts 2007, No. 1255, § 42: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2007 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2007 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2007.”

Acts 2013, No. 949, § 8: July 1, 2013. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2013 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2013 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2013.”

Acts 2013, No. 1393, § 9: July 1, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 2013 have been made by the Eighty-Ninth General Assembly. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2013.”

Acts 2015, No. 1271, § 10: Apr. 8, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that institutions of higher education need additional vehicles to maintain efficient operation of the institutions; that the number of vehicles authorized under current law is insufficient; and that this act is immediately necessary to ensure that an institution of higher education may access the number of vehicles that the institution determines is necessary for efficient operation of the campus. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2016, No. 140, § 17: July 1, 2016. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2016 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2016 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2016.”

Acts 2016, No. 141, § 15: July 1, 2016. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2016 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2016 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2016.”

Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 128: July 1, 2016.

Acts 2017, No. 178, § 11: July 1, 2017. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2017 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2017 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2017.”

Acts 2017, No. 179, § 13: July 1, 2017. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2017 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2017 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2017.”

Acts 2019, No. 204, § 5: July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the name change proposed under this act is to enable students interested in the Texarkana campus of the community college to have their ACT testing information sent directly to Texarkana and not to the Hope campus of the community college or to an institution in Texas; that there is confusion regarding where a student should send his or her ACT scores because Texarkana is not currently part of the campus's formal name; and that this act is necessary in order to change the name of the community college in time for the next fiscal year. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Acts 2019, No. 942, § 10: July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that changes to the maximum number of motor vehicles authorized for certain institutions of higher education are necessary to maintain the efficient operations of the institutions of higher education; and that the changes in the maximum number of motor vehicles authorized for these institutions of higher education should take effect at the beginning of a fiscal year to maximize the effectiveness and efficiency of the changes in the law. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-4-901. Rules generally.

The Chief Fiscal Officer of the State shall promulgate rules with respect to travel and travel allowances and prescribe the forms and procedures for reporting, approving, and paying such travel allowances for all officers and employees of the state government or for other persons who are authorized to carry out official duties in connection with the business of the state.

History. Acts 1973, No. 876, § 16; A.S.A. 1947, § 13-342; Acts 2019, No. 315, § 1714.

Amendments. The 2019 amendment deleted “and regulations” following “Rules” in the section heading; and deleted “and regulations” following “rules”.

19-4-902. Authorization for travel.

1. The responsibility for authorizing travel, or any expenses in connection therewith, shall be placed upon the board or commission in charge or upon the administrative head of each state agency.
2. No travel expenses shall be authorized or allowed without the approval of the board, commission, or administrative head of any agency.
It shall be the responsibility of the administrative head of any agency to keep on file in the place of business of the agency, subject to audit, copies of all supporting documents and required receipts for expenses incurred in connection with the travel authorizations and allowances for persons traveling in behalf of the agency.

History. Acts 1973, No. 876, § 16; A.S.A. 1947, § 13-342; Acts 2001, No. 1453, § 24.

19-4-903. Standard reimbursements and special authorizations — Definitions.

1. Except for special authorization by the Chief Fiscal Officer of the State, reimbursement for meals and lodging while traveling on official business of the state shall not exceed the maximum rates as prescribed by the Federal Travel Directory published by the United States General Services Administration.
2. Requests for special authorization shall be limited to those rare occasions where unusual circumstances may cause the existing rates to be inadequate and shall be set out in writing in such detail as shall be required in the state travel procedures and shall be executed in behalf of each individual traveler for each special authorized occasion. Provided however, that requests for special authorization by employees of institutions of higher education shall be subject to the approval of the chief executive officer of the institution and not the Department of Finance and Administration.
3. Under such emergency conditions as shall be determined by the Governor, the limitations of this subsection with respect to meals and lodging may be waived or modified.
1. As used in this subsection, “state-owned motor vehicle” means a motor vehicle purchased or leased by:
  1. The State of Arkansas;
  2. The office of a constitutional officer of the State of Arkansas;
  3. A constitutionally independent agency or commission; and
  4. A state-supported institution of higher education.
2. 1. Unless otherwise provided by law, reimbursement for the use of privately owned motor vehicles while traveling on official business for the state shall not exceed the allowable rate of the Internal Revenue Service per mile for business use of privately owned motor vehicles.
  2. A state agency director may authorize reimbursement for travel expenses for meals, lodging, and private automobile or airplane usage at amounts less than that established under the authority of this section.
  3. The Chief Fiscal Officer of the State by rule may establish procedures and the rate for reimbursing individuals for the use of privately owned airplanes while traveling on official business for the state.
3. 1. 1. Any employee of the State of Arkansas who utilizes, but whose job does not require the state employee to utilize, a state-owned motor vehicle for transportation to or from his or her permanent residence from or to his or her official station on a daily basis shall reimburse the fund from which the operating expenses of the state-owned motor vehicle are paid at the same rate authorized by the state agency director of the agency employing the state employee for reimbursements for private automobile usage under subdivision (b)(2)(B) of this section.
    2. As used in subdivision (b)(3)(A)(i) of this section, “state employee”:
      1. Means an employee of a state agency, board, commission, department, or state-supported institution of higher education; and
      2. Includes a constitutional officer and an employee of a constitutional officer.
  2. All state-owned motor vehicles or state-leased motor vehicles shall be for official business use only.
The Chief Fiscal Officer of the State shall promulgate rules to implement the provisions of this subchapter.

History. Acts 1973, No. 876, § 16; 1974 (1st Ex. Sess.), No. 16, § 1; 1977, No. 462, § 1; 1979, No. 890, § 1; 1985, No. 365, § 7; A.S.A. 1947, § 13-342; Acts 1987, No. 81, § 1; 1991, No. 1222, §§ 1, 2; 1997, No. 795, § 1; 2011, No. 1021, § 1; 2019, No. 315, §§ 1715, 1716.

Amendments. The 2011 amendment inserted present (b)(1) and redesignated former (b)(1) and (2) as present (b)(2) and (3); in (b)(3)(A)(i), inserted “state” preceding “employee to utilize” and “state-owned” preceding “motor vehicle”, and substituted “same rate authorized by the state agency director of the agency employing the state employee for reimbursements for private automobile usage under subdivision (b)(2)(B) of this section” for “rate of fifteen cents (15¢) per mile for each mile, or portion thereof, in excess of ten (10) miles each way”; added (b)(3)(A)(ii); and substituted “motor vehicles or state-leased motor vehicles” for “or leased vehicles” in (b)(3)(B).

The 2019 amendment substituted “rule” for “regulation” in (b)(2)(C); and deleted “and regulations” following “rules” in (c).

19-4-904. Exempt persons and agencies.

1. The limitations of this subchapter relating to travel rules shall not be applicable to:
  1. Except as provided in § 19-4-903(b), the constitutional or elective officials and their employees; or
  2. Official guests of the state.
2. The provisions of this subchapter shall not be used to supersede or set aside the provisions of law providing for fixed allowances, established amounts for per diem, or to special travel privileges provided by law for specific purposes when the allowances exceed those authorized in this subchapter.
1. Personal reimbursement will not be allowed to any state official, state employee, or any other person traveling on official business for expenses covering personal entertainment, flowers, valet service, laundry and cleaning, or other personal expenses, as those expenses shall be defined in the state travel rules. All such persons shall be required to submit their travel reimbursement requests upon forms prescribed by the Department of Finance and Administration, itemized in such detail as shall be necessary to carry out the purposes and intent of this section.
2. The tip reimbursement amount shall not exceed fifteen percent (15%) of the meal amount expended.
3. The total reimbursement for meals and tips shall not exceed the maximum rates prescribed by the Financial Management Guide published by the Office of Accounting of the Department of Finance and Administration.
The cost of meals, lodging, and mileage of state employees who are designated by a supervisor or agency director to attend official or special board meetings or other functions recognized as being in the performance of their official duties may be paid either as reimbursement to the employee or on direct billing, in the case of meals and lodging, subject to approval of the superior.
It is recognized that within the state-supported institutions of higher education there exists an obligatory inherent cost of providing travel expenses for a group or number of students who, when accompanied by those who instruct the students in the fundamentals of a competitive sport and direct team strategy, must travel and be recognized as a cohesive unit representing not only their institution, but exemplifying the State of Arkansas in their behavior, attitudes, interests, presentation, and conduct. In these circumstances the payment of group travel expenses, including those of students and employees, may be authorized as follows:
1. Meals and lodging;
2. Transportation;
3. Entertainment, within reasonable limits, to ease the pressure on students of their objectives;
4. Costs of group activities, including gratuities, laundry, cleaning, and favors; and
5. Other personal expenses to be paid only from auxiliary funds not inconsistent with standards, rules, or prohibitions established by recognized national or state governing associations pertaining to the respective students and employees and the institutions they are representing.

History. Acts 1973, No. 876, § 16; 1981, No. 741, § 3; 1985, No. 365, § 7; A.S.A. 1947, § 13-342; Acts 1997, No. 250, § 174; 2007, No. 715, § 1; 2011, No. 1021, § 2; 2019, No. 315, §§ 1717–1719.

Amendments. The 2007 amendment deleted “tips” following “entertainment” in present (b)(1), and added (b)(2) and (3).

The 2011 amendment rewrote (a).

The 2019 amendment substituted “rules” for “regulations” in the introductory language of (a)(1) and the first sentence of (b)(1); and deleted “regulations” following “rules” in (d)(5).

Case Notes

Cited: Clark v. State, 308 Ark. 84, 308 Ark. 453, 824 S.W.2d 345 (1992).

19-4-905. State-owned motor vehicles generally.

All state-owned motor vehicles which are purchased under the authority of the Chief Fiscal Officer of the State shall be licensed in such manner so as to identify each vehicle as state property.
The Chief Fiscal Officer of the State shall provide a special license plate suitable for all state-owned motor vehicles and shall establish procedures for the purpose of supplying information on all state-owned motor vehicles, both those which are purchased and those which are sold, traded in, or otherwise disposed of.
The Chief Fiscal Officer of the State shall make rules for obtaining the required license plates and for returning the plates when the vehicles are disposed of and shall notify all state agencies of procedures to be followed.
Each agency shall be required to pay the regular license fee for the special state property license plate in the manner prescribed by the Department of Finance and Administration.
In the event the best interests of the state would be served by not displaying a special tag, such as in police work, an exception to the provisions of this section may be obtained only upon the written approval of the Governor.

History. Acts 1973, No. 876, § 16; A.S.A. 1947, § 13-342; Acts 2019, No. 315, § 1720.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (c).

19-4-906. Motor vehicle restrictions and authorizations — Definition.

1. None of the funds appropriated for the various state agencies, authorities, boards, commissions, departments, and institutions of higher education listed in this section shall be used to purchase, lease for over thirty (30) days, operate, repair, or provide services for more than the maximum number of passenger motor vehicles as stated in this section, except in an emergency as proclaimed by the Governor.
2. As used in this section, “passenger motor vehicles” means vehicles licensed for highway use, including without limitation automobiles, trucks, and vans, that do not require a commercial driver's license to operate.
3. Mileage reimbursement for employees' utilization of their personal automobiles is not included in this restriction.
1. The General Assembly recognizes that, in some cases, motor vehicles are donated to educational institutions and agencies primarily for use in automotive repair and maintenance courses and in instructional programs for truck operators and that such motor vehicles are not normally used for other purposes by the institutions and agencies and should not be included in the maximum number of authorized passenger vehicles prescribed for such institutions and agencies in this section.
2. 1. Therefore, motor vehicles donated to educational institutions and agencies primarily for use in programs of instruction in automotive maintenance and repair, in operator training, and in related instructional programs shall not be included for the purpose of determining the number of vehicles authorized for any such institutions or agencies.
  2. The provisions of this section shall not be applicable to these motor vehicles.
1. The Department of Human Services is exempt from the provisions of this section.
2. The Department of Human Services may purchase vehicles utilizing federal funds and the appropriate state matching funds required.

Item No. Agency, Authority, Board, Commission, or Institution of Higher Education Maximum Authorized Number of Passenger Motor Vehicles in any Year (001) Arkansas Abstracters' Board 0 (002) Administrative Office of the Courts 3 (003) Adv. Council for Vo-Tech Education [abolished] 2 (004) Arkansas State Board of Chiropractic Examiners 0 (005) Arkansas Board of Hearing Instrument Dispensers 0 (006) Arkansas Board of Podiatric Medicine 0 (007) Building Authority Division 22 (008) Arkansas Bureau of Standards 34 (009) Arkansas Cemetery Board [abolished] 0 (010) Arkansas Code Revision Commission 0 (011) Arkansas Commission on Law Enforcement Standards of Training 15 (012) Arkansas Crime Information Center 11 (013) Division of Aeronautics 1 (014) Division of Emergency Management 15 (015) Division of Environmental Quality 57 (016) Arkansas Development Finance Authority 3 (017) Arkansas Economic Development Council 31 (018) Arkansas Fire Protection Licensing Board 0 (019) Arkansas Forestry Commission 396 (020) Arkansas Geological Survey 18 (021) Arkansas State Archives 3 (022) Arkansas Livestock and Poultry Commission 81 (023) Arkansas Manufactured Home Commission 3 (024) Arkansas Motor Vehicle Commission 5 (025) Arkansas Natural Resources Commission 8 (026) Arkansas Northeastern College 26 (027) Arkansas Psychology Board 0 (028) Arkansas Public Employees' Retirement System 5 (029) Arkansas Public Service Commission 27 (030) Arkansas Real Estate Commission 3 (031) Arkansas School for Mathematics, Sciences, and the Arts 14 (032) Arkansas School for the Blind 8 (033) Arkansas School for the Deaf 14 (034) Arkansas Science and Technology Authority [abolished] 1 (035) Arkansas Social Work Licensing Board 0 (036) Arkansas Soybean Promotion Board 0 (037) Arkansas Spinal Cord Commission 3 (038) Arkansas State Board of Architects, Landscape Architects, and Interior Designers 0 (039) Arkansas State Board of Dental Examiners 1 (040) Arkansas State Board of Landscape Architects [abolished] 0 (041) Arkansas State Board of Massage Therapy [abolished] 0 (042) Arkansas State Board of Nursing 1 (043) Arkansas State Board of Pharmacy 1 (044) Arkansas State Board of Public Accountancy 0 (045) Arkansas State Board of Registration for Foresters 0 (046) Arkansas State Board of Registration for Professional Soil Classifiers 0 (047) Arkansas State Board of Sanitarians 0 (048) Arkansas State Department of Health Building Commission [abolished] 0 (049) Arkansas State Game and Fish Commission 500 (050) Arkansas Department of Transportation 43 (051) Arkansas Department of Transportation 2,300 (052) Arkansas Department of Transportation — (NOAA) 0 (053) Arkansas State Highway Employees' Retirement System 0 (054) Arkansas State Library 29 (055) Arkansas State Medical Board 0 (056) Division of Arkansas State Police 725 (057) Arkansas State University 131 (058) Arkansas State University — Beebe 32 (059) Arkansas State University — Mountain Home 12 (060) Arkansas State University — Newport 26 (061) Arkansas State University system 9 (062) Arkansas Student Loan Authority [abolished] 2 (063) Arkansas Teacher Retirement System 4 (064) Arkansas Tech University 70 (065) Arkansas Waterways Commission 1 (066) Black River Technical College 14 (067) Board of Corrections 6 (068) Board of Examiners in Speech-Language Pathology and Audiology 0 (069) Burial Association Board [abolished] 2 (070) Commission on Water Well Construction 2 (071) Contractors Licensing Board 1 (072) Cossatot Community College of the University of Arkansas 20 (073) Division of Arkansas Heritage 11 (074) Department of Correction 254 (075) Department of Education 10 (076) Department of Finance and Administration — Alcoholic Beverage Control Division 22 (077) Department of Finance and Administration — Alcoholic Beverage Control Division — Administration Division 1 (078) Department of Finance and Administration — Management Services Division 44 (079) Department of Finance and Administration — Racing Division 1 (080) Department of Finance and Administration — Revenue Division 168 (081) Department of Health 111 (082) Division of Higher Education 2 (083) Department of Human Services 444 (084) Division of Information Systems 7 (085) Department of Labor 9 (086) Department of Parks, Heritage, and Tourism 187 (087) Division of Workforce Services 27 (088) Dept. of Education — National Migrant Student Record Transfer System [abolished] 1 (089) Dept. of Education — Vo-Tech Division 22 (090) Dept. of Education — Vo-Tech Schools 280 (091) Dept. of Veterans Affairs and the veterans’ homes 11 (092) Disabled Veterans Service Office 0 (093) East Arkansas Community College 28 (094) Arkansas Educational Television Commission 14 (095) Health Services Permit Agency 1 (096) Henderson State University 45 (097) Liquefied Petroleum Gas Board 4 (098) Arkansas State University Mid-South 20 (099) National Park College 17 (100) North Arkansas College 30 (101) Northwest Arkansas Community College 22 (102) Office of the Prosecutor Coordinator 0 (103) Oil and Gas Commission 17 (104) College of The Ouachitas 10 (105) Ozarka College 12 (106) Phillips Community College of the University of Arkansas 27 (107) University of Arkansas — Pulaski Technical College 25 (108) Arkansas Revenue Department Building Commission 0 (109) University of Arkansas Community College at Rich Mountain 15 (110) SAU-Tech — Camden 15 (111) SAU-Tech — Arkansas Environmental Training Academy 6 (112) SAU-Tech — Arkansas Fire Training Academy 22 (113) South Arkansas Community College 20 (114) Southeast Arkansas College 10 (115) Southern Arkansas University — Magnolia 50 (116) State Athletic Commission 0 (117) State Bank Department 22 (118) State Board of Barber Examiners 0 (119) State Board of Collection Agencies 0 (120) Cosmetology Technical Advisory Committee 0 (121) State Board of Embalmers and Funeral Directors [abolished] 0 (122) State Board of Licensure for Professional Engineers and Professional Surveyors 0 (123) State Crime Laboratory 15 (124) State Department for Social Security Administration Disability Determination 3 (125) State Insurance Department 6 (126) Department of the Military 20 (127) State Plant Board 30 (128) State Securities Department 5 (129) University of Arkansas at Fayetteville 299 (130) University of Arkansas at Fort Smith 39 (131) University of Arkansas at Little Rock 75 (132) University of Arkansas at Monticello 64 (133) University of Arkansas at Pine Bluff 75 (134) University of Arkansas Community College at Batesville 10 (135) University of Arkansas Community College at Hope-Texarkana 20 (136) University of Arkansas Community College at Morrilton 16 (137) University of Arkansas for Medical Sciences 110 (138) University of Central Arkansas 100 (139) Arkansas Veterans' Child Welfare Service 0 (140) Veterinary Medical Examining Board 0 (141) War Memorial Stadium Commission 3 (142) Workers' Compensation Commission 25 (143) Division of Agriculture of the University of Arkansas 326

Click to view table.

History. Acts 1983, No. 490, §§ 1, 2; 1985, No. 649, § 44; 1985, No. 888, §§ 22, 23; A.S.A. 1947, §§ 13-342.1, 13-342.3; Acts 1987, No. 921, § 19; 1989, No. 790, § 1; 1989 (1st Ex. Sess.), No. 252, § 9; 1993, No. 447, § 9; 1997, No. 540, § 40; 1997, No. 948, § 3; 1999, No. 646, § 56; 1999, No. 1164, § 156; 1999, No. 1398, § 28; 2001, No. 739, §§ 2, 3; 2001 No. 1669, § 29; 2001, No. 1800, § 2; 2005, No. 1869, §§ 1-28; 2005, No. 2123, § 31; 2007, No. 186, § 3; 2007, No. 711, § 1; 2007, No. 1255, § 35; 2009, No. 1334, § 34; 2013, No. 949 § 5; 2013, No. 1393, § 1; 2015, No. 1271, §§ 1-9; 2016, No. 140, § 10; 2016, No. 141, § 10; 2016 (3rd Ex. Sess.), No. 2, § 123; 2016 (3rd Ex. Sess.), No. 3, § 123; 2017, No. 178, § 6; 2017, No. 179, § 8; 2017, No. 422, §§ 1, 2; 2017, No. 707, § 45; 2019, No. 204, § 2; 2019, No. 942, §§ 1-9.

A.C.R.C. Notes. As the result of an apparent markup error, the amendment of this section by Acts 2009, No. 1334, § 34, made it appear as if Item No. (119) of subsection (a) was being changed to Item No. (137) of subsection (a). However, the 2009 amendment had no effect on Item No. (119) of subsection (a) and instead changed the maximum authorized number of passenger motor vehicles in any year in Item No. (137) of subsection (a) from 94 to 99.

Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 1, provided:

“(a) The General Assembly finds:

“(1) State government provides vital functions that impact the lives of Arkansas citizens on a daily basis;

“(2) While these functions are important, it is equally important to ensure that state government operates efficiently and effectively to eliminate unnecessary spending of tax dollars and provide timely and quality services to Arkansas citizens; and

“(3) Issues such as the administrative organization of a governmental entity, the appointment structure of a governmental entity's governing board, and extraneous duties assigned to governmental entities hamper the operation of state government and result in unnecessary expenses and delays in the provision of state services.

“(b) It is the intent of this act to amend provisions of law applicable to certain agencies, task forces, committees, and commission to promote efficiency and effectiveness in the operations of state government as a whole.”

Amendments. The 2005 amendment by No. 1869, in (a), substituted “50” for “40” in (010), “9” for “7” in (061), “45” for “35” in (070), “563” for “463” in (115), “75” for “50” in (116), “64” for “47” in (117), “49” for “44” in (118), “73” for “65” in (119), “75” for “48” in (120), “16” for “10” in (128); rewrote (066), (079), (081), (086), (098), and (126); and added (130) through (141).

The 2005 amendment by No. 2123 substituted “73” for “65” in (119).

The 2009 amendment substituted “99” for “94” in (a)(137).

The 2013 amendment by No. 949 substituted “39” for “29” in (a)(130).

The 2013 amendment by No. 1393 substituted “College of The Ouachitas” for “Ouachita Technical College” in (a)(104).

The 2015 amendment, in the table in (a), increased the numbers in column “Maximum Authorized Number of Passenger Motor Vehicles in any Year” for item numbers (058), (059), (060), (064), (066), (093), (098), (099), (100), (111), (114), (129), and (137).

The 2016 amendment by No. 140 substituted “Arkansas State University Mid-South” for “Mid-South Community College” in (a)(098).

The 2016 amendment by No. 141 substituted “National Park College” for “National Park Community College” in (a)(099).

The 2016 (3rd Ex. Sess.) amendment by identical acts Nos. 2 and 3 substituted “State Archives” for “History Commission, Department of Parks and Tourism” in (a)(021).

The 2017 amendment by No. 178 inserted “University of Arkansas” at the beginning of (a)(107).

The 2017 amendment by No. 179 substituted “University of Arkansas Community College at Rich Mountain” for “Rich Mountain Community College” in (a)(109).

The 2017 amendment by No. 422 redesignated former (a) as (a)(1) through (a)(3); in (a)(1), substituted “listed in this section” for “listed below” and “as stated” for “as set out”; in (a)(2), substituted “As used in this section, ‘passenger motor vehicles’ means vehicles” for “Passenger motor vehicles are defined as those” and “without limitation” for “but not limited to”, and added “that do not require a commercial driver's license to operate”; substituted “is not” for “shall not be deemed to be” in (a)(3); substituted “500” for “400” in (a)(049); and made related stylistic changes.

The 2017 amendment by No. 707 substituted “Department of Transportation” for “State Highway and Transportation Department” in (a)(050), (a)(051) and (a)(052).

The 2019 amendment by No. 204 substituted “University of Arkansas Community College at Hope-Texarkana” for “University of Arkansas Community College at Hope” in (a)(135).

The 2019 amendment by No. 942 substituted “26” for “21” in (a)(060); substituted “28” for “13” in (a)(093); substituted “20” for “15” in (a)(098); substituted “22” for “20” in (a)(101); substituted “15” for “12” in (a)(109); substituted “50” for “46” in (a)(115); substituted “299” for “605” in (a)(129); substituted “110” for “105” in (a)(137); and added (a)(143).

19-4-907. Motor vehicle records.

The Chief Fiscal Officer of the State may direct all state agencies to maintain records with respect to all state-owned motor vehicles and may require that the agencies file reports on the vehicles covering the operating costs thereof.

History. Acts 1973, No. 876, § 16; A.S.A. 1947, § 13-342.

Subchapter 10 — Oil Company Credit Cards

Effective Dates. Acts 1979, No. 676, § 9: Apr. 2, 1979. Emergency clause provided: “It is hereby determined by the Arkansas General Assembly that in order to provide for the proper accounting of services received by the State of Arkansas through the use of credit cards that the use of credit cards be restricted to oil company credit cards solely. Therefore an emergency is hereby declared to exist and that this Act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after the date of its passage and approval.”

19-4-1001. Definition.

As used in this subchapter, the term “credit cards” means only those credit cards issued to state agencies, boards, or commissions for which the state agencies, boards, or commissions assume responsibility for payment.

History. Acts 1979, No. 676, § 1; A.S.A 1947, § 12-2378; Acts 2003, No. 656, § 2.

19-4-1002. Daily allowances, etc., not affected.

This subchapter in no way changes the maximum daily allowance for meals and lodging authorized in this chapter for an individual traveling on official state business within or beyond the borders of this state, nor does it change any special authorizations, exemptions, or limitations set forth in this chapter.

History. Acts 1979, No. 676, § 2; A.S.A. 1947, § 12-2378.1.

19-4-1003. [Repealed.]

Publisher's Notes. This section, concerning eligibility for the use of oil company credit cards by state employees, was repealed by Acts 2003, No. 656, § 3. The section was derived from Acts 1979, No. 676, § 3; A.S.A. 1947, § 12-2378.2.

19-4-1004. [Repealed.]

Publisher's Notes. This section, concerning requests for the use of oil company credit cards by state employees, was repealed by Acts 2003, No. 656, § 4. The section was derived from Acts 1979, No. 676, § 5; A.S.A. 1947, § 12-2378.4.

19-4-1005. Responsibility for use.

The responsibility for ensuring that only authorized expenditures are paid for by use of state credit cards for which the state agency assumes responsibility for payment and the collection for any unauthorized expenditures which may occur rests with the board, commission, or administrative head in charge of the agency.
The Chief Fiscal Officer of the State shall not be liable for any unauthorized expenditures through the use of state credit cards for which the state agency assumes liability for payment.

History. Acts 1979, No. 676, § 5; A.S.A. 1947, § 12-2378.4; Acts 2003, No. 656, § 5.

19-4-1006. Rules — Records.

The Chief Fiscal Officer of the State shall:

Promulgate rules with respect to obtaining and utilizing credit cards in payment of products and services;
Prescribe the procedures for reporting, approving, and paying for products and services purchased with credit cards; and
Prescribe the necessary records to be maintained and the supporting documentation to be provided with each voucher presented for payment of charges resulting from the use of credit cards.

History. Acts 1979, No. 676, § 4; A.S.A. 1947, § 12-2378.3; Acts 2009, No. 251, § 11.

Amendments. The 2009 amendment deleted “and regulations” in the section heading; deleted “state-owned oil company” preceding “credit cards” in (2); added “resulting from the use of credit cards” in (3); and made related and minor stylistic changes.

19-4-1007. No use of other credit cards.

If it is determined by the Chief Fiscal Officer of the State to be essential to enable an agency, board, or commission to effectively carry out its responsibilities, the Chief Fiscal Officer of the State may authorize an agency, board, or commission, or certain employees thereof, to use state credit cards for which the state agency assumes liability for payment, under rules as may be prescribed by the Chief Fiscal Officer of the State.
No credit cards shall be used except those approved by the Chief Fiscal Officer of the State.

History. Acts 1979, No. 676, § 6; A.S.A 1947, § 12-2378.5; Acts 2003, No. 656, § 6; 2019, No. 315, § 1721.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (a).

19-4-1008. Revolving funds for expenses.

1. The Chief Fiscal Officer of the State is authorized to promulgate appropriate rules authorizing state agencies, boards, commissions, and institutions of higher education to establish revolving funds which shall be within such limitations as the Chief Fiscal Officer of the State may prescribe or to make advances of expense funds for authorized travel by officials and employees of state agencies, boards, commissions, and institutions of higher education whose travel is in conjunction with institutionally sponsored events or programs. The advanced funds shall be reimbursed by the individual borrowing the funds from moneys to the individual upon filing an authorized expense account in connection with the travel.
2. These funds shall be used to make advances of expense funds for authorized travel by officials and employees of state agencies, boards, commissions, and institutions of higher education whose travel is in conjunction with institutionally sponsored events or programs.
3. These funds shall be reimbursed by the individual borrowing the funds from moneys to the individual upon filing his or her authorized expense account in connection with his or her travel.
The rules may authorize the state agency, board, commission, or institution of higher education to require the employee to file an agreement authorizing the agency to recover any amounts advanced for travel expense purposes from the amounts claimed and allowed the employee or student as reimbursement for actual expenses incurred, to recover them from the next or future salary payments to the employee, or add them to the receivables account of the student.

History. Acts 1979, No. 676, § 6; A.S.A. 1947, § 12-2378.5; Acts 1995, No. 1258, § 1; 2001, No. 1453, § 26; 2019, No. 315, §§ 1722, 1723.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in the first sentence of (a)(1); and substituted “rules” for “regulations” in (b).

Subchapter 11 — Approval of Expenditures

Preambles. Acts 1973, No. 876, contained a preamble which read:

Acts 1997, No. 14 contained a preamble which read:

“WHEREAS, the public employees retirement system is not able to maximize interest earnings capability under the current system of processing vouchers for retirees; and

“WHEREAS, it is the intent of this act to allow the public employees retirement system to process retiree benefit vouchers in a manner which will improve the interest earnings capability of their funds; and

“WHEREAS, the acceptable proposed method of financing public employees retirement funds will require the auditor of state to issue paper or electronic warrants for retiree benefits without regard to balances in the state treasury funds, but the state treasurer shall have sufficient balances on hand in order to redeem these warrants.”

Acts 1979, No. 623, § 3: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that there is an immediate need to establish a more responsive and responsible State government and to establish executive authority in those areas in which executive responsibility presently lies, with a consequent saving of unnecessary administrative expenses for the taxpayers. Therefore, an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1985, No. 324, § 6: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1985 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1985 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

Acts 1989, No. 402, § 7: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly that current State accounting and budgetary procedures cause considerable expense to and place undo restrictions on Institutions of Higher Education; that the recovery of general revenue fund balances from the Vocational-Technical Schools and the State Scholarship Assistance Grants Program restrict educational opportunities for the citizens of this State; and that the provisions of this Act will remedy such situations. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1989.”

Acts 1997, No. 860, § 10: Mar. 27, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly that no appropriation has been provided by the General Assembly for the implementation of amendment 74 to the Arkansas Constitution and that the distribution of the property taxes to be received by the State Treasurer must begin as soon as possible so that local school districts are not harmed. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1999, No. 714, § 5: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that the effective fiscal administration of the retirement systems covered by this act will be aided by the implementation of the act; and that for the effective administration of this act, it should become effective at the same time as the beginning of the State's fiscal year. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 1999.”

Acts 2005, No. 1149, § 2: Mar. 18, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the vouchers written on the Arkansas District Judge Retirement System should be paid at the time of presentment upon certification of the Chief Fiscal Officer of the State that funds are available; and that the expenses of the Arkansas District Judge Retirement System are a just expense of the state that must be paid. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2007, No. 177, § 15: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this bill affects the structure of the Arkansas District Judge Retirement System and the Arkansas Public Employees' Retirement System and the ideal time to make revisions to the retirement systems is at the beginning of the state's fiscal year. Therefore, an emergency is declared to exist and this act being necessary for the preservation of public peace, health, and safety shall become effective on July 1, 2007.”

19-4-1101. Examination and approval required.

The expenditure of all funds deposited into the State Treasury shall be subject to examination and approval in the manner provided for by this subchapter before the proposed expenditure is approved for payment from such funds.
Funds of state agencies which are not required by law to be deposited into the State Treasury shall be subject to the procedures as required by § 19-4-801 et seq.
The Legislative Auditor shall have authority, in connection with any examination of the fiscal activities of any agency, to audit any of the funds of the agency.

History. Acts 1973, No. 876, § 15; 1979, No. 833, §§ 6, 7; A.S.A. 1947, § 13-341; Acts 1991, No. 21, § 2; 2001, No. 1453, § 27.

19-4-1102. [Repealed.]

Publisher's Notes. This section, concerning exemption from the preexpenditure voucher examination, was repealed by Acts 2001, No. 1453, § 28. The section was derived from Acts 1979, No. 623, § 1; A.S.A. 1947, § 13-341.1; Acts 1989, No. 402, § 1.

19-4-1103. Responsibilities of agency heads.

It shall be the responsibility of each executive head of a state agency to establish adequate internal administrative procedures and controls to ensure prompt and accurate payment of obligations in order to promote good public relations and to take advantage of all available discounts. It shall also be the responsibility of each executive head of a state agency to establish adequate administrative procedures to ensure that all financial transactions of the agency are posted in the state's financial management system in accordance with procedures established by the Chief Fiscal Officer of the State.
It shall also be the responsibility of the agency head to establish a system of pre-audit within his or her agency to ensure that checks and vouchers, before being released by the agency, are prepared in accordance with all applicable purchasing and fiscal laws and rules by performing the following functions. He or she shall determine that:
1. Services, materials, supplies, and equipment received comply with specifications indicated on purchase documents;
2. Quantities received, as being indicated on the invoice, agree with those shown on the receiving report;
3. Unit prices agree with those indicated on the purchase documents;
4. The extensions and footings of the invoice are correct;
5. The voucher or check is prepared in sufficient time to take advantage of all available discounts being offered;
6. Sufficient appropriation and funds are available for payment of the obligation; and
7. The obligation was incurred in conformity with all purchasing and fiscal laws.
It shall also be the responsibility of the agency head to establish that:
1. Every voucher for a proposed disbursement is approved by the bonded disbursing officer of the agency issuing the voucher or by his or her authorized agent;
2. An appropriation has been made to cover the proposed disbursement and that there is sufficient balance remaining in the appropriation account and in the fund against which it is drawn to ensure that the voucher can be converted into a valid warrant;
3. The proposed disbursement has been drawn on the proper voucher form and the name and address of the disbursing agency and the name and address of the vendor or payee is properly identified on the voucher form;
4. The proposed voucher is prepared in accordance with the established general accounting procedures relating to appropriation titles and codes and the proposed transactions are identified and classified in accordance with the administrative rules on the subject; and
5. The voucher for the proposed disbursement is accompanied by proper supporting documentation, as evidence that the indebtedness has been incurred and that the amount for which the voucher is written corresponds with such evidence.

History. Acts 1973, No. 876, § 15; 1979, No. 833, §§ 6, 7; A.S.A. 1947, § 13-341; Acts 2001, No. 1453, § 29; 2019, No. 315, §§ 1724, 1725.

Amendments. The 2019 amendment substituted “fiscal laws and rules” for “fiscal laws, rules, and regulations” in the first sentence of the introductory language of (b); and substituted “rules” for “regulations” in (c)(4).

19-4-1104. Duty to examine and approve.

It shall be the duty of the Chief Fiscal Officer of the State to design the state's financial management system to provide reasonable assurances that financial transactions conform to the provisions of law and rules. He or she shall not be required to pass upon the propriety of any financial transaction if it is found to conform to the provisions of this subchapter. However, the Chief Fiscal Officer of the State may perform examinations of transactions to determine the propriety of the transactions in conformity with applicable laws and rules.

History. Acts 1973, No. 876, § 15; A.S.A. 1947, § 13-341; Acts 2001, No. 1453, § 30; 2019, No. 315, § 1726.

Amendments. The 2019 amendment substituted “rules” for “regulations” in the first and last sentences.

19-4-1105. Examination and approval generally.

Before any voucher for the disbursement of funds in the State Treasury is presented to the Auditor of State for the issuance of his or her warrant thereon, it shall be recorded in the state's financial management system in accordance with procedures established by the Chief Fiscal Officer of the State. The Auditor of State shall have the authority to perform an examination, under the procedures established in this section, as he or she deems advisable before issuing his or her warrant in the payment of the voucher.

History. Acts 1973, No. 876, § 15; 1985, No. 324, § 2; A.S.A. 1947, § 13-341; Acts 2001, No. 1453, § 31.

Cross References. Arkansas State Highway Employees' Retirement System Fund, § 19-5-918.

19-4-1106. Erroneous or improper payments.

The responsibility for recovery of erroneous or improper payments shall be with the state agency head or the bonded disbursing officer, or his or her designated bonded assistant; the Chief Fiscal Officer of the State, the Auditor of State, or the Treasurer of State shall not be liable under their surety bonds for any erroneous or improper payments so made.

History. Acts 1973, No. 876, § 15; A.S.A. 1947, § 13-341.

19-4-1107. Supporting documents generally.

Supporting documents for the disbursement of state funds shall include the following:

In connection with purchasing procedure, the Chief Fiscal Officer of the State shall prescribe and define the necessary documents and other evidence which shall be for the purpose of determining whether the proper purchasing procedures have been complied with;
1. In all instances when the evidences of indebtedness are represented by vendors' invoices, the agency shall retain in the permanent file of the business office of the agency the original invoice and corresponding documentation in accordance with procedures established by the Chief Fiscal Officer of the State.
2. In those instances when the daily transactions with vendors are numerous, such as in the case of retail service station purchases, the Chief Fiscal Officer of the State may prescribe the use of monthly statements from the vendors as supporting documents for the vouchers;
In connection with printing contracts provided for by the Arkansas Constitution and laws of this state, the supporting documents shall be those prescribed by the Auditor of State or by the Department of Finance and Administration as appropriate;
1. In connection with the laws or rules governing travel, when individuals are reimbursed for expenses incurred for travel in connection with their official duties, the supporting papers shall be the forms or statements of such expenses prescribed by the Chief Fiscal Officer of the State.
2. In the case of per diem or other expenses established by law, the disbursing officer shall attach to the vouchers issued in payment of such allowances a citation of his or her authority for making such payments;
1. Any indebtedness or expense incurred in connection with an approved resolution of any state board or commission shall be made a part of the permanent minutes of the board or commission.
2. Copies of the resolution or minutes authorizing any indebtedness or expense shall be attached to the vouchers issued in payment of any indebtedness or expense; and
1. 1. The Chief Fiscal Officer of the State shall prescribe the forms of the vouchers to be used and the procedure to be followed in making payments in instances when the General Assembly has authorized grants:
    1. To public schools, public welfare recipients, counties, and municipalities;
    2. For other purposes specifically provided for by law;
    3. For payments made to individuals under retirement systems; and
    4. For income tax refunds.
  2. The Chief Fiscal Officer of the State may review all disbursements to determine that the disbursements are issued in accordance with their respective appropriations and that there are sufficient funds to cover all the payments.
2. In the case of vouchers written upon the Public School Fund for state equalization aid, the Auditor of State shall process warrants to pay the vouchers upon certification by the Chief Fiscal Officer of the State that funds are available from general revenues available for distribution or from other sources for the benefit of the Public School Fund with which to pay the warrants when they are presented for payment.
3. In the case of payments made to welfare recipients under the welfare laws of this state, the approved list of welfare recipients may be certified directly to the Auditor of State, who shall approve the issuance of warrants upon certification by the Chief Fiscal Officer of the State that funds are available from general revenues available for distribution or from other sources for the benefit of the Department of Human Services Grants Fund Account of the Department of Human Services Fund with which to pay the warrants when they shall be presented for payment.
4. In the case of vouchers written upon the Arkansas Public Employees’ Retirement System, the Arkansas Local Police and Fire Retirement System, the State Police Retirement System, the Arkansas Judicial Retirement System, and the Arkansas Teacher Retirement System funds for retiree benefits, the Auditor of State shall process paper or electronic warrants to pay the vouchers upon certification by the Chief Fiscal Officer of the State that funds are available from the Arkansas Public Employees' Retirement System, the Arkansas Local Police and Fire Retirement System, the State Police Retirement System, the Arkansas Judicial Retirement System, and the Arkansas Teacher Retirement System funds with which to pay the warrants when they shall be presented for payment.
5. In the case of vouchers written upon the Uniform Tax Rate Trust Fund, the Auditor of State shall process warrants to pay the vouchers upon certification by the Chief Fiscal Officer of the State that funds are available for the benefit of the Uniform Tax Rate Trust Fund with which to pay the warrants when they shall be presented for payment.
6. In the case of vouchers written upon specific funds receiving federal funding, according to the Cash Management Improvement Act of 1990, Pub. L. No. 101-453, Oct. 24, 1990, 104 Stat. 1058, agreement, the Auditor of State shall process warrants and the Treasurer of State shall redeem the warrants presented for payment upon notification by the Chief Fiscal Officer of the State that the state agency director has certified to the Chief Fiscal Officer of the State that:
  1. A federal fund transfer request has been completed and accepted by the federal funding source; and
  2. Federal funds will be transferred for the benefit of the state fund to pay the warrants.

History. Acts 1973, No. 876, § 15; 1977, No. 486, § 4; A.S.A. 1947, § 13-341; Acts 1997, No. 14, § 1; 1997, No. 860, § 4; 1999, No. 391, § 38; 1999, No. 714, § 1; 2001, No. 1453, § 32; 2003, No. 656, § 7; 2005, No. 1149, § 1; 2007, No. 177, § 5; 2019, No. 315, § 1727.

Amendments. The 2005 amendment inserted “the Arkansas District Judge Retirement System” twice in (6)(D).

The 2007 amendment deleted “the Arkansas District Judge Retirement System” following “the Arkansas Judicial Retirement System Fund” and following “the Arkansas Judicial Retirement System” in (6)(D).

The 2019 amendment substituted “rules” for “regulations” in (4)(A).

U.S. Code. The Cash Management Improvement Act of 1990, Pub. L. 101-453, Oct. 24, 1990, 104 Stat. 1058, referred to in this section, is codified as 31 U.S.C. §§ 6501, 6503, and 3335.

19-4-1108. Retention of documents.

The original evidences of indebtedness, including documents prepared in connection with purchasing procedure, and all original contracts, invoices, statements, receipts, petty cash tickets, bank statements, cancelled checks drawn upon bank accounts, and other original supporting papers shall be retained in the permanent file of the business office of each state agency. These documents shall be kept in a safe place subject to audit and shall not be destroyed until authorization is given for their destruction by the Legislative Auditor.
With the approval of the Legislative Auditor, a state agency may retain evidences, to satisfy record retention policies, of indebtedness and other contracts, invoices, statements, receipts, petty cash tickets, bank statements, cancelled checks drawn upon bank accounts, and other supporting papers by microform or a form of stored images in a computer system or other form of computer technology in lieu of retaining the originals of such documents.

History. Acts 1973, No. 876, § 15; A.S.A. 1947, § 13-341; Acts 1997, No. 541, § 2; 2001, No. 1453, § 33.

19-4-1109. Procurement contracts.

Each state agency which is authorized by law or under the purchasing procedures of this state to enter into contracts for the procurement of property, commodities, or services shall keep on file in their respective places of business copies of these contracts for public inspection or audit and shall make a copy of any such contract available to the Chief Fiscal Officer of the State when so required by him or her.

History. Acts 1973, No. 876, § 15; A.S.A. 1947, § 13-341; Acts 2001, No. 1453, § 34.

Subchapter 12 — Disbursement of Public Funds

Preambles. Acts 1973, No. 876, contained a preamble which read:

Acts 1979, No. 833, § 12: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the aforementioned sections of the General Accounting and Budgetary Procedures Law of Arkansas requires amendment to conform with legislation, and for more effective operations of state government. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1993, No. 1073, § 35: July 1, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly that the distribution of general revenues and the creation of the various funds and fund accounts are essential to be in force at the beginning of the state fiscal year and that in the event that the General Assembly extends beyond the sixty day limit, the effective date of this act would not begin at that time creating confusion and not permitting the agencies to implement those programs as approved by the General Assembly. Therefore an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1993.”

19-4-1201. Disbursing officers.

For the purpose of compliance with the provisions of this subchapter, the following shall be designated as disbursing officers:
1. The executive head of each state department;
2. The executive head, or superintendent, of each state institution; and
3. The executive secretary of each board or commission having such an officer.
The board having charge of any institution may designate any other full-time employee to act instead of the executive head, and the executive head of any other agency may designate any other full-time employee to act in his or her stead.
All these disbursing officers shall be required to furnish bond to the state in the manner provided by law.

History. Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340.

A.C.R.C. Notes. The operation of this section was suspended by adoption of a self-insured fidelity bond program for state officers, officials, and employees, effective July 20, 1987, pursuant to § 21-2-701 et seq. The subsection may again become effective upon cessation of coverage under that program. See § 21-2-703.

19-4-1202. Designation of disburser.

In the event appropriations are made available to a state agency or to a nongovernmental agency or activity and no disbursing officer is provided for by law, the Chief Fiscal Officer of the State and the Auditor of State shall designate a person to act as disbursing officer and fix the amount of bond for such purposes.
In the event that the General Assembly enacts legislation that provides for more than one (1) disbursing officer from a fund or fund account and there are insufficient funds available to finance all appropriations made therein, the Chief Fiscal Officer of the State shall certify the amount of funds and appropriations to be made available for each disbursing officer.

History. Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340; Acts 1993, No. 1073, § 17.

19-4-1203. Disbursing agents.

In the event the executive head of any state agency shall designate some full-time employee to act as his or her agent in the disbursement of funds under his or her control, then that agent may act without furnishing additional bond if the executive head of that agency shall notify the Chief Fiscal Officer of the State and the Auditor of State in writing of such designation.

History. Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340; Acts 2001, No. 1453, § 35.

19-4-1204. Bond required.

The disbursement of any funds in the State Treasury, of federal funds granted to the state or any state agency, of bank funds of any state agency, of trust funds of any state agency, or of any other special funds belonging to any state agency shall be done only by a bonded official or bonded employee in the manner prescribed by law.
Each disbursing officer or disbursing agent shall be required to furnish bond in the penal sum required by law or, in the absence of any law on the subject, in an amount fixed by the Chief Fiscal Officer of the State and the Auditor of State with a corporate surety company authorized to do business in this state and conditioned upon the faithful performance of his or her duties and for the proper accounting for all funds received and disbursed by him or her.

History. Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340.

A.C.R.C. Notes. The operation of subsection (b) of this section was suspended by adoption of a self-insured fidelity bond program for state officers, officials, and employees, effective July 20, 1987, pursuant to § 21-2-701 et seq. The subsection may again become effective upon cessation of coverage under that program. See § 21-2-703.

19-4-1205. Signature or facsimile.

The original copy of all checks drawn in connection with the disbursement of public funds for which the disbursing officer is responsible shall bear the manual signature of the disbursing officer or his or her authorized agent, or may contain or bear a mechanically produced facsimile signature of the disbursing officer or his or her authorized agent. Where the Chief Fiscal Officer of the State has determined that the executive head of a state agency has established adequate internal administrative procedures and controls pursuant to law, which determination shall be made only after the Chief Fiscal Officer of the State shall have consulted with the Legislative Auditor, he or she may grant an exemption from manual signatures to allow for a computer-produced digitized signature of the disbursing officer or his or her authorized agent.

History. Acts 1973, No. 876, § 14; 1979, No. 833, § 5; A.S.A. 1947, § 13-340; Acts 1997, No. 1087, § 1; 2001, No. 1453, § 36.

19-4-1206. Duties generally.

The bonded disbursing officer for each state agency or the bonded disbursing officer for any regular or special fund provided for by the General Assembly shall be responsible and held accountable for the proper expenditure of the funds under his or her control.
It shall be the responsibility and duty of each disbursing officer or agent to:
1. Keep advised as to the availability of the appropriations and funds for which he or she is the disbursing officer and be informed as to the legality of and authority for any obligations which may be incurred before any disbursements are made;
2. Keep advised as to the laws or administrative rules relating to general accounting procedures and restrictions for the disbursement of funds; and
3. Certify that:
  1. Any disbursements which he or she may make are in accordance with the terms of any applicable contracts, purchasing procedure, or other authority;
  2. The services have been performed or the goods received; and
  3. The vendor or payee is entitled to the amount set forth in the check or voucher.

History. Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340; Acts 2019, No. 315, § 1728.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (b)(2).

19-4-1207. Duty to monitor finances.

It shall be the duty and responsibility of the head of the agency for which appropriations are authorized and of the agency's disbursing officer to:

Be cognizant at all times of the resources available, including applicable fund balances, revenues, and other income, for financing the appropriations authorized by the General Assembly;
See that no obligations shall be incurred which cannot be lawfully discharged from funds appropriated or available from other sources when they become due and payable; and
Not operate the agency during any fiscal year from the then-current fiscal year's available resources at a level of operations that would require for the succeeding fiscal year funds in addition to those already authorized by the General Assembly.

History. Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340; Acts 2001, No. 1453, § 37.

19-4-1208. [Repealed.]

Publisher's Notes. This section, concerning quarterly allotment procedure, was repealed by Acts 2001, No. 1453, § 38. The section was derived from Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340.

19-4-1209. Compliance with other laws.

The disbursement of funds authorized by the General Assembly shall be limited to the appropriations and the funds made available for the support of such appropriations. The restrictions of the Arkansas Procurement Law, § 19-11-201 et seq., the Uniform Classification and Compensation Act, § 21-5-201 et seq., the Revenue Stabilization Law, § 19-5-101 et seq., and rules promulgated by the Department of Finance and Administration authorized by law shall be strictly complied with in the disbursement of the funds.

History. Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340; Acts 2019, No. 315, § 1729.

Amendments. The 2019 amendment substituted “rules” for “regulations” in the second sentence.

19-4-1210. Revenues insufficient to meet appropriations.

The disbursements of funds shall be subject to the controls of the procedures authorized by this subchapter, other acts of the General Assembly, and rules established by the Department of Finance and Administration.
In the event that during any fiscal year the governmental revenues available to the state or a state agency are not sufficient to cover the appropriations made by the General Assembly from such revenues, then:
1. The bonded disbursing officer for each agency shall be responsible and held accountable for the incurring of any obligations and disbursements of any funds in behalf of the agency for which he or she acts as disbursing officer. It shall be his or her duty to keep advised as to the amount of governmental revenues available for the operation of his or her agency. Each such disbursing officer is prohibited from incurring any obligations in excess of the funds made available by this chapter and other laws providing revenues for any such agency, and all such disbursing officers shall be subject to the restrictions and limitations of this chapter;
2. The Chief Fiscal Officer of the State shall exercise the powers of his or her office to enforce the fiscal laws of the state to prohibit deficit spending and to promulgate rules which will require that all agencies comply with such fiscal laws. He or she may require, whenever he or she deems necessary, a financial report from any agency. If any such financial report or any other available information of any agency which has appropriated funds or an agency which has both state and bank funds shall reveal that the agency is in financial distress, then he or she may direct that all of the funds of the agency, including any bank funds, shall be subject to approval under the provisions of this chapter;
3. If during any year it is determined that the proposed disbursements exceed the amount approved for that year, then, upon direction of the Chief Fiscal Officer of the State, necessary reductions in proposed disbursements shall be made;
4. If, in accomplishing the necessary reductions in disbursements, it shall be required to reduce the salaries of employees, the reductions shall be made in proportion to existing salaries, and the reductions shall be made in the salaries of all employees, including administrators and directors;
5. The Chief Fiscal Officer of the State is directed to withhold all distributions of special and general revenues as prescribed in this chapter and in the Revenue Stabilization Law, § 19-5-101 et seq., at any time that a state agency fails to comply with the restrictive provisions of this chapter; and
6. It is provided that the creditors of any agency shall have first consideration in connection with disbursement of the funds of the agency. If the funds of any agency become depleted to an extent that the creditors cannot be paid from funds on hand or which will become available during the same fiscal year, the Chief Fiscal Officer of the State shall direct the agency to stop incurring obligations until the funds on hand and the funds estimated to become available are sufficient to meet all such obligations.

History. Acts 1973, No. 876, § 14; A.S.A. 1947, § 13-340; Acts 2001, No. 1453, § 39; 2019, No. 315, §§ 1730, 1731.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (a) and the first sentence of (b)(2).

Subchapter 13 — Monitoring for Deficit Spending

Effective Dates. Acts 1983, No. 781, § 7: Mar. 24, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that due to the decline in projected revenue collections, and in view of the economic recession that has drastically reduced the growth in revenues required for the operation of essential services of government, that immediate steps must be taken to invoke rigid fiscal restraints to assure that essential governmental services and programs are operated on an orderly basis without creating circumstances that would make it necessary to discontinue or severely curtail the level of essential services of government during prolonged periods of time, and that the immediate passage of this Act is necessary to accomplish such purposes. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

19-4-1301. Legislative intent and purpose.

This subchapter is intended to be an addition to the provisions of the General Accounting and Budgetary Procedures Law, § 19-4-101 et seq., and other fiscal laws of this state. This subchapter is enacted for the purpose of imposing additional duties and responsibilities upon the Chief Fiscal Officer of the State to monitor state expenditures and financial obligations in order to assure that all state agencies, programs, and services plan and use the funds provided or made available for the support of the essential services of government within their respective jurisdictions. This monitoring shall be done without incurring obligations or commitments which would exhaust the available funds within a time frame of less than twelve (12) months or which would create deficits.
The General Assembly is cognizant of the economic recession that has reduced the growth of state revenues that are available for the operation of many of the programmed commitments or expansions of services of government. By this subchapter the General Assembly intends to strengthen the responsibilities and duties of the Chief Fiscal Officer of the State to provide for the planned and orderly, yet rigid, enforcement of the various laws of this state designed to protect against deficit spending.
It is further the intent and purpose of this subchapter to mandate that all public officials, administrators, and employees charged with the responsibility of administering and disbursing state funds be held strictly accountable for the administration of the programs under their jurisdiction. Those officials, administrators, and employees shall periodically reevaluate and modify, if necessary, the various programs and services under their respective jurisdiction to assure the orderly providing of the greatest possible level of essential services and programs on a regular twelve-month basis, within the limitation of the funds available.
The General Assembly further recognizes that many agencies may have to evaluate and curtail projected or planned program expansions. Many agencies may also have to exercise options to reduce the levels of existing services or program commitments to keep the projected expenditures for such programs or services within the limitations of funds estimated to be available therefor, as provided in this subchapter. It is the intention of the General Assembly that each state agency review its ongoing obligations and services and make the necessary adjustments to provide the greatest possible level of essential services commensurate with the funds available on a year-round, twelve-month basis.

History. Acts 1983, No. 781, § 1; A.S.A. 1947, § 13-374.

Cross References. Fiscal duties of Department of Finance and Administration, § 19-1-201 et seq.

19-4-1302. Provisions supplemental.

This subchapter is intended to be supplemental and in addition to the fiscal laws of this state and shall repeal only such laws and parts of laws as are specifically in conflict with it.

History. Acts 1983, No. 781, § 5; A.S.A. 1947, § 13-378.

19-4-1303. Exemptions.

Funds disbursed by the Arkansas Department of Transportation, the Arkansas State Game and Fish Commission, and the Office of the Arkansas Lottery and the funds appropriated in the general appropriation bill provided for in Arkansas Constitution, Article 5, § 30, shall be exempt from this subchapter.

History. Acts 1983, No. 781, § 6; A.S.A. 1947, § 13-379; Acts 2009, No. 605, § 17; 2009, No. 606, § 17; 2015, No. 218, § 16; 2017, No. 707, § 46.

Amendments. The 2009 amendment by identical acts Nos. 605 and 606 inserted “and the Arkansas Lottery Commission.”

The 2015 amendment substituted “Office of the Arkansas Lottery” for “Arkansas Lottery Commission”.

The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department”.

19-4-1304. Failure to conform to directives and mandates.

If a state agency shall fail or refuse to conform to the directives and mandates of the Chief Fiscal Officer of the State to restrict or curtail its financial obligations or program commitments as intended by this subchapter, the agency head or members of the board or commission responsible therefor may be guilty of misfeasance in office or employment and may be removed from office by appropriate legal proceedings.
The fact that it may be necessary for an agency to reduce existing levels of services in order to conform to orders or directives of the Chief Fiscal Officer of the State, as intended by this subchapter, shall not be lawful justification for failure to conform thereto.

History. Acts 1983, No. 781, § 3; A.S.A. 1947, § 13-376.

19-4-1305. Failure to perform duties.

If the Chief Fiscal Officer of the State fails to perform his or her duties as mandated under the provisions of this subchapter and within the time limitations set forth in it, he or she shall be guilty of misfeasance of his or her office and may be removed from office in the manner provided by law.

History. Acts 1983, No. 781, § 4; A.S.A. 1947, § 13-377.

19-4-1306. Procedures for monitoring agency expenditures and fiscal operations.

In addition to the powers and duties provided under this chapter and other fiscal laws of the state, the Chief Fiscal Officer of the State shall invoke additional procedures to assure that all state agencies are operated on a planned and orderly basis of essential services within the limitations of funds available.
In furtherance of the purposes of this subchapter, the Chief Fiscal Officer of the State shall institute the following additional procedures and controls:
1. At least thirty (30) days prior to the commencement of each fiscal year, the Chief Fiscal Officer of the State shall make studies for the purpose of estimating the anticipated amount of general and special revenues to be made available for distribution under the provisions of the Revenue Stabilization Law, § 19-5-101 et seq., and for the support of agencies which derive their support from special revenues, for such fiscal year or such fiscal quarter, or for any calendar month if he or she deems it necessary. In addition, the Chief Fiscal Officer of the State shall compute the estimated amount of general revenues that will be available for distribution to the respective State Treasury accounts in accordance with the respective percentage distributions of general revenues authorized under the provisions of the Revenue Stabilization Law, § 19-5-101 et seq. It shall be the duty of each agency head responsible for administering special revenues or federal funds to notify the Chief Fiscal Officer of the State of any unusual events which would adversely affect the estimate of the moneys received upon which the agency is operating. Such notification shall be given immediately upon knowing of the existence of such events by agency heads;
2. Upon completion of revenue estimates for each fiscal year or each fiscal quarter, or monthly if deemed necessary, the Chief Fiscal Officer of the State shall prepare schedules reflecting the estimated amount of general revenues to be available for distribution to the State Treasury funds and accounts for each of the agencies which share in the distribution of general revenue funds of the state, either in whole or in part. In addition, the Chief Fiscal Officer of the State may require the preparation of estimates from the administering agency or prepare estimates of the anticipated amount of special revenues to be available for distribution to those agencies which receive support from special revenues, from both general and special revenues, or from cash funds or other sources;
3. After preparing the estimates and schedules for each fiscal year, fiscal quarter, or month, the Chief Fiscal Officer of the State shall review the annual operations budgets of each agency. The Chief Fiscal Officer of the State shall institute such controls as he or she deems necessary to modify or restrict the level of approved expenditures that may be incurred by each agency to assure that sufficient funds will be available to maintain a minimum level of essential services and programs by each agency without undue interruption or curtailment of the level of programs and essential services provided for any extended period during each fiscal year or which might create circumstances that would institute deficit spending to meet the obligations or services in excess of the funds available for the support thereof, as provided by law; and
4. If the Chief Fiscal Officer of the State, in reviewing the annual operations budgets of any state agency, determines that the level of operations thereof or the projected commitment thereof is being operated in a manner that would impose serious curtailment of essential services or would create circumstances of deficit spending, then he or she shall immediately notify the head of the agency responsible for the operation of such services as to the curtailments and controls that should be instituted to bring the level of operations or services within the necessary fiscal restraints recommended by the Chief Fiscal Officer of the State.
A copy of each directive issued pursuant to subdivision (b)(4) of this section shall be furnished to the Governor, to the Legislative Council, and to the Legislative Joint Auditing Committee.

History. Acts 1983, No. 781, § 2; A.S.A. 1947, § 13-375; Acts 2001, No. 1453, § 40.

Subchapter 14 — Construction of Buildings and Facilities

Cross References. Award of contracts for repairing, altering, or erecting buildings or other structures, § 22-9-201 et seq.

Preambles. Acts 1973, No. 876, contained a preamble which read:

Acts 1987, No. 758, § 6: Apr. 7, 1987. Emergency clause provided: “It is hereby found and declared that because of the large volume of proposed construction by taxing agencies and the confusion that now exists on a large scale concerning the handling of Bidding Procedures, to the detriment of contractors, subcontractors, the taxing agencies and the public, that the clarification made by this act is immediately needed to eliminate said confusion and resulting harmful effects on the public peace, health, safety and welfare. By reason thereof, an emergency is declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in force and after its passage and approval.”

Acts 1997, No. 961, § 5: Mar. 31, 1997. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that present laws relating to construction of projects by public institutions of higher education may, where substantial private funding of such projects is provided, create unnecessary delay in the review and implementation of such projects to the potential detriment of the public institution of higher education resulting in increased cost of the project and discouragement of donors of private funds to support such projects. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 214, § 5: Feb. 12, 2001. Emergency clause provided: “It is found and determined by the General Assembly that an inconsistency in the laws regarding bid bonds exist and causes confusion for contractors of the state for public works projects. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 1626, § 2: Apr. 16, 2001. Emergency clause provided: “It is found and determined by the General Assembly that a more efficient management of funds available to state agencies and institutions of higher education may be accomplished by allowing solicitation, award and contracting for certain construction projects to be conducted in a manner which assures the timely, quality completion of the projects within the budget available; and that this legislation should take effect immediately to permit state agencies and public institutions of higher education utilizing the capital improvement project process and delivery method set forth in this legislation for the benefit of the agencies and institutions of higher education. Therefore, in order to further the operational efficiencies of state agencies and public institutions of higher education in construction of capital improvement projects, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2005, No. 859, § 4: Mar. 15, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that requirements in plans and specifications which require bidders and suppliers to hold membership in certain professional organizations limit the number of eligible bidders and suppliers for projects; that by requiring bidders and suppliers to hold membership in professional organizations, an entity may increase the possibility of certain bidders and suppliers receiving projects, which is an inequitable outcome; and that the state of Arkansas and its citizens will benefit from enhanced competition for bidders and suppliers on public construction projects. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 82, § 23: July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the General Improvement Fund should no longer be utilized; that the Development and Enhancement Fund is necessary to complete unfinished state projects; and that this act is necessary to address infrastructure needs and unanticipated needs of the State of Arkansas. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019.”

19-4-1401. Notice required.

In all instances wherein the state has any interest whatsoever in construction work requiring bids, the notice provisions of §§ 22-9-201 — 22-9-204 shall be strictly complied with and observed. Nothing in this subchapter shall be construed to amend or repeal these statutes, except those emergency procedures provided by §§ 22-9-201 — 22-9-204.

History. Acts 1973, No. 876, § 22; A.S.A. 1947, § 13-348; Acts 1999, No. 776, § 3.

19-4-1402. Contracts to be filed.

Executed counterparts of all contracts entered into by any state agency with respect to proposed projects for new improvements or major repairs or additions to existing buildings and facilities shall be approved by and filed with the Building Authority Division before the issuance of any vouchers making payments under the contract, unless the contract is exempted from the jurisdiction of the Building Authority Division by a law or a rule promulgated under the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
1. The boards of trustees of the University of Arkansas, Arkansas State University, University of Central Arkansas, Henderson State University, Arkansas Tech University, and Southern Arkansas University, respectively, are exempt from the requirements of this section requiring the filing of the contracts with the Building Authority Division.
2. The governing boards of all other public institutions of higher education shall be exempt from the requirement for approval and filing of the contracts with the Building Authority Division:
  1. Upon approval of the Division of Higher Education; and
  2. If, prior to granting approval, the Division of Higher Education shall have reviewed and approved policies and procedures adopted by the governing boards of the public institutions of higher education with respect to bidding and construction of capital improvement projects.
3. Nothing in this section shall prevent a public institution of higher education exempt under this subsection from entering into an agreement with the Building Authority Division to file its contracts with the Building Authority Division.
1. All contracts for new improvements or major repairs or additions to existing buildings and facilities under this subchapter shall include a project disclosure statement prepared by the agency, board, commission, or public institution of higher education.
2. The disclosure statement shall provide the estimated timeline, scope, and cost of the total project.
3. The disclosure statement shall not be construed as authorizing any:
  1. Additional work which is beyond the scope of the bid documents; or
  2. Payment exceeding the contract amount.
Nothing in this section shall prohibit any agency, board, commission, or public institution of higher education from executing contract amendments.

History. Acts 1973, No. 876, § 22; 1977, No. 813, § 2; A.S.A. 1947, § 13-348; Acts 1997, No. 294, § 1; 2001, No. 214, § 1; 2001, No. 961, § 3; 2005, No. 2186, § 1; 2009, No. 193, §§ 1, 2; 2015 (1st Ex. Sess.), No. 7, § 10; 2015 (1st Ex. Sess.), No. 8, § 10; 2019, No. 910, § 2255.

A.C.R.C. Notes. Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 1, provided: “Transfer of the Arkansas Building Authority to the Department of Finance and Administration.

“(a)(1) The Arkansas Building Authority is transferred to the Department of Finance and Administration by a type 2 transfer under § 25-2-105.

“(2) For the purposes of this act, the Department of Finance and Administration shall be considered a principal department established by Acts 1971, No. 38.

“(e) The Arkansas Code Revision Commission shall make appropriate name changes in the Arkansas Code to implement this act.”

Amendments. The 2005 amendment substituted “the Arkansas Building Authority” for “Arkansas State Building Services” in (a)(1); substituted “the authority” for “Arkansas State Building Services” in (a)(1) and throughout (b); redesignated former (b)(2)(A) as present (b)(2) and made related changes; in (b)(2)(B), substituted “If” for “Provided, that,” deleted “such” preceding “approval” and inserted “of the institutions”; rewrote (b)(3); and added (c) and (d).

The 2009 amendment inserted “approved by and” in (a), inserted “the requirement for approval and” in (b)(2); and made minor stylistic changes.

The 2015 amendment by Acts 2015 (1st Ex. Sess.), Nos. 7 and 8 substituted “division” for “authority” throughout the section; and substituted “Building Authority Division of the Department of Finance and Administration” for “Arkansas Building Authority” in (a).

The 2019 amendment substituted “Building Authority Division” for “division” in (a), (b)(1), (b)(2), and twice in (b)(3); deleted “of the Department of Finance and Administration” following “Building Authority Division” in (a); and substituted “Division of Higher Education” for “Department of Higher Education” in (b)(2)(A) and (B).

19-4-1403. Agencies exempted.

The provisions of this subchapter shall not be applicable to the State Highway Commission and the Arkansas Department of Transportation.

History. Acts 1973, No. 876, § 22; 1977, No. 813, § 2; A.S.A. 1947, § 13-348; Acts 2017, No. 707, § 47.

Amendments. The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department”.

19-4-1404. Forces employed.

Whenever any agency of the state shall determine to construct any buildings and facilities or to make any repairs or additions to existing buildings and facilities and there are funds available for these purposes, then the agency shall have the authority to undertake any such project by the employment and use of its own forces, or by contract, or in part by its own forces and in part by contract, all as in its opinion shall be in the best interest of the state. For this purpose, the agency may employ architects.
The provisions of this section shall not apply to any city, town, county, or school district within this state.

History. Acts 1973, No. 876, § 22; A.S.A. 1947, § 13-348.

19-4-1405. Bidding procedure — Definition.

1. 1. After a state agency has caused the preparation and has approved plans and specifications, it shall then proceed to advertise for bids for the contemplated work by the publication of notice one (1) time each week for not less than two (2) consecutive weeks for projects over the amount of fifty thousand dollars ($50,000), and shall proceed to advertise for bids one (1) time each week for not less than one (1) week for projects more than the quote bid and less than or equal to fifty thousand dollars ($50,000).
  2. 1. This notice shall be published in a newspaper of general circulation published in the county in which the proposed improvements are to be made or in a trade journal reaching the construction industry.
    2. The last insertion shall be not less than one (1) week prior to the date on which the bids are to be received.
2. The notice shall:
  1. Provide for the receipt of sealed bids;
  2. Set forth the time and place in which the bids will be received;
  3. Specify from whom copies of the plans and specifications and a draft of the proposed contract may be obtained for examination;
  4. Contain the amount of the bid security; and
  5. Contain such other information and requirements as, in the opinion of the state agency, may be necessary or desirable.
1. On the date and time fixed in the notice, the state agency shall open, tabulate, and compare bids, and award the contract to the lowest responsible bidder.
2. However, the state agency shall have the right to reject any or all bids and to waive any formalities.
1. The successful bidder shall be required to furnish bonds to the State of Arkansas, with corporate guaranty or indemnity sureties on the bonds.
2. 1. The bonds shall be both for the completion of the construction free of all liens and encumbrances, in an amount fixed by the Building Authority Division, and for the protection of the state agency and its members against all liability for injury to persons or damage to, or loss of, property arising, or claimed to have arisen, in the course of the work project, within limits fixed by the division.
  2. However, for projects undertaken by public institutions of higher education, the bonds shall be in an amount and within limits fixed by the governing board of the public institution of higher education.
1. 1. Every bid submitted on state agency construction contracts for projects over the amount stated in § 22-9-203 is void unless accompanied by a cashier's check drawn upon a bank or trust company doing business in this state or by a corporate bid bond and the agent's power of attorney as his or her authority.
  2. Bid security is not required for projects under or equal to the amount stated in § 22-9-203.
2. The bid security shall indemnify the public against failure of the contractor to execute and deliver the contract and necessary bonds for faithful performance of the contract.
3. The bid security shall provide that the contractor or surety must pay the damage, loss, cost, and expense subject to the amount of the bid security directly arising out of the contractor's default in failing to execute and deliver the contract and bonds.
4. Liability under this bid security shall be limited to five percent (5%) of the amount of the bid.
1. 1. When it is obvious from examination of the bid document that it was the intent of a bidder to submit a responsive bid and because of a scrivener's error, the bid, if accepted, would create a serious financial loss to the bidder, the Secretary of the Department of Transformation and Shared Services may relieve the bidder from responsibility under his or her bond and may reject the bid.
  2. However, for projects undertaken by public institutions of higher education exempt from review and approval of the division, the chief executive officer of the public institution of higher education or his or her designee may relieve the bidder from responsibility under his or her bond and may reject his or her bid in the same manner and within the same period as allowed by the division.
2. As used in this section, “scrivener's error” means:
  1. An error in the calculation of a bid which can be documented by clear and convincing written evidence and which can be clearly shown by objective evidence drawn from inspection of the original work papers, documents, or materials used in the preparation of the bid sought to be withdrawn; and
  2. In the case of a bid sought to be withdrawn, the bid was submitted in good faith and the mistake was due to a calculation or clerical error, an inadvertent omission, or a typographical error as opposed to an error in judgment.
3. 1. To receive relief under subdivision (e)(1) of this section, the bidder must serve written notice to the secretary or to the chief executive officer or his or her designee of a public institution of higher education exempt from review and approval of the division any time after the bid opening, but no later than seventy-two (72) hours after receiving the intent to award, excluding Saturdays, Sundays, and holidays.
  2. Failure to make a withdrawal request within seventy-two (72) hours shall constitute a waiver by the bidder of the bidder's right to claim that the mistake in his or her bid was a scrivener's error.
4. In the event the secretary or the chief executive officer or his or her designee of a public institution of higher education exempt from review and approval of the division has relieved the bidder from responsibility under his or her bond, action on the remaining bids should be considered as though the withdrawn bid had not been received.
1. A state agency shall not require in plans or specifications that a bidder or supplier:
  1. Hold membership in any professional or industry associations, societies, trade groups, or similar organizations;
  2. Possess certification from any professional or industry associations, societies, trade groups, or similar organizations as steel building fabricators; or
  3. Be endorsed by any professional or industry associations, societies, trade groups, or similar organizations.
2. However, plans and specifications may include or reference standards adopted by professional or industry associations, societies, trade groups, or similar organizations.

History. Acts 1973, No. 876, § 22; 1985, No. 365, § 11; A.S.A. 1947, § 13-348; Acts 1987, No. 758, § 1; 1995, No. 1319, § 1; 1997, No. 1193, § 2; 1999, No. 219, § 2; 2001, No. 214, §§ 2, 3; 2001, No. 961, §§ 4, 5; 2003, No. 364, §§ 4, 19; 2005, No. 859, § 1; 2009, No. 193, §§ 3, 4; 2019, No. 658, § 2; 2019, No. 910, §§ 3454-3456, 6083.

Amendments. The 2005 amendment added (f).

The 2009 amendment substituted “security” for “bond” in (a)(2)(D) and (d)(1)(B).

The 2019 amendment by No. 658 substituted “stated in § 22-9-203” for “of twenty thousand dollars ($20,000)” in (d)(1)(A) and (d)(1)(B); and made stylistic changes.

The 2019 amendment by No. 910 deleted “of the Department of Finance and Administration” following “Building Authority Division” in (c)(2)(A); substituted “Secretary of the Department of Transformation and Shared Services” for “Director of the Department of Finance and Administration” in (e)(1)(A); and substituted “secretary” for “director” in (e)(3)(A) and (e)(4).

19-4-1406. [Repealed.]

Publisher's Notes. This section, concerning concurrence by architects on the construction of buildings and facilities, was repealed by Acts 2003, No. 364, § 5. The section was derived from Acts 1973, No. 876, § 22; 1977, No. 813, § 3; A.S.A. 1947, § 13-348.

19-4-1407. Method of financing.

Before any state agency shall enter into any contract of employment with an architect or take any other affirmative action toward the construction or financing of any project as provided in this subchapter, it shall submit to the Chief Fiscal Officer of the State, in writing, a summary statement setting forth:
1. A general description of the proposed project;
2. Its estimated overall costs; and
3. The method it proposes to use to finance its cost, which is to be a method of financing that must be approved by the Governor.
After examining the method of financing and making such investigation as he or she shall deem necessary or advisable, the Chief Fiscal Officer of the State shall notify the agency, in writing, of his or her and the Governor's approval or disapproval of the method of financing the project. In the event of disapproval by the Chief Fiscal Officer of the State and the Governor, the agency may submit an alternate plan of financing the project. In any event, no affirmative action shall be taken by the agency unless and until a method of financing shall be approved by the Governor and the Chief Fiscal Officer of the State. The Chief Fiscal Officer of the State shall have no authority to pass upon the need for any such construction, such authority being vested solely in the agency.
The method of financing as required by this subchapter shall include estimated dates for commencing and completing the project. After the contracts for the project have been awarded, then the method of financing shall be amended to include the estimated dates of completion in accordance with the awarded contracts.

History. Acts 1973, No. 876, § 22; 1975, No. 985, § 1; A.S.A. 1947, § 13-348.

19-4-1408. Matching funds.

In the event funds provided by the state for projects regulated in this subchapter are subject to matching provisions, the Chief Fiscal Officer of the State shall require in the proposed method of financing that all of the funds or approved grants available for the proposed project, including state, federal, and agency funds, shall be considered in connection with preliminary planning and the awarding of contracts in connection with the project.
In those instances where construction projects utilize funds other than those deposited into the State Treasury, the Chief Fiscal Officer of the State shall prescribe the procedure for payments from all other funds made available to the agency.

History. Acts 1973, No. 876, § 22; A.S.A. 1947, § 13-348; Acts 2001, No. 1453, § 41.

19-4-1409. Use of other funds.

No state agency for which appropriations have been made by the General Assembly for construction and improvements shall make any contract or incur any indebtedness payable from those appropriations unless and until there are sufficient funds on hand or, in the case of federal grants, until the grant has received final approval from the granting federal agency for the benefit of the state agency to pay for the proposed obligations under the contracts. However, any agency shall have the power to accept and use grants and donations and to use its unobligated cash income and other funds available to it for the purpose of supplementing appropriations for construction purposes.
The appropriations and funds otherwise provided by the General Assembly for personal services, maintenance, and general operation of the agency shall not be used in connection with any proposed construction projects for which specific appropriations have been made by the General Assembly.

History. Acts 1973, No. 876, § 22; A.S.A. 1947, § 13-348.

19-4-1410. Completion of contracts.

Upon completion of each contract awarded for the fulfillment of a project authorized by the General Assembly:

The affected state agency shall notify the Department of Finance and Administration of the culmination of the contract;
No further expenditures or obligations will be incurred; and
The unexpended and unobligated funds shall be impounded.

History. Acts 1973, No. 876, § 22; 1975, No. 985, § 1; A.S.A. 1947, § 13-348.

19-4-1411. Processing of payments.

1. When a contractor submits a properly prepared request for payment of work completed on state construction projects and the request for payment conforms with the provisions of the contract award and laws of the State of Arkansas, the following maximum time is allowed for the processing of the payment requests by the various parties involved, excluding time required for transmittal from one (1) party to another:
  1. A design professional — five (5) working days;
  2. A state agency or institution of higher education exempt from review and approval by the Building Authority Division — five (5) working days, including preparation of a voucher and submission for payment; and
  3. The Department of Finance and Administration — five (5) working days.
2. Should payment be contested by any of the parties listed in this subsection, it shall be the responsibility of the parties contesting the payment, within the time specified for processing payment, to notify the contractor involved that payment has been contested and reasons therefor.
3. Should any of the parties listed in this subsection fail to properly process uncontested requests for payments within the time limits specified following date of receipt, a penalty of eight percent (8%) per annum of the amount of the request for payment shall be assessed against the parties responsible for the delay.
1. The Chief Fiscal Officer of the State shall establish procedures for monitoring payments to contractors. When it has been determined that payment processing has exceeded the time limits established in this section, the Chief Fiscal Officer of the State shall cause an investigation to be made for the purpose of determining the responsible parties and the amount of penalty to be paid.
2. Penalties assessed for failure to comply with the provisions in this section shall be paid to the contractor by the parties responsible in accordance with procedures established by the Chief Fiscal Officer of the State.

History. Acts 1973, No. 876, § 22; 1977, No. 813, § 3; 1979, No. 833, § 9; A.S.A. 1947, § 13-348; Acts 2001, No. 214, § 4; 2001, No. 961, § 6; 2003, No. 364, § 6; 2019, No. 910, § 6084.

Amendments. The 2019 amendment deleted “of the Department of Finance and Administration” following “Building Authority Division” in (a)(1)(B).

19-4-1412. Fund balances.

If, after the expiration date of the second biennial period for which funds have been appropriated for the benefit of any specific capital improvement project, there remains a balance of funds or appropriations, then such fund balances as may remain in the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund, for the benefit of the capital improvement project shall be reallocated for the benefit of proposed new or existing capital improvement projects of the various state agencies as may be enacted.
Nothing in this section shall be construed as to limit the authority of the General Assembly to appropriate funds for the benefit of any proposed new or existing capital improvement project of the various state agencies.

History. Acts 1973, No. 876, § 22; 1977, No. 641, § 1; A.S.A. 1947, § 13-348; Acts 2019, No. 82, § 7.

A.C.R.C. Notes. Acts 2019, No. 82, § 1, provided: “Legislative intent.

It is the intent of the General Assembly that the creation of the Development and Enhancement Fund is necessary to provide a mechanism to disburse funds for:

“(1) Various construction and improvement projects;

“(2) Unforeseen needs;

“(3) Funding deficiencies; and

“(4) The completion of projects previously funded by the General Assembly”.

Amendments. The 2019 amendment inserted “or its successor fund or fund accounts, including the Development and Enhancement Fund” in (a).

19-4-1413. Projects constructed with private funds.

In the event funds from private sources are provided to a public institution of higher education for projects which exceed five million dollars ($5,000,000) regulated in this subchapter sufficient to finance at least eighty percent (80%) of the estimated cost of the proposed project, excluding the cost of land, the provisions of this subchapter and of all other provisions of the Arkansas Code governing construction of public facilities, including, but not limited to, the provisions of §§ 22-9-101 and 22-9-103 and §§ 22-9-201 — 22-9-212, shall not be applicable to such projects, subject to the following:
1. 1. 1. The governing board of the public institution of higher education shall have adopted a resolution and procedure setting forth the method by which the architect, engineer, construction manager, contractor, and major subcontractors are to be selected for the project.
    2. The procedure shall include by appropriate public notice and solicitation the opportunity for qualified, licensed professionals to submit proposals and shall assure the design and completion of the project in an expeditious manner while adhering to high standards of design and construction quality.
    3. Such procedures shall require a payment and performance bond in an amount determined by the governing board and shall provide for the manner in which the construction shall be managed and supervised.
  2. In selecting a contractor and other professionals for the projects, the governing board shall consider the experience of the person or firm in constructing similar projects, the record of the person or firm in timely completion of such projects, and other similar matters to assure that the person or firm will complete the project within the time and to the specifications set by the governing board;
2. 1. Before the public institution of higher education shall enter into a contract with an architect, engineer, construction manager, or contractor for the design, construction, or financing of any project financed from private funds as provided in this section, it shall submit to the Chief Fiscal Officer of the State and the Legislative Council, in writing, a summary statement setting forth a general description of the proposed project, its estimated overall cost, and the method proposed to finance the cost, including a description of the sources and amount of private funds.
  2. The Chief Fiscal Officer of the State may forward a copy of this statement to the Building Authority Division, the Secretary of the Department of Transformation and Shared Services, and the Governor for information; and
3. To enable a public institution of higher education to qualify under this subsection, the private funds shall be paid to the public institution of higher education or to a fund or foundation for the benefit of the public institution of higher education, and such funds may be represented in whole or in part by a written pledge or commitment from a donor, provided that the public institution of higher education shall assure itself of the financial stability of such donor to fulfill the pledge or commitment.
Notwithstanding anything in this section to the contrary, the provisions of § 19-4-1405(f), § 22-9-301 et seq. [repealed], §§ 22-9-401 — 22-9-404, § 22-9-501 et seq., § 22-9-601 et seq., and § 22-9-701 et seq. shall remain in full force and effect and shall not be affected by this section.

History. Acts 1997, No. 961, § 1; 2005, No. 859, § 2; 2019, No. 910, § 6085.

Amendments. The 2005 amendment inserted “§ 19-4-1405(f)” in (b).

The 2019 amendment substituted “the Secretary of the Department of Transformation and Shared Services” for “of the Department of Finance and Administration” in (a)(2)(B).

Case Notes

Constitutionality.

Arkansas Constitution, Art. 19, § 16, applied only to county contracts. Therefore, this section and § 19-4-1415, which allowed for state contracts to be let without competitive bidding in certain circumstances, were not unconstitutional under § 16. Gatzke v. Weiss, 375 Ark. 207, 289 S.W.3d 455 (2008).

19-4-1414. [Repealed.]

Publisher's Notes. This section, concerning performance-based efficiency contracts, was repealed by Acts 2005, No. 1761, § 2. The section was derived from Acts 2001, No. 1547, § 1.

19-4-1415. Projects exceeding five million dollars.

In the event funds from any sources are provided to state agencies for projects which exceed five million dollars ($5,000,000), excluding the cost of land, the provisions of this subchapter and all other provisions of the Arkansas Code governing construction of public facilities, including, but not limited to, the provisions of § 22-9-201 et seq., at the election of state agencies or the institutions of higher education set forth in subdivision (b)(5) of this section shall not be applicable to the projects if the selection and contracting process set forth in this section is followed.
1. No contract for projects between the state agency and the construction manager, general contractor, architect, or engineer shall be entered into without first obtaining approval of the Building Authority Division and review by the Legislative Council.
2. The division shall have involvement in the selection and contract process from the project inception.
3. There shall be separate contracts for design and construction services.
4. The division shall have the authority to promulgate rules pertaining to the process for awarding and overseeing the contracts.
5. The Board of Trustees of the University of Arkansas and the Board of Trustees of Arkansas State University shall be exempt from review and approval by the division and any rules promulgated by it, provided that the Board of Trustees of the University of Arkansas and the Board of Trustees of Arkansas State University have adopted policies and procedures involving the awarding and oversight of the contracts for design and construction services.
6. All procedures pertaining to the contracts shall provide, to the extent practicable, substantial uniformity between these institutions with respect to the policies and procedures to be followed.
1. For all projects contemplated or contracted for, the division shall:
  1. Review and approve the advertisement as stated in subsection (d) of this section, the scope of work, the site selection, funding review, and, to the extent available, all project drawings, plans, and specifications prior to any solicitation of proposals for the project;
  2. Conduct on-site observations of the construction project on a regular basis and maintain project records; and
  3. 1. Review and approve all contract amendments.
    2. State agencies shall submit a summary of all contract amendments to the Legislative Council.
2. 1. The institutions of higher education stated in subdivision (b)(5) of this section shall perform all duties and responsibilities stated in subdivision (c)(1) of this section under policies and procedures adopted by their governing boards.
  2. They shall submit a summary of all contract amendments to the Legislative Council.
1. The selection procedures for the construction manager, general contractor, architect, or engineer shall provide for solicitation for qualified, licensed professionals to submit proposals.
2. The procedures shall assure the design and completion of the project in an expeditious manner while adhering to high standards of design and construction quality.
3. The state agency and each institution of higher education stated in subdivision (b)(5) of this section shall:
  1. Publish notice of its intention to receive written proposals three (3) consecutive days in a newspaper of statewide distribution;
  2. Allow a minimum of ten (10) working days for the professionals to send letters or resumes in response to newspaper advertisement; and
  3. Provide additional means of notification, if any, as the state agency or institution of higher education stated in subdivision (b)(5) of this section shall determine is appropriate.
1. 1. A preselection committee, which shall be composed of no more than three (3) members from the state agency and two (2) members from the division, shall review the proposals.
  2. A preselection committee for institutions of higher education stated in subdivision (b)(5) of this section shall consist of at least three (3) members as determined by each of the institutions, and the members may be from the division.
  3. The preselection committee shall select a maximum of five (5) applicants and schedule interviews.
  4. The state agency or an institution of higher education as stated in subdivision (b)(5) of this section shall notify the finalists of their status.
2. 1. The final selection committee shall be composed of the three (3) members from the state agency on the preselection committee.
  2. The final interviews shall be held at the time and date as designated by the final selection committee.
  3. Representatives of the division may attend the final selection meeting, but shall not vote in the final selection process.
  4. The final selection committee for institutions of higher education stated in subdivision (b)(5) of this section shall consist of at least three (3) members as determined by each of the institutions.
  5. Members of a preselection committee may also serve as members of the final selection committee of the institutions.
  6. In selecting a general contractor, construction manager, architect, or engineer, the state agency or institution of higher education as stated in subdivision (b)(5) of this section shall consider its established criteria which shall include, but are not limited to, the following:
    1. The experience of the professional or professionals in similar projects;
    2. The record of the professional or professionals in timely completion of the projects with high quality workmanship; and
    3. Other similar matters to determine that the professional or professionals will complete the project within the time and budget and to the specifications set by the state agency or institution of higher education as stated in subdivision (b)(5) of this section.
3. 1. The final selection committee shall select or make a formal recommendation to its governing body of the professional or professionals which it determines to be in the best interest of the state.
  2. Contracts for architectural, engineering, and land surveying professional consultant services shall be negotiated on the basis of demonstrated competence and qualifications for the type of services required and at fair and reasonable prices without the use of competitive bidding, and no rule shall inhibit the agency's authority to negotiate fees for the services.
  3. The final selection committee for the institutions of higher education as stated in subdivision (b)(5) of this section shall make a recommendation to its governing board or appropriate committee thereof of the professional or professionals which it determines to be in the best interest of the institution, and the governing board shall make the final decision and authorize the contract or contracts to be negotiated and awarded, unless it has delegated the action to a committee of the board.
1. Construction contracts for the projects shall not be entered into without a payment and performance bond in the amount of the contract and any amendments thereto and shall provide for the manner in which the construction shall be managed and supervised.
2. All project architects and engineers shall be properly licensed in accordance with the Arkansas State Board of Architects, Landscape Architects, and Interior Designers and the State Board of Licensure for Professional Engineers and Professional Surveyors.
3. The construction manager or general contractor shall be properly licensed by the Contractors Licensing Board.
4. 1. All subcontractors on the project shall be properly licensed by the Contractors Licensing Board.
  2. Any person who is not considered a contractor under § 17-25-101 et seq. may continue to perform subcontracting work under the provisions of this subchapter.
1. To enable a state agency or an institution of higher education as stated in subdivision (b)(5) of this section to qualify under this section, the funds shall be paid to or for the benefit of the state agency or institution of higher education, or to a fund or foundation for the benefit of the state agency or institution of higher education.
2. The funds may be represented in whole or in part by a written pledge or commitment from a donor, provided that the state agency or institution of higher education shall assure itself of the financial stability of the donor to fulfill the pledge or commitment.
All projects constructed pursuant to this section, to the extent applicable, shall be in accordance and compliance with:
1. Section 17-38-101 et seq., regulating plumbers;
2. Section 17-33-101 et seq., regulating the heating, ventilation, air conditioning, and refrigeration industry;
3. The Fire Prevention Act, § 12-13-101 et seq.;
4. Section 12-80-101 et seq., regarding earthquake resistant design for public structures;
5. Americans with Disabilities Act Accessibility Guidelines, 28 C.F.R. Part 36, Appx. A, adopted by the division; and
6. 1. The minimum standards of the division and criteria pertaining to projects constructed under this section.
  2. 1. However, institutions of higher education as stated in subdivision (b)(5) of this section shall be exempt from these standards and criteria, provided that the institutions shall have adopted policies and procedures involving the awarding and oversight of contracts for projects under this section.
    2. It is the intention of this section that all procedures adopted by these institutions pertaining to the contracts shall provide, to the extent practicable, substantial uniformity between these institutions with respect to the policies and procedures to be followed.
    3. Notwithstanding anything in this subsection to the contrary, the provisions of § 19-4-1405(f), §§ 19-4-1413, 19-11-801, 22-9-101, 22-9-103, 22-9-104, 22-9-212, 22-9-213, § 22-9-301 et seq. [repealed], § 22-9-401 et seq., § 22-9-501 et seq., § 22-9-601 et seq., and § 22-9-701 et seq. shall remain in full force and effect and shall not be affected by this section.

History. Acts 2001, No. 1626, § 1; 2003, No. 364, § 7; 2003, No. 1315, § 2; 2005, No. 859, § 3; 2009, No. 193, § 5; 2009, No. 605, § 18; 2009, No. 606, § 18; 2009, No. 1405, § 26; 2015, No. 218, § 17; 2015 (1st Ex. Sess.), No. 7, §§ 11-13; 2015 (1st Ex. Sess.), No. 8, §§ 11-13; 2019, No. 315, §§ 1732, 1733; 2019, No. 910, § 6086.

A.C.R.C. Notes. Acts 2010, No. 256, § 7, provided: “CONSTRUCTION. The Board of Trustees of Henderson State University shall be included as an exempt institution related to projects exceeding five million dollars ($5,000,000) provided that the institution shall have adopted policies and procedures involving the awarding and oversight of the contracts for design and construction services in compliance with State Law.”

Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 1, provided: “Transfer of the Arkansas Building Authority to the Department of Finance and Administration.

“(a)(1) The Arkansas Building Authority is transferred to the Department of Finance and Administration by a type 2 transfer under § 25-2-105.

“(2) For the purposes of this act, the Department of Finance and Administration shall be considered a principal department established by Acts 1971, No. 38.

“(e) The Arkansas Code Revision Commission shall make appropriate name changes in the Arkansas Code to implement this act.”

Amendments. The 2003 amendment by No. 364 substituted “Arkansas Building Authority” or “the authority” for “Arkansas State Building Services” throughout the section; rewrote (c)(1)(B); and deleted “and payments” from the end of (c)(1)(C)(i).

The 2003 amendment by No. 1315 substituted “architectural, engineering, and land surveying professional consultant services” for “professional services” in (e)(3)(B).

The 2005 amendment inserted “§ 19-4-1405(f)” in (h)(6)(B)(iii).

The 2009 amendment by No. 193 inserted “22-9-212” in (h)(6)(B)(iii).

The 2009 amendment by identical acts Nos. 605 and 606 inserted “and the Arkansas Lottery Commission” in (b)(5), and made a related change.

The 2009 amendment by No. 1405 substituted “Board of Trustees of the University of Arkansas, the Board of Trustees of Arkansas State University, and the Arkansas Lottery Commission” for “institutions shall” in (b)(5).

The 2015 amendment by No. 218 deleted “and the Arkansas Lottery Commission” twice in (b)(5).

The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (b)(4); substituted “rules” for “regulations” in (b)(5); and deleted “or regulation” following “rule” in (e)(3)(B).

The 2019 amendment by No. 910 deleted “of the Department of Finance and Administration” following “Building Authority Division” in (b)(1).

Case Notes

Constitutionality.

Arkansas Constitution, Art. 19, § 16, applied only to county contracts. Therefore, Ark. Code Ann. § 19-4-1413 and this section, which allowed for state contracts to be let without competitive bidding in certain circumstances, were not unconstitutional under § 16. Gatzke v. Weiss, 375 Ark. 207, 289 S.W.3d 455 (2008).

19-4-1416. Job order contracting — Definitions.

As used in this section:
1. “Job order contracting” means the acquisition of contracting services using a selection method that requires contractors to submit qualifications and prices based on wage rates inclusive of fringes and burden, plus a pricing matrix for markups on materials and subcontractors; and
2. 1. “On-call contracting” means the ability of the state agency or institution of higher education to continue to call upon the successful bidder to conduct additional construction services as required by the state agency or institution of higher education.
  2. The contractor shall be required to bid all subcontractor work, and the state agency or the institution of higher education shall receive and open the bids with the contractor present at the bid opening date.
The state agency or the institution of higher education may supply all materials for the work with no additional markup if the materials may be purchased off state contracts at a lesser price than the contractor would be able to procure.
1. 1. After a state agency or institution of higher education has prepared appropriate scope documents and achieved appropriate reviews, it shall advertise for bids and award and file contracts for the contemplated work as identified in §§ 19-4-1401 — 19-4-1405.
  2. Additional work may be awarded based upon the initial bid within the fiscal year.
2. 1. The bidder may not submit a multiplier representing estimated cost inflation as part of the formal bid process.
  2. The bid will represent the fixed price amount for the fiscal year.
3. The most qualified bidder offering the best value for the state agency or the institution of higher education shall be selected to perform the construction services identified in the construction specifications.
1. Job order contracting bid awards:
  1. Shall not extend beyond one (1) fiscal year; and
  2. Shall not exceed:
    1. Seven hundred fifty thousand dollars ($750,000) per construction job for the first year of the contract for state agencies and institutions of higher education with education and general appropriations beginning in the 2009 fiscal year and each fiscal year thereafter equal or exceeding ten million dollars ($10,000,000); and
    2. One hundred thousand dollars ($100,000) per construction job for state agencies or institutions of higher education with education and general appropriations beginning in the 2009 fiscal year and each fiscal year thereafter of less than ten million dollars ($10,000,000).
2. However, reasonable extensions may be granted at the beginning of each new fiscal year not to exceed a total of four (4) years, if:
  1. The price remains mutually agreeable to the state agency or the institution of higher education and the contractor; and
  2. The quality of the work is satisfactory to the state agency or the institution of higher education.
3. On or before the four-year threshold, the state agency or the institution of higher education shall bid the construction service to assure competitive opportunities and lowest cost circumstances.
1. Executed counterparts of a contract entered into by a state agency with respect to job order projects shall be approved by and filed with the Building Authority Division before the issuance of any vouchers making payments under the contract.
2. 1. The boards of trustees of the University of Arkansas, Arkansas State University, University of Central Arkansas, Henderson State University, Arkansas Tech University, and Southern Arkansas University are exempt from the requirements of this section regarding the approval and filing of the contracts with the Building Authority Division.
  2. 1. With the exception of those boards of trustees listed in subdivision (e)(2)(A) of this section, the governing board of a public institution of higher education is exempt from filing the contracts with the Building Authority Division if it receives the approval of the Division of Higher Education.
    2. Before granting approval, the Division of Higher Education shall review and approve the policies and procedures regarding bidding and construction of capital improvement projects as adopted by the governing board of the public institution of higher education.
3. A public institution of higher education that is exempt under this section may enter into an agreement with the Building Authority Division to file its contracts with the Building Authority Division.

History. Acts 2003, No. 1476, § 1; 2009, No. 193, § 6; 2009, No. 206, § 1; 2013, No. 526, § 1; Acts 2019, No. 910, § 2256.

Amendments. The 2009 amendment by No. 193 added (e) and made minor stylistic changes.

The 2009 amendment by No. 206, in (d), redesignated (d)(1), substituted “Four hundred thousand dollars ($400,000)” for “three hundred thousand dollars ($300,000)” in (d)(1)(B)(i), substituted “beginning in the 2009 fiscal year and each fiscal year thereafter” for “for the 2003 fiscal year” in (d)(1)(B)(i) and (d)(1)(B)(ii), inserted “state” in (d)(1)(B)(ii) and (d)(3), and made related and stylistic changes.

The 2013 amendment substituted “Seven hundred fifty thousand dollars ($750,000)” for “Four hundred thousand dollars ($400,000)” in (d)(1)(B)(i).

The 2019 amendment substituted “Building Authority Division” for “division” in (e)(2)(A), (e)(2)(B)(i), and twice in (e)(3); deleted “of the Department of Finance and Administration” following “Building Authority Division” in (e)(1); substituted “Division of Higher Education” for “Department of Higher Education” in (e)(2)(B)(i); and substituted “Division of Higher Education” for “department” in (e)(2)(B)(ii).

Subchapter 15 — Property and Equipment Inventory

Preambles. Acts 1973, No. 876, contained a preamble which read:

19-4-1501. Uniform system of perpetual inventory.

The Chief Fiscal Officer of the State shall prescribe and establish a uniform system of perpetual inventory for property and equipment with a central control being established and maintained in the department. In connection therewith, the Chief Fiscal Officer of the State shall:

Prescribe the procedure of accounting and reporting for the sale, trade-in, exchange, discarding, junking, or other disposal of property and equipment and the system for receiving credit for lost, stolen, or damaged property and equipment. All state agencies shall be required to report promptly, upon forms approved by the Chief Fiscal Officer of the State, all such property or equipment disposed of, lost, or damaged;
Require that the addition and disposition of all new property or equipment added, including purchase, trade-in, exchange, or transfer, or by constructing or making such property or equipment, shall be promptly reported upon such forms and in such detail as shall be required; and
By rule, distinguish between items of equipment, and consumable supplies or goods, and such minor tools, materials, and parts as shall be deemed by him or her to be expendable within a reasonable period of time. He or she may also prescribe that minor equipment costing less than some minimum amount shall not be included in the perpetual inventory.

History. Acts 1973, No. 876, § 26; A.S.A. 1947, § 13-352; Acts 2001, No. 1453, § 42; 2019, No. 315, § 1734.

Amendments. The 2019 amendment substituted “rule” for “regulation” in the first sentence of (3).

19-4-1502. Duty to keep record.

It shall be the responsibility of the executive head of each state agency to keep and maintain a record of all property of the agency, belonging to the State of Arkansas. The executive head of each agency shall be held accountable for all state property under his or her control and shall be responsible for keeping and maintaining a record of all the property.

History. Acts 1973, No. 876, § 26; A.S.A. 1947, § 13-352.

19-4-1503. Transfer or sale.

The Chief Fiscal Officer of the State, in order to expedite the necessary work of any state agency or to eliminate duplication and promote economy and efficiency, may do the following:

Transfer property and equipment, including furniture, fixtures, and any and all kinds of office equipment and supplies from one (1) agency to another if the property or equipment of the agency from which the transfer is made is not needed by the agency at the time of the transfer; or
Sell surplus property and equipment of any agency at a reasonable fair value thereof as authorized by § 25-8-106.

History. Acts 1973, No. 876, § 26; A.S.A. 1947, § 13-352.

Subchapter 16 — Salaries and Payroll Disbursement

A.C.R.C. Notes. Acts 2016, No. 251, § 73, provided: “TRANSFER PROCEDURES — PER DIEM MATCHING. If there is not sufficient appropriation, from funds deposited in the State Treasury or Cash Accounts of an agency, for personal services, or personal services matching for any state agency for the period ending June 30, 2017, for State agencies that process payroll through the Arkansas Administrative Statewide Information System for federal and state tax reporting as necessary to comply with the payment of stipends under United States Internal Revenue Code (IRC), 2001-Code-Vol, Sec 3401 and Treasury Regulations § 31.3401(c)-1(a) and § 1.1402(c)-2(b), and others which govern the reporting of income and payment of withholding and matching taxes for personal services, the agency shall request a transfer from appropriation provided for Personal Services and Personal Services Matching in the appropriation for Various State Agencies — U.S. IRC and Treasury Regulations herein, from the Chief Fiscal Officer of the State, stating clearly the amounts required for each item. Upon approval of the Chief Fiscal Officer of the State, the State Auditor shall be notified as to the amount and the purposes for which the appropriation is to be made and such appropriation as needed shall be established upon the books of the Department of Finance and Administration and the State Auditor. Provided, however, that in the event the total amount of transfer requested in any fiscal year exceeds Ten Thousand Dollars ($10,000), the Chief Fiscal Officer of the State shall seek prior review by the Arkansas Legislative Council or Joint Budget Committee before the transfer shall be made.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 251, § 74, provided: “POSITION ESTABLISHMENT. The Chief Fiscal Officer of the State shall have the authority to establish such positions as necessary for State agencies to process payroll through the Arkansas Administrative Statewide Information System for federal and state tax reporting purposes as necessary to comply with the United States Internal Revenue Code (IRC), 2001-Code-Vol, Sec 3401 and Treasury Regulations § 31.3401(c)-1(a) and § 1.1402(c)-2(b), and others which govern the reporting of income and payment of withholding and matching taxes for personal services. The positions established shall not be considered as part of the total number of authorized positions for an agency and shall only be considered as placeholders for payments to individuals who are board or commission members or elected officials of the State that do not otherwise receive salaries or wages as defined in § 19-4-521 for their personal services. Further, none of the positions established under this section shall imply eligibility for state retirement or state health insurance benefits. The establishment of such positions shall not exceed 250 positions in any fiscal year.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Publisher's Notes. Some sections of this subchapter are duplicated in § 21-5-101 et seq.

Preambles. Acts 1973, No. 876, contained a preamble which read:

Effective Dates. Acts 1969, No. 199, § 11: July 1, 1969.

Acts 1973, No. 876, § 35: July 1, 1973. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1973.”

Acts 1975, No. 881, § 2: Apr. 4, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that under the present law relating to payroll deductions by State agencies, there is no specific authority for payroll deductions for dues to the Arkansas Public Employee Association, Incorporated, that it is in the best interest of the State, public employees, and the citizens of the State generally that State employers be permitted to make payroll deductions for such dues when requested to do so by the employee; that this Act is designed to accomplish this purpose and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1975, No. 980, § 5: Apr. 9, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that clarification of the General Accounting and Budgetary Procedures Law is necessary to enable State agencies to make payments to terminating employees with respect to unpaid annual or hospital leave, and to clarify that said payments, together with other salary adjustments occasioned by the bi-monthly payroll period shall not constitute a violation of the maximum annual salary requirements as provided by law and by the Constitution, and that the immediate passage of this Act is necessary to accomplish said purpose. Therefore, an emergency is hereby declared to exist, and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1976 (1st Ex. Sess.), No. 1, § 4: Sept. 10, 1976. Emergency clause provided: “It is hereby found and determined by the General Assembly that a recent U. S. Supreme Court decision has cast doubt on the legality of the payment of overtime to certain State employees of those agencies, commissions and institutions who were required to pay overtime to employees by reason of the 1966 Amendments to the Federal Fair Labor Standards Act. The General Assembly finds that the proper functioning of said agencies, commissions and institutions for the remainder of the 1975-77 biennium requires that overtime payments continue to be made as authorized herein. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 578, § 3: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 486 of 1977, as amended, and Section 5 of Act 5 of 1975, except payrolls from the pre-expenditure procedures applicable to vouchers, and that an implementing authorization under which State institutions of higher learning may be approved to disburse payrolls in accordance with law, and thereafter seek reimbursement from the State Treasury for the portion thereof properly chargeable to State Treasury funds is needed, and will result in substantial savings and administrative costs associated with handling payrolls; that the effectiveness of this Act on July 1, 1979 is essential to the operation of institutions of higher learning and that in the event of an extension of the Regular Session the delay in the effective date of this Act beyond July 1, 1979 could work irreparable harm upon the proper administration and providing of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1980 (1st Ex. Sess.), No. 36, § 2: Jan. 25, 1980. Emergency clause provided: “It is hereby found and determined by the General Assembly that amendment of existing law is immediately necessary to prevent breach on the part of the State of a wage provision in a contract negotiated between the Federal Health, Education, and Welfare Department and the University of Arkansas Medical Science Department for work to be done at the National Center for Toxicological Research at Pine Bluff, Arkansas. Therefore, an emergency is declared to exist and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1980 (1st Ex. Sess.), No. 62, § 2: Feb. 4, 1980. Emergency clause provided: “It is hereby found and determined by the General Assembly that amendment of existing law is immediately necessary to prevent breach on the part of the State of a wage provision in a contract negotiated between the Federal Health, Education, and Welfare Department and the University of Arkansas Medical Science Department for work to be done at the National Center for Toxicological Research at Pine Bluff, Arkansas. Therefore, an emergency is declared to exist and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 251, § 3: Feb. 27, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that under the present law relating to payroll deductions by State agencies, there is no specific authority for payroll deduction for Van-Pool Riders Fees due to the Arkansas State Employees Association, Incorporated; that it is in the best interest of the State, State employees and the citizens of the State generally the State employers be permitted to make payroll deduction for such riders fees when requested to do so by the employee; that this Act is designed to accomplish this purpose and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 637, § 3: Mar. 27, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly, that clarification of the General Accounting and Budgetary Procedures Law is necessary to provide authorization for the processing of the bi-weekly twenty-seven (27) payroll periods that occur as a result of the conversion from a bi-monthly to a bi-weekly payroll system. The bi-weekly twenty-seven (27) pay periods shall not constitute a violation of the maximum annual salary requirements as provided by law and by the Constitution, and that the immediate passage of this Act is necessary to accomplish said purposes. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 820, § 3: Apr. 4, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly, that due to the recent Supreme Court ruling changing the method of compensation for overtime work that Act 876 of 1973 must be amended to enable the State and the Chief Fiscal Officer of the State to comply with the Federal Fair Labor Standards Act; that this Act is designed to accomplish this purpose and should be effective immediately. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 629, § 18: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly that the amendments to the Revenue Stabilization Law are essential to the continued operation of State government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1989.”

Acts 1989, No. 688, § 4: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that those provisions of the General Accounting and Budgetary Procedures Law that apply to institutions of higher education except personal services matching from the pre-expenditure procedures applicable to vouchers, and that an implementing authorization under which State institutions of higher learning may by approved to disburse personal services matching in accordance with law, and thereafter seek reimbursement from the State Treasury for the portion thereof properly chargeable to State Treasury funds is needed, and will result in substantial savings and administrative costs associated with handling personal services matching; that the effectiveness of this act on July 1, 1989 is essential to the operation of institutions of higher learning and that in the event of an extension of the Regular Session the delay in the effective date of this act be beyond July 1, 1989 could work irreparable harm upon the proper administration and providing of essential governmental programs. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1989.”

Acts 1995, No. 176, § 5: Feb. 6, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly meeting in regular session, that a delay in the effective date of this Act beyond July 1, 1995 could result in the loss of state general revenue. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2017, No. 599, § 5: July 1, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the fiscal year for employees of institutions of higher education begins annually on July 1; and that the implementation of the Higher Education Uniform Classification and Compensation Act is necessary to ensure the continued services and operations of the state. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2017.”

19-4-1601. Regular Salary Procedures and Restrictions Act.

This section and § 21-5-101 shall be known as and may be cited as the “Regular Salary Procedures and Restrictions Act”.
Arkansas Constitution, Article 16, § 4, provides: “Except as provided in Arkansas Constitution, Article 19, § 31, the General Assembly shall fix the salaries and fees of all officers in the State; and no greater salary or fee than that fixed by law shall be paid to any officer, employee, or other person, or at any rate other than par value; and the number and salaries of the clerks and employees of the different departments of the State shall be fixed by law.” Therefore, the following provisions shall be applicable to all authorized regular salary positions in appropriation acts unless specific exception is made otherwise by law:
1. For any position authorized by the General Assembly for the benefit of any department, agency, board, commission, institution, or program for which the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq., are to be applicable, it is declared to be the intent of the General Assembly that the Uniform Classification and Compensation Act, § 21-5-201 et seq., shall govern with respect to:
  1. The entrance pay level;
  2. The procedures by which salary increases may be granted; and
  3. The maximum pay level that may be paid for the grade assigned each employee under the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq.;
2. For any position authorized by the General Assembly for the benefit of any department, agency, board, commission, institution, or program for which a maximum pay level is set out in dollars, it is the intent of the General Assembly that the position is to be paid at a rate of pay not to exceed the maximum established for the position during any one (1) fiscal year and that the maximum pay level authorized is for full-time employment;
3. 1. For all positions authorized by the General Assembly for any department, agency, board, commission, institution, or program, it is the intent of the General Assembly that in determining the annual salaries of these employees, the administrative head of the department, agency, board, commission, institution, or program shall take into consideration ability of the employee and length of service.
  2. It is not the intent of the General Assembly that the maximum pay level as authorized in the appropriation act, or any increases established for the various grades under the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq., be paid unless the qualifications are complied with and then only within the limitations of the appropriations and funds available for this purpose.
  3. An employee authorized by the General Assembly shall not receive from appropriated or cash funds, either from state, federal, or other sources, compensation in an amount greater than that established by the General Assembly as the maximum pay level for the employee unless specific provisions are made therefor by law; and
4. An employee of the State of Arkansas shall not be paid any additional cash allowances, including without limitation uniform allowance, clothing allowance, motor vehicle depreciation or replacement allowance, fixed transportation allowance, and meals and lodging allowance, other than for reimbursement for costs actually incurred by the employee unless the allowances are specifically set out by law as to eligibility of employees to receive the allowances, and the maximum amount of the allowances is established by law for each employee or for each class of employee eligible to receive the allowances.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349; Acts 2017, No. 365, § 3; 2019, No. 388, § 2.

Amendments. The 2017 amendment substituted “pay level” for “annual salary” and “annual salaries” throughout (b); substituted “pay level” for “salary step” in (b)(1)(A); substituted “The procedures by which salary” for “The frequency with which step” in (b)(1)(B); and substituted “step increases” for “any increases” in (b)(3)(B).

The 2019 amendment inserted “and § 21-5-101” in (a); in the introductory language of (b), substituted “Except as provided in Arkansas Constitution, Article 19, § 31” for “that”, substituted “State, and” for “state, that”, and deleted “that” preceding “the number”; in (b)(1), (b)(2), and twice in (b)(3)(A), inserted “department” and inserted “board, commission, institution”; substituted “the Uniform Classification and Compensation Act, § 21-5-201 et seq.” for “these statutes” in (b)(1)(C); added “and that the maximum pay level authorized is for full-time employment” in (b)(2); in (b)(3)(C) and (b)(4), substituted “An” for “No”, and inserted “not”; and, in (b)(4), substituted “without limitation” for “but not limited to”, substituted “the allowances” for “allowance” following “receive”, and substituted “is established” for “are established”; and made stylistic changes.

Cross References. State Health Department employees, reimbursement for automobile insurance, § 21-5-102.

Research References

Ark. L. Rev.

Ross E. Simpson, Case Note: “The Previous Pay is Under Further Review”: Payment Problems Arising from O'Bannon v. NCAA, 68 Ark. L. Rev. 1117 (2016).

Case Notes

In General.

Neither full-time or part-time state-salaried public defenders are eligible for additional compensation by the court for work done on appeal. Boston v. State, 341 Ark. 370, 16 S.W.3d 239 (2000) (decided under prior law).

Compensation of Public Defender.

The Regular Salary Procedures and Restrictions Act prohibits the public defender from receiving compensation from the State in an amount greater than that established by the General Assembly as the maximum annual salary for the state-salaried public defender. Rushing v. State, 340 Ark. 84, 8 S.W.3d 489 (2000) (decided under prior law), superseded by statute as stated in, Williams v. State, 347 Ark. 233, 60 S.W.3d 485 (2001), superseded by statute as stated in, Mills v. State, 347 Ark. 695, 66 S.W.3d 643 (2002), superseded by statute as stated in, Newman v. State, 350 Ark. 53, 84 S.W.3d 43 (2002).

19-4-1602. Payroll deductions.

Deductions from the payrolls of state employees, both regular and extra help, are authorized only for the following purposes:
1. Withholding taxes;
2. Social Security contributions;
3. Contributions to any state retirement system or approved plan of deferred compensation;
4. 1. Group or individual hospital, medical, and life insurance deductions.
  2. However, any payroll deductions through the Arkansas state mechanized payroll system for state employees for coverages other than the state-authorized plan shall be approved by the State and Public School Life and Health Insurance Board;
5. Payments to state employees' credit unions;
6. Value of maintenance perquisites;
7. Payment of union dues, when requested in writing by state employees;
8. Purchase of United States Government savings bonds;
9. Arkansas State Employees Association dues, when requested in writing by those state employees;
10. Fees for participation in the State Employees Benefit Corporation, when requested in writing by those state employees;
11. Contributions to a major federated fund-raising organization, when authorized by those state employees;
12. Arkansas State Police Association dues, when authorized in writing by those state employees;
13. Fraternal Order of Police dues, when requested in writing by those state employees;
14. Central Arkansas State Troopers Coalition dues, when authorized in writing by those state employees;
15. Arkansas Rehabilitation Association dues, when authorized in writing by those state employees;
16. Correctional Peace Officers Foundation dues, when authorized in writing by those state employees;
17. Department of Correction Employees Association dues, when requested in writing by those employees;
18. American Association of University Professors dues, when requested in writing by those employees;
19. Arkansas Association of Correctional Employees Trust dues, when requested in writing by those employees;
20. Division of Correction Bus Pool dues, when requested in writing by those employees;
21. 1. Arkansas Tax-Deferred Tuition Savings Program under the Arkansas Tax-Deferred Tuition Savings Program Act, § 6-84-101 et seq., or a tax-deferred savings program established by another state under 26 U.S.C. § 529, as it existed on January 1, 2007.
  2. The tax-deferred savings plan must be in existence at the time the payroll deduction request is made.
  3. The state employee shall provide information on his or her Arkansas Tax-Deferred Tuition Savings Program account to the Department of Finance and Administration so that the payroll deduction can be credited to the appropriate account; and
22. For such other purposes as are specifically authorized by law but not enumerated in this subsection.
If a state employee authorizes in writing the payroll deduction of dues of any union or professional association representing the employee, the agency shall deduct the dues from the payroll of the employee and remit the dues to the organization.
Deductions authorized by this section shall be made in compliance with rules and procedures established by the Secretary of the Department of Transformation and Shared Services.

History. Acts 1973, No. 876, § 23; 1975, No. 881, § 1; 1981, No. 251, § 1; 1983, No. 164, § 1; A.S.A. 1947, § 13-349; Acts 1987, No. 18, § 1; 1987, No. 646, § 3; 1989, No. 506, § 1; 1995, No. 1122, § 1; 1997, No. 747, § 1; 2001, No. 166, § 1; 2003, No. 1795, § 1; 2009, No. 368, § 1; 2011, No. 702, § 1; 2015, No. 1053, § 1; 2019, No. 315, § 1735; 2019, No. 910, §§ 976, 6087.

Publisher's Notes. Acts 1983, No. 164, § 2, provided that the act was intended to comply with Arkansas State Highway Employees' Local 1315 v. Smith, 257 Ark. 174, 515 S.W.2d 208 (1974), and in no way superseded or reversed such decision.

Amendments. The 2009 amendment, in (a), made a minor stylistic change in (a)(17), inserted (a)(19) and (a)(20), redesignated the subsequent subdivision accordingly, and made related changes.

The 2011 amendment inserted present (21) and redesignated former (21) as (22).

The 2015 amendment inserted “or individual” in (a)(4)(A).

The 2019 amendment by No. 315 deleted “regulations” following “rules” in (c).

The 2019 amendment by No. 910 substituted “Division of Correction” for “Department of Correction” in (a)(20); and substituted “Secretary of the Department of Transformation and Shared Services” for “Chief Fiscal Officer of the State” in (c).

Case Notes

Purpose.

The entire payroll deduction provision of this section was enacted for the protection of state employees against payroll deductions except for the purposes therein enumerated. Arkansas State Highway Employees Local 1315 v. Smith, 257 Ark. 174, 515 S.W.2d 208 (1974).

Union Dues.

The provisions of this section permitting deductions from the payrolls of state employees for the payment of union dues when requested in writing by state employees is permissive rather than mandatory and thus enforcement is not subject to the remedy of mandamus. Arkansas State Highway Employees Local 1315 v. Smith, 257 Ark. 174, 515 S.W.2d 208 (1974).

Although the failure of the state highway department to continue withholding union dues from the wages of union members could impair the effectiveness of the union, such action by the department was not prohibited by the first amendment. Arkansas State Hwy. Employees Local 1315 v. Kell, 628 F.2d 1099 (8th Cir. 1980).

Where the state highway department had concluded that the withholding of union dues constituted an added clerical and office expense which did not benefit the taxpayers, the program of constructing and maintaining highways, nor those employees who did not desire to belong to the union, the department's refusal to continue withholding union dues did not constitute discriminatory conduct in violation of the equal protection clause, even though the department continued to withhold items other than union dues. Arkansas State Hwy. Employees Local 1315 v. Kell, 628 F.2d 1099 (8th Cir. 1980).

Inasmuch as the limitations of this section are permissive rather than mandatory, a union acquired no property right subject to due process in the state highway department's withholding of union dues from wages of union members. Arkansas State Hwy. Employees Local 1315 v. Kell, 628 F.2d 1099 (8th Cir. 1980).

19-4-1603. Procedures for position control.

The Secretary of the Department of Transformation and Shared Services shall establish procedures for exercising position control applicable to those state agencies subject to the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq.
Exercising position control shall be interpreted as follows:
1. The secretary shall assign a position control number to each line-item position authorized for the applicable agencies;
2. The secretary shall establish reporting procedures so that agencies shall provide complete reports to the Department of Finance and Administration on the use of all authorized positions; and
3. The secretary may restrict an agency's use of authorized positions only after finding that the agency is in financial difficulty and after invoking the fiscal controls provided in § 19-4-701 et seq. and § 19-4-1201 et seq.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349; Acts 2019, No. 910, § 6088.

Amendments. The 2019 amendment substituted “Secretary of the Department of Transformation and Shared Services” for “Chief Fiscal Officer of the State” throughout the section.

19-4-1604. Salary from two agencies.

Except as provided in subsections (b) and (c) of this section, no person drawing a salary or other compensation from one state agency shall be paid salary or compensation, other than actual expenses, from any other state agency except upon written certification to and approval by the Secretary of the Department of Transformation and Shared Services and by the head of each state agency, stating that:
1. The work performed for the other state agency does not interfere with the proper and required performance of the person's duties; and
2. The combined salary payments from the state agencies do not exceed the larger maximum annual salary of the line-item position authorized for either state agency from which the employee is being paid.
1. This section does not prohibit a state employee from contracting to temporarily teach as adjunct faculty at a state-supported institution of higher education and thereby receive combined salary payments from the two (2) state agencies in excess of the larger maximum annual salary of the line-item position authorized from either state agency.
2. 1. This section does not prohibit a part-time or job-share public defender from receiving compensation from an appellate court for work performed in connection with an indigent client's appeal to the Supreme Court or the Court of Appeals.
  2. A person employed as a full-time public defender who is not provided a state-funded secretary may also seek compensation for appellate work from the Supreme Court or the Court of Appeals.
3. This section does not allow an employee to be on paid sick leave with a state agency and to be paid a salary or compensation from another state agency.
A person drawing a salary or other compensation from a state agency or institution of higher education shall not be paid a salary or compensation from another institution of higher education except upon the written certification to and approval by the Director of the Division of Higher Education that the:
1. Work performed for the other state agency or institution of higher education does not interfere with the proper and required performance of the person's duties; and
2. Combined salary payments from the state agency and institution of higher education do not exceed the larger maximum annual salary of the line-item position authorized for either the agency or institution of higher education from which the employee is being paid.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349; Acts 1995, No. 403, § 1; 2001, No. 1370, § 1; 2005, No. 1189, § 1; 2017, No. 599, § 2; 2019, No. 910, §§ 2257, 6089, 6090.

Amendments. The 2005 amendment added (b)(3).

The 2017 amendment substituted “subsections (b) and (c)” for “subsection (b)” in (a); substituted “indigent client's” for “indigent's” in (b)(2)(A); and added (c).

The 2019 amendment substituted “Secretary of the Department of Transformation and Shared Services” for “Chief Fiscal Officer of the State” in (a); and substituted “Division of Higher Education” for “Department of Higher Education in (c).

Case Notes

In General.

Appellate court denied public defender's motion to withdraw from representation as he failed to include in his motion information about whether his secretary was state-funded; counsel was free to refile his motion at a later date with that information. Williams v. State, 347 Ark. 233, 60 S.W.3d 485 (2001).

Supreme court denied public defender's motion to withdraw as counsel in defendant's appeal where the attorney failed to provide, as required by statute, information regarding whether he had a state-funded secretary. Mills v. State, 347 Ark. 695, 66 S.W.3d 643 (2002).

Where defendant's trial attorney, a state-salaried, full-time public defender, stated that he did have a full-time, state-funded secretary which prevented him from receiving compensation for appellate work, his new motion to withdraw as attorney on appeal was granted for good cause shown. Newman v. State, 350 Ark. 265, 85 S.W.3d 883 (2002).

Public Defender.

Court denied public defender's motion to be relieved as counsel on appeal because subdivision (b)(2)(A) of this section did not prohibit a part-time or job-share public defender from receiving compensation from an appellate court for work performed in connection with an indigent's appeal to the Arkansas Supreme Court or the Arkansas Court of Appeals. Tice v. State, 365 Ark. 410, 230 S.W.3d 557 (2006).

Court granted public defender's motion to be relieved as appellate counsel where the public defender's motion stated that he was provided with a full-time, state-funded secretary and, thus, he was not entitled to compensation. Tryon v. State, 367 Ark. 192, 238 S.W.3d 614 (2006).

Public defender was permitted to withdraw as counsel on defendant's appeal as the public defender could not seek compensation for his appellate work because he was provided with a state-funded secretary. Stone v. State, 367 Ark. 614, 242 S.W.3d 223 (2006).

Public defender was permitted to withdraw as the attorney in defendant's appeal because he was provided with a state-funded secretary and, thus, could not seek compensation for his appellate court work. White v. State, 367 Ark. 616, 242 S.W.3d 222 (2006).

Where the public defender's motion to withdraw as defense counsel on appeal did not state whether she was provided a state-funded secretary, the state supreme court could not determine whether she qualified for relief from defendant's representation in light of subdivision (b)(2)(B) of this section. The attorney was permitted to resubmit her motion. Motes v. State, 368 Ark. 600, 247 S.W.3d 814 (2007).

Supreme court denied counsel's request to withdraw as counsel for appellant because subsection (a) of this section indicated that counsel was eligible, as a part-time public defender, to receive compensation for his appellate work. It was irrelevant that the public defender's office employed one and one-half state-funded secretaries, as counsel's status as a part-time public defender made him eligible for compensation for his appellate work. Flowers v. State, 370 Ark. 115, 257 S.W.3d 532 (2007).

Withdrawal.

State supreme court granted the attorney's motion to withdraw because under new state laws the full-time, state-salaried public defender would not be eligible for compensation for any work done on defendant's criminal appeal. Jordan v. State, 354 Ark. 27, 120 S.W.3d 99 (2003).

Public defender who filed a motion to be relieved as counsel for a defendant in a criminal appeal was required to provide information about whether he had a state-funded secretary before the court could grant his motion. Walters v. State, 354 Ark. 403, 125 S.W.3d 818 (2003).

Granting of the attorney's motion to withdraw as defendant's attorney on his appeal was appropriate because the attorney was provided with a full-time, state-funded secretary who maintained his office operations; thus, he would not have been able to seek compensation for his work. Mejia v. State, 366 Ark. 348, 235 S.W.3d 519 (2006).

Appellate court affirmed defendant's attorney's motion to withdraw from representation of defendant pursuant to subdivision (b)(2)(B) of this section as the attorney had been provided with a full-time state-funded secretary and, thus, he would not have been able to seek compensation for his work. Jones v. State, 367 Ark. 476, 241 S.W.3d 268 (2006).

Attorney's motion to be relieved as counsel was granted because the attorney was not eligible for compensation on appeal under subdivision (b)(2)(B) of this section, because the attorney was a full-time, state-salaried public defender with a full-time, state funded secretary. Sanders v. State, 369 Ark. 423, 255 S.W.3d 444 (2007).

Defendant's motion for belated appeal was granted where, pursuant to Ark. R. App. P. Crim. 16(a), counsel had not been relieved by the trial court and was obligated to perfect the appeal and lodge the record in the appellate court; under subdivision (b)(2)(B) of this section, counsel was permitted to withdraw as attorney. Wann v. State, 369 Ark. 426, 255 S.W.3d 473 (2007).

Public defender's motion to be relieved as counsel for defendant in an appeal was granted because the public defender was provided with a full-time, state-funded secretary; because the public defender had a state-funded secretary, under subdivision (b)(2)(B) of this section, the public defender could not seek compensation from the appellate court for work on defendant's case. Mishion v. State, 369 Ark. 482, 255 S.W.3d 868 (2007).

Court denied appellate counsel's motion to withdraw on the basis that counsel was ineligible for compensation for any services performed on appeal because under subdivision (b)(2)(A) of this section, counsel was eligible to receive compensation for the appellate work; it was irrelevant that the public defender's office employed two state-salaried secretaries. Calhoun v. State, 370 Ark. 367, 259 S.W.3d 455 (2007).

On appeal of defendant's conviction for capital murder, the public defender was entitled to be relieved as counsel because he was ineligible to receive compensation for his work on appeal under subdivision (b)(2)(B) of this section. Page v. State, 373 Ark. 193, 282 S.W.3d 813 (2008).

—Withdrawal permitted.

Motion to withdraw as counsel of record in defendant's appeal of a conviction for first-degree murder was granted where a full-time state-salaried public defender who represented defendant at trial certified that he was supplied with a full-time state-salaried secretary. Johnson v. State, 352 Ark. 313, 100 S.W.3d 739 (2003).

Public defender's motion to be relieved as counsel for an indigent defendant on appeal was granted and another attorney was appointed to represent defendant where the public defender had a full-time, state-funded secretary and, thus, was ineligible for compensation for his work on appeal under subdivision (b)(2)(B) of this section. Hall v. State, 359 Ark. 203, 195 S.W.3d 897 (2004).

Pursuant to subdivision (b)(2)(B) of this section, where a full-time public defender was provided with a state-funded secretary, he could not seek compensation for appellate work; thus, his motion to withdraw as attorney from defendant's appeal was granted. Booker v. State, 363 Ark. 204, 212 S.W.3d 4 (2005).

Defendant's appointed attorney was permitted to withdraw as defendant's appellate counsel pursuant to subdivision (b)(2)(B) of this section as he was ineligible for compensation for his appellate work due to the fact that he was provided with a full-time, state-funded secretary. Wilson v. State, 363 Ark. 211, 212 S.W.3d 2 (2005).

Cited: Walters v. State, 355 Ark. 128, 132 S.W.3d 218 (2003); Kelley v. State, 2010 Ark. 229 (2010).

19-4-1605. Payment from multiple funds.

In those instances where a state agency has approved line-items for salaries which are payable from more than one (1) fund, the Chief Fiscal Officer of the State shall be authorized to establish a paying account on his or her books and on the books of the Treasurer of State and Auditor of State from which all such salaries may be paid, with provisions for reimbursing the paying account by directing the transfer of the necessary funds and appropriations on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349.

19-4-1606. Review of payroll required.

The Department of Transformation and Shared Services shall review the payroll of state agencies covered by the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq., with respect to the salaries of all employees of affected state agencies. This review shall determine the correctness of each payroll with respect to each position to assure compliance with the compensation plan and to assure that no position is being paid, during any payroll period, an amount greater than authorized in the compensation plan or the amount authorized for the position in the appropriation act applicable to the agency.
Any proposed rate of pay for an employee found not to be in accordance with the provisions of the compensation act and the appropriation act governing the agency shall be changed to the appropriate rate of pay by the state agency covered by the provisions of the compensation act before the department shall approve it for payment.
No payment of salary of any employee of any state agency affected by the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq., shall be made without the certification of correctness by the department based on its review duties as provided in this section.
The department is authorized to develop and implement rules and procedures to accomplish the purposes authorized in this section.

History. Acts 1969, No. 199, § 8; A.S.A. 1947, § 12-3208; Acts 2001, No. 1453, § 43; 2019, No. 910, § 6091.

Amendments. The 2019 amendment substituted “Department of Transformation and Shared Services” for “Department of Finance and Administration” in the first sentence of (a).

19-4-1607. Monthly, biweekly, weekly, and hourly salaries.

1. Except for those state agencies which operate principally on a scholastic year, or on a part-time basis, or where such salaries or personal services are specifically established for a period less than one (1) year, all salaries established by the General Assembly shall be considered to be a maximum amount to be paid for a twelve-month payroll period. No greater amount than that established for the maximum annual salary of any state official or employee shall be paid to such employee during any such twelve-month payroll period, nor shall more than one-twelfth (1/12) of such annual salary be paid to any such employee during any calendar month unless authorized in this subchapter.
2. The limitations set out in this section may be converted to biweekly or weekly increments of one-twenty-sixth (1/26) or one-fifty-second (1/52) of the maximum annual salary.
3. For complying with federal requirements, upon approval of the Secretary of the Department of Transformation and Shared Services in consultation with the Chief Fiscal Officer of the State, the maximum annual salaries may be converted to hourly rates of pay for positions established on the basis of twelve (12) months or less if authorized by law.
The remuneration paid to an employee of the state may exceed the maximum annual salary as authorized by the General Assembly as follows, and the following shall not be construed as payment for services or as salary as contemplated by Arkansas Constitution, Article 16, § 4:
1. Overtime payments as authorized by law;
2. Payment of a lump sum to a terminating employee, to include lump-sum payments of sick leave balances upon retirement as provided by law;
3. Payment for overlapping pay periods at the end of a fiscal year as defined or authorized by law;
4. Payment for the biweekly twenty-seven (27) pay periods;
5. Payment for career service recognition as authorized by law; and
6. Payment in accordance with special language salary provisions in individual agency appropriation acts.

History. Acts 1973, No. 876, § 23; 1975, No. 980, § 1; 1980 (1st Ex. Sess.), No. 36, § 1; 1980 (1st Ex. Sess.), No. 62, § 1; 1985, No. 637, § 1; A.S.A. 1947, § 13-349; Acts 2001, No. 1453, § 44; 2017, No. 365, § 4; 2019, No. 910, § 6092.

Amendments. The 2017 amendment deleted former (b)(6); redesignated former (b)(7) as present (b)(6); and made a related change.

The 2019 amendment inserted “Secretary of the Department of Transformation and Shared Services in consultation with the” in (a)(3).

Case Notes

Lump Sum Termination Payment.

A retiring state police officer was not entitled to include a lump sum termination payment equivalent to one month of accrued unused annual leave in computing his retirement pay, since § 24-6-201(8) contemplates using 36 months rather than 37 months in calculating retirement pay and since subdivision (b)(2) of this section specifically prohibits using the payment of a lump sum termination sum from being construed as a salary, in order to prevent a distinction in retirement benefits between an officer who took a vacation and an officer who did not. Board of Trustees v. Halsell, 271 Ark. 815, 610 S.W.2d 881 (1981).

19-4-1608. Personal services less than 12 months.

In the event an appropriation is made for the payment of personal services, when it has been established by law on the basis of a scholastic year or for some other period less than twelve (12) months, then any person so employed may be paid from bank funds for the remainder of the year if his or her services are required by the state agency.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349.

19-4-1609. State-supported institutions of higher education.

1. Pursuant to administrative procedures established by the Chief Fiscal Officer of the State, each state-supported institution of higher education may request a salary and personal services matching, or a maintenance and general operations expense disbursement procedure, or both. This procedure shall be requested, in writing from the executive head, communicated to the Chief Fiscal Officer of the State by which, effective at a date in accordance with the request, each payroll for all its salaries payable to employees, or a maintenance and general operations expense of the institution and personal services matching for employees of the institution, or both, may be disbursed by the institution and paid from state agency bank funds of the institution, subject to reimbursement and correction of reporting as provided in this section.
2. 1. The Chief Fiscal Officer of the State may approve such salary and personal services matching, or a maintenance and general operations expense disbursement procedure, or both, for such reimbursement if he or she determines that each institution has complied with all administrative procedures established by the Chief Fiscal Officer of the State.
  2. 1. The Chief Fiscal Officer of the State may revoke any such approval by transmitting a thirty-day notice to the executive head of the institution when the Chief Fiscal Officer of the State finds that internal administrative procedures and controls of the institution are not adequate.
    2. The Legislative Joint Auditing Committee shall advise the Chief Fiscal Officer of the State and keep him or her informed regarding any of its findings which may be relevant to such determination regarding these institutions.
1. Upon completion of salary and personal services matching, or a maintenance and general operations expense disbursement, or both, by the institution, the disbursing officer or other appropriate official of the institution shall examine the payroll or a maintenance and general operations expense, or both, as disbursed for such amounts as are properly payable from State Treasury funds.
2. At such time as the disbursing officer or other appropriate official of the institution examines the payroll, or a maintenance and general operations expense for determining the reimbursable amount, or both, he or she shall also review it in order to discover any erroneous or improper payments as provided by law. The liability for those payments shall be with the executive head of that institution and its bonded disbursing officer, or his or her designated bonded assistant.
All salaries and personal services matching, or a maintenance and general operations expense, or both, shall be subject to the restrictions and controls provided by law and the administrative procedures of the Chief Fiscal Officer of the State.

History. Acts 1979, No. 578, § 1; A.S.A. 1947, § 13-349.2; Acts 1989, No. 688, § 1; 1997, No. 758, § 1; 2001, No. 1453, § 45.

Cross References. Overtime pay for employees of institutions of higher education, § 6-63-308.

Case Notes

Construction.

This section provides nothing more than a means for the payment of certain judgments against the State, and does not create a waiver of the State's immunity from suit in her own courts. Cross v. Ark. Livestock & Poultry Comm'n, 328 Ark. 255, 943 S.W.2d 230 (1997).

19-4-1610. Retroactive pay prohibited.

1. In the event that a state employee is being paid less than the maximum provided for by law, and thereafter the head of the agency provides for an increase in the rate of pay for the employee, the rate of pay shall not exceed one-twelfth (1/12) of the annual maximum amount of the salary position on which he or she is placed, for the remainder of the annual period.
2. Payments under subdivision (a)(1) of this section shall not be made for a preceding fiscal year.
1. No increase in the rate of pay, either by paying the full amount of the maximum salary or by placing an employee in a position calling for a greater salary, shall be construed as authorizing the payment of any retroactive salary to the employee.
2. Payments under subdivision (b)(1) of this section shall not be made for a preceding fiscal year.
1. Salary payments made to correct an administrative error shall not be considered retroactive pay, nor shall such payment be construed as exceeding the employee's maximum authorized pay.
2. Payments under subdivision (c)(1) of this section may be made for a preceding fiscal year if:
  1. Requested within twelve (12) months of the end of the preceding fiscal year; and
  2. Upon the consent of the Secretary of the Department of Transformation and Shared Services in consultation with the Chief Fiscal Officer of the State.

History. Acts 1973, No. 876, § 23; 1981, No. 741, § 4; A.S.A. 1947, § 13-349; Acts 1989, No. 629, § 10; 2003, No. 656, § 8; 2019, No. 910, § 6093.

Amendments. The 2019 amendment inserted “Secretary of the Department of Transformation and Shared Services in consultation with the” in (c)(2)(B).

19-4-1611. Supplemental payments prohibited.

In the event the General Assembly shall have established by law the maximum annual salaries for certain positions for any state agency and shall have appropriated for those positions, no greater salary than that established by law shall be paid to any person occupying the position by making supplemental payments from agency bank funds. However, the salaries may be paid partly from state-appropriated funds and partly from agency bank funds, but the aggregate of the payments shall not exceed the maximum annual salary rate, where it is established by law.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349.

19-4-1612. Overtime pay.

It is the policy of the State of Arkansas that overtime pay for state employees is the least desirable method of compensation for overtime work.
1. All state departments, agencies, boards, commissions, and institutions may pay overtime to their employees, under the rules and regulations set out by the federal Fair Labor Standards Act of 1938.
2. 1. The Secretary of the Department of Transformation and Shared Services will specify those specific employees or groups of employees other than employees of the Arkansas Department of Transportation eligible to receive overtime compensation, the circumstances under which overtime pay is to be allowed, and other matters the secretary finds appropriate and necessary to comply with the federal Fair Labor Standards Act of 1938 as regards the payment of overtime compensation.
  2. The Director of State Highways and Transportation shall make these determinations as to employees of the Arkansas Department of Transportation.
The rules authorized by this section shall not go into effect until the secretary, or the Arkansas Department of Transportation as to its employees, has sought the advice of the Legislative Council.
In the event that the federal Fair Labor Standards Act of 1938 is held, for whatever reason, to be nonapplicable to state employment, then any state department, agency, board, commission, or institution may pay overtime to its employees only if the General Assembly has given authorization by an appropriation.

History. Acts 1973, No. 876, § 23; 1976 (1st Ex. Sess.), No. 1, § 1; 1977, No. 118, § 1; 1985, No. 820, § 1; A.S.A. 1947, § 13-349; Acts 2009, No. 605, § 19; 2009, No. 606, § 19; 2015, No. 218, § 18; 2017, No. 707, § 48; 2019, No. 910, §§ 6094, 6095.

Amendments. The 2009 amendment by identical acts Nos. 605 and 606 inserted “and the Arkansas Lottery Commission” in (b)(2)(A), and inserted (b)(2)(C).

The 2015 amendment deleted “and the Arkansas Lottery Commission” preceding “eligible” in (b)(2)(A); and deleted (b)(2)(C).

The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department” in (b)(2)(A), (b)(2)(B) and (c); in (b)(2)(A), substituted “other matters” for “such other matters which”, and substituted “finds” for “may deem”; and deleted “and regulations” following “rules” in (c).

The 2019 amendment substituted “Secretary of the Department of Transformation and Shared Services” for “Chief Fiscal Officer of the State” twice in (b)(2)(A) and in (c).

U.S. Code. The federal Fair Labor Standards Act of 1938, referred to in this section, is codified as 29 U.S.C. § 201 et seq.

19-4-1613. Lump-sum terminal pay.

Upon termination, resignation, retirement, death, or other action by which a person ceases to be an active employee of a state agency, the amount due the employee or his or her estate, including any accrued unpaid annual or holiday leave which is due in accordance with the policies of the state agency and lump-sum payments of sick leave balances upon retirement as provided by law, may, and should, be included in the final pay to the employee or his or her estate for the employee's active work, even though the final payment of salary or wages may exceed one-twenty-sixth (1/26) or other fractional amount based upon days, weeks, or months of the employee's annual authorized compensation at the date active employment ceases.
No employee receiving the additional compensation shall return to state employment until the number of days for which he or she received additional compensation has expired.
Payment of the additional compensation shall not be considered as exceeding the maximum for a position so authorized.
If an employee receives compensation for unused sick leave at retirement pursuant to § 21-4-501 and returns to state employment, the employee shall not be required to wait until the expiration of the number of days for which he or she received additional compensation before returning to state employment or to repay the amount of the compensation.

History. Acts 1973, No. 876, § 23; 1975, No. 980, § 2; A.S.A. 1947, § 13-349; Acts 2001, No. 1453, § 46; 2005, No. 1188, § 1.

Amendments. The 2005 amendment added (d).

19-4-1614. Judicial awards under federal laws.

In the event an employee of the State of Arkansas, or the authorized agent of the employee, files suit against the State of Arkansas in a court of competent jurisdiction for relief under the provisions of Title VII of the federal Civil Rights Act of 1964, as amended, or the federal Civil Rights Act of 1866, or the federal Civil Rights Act of 1871, or the Fourteenth Amendment to the United States Constitution, and the court finds for the employee and in so finding awards wages or salaries for personal services rendered in addition to wages or salaries already paid or due, the additional wages or salaries shall be paid from the regular salary appropriation from which the employee is normally paid. If it is found, however, that such payment will impair the regular salary appropriation, the Chief Fiscal Officer of the State shall transfer the necessary appropriation from the maintenance and general operations appropriation of the employing agency to the regular salary appropriation in order that the additional wages or salaries shall be paid.
Any liquidated damages awarded by the court, pursuant to the federal laws cited in subsection (a) of this section, are to be paid in the same manner as the additional wages or salaries provided for in subsection (a) of this section.
When notified that a state employee has filed suit or is in any other manner claiming redress under the provisions of the federal laws cited in subsection (a) of this section, the Chief Fiscal Officer of the State may investigate the circumstances surrounding the claim. If, based on the evidence and facts found during the investigation, the Chief Fiscal Officer of the State determines or has reason to believe that the court would sustain the employee's claim and find for the employee and in so doing award wages or salaries in addition to those paid or due for the employee's personal service rendered, then the Chief Fiscal Officer of the State shall, with the advice of the Legislative Council or the Joint Budget Committee, authorize payment of the additional wages or salaries as provided in subsection (a) of this section.

History. Acts 1973, No. 876, § 23; 1977, No. 813, § 4; A.S.A. 1947, § 13-349.

U.S. Code. Title VII of the federal Civil Rights Act of 1964, referred to in this section, is codified as 42 U.S.C. §§ 2000e – 2000e-17.

The federal Civil Rights Acts of 1866, referred to in this section, is codified as 42 U.S.C. §§ 1981 – 1982.

The federal Civil Rights Acts of 1871, referred to in this section, is codified as 42 U.S.C. §§ 1983, 1985, 1986.

Case Notes

Construction.

19-4-1615. Awards from State Claims Commission.

In the event a state employee is awarded a claim by the Arkansas State Claims Commission for wages or salaries for personal services rendered for a state agency, such award shall be processed through the state mechanized payroll system.
The award shall be paid from the regular salaries and personal services matching appropriation from which the employee is normally paid.

History. Acts 1995, No. 176, § 1.

Subchapter 17 — Professional and Consultant Services

19-4-1701 — 19-4-1717. [Repealed.]

Publisher's Notes. This subchapter, concerning professional and service contracts, was repealed by Acts 2003, No. 1315, § 3. The subchapter was derived from the following sources:

19-4-1701. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; 1979, No. 833, § 10; A.S.A. 1947, § 13-346; Acts 1991, No. 1221, § 1; 2001, No. 1232, § 1.

19-4-1702. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; A.S.A. 1947, § 13-346.

19-4-1703. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; A.S.A. 1947, § 13-346.

19-4-1704. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; A.S.A. 1947, § 13-346.

19-4-1705. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; A.S.A. 1947, § 13-346; Acts 1989, No. 37, § 1; 2001, No. 1568, § 2; 2001, No. 1612, § 37.

19-4-1706. Acts 1973, No. 876, § 20; 1977, No. 833, § 10; A.S.A. 1947, § 13-346.

19-4-1707. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; 1985, No. 365, § 9; A.S.A. 1947, § 13-346.

19-4-1708. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; A.S.A. 1947, § 13-346.

19-4-1709. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; 1985, No. 365, § 10; A.S.A. 1947, § 13-346; Acts 1997, No. 1088, § 1.

19-4-1710. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; A.S.A. 1947, § 13-346; Acts 1989, No. 402, § 3; 1997, No. 1088, § 2.

19-4-1711. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; A.S.A. 1947, § 13-346; 2001, No. 1453, § 47.

19-4-1712. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; A.S.A. 1947, § 13-346.

19-4-1713. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; A.S.A. 1947, § 13-346.

19-4-1714. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; 1979, No. 368, § 1; A.S.A. 1947, § 13-346.

19-4-1715. Acts 1973, No. 876, § 20; 1977, No. 875, § 1; A.S.A. 1947, § 13-346.

19-4-1716. Acts 1993, No. 1255 §§ 1-3; 1997; No. 179, § 17; 1997, No. 312, § 14; 1997, No. 1354, § 37.

19-4-1717. Acts 2001, No. 1762, § 1.

Subchapter 18 — Reimbursements, Collections, and Refunds

Preambles. Acts 1973, No. 876, contained a preamble which read:

Effective Dates. Acts 1971, No. 585, § 34: approved Apr. 6, 1971. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that in order to establish an orderly procedure which will insure the monthly and quarterly distribution of funds for the necessary services and operations of the state government, as provided for in this act, it is necessary that the provisions of this act become effective immediately; that under the provisions of this act seriously needed improvements for many of our public institutions are contemplated, and only the provisions of this act will provide such funds which will be adequate to alleviate this situation; and that only the provisions of this act will correct many of our financial difficulties, and which otherwise may deprive the citizens of this state from receiving the benefits for which the operation of state government contemplates. Therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage.”

Acts 1975, No. 72, § 5: July 1, 1975. Emergency clause provided: “It is hereby found and determined by the Seventieth General Assembly that the Constitution of the State of Arkansas prohibits the appropriations of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1975 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1975 could work irreparable harm upon the proper administration and providing of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1975.”

Acts 1975 (Extended Sess., 1976), No. 1110, § 3: Jan. 30, 1976. Emergency clause provided: “It is hereby found and determined by the Seventieth General Assembly, meeting in Extended Session, that refunds for overpayment of salaries of State employees should be credited as refunds to expenditures on the books of the Treasurer and that such refunds should also be credited to the appropriation accounts on the books of the various fiscal officers of the State thereby accruing greater benefits and effectiveness to the various agencies, boards and commissions of the State. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1977, No. 437, § 4: July 1, 1977. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management of state finances requires that the provisions of this Act be implemented at the commencement of the next biennium and this Act is necessary for the proper management of the financial affairs of the state, therefore an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1977.”

Acts 1987, No. 873, § 3: Apr. 13, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1110 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

19-4-1801. Reimbursements and refunds generally.

The Chief Fiscal Officer of the State shall prescribe the method of handling refunds and reimbursements to the state for moneys previously paid out or due the state. If no properly classified appropriation account exists on the books of the Chief Fiscal Officer of the State and the Auditor of State for which the respective refund is applicable, the Chief Fiscal Officer of the State is authorized to establish such appropriation account on the books of the Chief Fiscal Officer of the State, the Auditor of State, and the various fiscal officers.
No such refunds shall cause a transfer of appropriation on the books of the Chief Fiscal Officer of the State, the Auditor of State, and the various fiscal officers except for:
1. Proceeds received from insurance policies for casualty losses by state agencies;
2. Proceeds received from vendors on account of overpayment of obligations remitted by state agencies;
3. Refunds to state agencies for cash advances or over-allocations made to state and local agencies for subgrants;
4. Refunds to state agencies for the erroneous payment or overpayment of salaries to state employees;
5. Proceeds derived from the maturity or redemption of investments;
6. Reimbursements to institutions of higher education for cash fund expenditures for salaries that are properly chargeable to funds in the State Treasury;
7. Federal reimbursements of expenses paid in advance by the state on behalf of the federal government; and
8. Reimbursements by vendors or their agents for warranties, product rebates, and service adjustments.

History. Acts 1973, No. 876, § 24; 1975 (Extended Sess., 1976), No. 1110, § 1; 1977, No. 437, § 2; 1979, No. 833, § 8; A.S.A. 1947, § 13-350; reen. Acts 1987, No. 873, § 1; 2007, No. 716, § 2.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 873, § 1. Acts 1987, No. 834, provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Amendments. The 2007 amendment added (b)(7) and (8) and made related changes.

19-4-1802. Petty cash imprest funds.

Petty cash imprest funds for any state agency shall be approved by the Chief Fiscal Officer of the State only in the case of actual need for such funds in connection with the daily operations of the agency and shall be subject to such limitations with respect to amount and use of the funds as shall be prescribed by him or her.
The petty cash imprest funds shall not be used to circumvent purchasing rules, nor for the purpose of reimbursing individuals for travel expenses.

History. Acts 1973, No. 876, § 24; A.S.A. 1947, § 13-350; Acts 2019, No. 315, § 1736.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (b).

19-4-1803. Collections generally.

All fines, fees, penalties, court costs, taxes, and other collections which, by the laws of this state, are to be remitted directly to the Treasurer of State for credit in the State Treasury to an account of an agency of this state shall be remitted directly to the agency to whose account they are to be credited. Upon receipt, the agency shall transmit them to the Treasurer of State who shall credit them in the State Treasury to the account of the agency.

History. Acts 1961, No. 250, § 1; A.S.A. 1947, § 13-505.1.

19-4-1804. Geological publications income.

Charges, income, receipts, or revenue derived from the sale of publications by the Arkansas Geological Survey shall be deposited into the State Treasury as a refund to expenditures.

History. Acts 1971, No. 585, § 19; A.S.A. 1947, § 13-549.

Publisher's Notes. As originally enacted, this section also referred to “geological activity of the Department of Commerce.” However, Acts 1983, No. 691, § 17, abolished this department.

19-4-1805. Deposits for highway employees retirement.

All moneys received in the State Treasury for deposit into the State Highway Employees' Retirement System Fund that are derived from the sale or redemption of stocks, bonds, or other securities, other than interest, are to be classified and handled on the books of the Treasurer of State, the Auditor of State, and the Department of Finance and Administration as a refund to expenditures.

History. Acts 1975, No. 72, § 4.

Cross References. Arkansas State Highway Employees' Retirement System Fund, § 19-5-918.

19-4-1806. Grants, aids, and donations.

All state agencies are authorized to accept grants, aids, and donations and to enter into contracts to accept grants, aids, and donations. Following procedures prescribed by the Chief Fiscal Officer of the State, funds received from grants, aids, and donations may be deposited, disbursed, budgeted, and regulated.

History. Acts 1973, No. 876, § 19; A.S.A. 1947, § 13-345.

19-4-1807. Federal funds generally.

In the event the United States Congress shall appropriate funds for the benefit of the state or any state agency or in the event any federal funds shall be paid to the state or any agency thereof for the purpose of reimbursing the state for funds previously paid out, and in the event any such federal funds are deposited into the State Treasury and there is no law providing for the depositing of such moneys in a state fund or appropriating them from a state fund, taking into consideration the provisions and requirements of the miscellaneous federal grant appropriation, then the Chief Fiscal Officer of the State shall have the authority to direct the State Treasury to establish funds, fund accounts, or accounts on the books of the various fiscal officers of the state for the purpose of handling and disbursing these federal funds.
Any such federal funds shall be handled only in accordance with the purpose for which the funds were granted to, or paid over to, the state or any agency thereof. All such federal funds shall be subject to the procedures prescribed by the Chief Fiscal Officer of the State for the disbursement of funds.

History. Acts 1973, No. 876, § 24; A.S.A. 1947, § 13-350.

Cross References. Procedures for administering unanticipated miscellaneous federal funds, § 19-7-501 et seq.

19-4-1808. Federal funds for vocational schools.

Reimbursements of federal funds to the Division of Career and Technical Education Fund Account shall be construed to be income of the fiscal year in which the reimbursements were received.

History. Acts 1969, No. 620, § 15; A.S.A. 1947, § 13-513.2; Acts 2019, No. 910, § 2258.

Amendments. The 2019 amendment substituted “Division of Career and Technical Education Fund Account” for “Department of Career Education Fund Account”.

Subchapter 19 — Federal Grants and Aids

Cross References. Grant application review — indirect cost reimbursements, § 19-7-601 et seq.

Procedures for administering unanticipated miscellaneous federal funds, § 19-7-501 et seq.

Preambles. Acts 1973, No. 876, contained a preamble which read:

Acts 1981, No. 572 contained a preamble which read:

“Whereas, the Office of Management and Budget in conjunction with the Department of Health and Human Services is implementing a new process of transferring federal moneys to the various states for financing certain federally subsidized programs; and

“Whereas, the federally announced financing methodology is intended to reduce the available moneys for program administration, thereby shortening the period of time that federal moneys are needed for program financing; and

“Whereas, it is their intent to reduce the federal cash flow of moneys to, hopefully, prevent borrowing of moneys by the U.S. Treasury Department; and

“Whereas, the acceptable proposed method of financing these programs will require the Auditor of the State to issue warrants for the expenditures of federal moneys without regard to balances in the State Treasurey funds of the specified programs, but, the State Treasurer shall have sufficient balances on hand in the various affected funds in order to redeem warrants;

“Therefore, it is the intent of the General Assembly to amend the General Accounting and Budgetary Procedures Law of the State of Arkansas to allow implementation of an alternative method of financing certain Federal programs as required by the Office of Management and Budget and the Department of Health and Human Services; Now therefore … .”

Acts 1981, No. 572, § 4: July 1, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that various Federal Programs may require changes in their method of funding; that this Act is intended to provide for this Federal requirement and in order to do so it is essential that this Act become effective on July 1, 1981; that unless an emergency is declared, an extension of the 1981 regular session of the General Assembly could delay the effective date of this Act beyond July 1, 1981. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1981.”

19-4-1901. Submission of requests.

Requests for federal funds for grants, aids, reimbursement, and direct or indirect cost reimbursement plans, other than research grants, originated by a state agency other than a state institution of higher education shall be submitted to the Department of Finance and Administration prior to their submission to the granting source.
Excepting the provisions of § 19-4-1907, the remainder of this subchapter shall not be applicable to state institutions of higher education.

History. Acts 1973, No. 876, § 21; A.S.A. 1947, § 13-347; Acts 1989, No. 37, § 2.

19-4-1902. Preliminary or informal proposals.

Preliminary or informal proposals which do not commit personnel, space, facilities, or state funds may be submitted directly to the granting source. However, when the grant requested, if approved, would result in the commitment of state personnel, space, facilities, equipment, or funds, or the program to be proposed by the state agency with the resources from the federal grant has not received specific legislative authorization through an appropriation or specific enabling legislation, the requesting agency shall notify, in writing, the Secretary of the Department of Finance and Administration that such preliminary or informal proposal is being made and shall briefly describe it.

History. Acts 1973, No. 876, § 21; A.S.A. 1947, § 13-347; Acts 2019, No. 910, § 3457.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration”.

19-4-1903. Evaluation report.

Each request submitted to the Department of Finance and Administration shall be accompanied with an evaluation report prepared by the state agency that includes information as follows, but not necessarily limited thereto:

A description of the purpose of the program;
An explanation of the relationship of the program or plan to the agency's total program and why the program is needed;
Its priority in the total program;
A statement whether similar programs are being conducted, if known, or could be conducted in or by other agencies;
An explanation of the effects of this program and the state's obligation, if any, to continue the program, and the level of continuance, in the event federal funds are curtailed;
A statement of how the agency's programs and objectives would be affected if the request is not approved; and
The amount of overhead payment anticipated from federal funds, and its adequacy, to reimburse the agency and central state services for actual indirect costs reimbursements.

History. Acts 1973, No. 876, § 21; A.S.A. 1947, § 13-347.

19-4-1904. Receipt of funds.

When any federal funds, grants, aids, or reimbursements, including unsolicited funds, are received by a state agency, the Department of Finance and Administration shall be notified on forms to be prescribed by the Secretary of the Department of Finance and Administration.
The department shall prescribe procedures for quarterly reporting information relative to grants, aids, reimbursement, and direct or indirect cost reimbursement plans, and research grants and aids for the institutions of higher education.

History. Acts 1973, No., 876, § 21; A.S.A. 1947, § 13-347; Acts 1989, No. 37, § 3; 2019, No. 910, § 3458.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a).

19-4-1905. Research grants.

The Department of Finance and Administration shall prescribe procedures for reporting information relative to federal research grants and aids for the colleges and universities.

History. Acts 1973, No. 876, § 21; A.S.A. 1947, § 13-347.

19-4-1906. Letters of credit — Definitions.

As used in this subchapter, unless the context otherwise requires:
1. “Checks-paid letter of credit” means a system which requires state warrants to be issued without federal moneys on deposit in the State Treasury. The federal share of the warrants would only become available to the Treasurer of State on the day the warrants are presented for redemption. A receipt would be processed and credited to the proper fund before the warrants are redeemed;
2. “Delay-of-drawdown letter of credit” means a system which requires the Auditor of State to issue warrants without federal moneys on deposit in the State Treasury for specific programs primarily financed by federal moneys. Moneys are drawn upon the letter of credit and deposited with the Treasurer of State based on an agreement with the United States Government establishing warrant redemption patterns. Deposits are made each day based on estimates of the amount of warrants to be redeemed each day. In the event that warrants are presented for redemption on a given day in excess of the amount deposited into the State Treasury, an additional amount of moneys may be requested on a letter of credit and deposited with the Treasurer of State to enable proper warrant redemption and to prevent deficit spending; and
3. “Federal letter of credit” means an instrument certified by an authorized official of a grantor agency which authorizes a grantee to draw funds needed for immediate disbursement in accordance with the provisions of Treasury Circular 1075.
1. Upon approval of the Chief Fiscal Officer of the State and under procedures prescribed by the Chief Fiscal Officer of the State, letters of credit, either individually or under a single, unified, checks-paid, or delay-of-drawdown system may be included and accounted for on the books of record of the Auditor of State, Chief Fiscal Officer of the State, and applicable state agency as deferred federal revenues to be treated as an asset comparable to “cash on hand”. In connection therewith, the Chief Fiscal Officer of the State may direct the creation and establishment of a revolving paying account on the books of records of the applicable state's accounting records. Furthermore, upon implementation of a checks-paid or delay-of-drawdown system, the affected agency may issue vouchers, the Department of Finance and Administration may approve vouchers for payment, and the Auditor of State may issue warrants for federal programs without regard to federal fund or paying account balances on deposit in the State Treasury.
2. 1. In no event shall the Treasurer of State redeem any warrants without sufficient fund balances on deposit equal to the total amount of warrants presented for redemption.
  2. In no event shall the implementation of a checks-paid or delay-of-drawdown letter of credit system be construed as deficit spending.
  3. The Chief Fiscal Officer of the State, after consulting with the Auditor of State and the Treasurer of State, may prescribe such rules as necessary to implement a checks-paid or delay-of-drawdown letter of credit system.
3. No agency shall implement a checks-paid or delay-of-drawdown letter of credit system except upon approval of the Chief Fiscal Officer of the State and upon advice of the Legislative Council.

History. Acts 1973, No. 876, § 21; 1981, No. 572, § 1; A.S.A. 1947, § 13-347; Acts 2019, No. 315, § 1737.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (b)(2)(C).

19-4-1907. Quarterly reports.

The Secretary of the Department of Finance and Administration shall file quarterly reports with the Legislative Council itemizing and summarizing all contracts or agreements entered into by the Governor with the United States Government, or any agencies or instrumentalities thereof, whereby the State of Arkansas is to participate in any program involving the expenditure of federal funds. These reports shall be filed, whether or not state funds are obligated in connection therewith, with respect to new federal programs or expansions of existing federal programs which were not in existence or which were not implemented by state participation, at the time of the adjournment of the regular session of the General Assembly and entered into prior to the convening of the next regular session of the General Assembly.
The report shall list, with respect to each such contract or agreement:
1. A brief statement of the purposes of the agreement;
2. The amount of federal funds to be expended thereunder;
3. The amount of any state matching funds required in connection with such program, if any;
4. The name of the agency that will administer the program; and
5. Such additional information as will enable the members of the Legislative Council to determine the nature and purposes of the agreement.

History. Acts 1973, No. 876, § 21; A.S.A. 1947, § 13-347; Acts 2019, No. 910, § 3459.

19-4-1908. Review and continuance of programs.

The Legislative Council shall review the quarterly reports filed by the Secretary of the Department of Finance and Administration as required in this subchapter. The Legislative Council shall submit such findings and recommendations to each succeeding regular session of the General Assembly for enabling legislation to implement, restrict, or prohibit the state's participation in any such new federal program or expanded federal program which was implemented by contract or agreement entered into by the Governor subsequent to the adjournment of the preceding session of the General Assembly.
In the event the next regular session of the General Assembly shall fail to prohibit or restrict the state's participation in any new or expanded program implemented by contract or agreement signed by the Governor with the United States Government during the interim since the immediately preceding regular session of the General Assembly, then the state may continue to participate in the federal program. On the other hand, if the General Assembly shall restrict or prohibit the state's participation in any new or expanded federal program implemented by contract or agreement subsequent to the last regular session, then it shall be unlawful for the state to continue to participate in or to expend any state funds in connection with any such program. All contracts or agreements entered into by the Governor or any agency of the state acting under authority of the Governor shall be void and the state's participation therein shall cease upon the adjournment of the General Assembly, or at such later date if a later date for the termination of the state's participation therein has been prescribed by law.

History. Acts 1973, No. 876, § 21; A.S.A. 1947, § 13-347; Acts 2019, No. 910, § 3460.

Subchapter 20 — Losses and Recoveries

Preambles. Acts 1973, No. 876, contained a preamble which read:

19-4-2001. Notice and proof of loss.

It shall be the duty of the Chief Fiscal Officer of the State to give notice and make proof of loss to, and demand payment of, the surety of any bond executed by any state officer or employee in which the audit report by the Legislative Joint Auditing Committee of the records and accounts shows that such officer or employee and his or her surety may in any way be liable.

History. Acts 1973, No. 876, § 18; A.S.A. 1947, § 13-344.

19-4-2002. Payment of loss.

Within a reasonable time after the Chief Fiscal Officer of the State has given notice and made proof of loss and demand for payment as prescribed in this subchapter, the surety shall make payment to the Chief Fiscal Officer of the State of the amount so found to be due. The Chief Fiscal Officer of the State shall forthwith transmit the amounts so received to the Treasurer of State with instructions to credit it to the fund, fund accounts, or accounts entitled to such funds.
If the amounts so recovered are funds that are not required by law to be deposited into the State Treasury, then the funds shall be transmitted by the Chief Fiscal Officer of the State to the agency to which the recovered funds belong, with instructions to credit it to the accounts entitled to such funds.

History. Acts 1973, No. 876, § 18; A.S.A. 1947, § 13-344.

19-4-2003. Legal action.

In the event any surety shall fail or refuse to pay over the amounts so found to be due, the Chief Fiscal Officer of the State shall give notice of the failure or refusal to the Attorney General. The Attorney General shall immediately take such legal action as shall be necessary to collect the amount so found to be due from the officer or employee and his or her surety.

History. Acts 1973, No. 876, § 18; A.S.A. 1947, § 13-344.

19-4-2004. Auditor's testimony.

In all criminal or civil actions brought as the result of the findings set forth in an audit report, the auditors making the audit shall give testimony upon request of the proper officers of the court and otherwise make their services available in the prosecution of any action.
Auditors shall not be entitled to witness fees for giving testimony.

History. Acts 1973, No. 876, § 18; A.S.A. 1947, § 13-344.

Subchapter 21 — State-Funded Expenses of Constitutional Officers

A.C.R.C. Notes. References to “this chapter” in subchapters 1-20 may not apply to this subchapter which was enacted subsequently.

19-4-2101. Definition.

For purposes of this subchapter the term “constitutional officers” means the Governor, the Lieutenant Governor, the Attorney General, the Secretary of State, the Treasurer of State, the Auditor of State, and the Commissioner of State Lands.

History. Acts 1991, No. 768, § 1.

19-4-2102. Documentation required.

For all expenditures exceeding twenty-five dollars ($25.00), all constitutional officers and their employees shall hereafter file with their disbursing officers the following documents to substantiate expenditures for transportation, lodging, food, or any other expense to be paid from the maintenance and operations moneys appropriated by the General Assembly:
1. A copy of the vendor's invoice or receipt;
2. A statement of the purpose of the expenditure; and
3. The names of all persons for which the expenditure was incurred.
For all expenditures not exceeding twenty-five dollars ($25.00), all constitutional officers and their employees shall hereafter file with their disbursing officers the following documents to substantiate expenditures for transportation, lodging, food, or any other expense to be paid from the maintenance and operations moneys appropriated by the General Assembly:
1. A statement of the purpose of the expenditure;
2. The amount of such expense;
3. The date, place, and nature of such expense; and
4. The business relationship of any persons for whom the expenditure was incurred, including such person's identity, title, or other information sufficient to establish such a relationship.

History. Acts 1991, No. 768, § 2.

19-4-2103. Expenditures for official state business only — Exemptions.

No constitutional officer or employee of a constitutional officer shall expend for personal use any moneys appropriated by the General Assembly for the maintenance and operation of the office, and the moneys appropriated for the maintenance and operation of the offices of the constitutional officers shall be expended only for official state business.
This subchapter does not apply to the purchase, maintenance, and operation of state-owned motor vehicles.

History. Acts 1991, No. 768, § 3.

19-4-2104. Expenditures — Disapproval.

No disbursing officer of state funds shall approve any expenditure from maintenance and operation funds for expenses for a constitutional officer or an employee of a constitutional officer unless the request for the expenditure is accompanied by the documentation required by this subchapter.

History. Acts 1991, No. 768, § 4.

19-4-2105. Retention of documentation.

The constitutional officers and their employees shall retain the original documentation required by this subchapter for a period of three (3) years after the date of the request for expenditure.

History. Acts 1991, No. 768, § 5.

Subchapter 22 — Review of Discretionary Grants

A.C.R.C. Notes. References to “this chapter” in subchapter 1-20 may not apply to this subchapter which was enacted subsequently.

Effective Dates. Acts 1999, No. 1032, § 6: Apr. 1, 1999. Emergency clause provided: “It is hereby found and determined by the General Assembly that the provisions of this act are necessary to foster confidence in the operations of state government and to insure the proper expenditure of public funds and that this act should therefore go into effect as soon as possible. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

19-4-2201. Definitions — Review generally — Exempt grants.

For the purposes of this subchapter:
1. “Discretionary grant” means a grant in which the recipient of the grant funds or the formula for the grant award is not specifically stated in the legislation authorizing the grant;
2. “Nondiscretionary grant” means a grant in which the recipient of the grant funds or the formula for the grant award is specifically stated in the legislation authorizing the grant, or in specific agency rules promulgated by the agency and reviewed by the Legislative Council, or in the case of federal funds, in the statute, regulation, or other federal directive which restricts the disbursement of the funds according to federal guidelines; and
3. “State agency” means:
  1. Every board, commission, department, division, or office of state government whether executive, legislative, or judicial; and
  2. All state-supported postsecondary educational institutions, including, but not limited to, colleges and universities, vocational and technical schools, and community colleges.
Hereafter, no state agency shall award any discretionary grant prior to review by the Legislative Council between legislative sessions, or by the Joint Budget Committee during legislative sessions. However, if a state agency determines that an emergency exists requiring the discretionary grant to be awarded prior to review, it may award the discretionary grant prior to the review by the Legislative Council or the Joint Budget Committee, and shall immediately notify the Legislative Council between legislative sessions, or the Joint Budget Committee during legislative sessions, as to the facts constituting the emergency.
Grants exempt from review shall include:
1. Grants for which the total consideration is less than or equal to ten thousand dollars ($10,000);
2. Nondiscretionary grants as determined by the agency;
3. Grants to another governmental entity such as a state agency, public educational institution, federal governmental entity, or body of a local government;
4. Disaster relief grants;
5. Grants identified as not requiring review by the Legislative Council between legislative sessions, or the Joint Budget Committee during legislative sessions;
6. Grants containing confidential information, the disclosure of which is determined by the agency to constitute a violation of other provisions of law regarding disclosure; and
7. Any scholarship or financial assistance award to, or on behalf of, a postsecondary student.

History. Acts 1999, No. 1032, § 1; 2019, No. 315, § 1738.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (a)(2).

19-4-2202. Review of nonexempt grants.

The Legislative Council between legislative sessions, and the Joint Budget Committee during legislative sessions, shall review all nonexempt discretionary grants by state agencies, and notify the agencies as to the results of the review. The Legislative Council or the Joint Budget Committee shall notify agencies of any other grants identified as not requiring review.

History. Acts 1999, No. 1032, § 2.

Chapter 5 Revenue Stabilization Law

Subchapter 1 — General Provisions

Effective Dates. Acts 1973, No. 750, § 14: July 1, 1973. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that it is necessary to establish an orderly procedure which will insure the monthly distribution of funds for the necessary services and operations of the state government, as provided for in this Act; that only the provisions of this Act will correct many of our financial difficulties, which otherwise may deprive the citzens of this State from receiving the benefits for which the operation of state government contemplates. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after July 1, 1973.”

Acts 1977, No. 719, § 3: July 1, 1977. Emergency clause provided: “It has been found and determined by the 71st General Assembly that individual delinquent political entities' settlements for employee-employer social security and retirement programs matching and employee contribution jeopardizes the entire state's program and the immediate passage of this Act is necessary to prevent unusual and large penalties being assessed. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1977.”

Acts 1977, No. 955, § 20: July 1, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly that the amendments to the Revenue Stabilization Law are essential to the continued operation of State Government. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1977.”

Acts 1979, No. 1013, § 11: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the aforementioned sections of the Revenue Stabilization Law of Arkansas require amending to conform with legislation, and for more effective operations of state government. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1979, No. 1077, § 5: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the Seventy-Second General Assembly that it is essential for the State of Arkansas to place the institutions of higher learning under the provisions of the Uniform Attendance and Leave Policy and to provide that the same rules and regulations that apply to other classified positions shall also apply to these classified positions located in the institutions of higher education. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1981, No. 938, § 22: July 1, 1981. Emergency clause provided: “It is hereby found and determined by the Seventy-Third General Assembly that certain amendments to Act 750 of 1973, the Revenue Stabilization Law are essential to the continued financial operation of state government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1981.”

Acts 1985, No. 64, § 5: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly that the clarification of certain fiscal transactions of the State is needed in order to more accurately reflect the condition of the State's assets at all times and to maintain the fiscal integrity of the State. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in force and effect from and after July 1, 1985.”

Acts 1991, No. 1166, § 13: Apr. 10, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly of the State of Arkansas that there is a need to implement quality management in state government and provide a method to document and analyze quality management projects. Therefore, to ensure that state government services are provided in an efficient manner, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1995, No. 89, § 10: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1995 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1995 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1995.”

Acts 2007, No. 110, § 9: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the people of Arkansas are having to pay more in fuel costs due to the rise in oil prices; that the rise in fuel costs has resulted in an increase in the price of food and other goods; and that in order to offset these rising prices the sales and use tax rate on food and food ingredients should be reduced. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2007.”

19-5-101. Title.

This chapter shall be known and cited as the “Revenue Stabilization Law”.

History. Acts 1973, No. 750, § 1; A.S.A. 1947, § 13-501.

Case Notes

Constitutionality.

Former Revenue Stabilization Law did not delegate powers contrary to Ark. Const., Art. 4. Hooker v. Parkin, 235 Ark. 218, 357 S.W.2d 534 (1962) (decision under prior law).

Former Revenue Stabilization Law, in the using of moneys derived from a tax levied for one purpose for another purpose, did not violate the constitutional prohibition of Ark. Const., Art. 16, § 11. Hooker v. Parkin, 235 Ark. 218, 357 S.W.2d 534 (1962) (decision under prior law).

Former Revenue Stabilization Law, which provided for the allocation of funds within the State Treasury and which did not provide for the withdrawal of any funds from the State Treasury, not being an appropriation act within the meaning of Ark. Const., Art. 5, §§ 29 and 30, did not violate the Constitution. Hooker v. Parkin, 235 Ark. 218, 357 S.W.2d 534 (1962) (decision under prior law).

19-5-102. Legislative intent.

Because of the many revenue laws of the state providing for the levying and collecting of taxes, licenses, and fees for the support of state government and its agencies and enacted by the General Assembly, it is declared to be the policy of the General Assembly with respect to all such revenues and other state income which is required by law to be deposited into the State Treasury to provide for the handling and deposit of the funds in the manner provided in the Revenue Classification Law, § 19-6-101 et seq., and in this chapter in the following manner:

To declare the objects and purposes for which the general revenues as defined in the Revenue Classification Law, § 19-6-101 et seq., and other incomes individually and collectively are to be used. It is the intent and purpose of this section and other provisions of this chapter to comply with the provisions of the Arkansas Constitution, including Arkansas Constitution, Article 16, § 11;
Because of the fact that the constitutional and fiscal agencies of the state and certain other defined agencies or programs, either individually or collectively, render services to every state department, board, commission, institution, agency, or activity supported from revenues deposited into the State Treasury, it is declared to be the policy of the General Assembly that all taxes, licenses, and fees defined as general revenues and special revenues under the provisions of the Revenue Classification Law, § 19-6-101 et seq., shall contribute to the support of such constitutional and fiscal agencies and other defined agencies in the proportion and for the purposes as provided by law for the payment of such services;
As to the taxes, licenses, fees, and other revenues contributing to the general revenues as defined in the Revenue Classification Law, § 19-6-101 et seq., it is not the purpose of this chapter to levy or to change the amount or rate of such taxes, but to state the purpose for which such general revenues are to be used. This chapter shall not be construed as amending any of the provisions of the law with respect to such taxes defined to be general revenues except for the purpose of providing for the distribution of them and defining the purposes for which such revenues are raised and collected; and
As to the special taxes, licenses, fees, and other revenues contributing to the special revenues as provided in the Revenue Classification Law, § 19-6-101 et seq., it is not the intent of the Revenue Classification Law, § 19-6-101 et seq., or of this chapter to levy or change the amount or rate of such taxes nor to change the purposes for which such special revenues are to be used as provided by law. This chapter shall not be construed as amending any of the provisions of the law with respect to the special revenues as defined in this chapter, except for the purpose of providing for the distribution of them and providing that the purposes for which such revenues are collected shall also include the services rendered to the constitutional and fiscal agencies and other defined agencies in the manner provided in the Revenue Classification Law, § 19-6-101 et seq., and in this chapter.

History. Acts 1973, No. 750, § 2; A.S.A. 1947, § 13-502.

Cross References. Levy and appropriation of taxes, Ark. Const., Art. 16, § 11.

19-5-103. Fiscal year.

The fiscal year of the state, for the conduct of its financial affairs, shall commence on July 1 and end on June 30 of the following year.

History. Acts 1973, No. 750, § 3; A.S.A. 1947, § 13-509.

19-5-104. Establishment of other funds or accounts.

The Chief Fiscal Officer of the State may only establish such other funds or fund accounts on the books and on the books of the Treasurer of State and the Auditor of State for making payments that are composed of funds derived from more than one (1) fund or fund account as established by this chapter. The Chief Fiscal Officer of the State may also establish paying accounts on the books of the Treasurer of State and the Auditor of State for making payments that are composed of funds derived from more than one (1) source. However, the Chief Fiscal Officer of the State may establish on the books accounts within funds or fund accounts carried on the books of the Treasurer of State and Auditor of State that he or she deems are necessary for the accounting system of his or her office. Nothing in this section shall prevent the establishment of new funds composed solely of federal grants, aids, reimbursements, or any other moneys received from the United States Government that are to be used for specific purposes.

History. Acts 1973, No. 750, § 9; 1979, No. 1013, § 8; 1979, No. 1077, § 2; A.S.A. 1947, § 13-535.

19-5-105. Appropriations for agencies not funded.

In the event the General Assembly has appropriated general revenue funds for any agency, department, or institution for which funding is not provided in this chapter, the Chief Fiscal Officer of the State shall make the appropriation payable from the General Revenue Fund from which the principal department as created by §§ 6-11-101, 6-11-102, 25-2-101 — 25-2-109, 25-5-101, 25-6-102, 25-7-101, 25-8-101, 25-8-105, 25-9-101, , 25-10-102, 25-10-103 [repealed], 25-10-104, 25-10-105 [repealed], 25-10-106, 25-11-101, 25-11-102, 25-12-101, 25-13-101, and 25-14-101 draws its support. In the event such appropriation is made to any other agency of the state, the appropriation is to be made payable from the Miscellaneous Agencies Fund Account.

History. Acts 1973, No. 750, § 9; 1979, No. 1013, § 8; 1979, No. 1077, § 2; A.S.A. 1947, § 13-535.

19-5-106. Transfer of funds.

The Chief Fiscal Officer of the State may direct a transfer of funds on the books of the Treasurer of State, the Auditor of State, and the Department of Finance and Administration for the following purposes:
1. To correct accounting errors;
2. To make loans to authorized funds, fund accounts, or accounts and to repay such loans when they become due and payable, all of which as may be authorized by law;
3. To reimburse the Miscellaneous Revolving Fund or successor funds, fund accounts, or accounts for the payment of claims, refunds, or other authorized disbursements as may be authorized by law;
4. For such other purposes as may be specifically authorized by law;
5. 1. To transfer funds on deposit in the State Treasury containing operating moneys for any:
    1. Political entity, including any state agency, board, commission, department, institution, state-supported community college, college, or university;
    2. Political subdivision of the state, including a regional, county, or municipal government; or
    3. School district,
  2. 1. The head of the state agency responsible for administering the programs shall certify to the Chief Fiscal Officer of the State the agencies, funds, amounts involved, and any other pertinent information.
    2. The Chief Fiscal Officer of the State shall then notify the Auditor of State and the Treasurer of State of the transfers; or
6. To transfer funds between state agencies and within state agencies in order to eliminate the double accounting of receipts and expenditures which occurs under the method of issuing vouchers.
1. The transfer document form shall be designed by the Chief Fiscal Officer of the State, with the approval of the Treasurer of State and the Auditor of State, and shall be designed in such form so as to be compatible with the accounting and coding systems of all three (3) offices.
2. The transfer document as executed by the Chief Fiscal Officer of the State must bear his or her manual signature or the signature of a designated official of his or her office.
3. In addition, there shall be stated in the document a clearly understood reason for the issuance of the transfer and the specific legal authority for the transfer.
1. The Treasurer of State is authorized and directed to issue an official transfer document, designed by him or her with the approval of the Chief Fiscal Officer of the State and the Auditor of State as to its form, for the purpose of distributing general and special revenues at the close of business each month.
2. This document shall bear the manual signature of the Treasurer of State or his or her deputy.
The Treasurer of State may refuse to make any transfer if, in his or her opinion, sufficient proof of the legality of the transfer is not provided.
The Chief Fiscal Officer of the State may transfer moneys from the General Revenue Allotment Reserve Fund accruing thereto from year-end balances as authorized by § 19-5-1004(b)(1) and (2), or from such other funds, fund accounts, or accounts when such fund balances may be transferred for the following purpose: In those instances in which the General Assembly authorizes carrying forward from one (1) fiscal year to the succeeding fiscal year, but not exceeding a two-year appropriation period in conformity with Arkansas Constitution, Article 5, § 29, a transfer of moneys shall be made for reimbursing the fund, in accordance with the provisions of this subsection for the additional moneys expended resulting from the carry-forward provisions of this subsection.
1. The Chief Fiscal Officer of the State may remove any inactive funds, other than those funds or fund accounts established by law, upon determination that the funds have no appropriations or outstanding warrants and are therefore inactive, from the financial records of the State of Arkansas and to transfer any balances remaining in such funds to the General Revenue Allotment Reserve Fund.
2. The Chief Fiscal Officer of the State shall notify the Treasurer of State and the Auditor of State of such transactions.
3. The Chief Fiscal Officer of the State shall report to the Legislative Council and the Joint Budget Committee, during the month of November of each even-numbered year, the status of all inactive funds, along with his or her recommendation as to the disposition of such funds and balances maintained in them.
The Treasurer of State may transfer funds under this section by direct deposit.

to the state agency responsible for administering federal Social Security and state retirement programs for public employees, public school teachers as defined by law, highway employees, and state police employees in such amounts as shall be certified as being due, including any penalties due to delinquency of obligations.

History. Acts 1973, No. 750, § 10; 1977, No. 719, § 1; 1977, No. 955, § 18; 1981, No. 938, §§ 10, 11; 1985, No. 64, §§ 3, 4; A.S.A. 1947, § 13-535.1; Acts 1991, No. 1166, § 5; 2005, No. 1172, § 2; 2013, No. 1146, § 2; 2019, No. 616, § 1.

Amendments. The 2005 amendment substituted “agencies and within” for “grantee agencies and sub-grantee” in (a)(6).

The 2013 amendment repealed former (a)(7).

The 2019 amendment added (g).

Cross References. Use of certain funds to reconcile operations expenses, § 19-4-527.

19-5-107. Appropriation for agencies not provided by General Assembly.

In the event that the appropriation is not provided by the General Assembly for cash fund expenditures for any state agency, pursuant to § 19-4-801 et seq., the agency shall request a transfer of appropriation from the Chief Fiscal Officer of the State, stating clearly the amount required.
Upon approval of the Chief Fiscal Officer of the State, and after seeking prior review by the Legislative Council or Joint Budget Committee, the cash fund appropriations shall be established upon the books of the Department of Finance and Administration; provided further, that upon request of the state agency and with the approval of the Chief Fiscal Officer of the State, the requested appropriations may be established upon the books of the Department of Finance and Administration in compliance with the applicable classifications of appropriations as enumerated in §§ 19-4-521 — 19-4-525.

History. Acts 1995, No. 89, § 2; 2007, No. 68, § 1.

A.C.R.C. Notes. Acts 2016, No. 251, § 49, provided: “TRANSFER PROCEDURES — CASH FUNDS. In the event that the appropriation is not provided by the General Assembly for Cash Fund expenditures for any state agency, pursuant to Arkansas Code 19-4-801 et. seq., said agency shall request a transfer of appropriation from the Chief Fiscal Officer of the State, stating clearly the amount required. Upon approval of the Chief Fiscal Officer of the State, and after seeking prior review by the Arkansas Legislative Council or Joint Budget Committee, said cash fund appropriations shall be established upon the books of the Department of Finance and Administration, provided further, that upon request of the state agency and with the approval of the Chief Fiscal Officer of the State, the requested appropriations may be established upon the books of the Department of Finance and Administration in compliance with the applicable classifications of appropriations as enumerated in Arkansas Code 19-4-521 through 19-4-527.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Amendments. The 2007 amendment inserted “or Joint Budget Committee” in (b).

Subchapter 2 — Funds and Accounts Generally

Effective Dates. Acts 1973, No. 750, § 14: July 1, 1973. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that it is necessary to establish an orderly procedure which will insure the monthly distribution of funds for the necessary services and operations of the state government, as provided for in this Act; that only the provisions of this Act will correct many of our financial difficulties, which otherwise may deprive the citizens of this State from receiving the benefits for which the operation of state government contemplates. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after July 1, 1973.”

Acts 1975, No. 868, § 17: July 1, 1975. Emergency clause provided: “It is hereby found and determined by the Seventieth General Assembly that the amendments to the Revenue Stabilization Law are essential to the continued operation of State Government. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1975.”

Acts 1979, No. 1013, § 11: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the aforementioned section of the Revenue Stabilization Law of Arkansas require amending to conform with legislation, and for more effective operations of state government. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1983, No. 392, § 3: Mar. 10, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that net special revenue and other revenues available to the Workers' Compensation Commission will be insufficient to fund the Death and Permanent Total Disability Trust Fund and the Second Injury Trust Fund and, at the same time, fund the operations of the Workers' Compensation Commission unless these revenues are exempted from existing deductions described above. Therefore, an emergency is hereby declared to exist, and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 737, § 3: Mar. 23, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly that these amendments to Act 750 of 1973, the Revenue Stabilization Law are essential to the continued financial operation of state government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety, shall be in full force and effect upon passage and approval.”

Acts 1983, No. 801, § 18: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly that the amendments to the Revenue Stabilization Law are essential to the continued operation of State government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1983.”

Acts 1985 (1st Ex. Sess.), No. 3, § 2: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly, meeting in Extraordinary Session, that various appropriations enacted by the General Assembly could have the effect of placing the Constitutional and Fiscal Agencies Fund in an unsound financial condition and that the mechanism provided for in this Act will help to alleviate such conditions and maintain the financial integrity of the State. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

Acts 1987 (1st Ex. Sess.), No. 24, § 4: June 12, 1987. Emergency clause provided: “It is hereby found and determined by the 76th General Assembly meeting in 1st Extraordinary Session that the passage of this Act is necessary to provide for the orderly and continued operation of the agencies funded from the State Central Services Fund and to correct an oversight applicable to the Constitutional and Fiscal Agencies Fund. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 1135, § 20: July 1, 1991. Emergency clause provided: “ It is hereby found and determined by the Seventy-Eighth General Assembly that the distribution of general revenues and the creation of the various funds and fund accounts are essential to be in force at the beginning of the state fiscal year and that in the event that the General Assembly extends beyond the sixty day limit, the effective date of this act would not begin at that time creating confusion and not permitting the agencies to implement those programs as approved by the General Assembly. Therefore an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1991.”

Acts 1995, No. 1021, § 4: Apr. 10, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly that the provisions of this Act are of critical importance in providing for the appropriate expenditure of public funds and that the provisions of this Act are necessary. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1995, No. 1163, § 35: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly that the distribution of general revenues and the creation of the various funds and fund accounts are essential to be in force at the beginning of the state fiscal year and that in the event that the General Assembly extends beyond the sixty day limit, the effective date of this act would not begin at that time creating confusion and not permitting the agencies to implement those programs as approved by the General Assembly. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1995.”

Acts 1997, No. 1115, § 66: July 1, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1997 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1997 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1997.”

Acts 1997, No. 1248, § 43: July 1, 1997, except § 33, effective Apr. 9, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly that the distribution of general revenues and the creation of the various funds and fund accounts are essential to be in force at the beginning of the state fiscal year and that in the event that the General Assembly extends beyond the sixty day limit, the effective date of this act would not begin at that time creating confusion and not permitting the agencies to implement those programs as approved by the General Assembly. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety Section 33 of this act shall be in full force and effect from and after the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, Section 33 shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, Section 33 shall become effective on the date the last house overrides the veto. The remaining sections of this act shall become effective from and after July 1, 1997.”

Acts 1997, No. 1355, § 21: July 1, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1997 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1997 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1997.”

Acts 1999, No. 904, § 24: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1999 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1999 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1999.”

Acts 1999, No. 1463, § 40: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that changes in the state's fiscal laws must take effect at the beginning of the fiscal year and that if the current legislative session is extended such that the 90 period is later than July 1, 1999 such changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 1999.”

Acts 2001, No. 1646, § 34: July 1, 2001. Emergency clause provided: “It is hereby found and determined by the General Assembly that changes in the state's fiscal laws must take effect at the beginning of the fiscal year and that if the current legislative session is extended such that the 90 day period is later than July 1, 2001 such changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2003, No. 1022, § 6: July 1, 2003, except § 5(b), effective Apr. 2, 2003. Emergency clause provided: “It is hereby found and determined by the General Assembly that the central administrative functions for state government must be financed at an adequate and stable level; that the current law is outdated and does not result in complying with legislative appropriation decisions regarding those budgets funded through the State Central Services Fund; and that an extension of this regular session might cause this act to be come effective after the first day of the new fiscal year causing confusion and hardships. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect on July 1, 2003 with the exception that subsection (b) of Section 5 of this Act shall become effective immediately upon its passage and approval.”

Acts 2003 (1st Ex. Sess.), No. 55, § 43: July 1, 2003, except § 38, effective May 13, 2003. Emergency clause provided: “It is hereby found and determined by the General Assembly that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, that if the current legislative session is extended such that the 90 day period is later than July 1, 2003 the changes will not be timely and that the authority to transfer funds to general revenue from unclaimed property receipts are required before the end of the current fiscal year. Therefore, an emergency is declared to exist and Section 38 of this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its passage and approval and the remainder of this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2003.”

Acts 2005, No. 196, § 13: July 1, 2005. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2005 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2005 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2005.”

Acts 2005, No. 2282, § 20: July 1, 2005. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, that if the current legislative session is extended such that the 90 day period is later than July 1, 2005 the changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2005.”

Acts 2005, No. 2316, § 20: July 1, 2005. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, that if the current legislative session is extended such that the 90 day period is later than July 1, 2005 the changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2005.”

Acts 2007, No. 1032, § 39: July 1, 2007. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, that if the current legislative session is extended such that the 90 day period is later than July 1, 2007 the changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2007.”

Acts 2007, No. 1201, § 39: July 1, 2007. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, that if the current legislative session is extended such that the 90 day period is later than July 1, 2007 the changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2007.”

Identical Acts 2010, Nos. 262 and 296, § 17: July 1, 2010, except § 15, effective Feb. 26, 2010. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, that the effectiveness of this act on July 1, 2010, with the exception that Section 15 in this Act shall be in full force and effect from and after the date of its passage and approval, is essential to the operation of the agencies for which allocations in this act are provided, and the delay in the effective date of this act beyond July 1, 2010, with the exception that Section 15 in this Act shall be in full force and effect from and after the date of its passage and approval, could work irreparable harm upon the proper administration and provision of essential government programs. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2010, with the exception that Section 15 in this Act shall be in full force and effect from and after the date of its passage and approval.”

Acts 2011, No. 1136, § 3: Apr. 4, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that failure to fully finance the expenditures and obligations of the State Central Services Fund could work irreparable harm on the proper administration and provision of essential government programs. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2013, No. 1516, § 6: July 1, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, and that if the current legislative session is extended such that the 90-day period is later than July 1, 2013 the changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2013.”

Acts 2013, No. 1517, § 6: July 1, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, and that if the current legislative session is extended such that the 90-day period is later than July 1, 2013 the changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2013.”

Identical Acts 2015, Nos. 1144 and 1145, § 12: July 1, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, and that if the current legislative session is extended such that the 90-day period is later than July 1, 2015 the changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2015.”

Acts 2019, No. 580, § 18: Sept. 1, 2019. Effective date clause provided: “Sections 2-17 of this act are effective on the first day of the second calendar month following the effective date of this act”.

19-5-201. State Apportionment Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “State Apportionment Fund”. After July 1, 1973, all general revenues and all special revenues, as defined in the Revenue Classification Law, § 19-6-101 et seq., shall be deposited by the Treasurer of State into the State Apportionment Fund, there to be handled and distributed as provided in this subchapter.
All revenue received by the Treasurer of State by 4:00 p.m. of any normal working day shall be deposited and so credited to the State Apportionment Fund as occurring on that day and shall be deemed to be gross revenues for that respective day. For the purposes of accounting for such revenue, the Treasurer of State shall credit it to the proper fund account of the State Apportionment Fund as established by this section.

History. Acts 1973, No. 750, § 4; A.S.A. 1947, § 13-510.

19-5-202. General Revenue Fund Account.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund account to be known as the “General Revenue Fund Account” of the State Apportionment Fund to which all gross general revenues are to be credited upon receipt of them by the Treasurer of State, there to be distributed as provided in this section. The Treasurer of State, with the approval of the Auditor of State and the Chief Fiscal Officer of the State, shall prescribe the procedures and forms required to be used by all governmental units depositing funds into the State Treasury.
At the close of business at 12:00 noon on the last working day of each month, the Treasurer of State shall make the following distributions of the gross general revenues in the General Revenue Fund Account on properly signed forms prescribed by him or her, with the approval of the Auditor of State and the Chief Fiscal Officer of the State:
1. From such gross general revenues received during each month, the Treasurer of State shall deduct the amounts represented by claims, taxes erroneously paid, uncollected checks, and advance transfers made to the Individual Income Tax Withholding Fund, Corporate Income Tax Withholding Fund, and Home Owners Tax Relief Fund from each applicable revenue received during that month and other advance transfers and shall keep a record for accounting purposes. Advance transfers made during the month to funds or fund accounts from which there are no applicable revenue sources shall be made from gross general revenues received during the month. The remaining revenue in the General Revenue Fund Account shall be designated as net general revenue; and
2. 1. In the event the Budget Stabilization Trust Fund has insufficient balances to make loans to the Individual Income Tax Withholding Fund, Corporate Income Tax Withholding Fund, and Home Owners Tax Relief Fund or to any of those funds or fund accounts enumerated in §§ 19-5-402 and 19-5-404 [repealed] to cover refunds or operating requirements during the month, the Chief Fiscal Officer of the State may make advance transfers from the General Revenue Fund Account to those funds to cover the refunds or operating requirements and notify the Treasurer of State thereof. However, the advance transfers to the funds or fund accounts enumerated in §§ 19-5-402 and 19-5-404 [repealed] shall not exceed the anticipated general revenue distribution to the applicable fund or fund account for that month. For calculation purposes only, the Treasurer of State shall add an amount to the net general revenue equal to the advance transfers authorized in this section processed for the current month.
  2. From the net general revenue, after adding the advance transfer, if any, the Treasurer of State shall make the following distributions and shall notify the Auditor of State and the Chief Fiscal Officer of the State:
    1. First, the Treasurer of State shall deduct one percent (1%), which shall be transferred to the Constitutional Officers Fund, as created in § 19-5-205(c). An appropriate percentage of not less than two percent (2%) and not to exceed three percent (3%), as determined from time to time by the Chief Fiscal Officer of the State as being the amount required to support the estimated commitments and expenditures of the State Central Services Fund for the current fiscal year, shall be transferred to the State Central Services Fund, as created in § 19-5-205(e);
    2. Next, any revenue deposited into the General Revenue Fund Account from the net casino gaming receipts tax under § 5(c) of The Arkansas Casino Gaming Amendment of 2018, Arkansas Constitution, Amendment 100, that exceeds thirty-one million two hundred thousand dollars ($31,200,000) in a fiscal year shall be held in a subaccount to be transferred on the last business day of the fiscal year from the General Revenue Fund Account to the State Highway and Transportation Department Fund;
    3. 1. On the last business day of the fiscal year ending June 30, 2020, and on the last business day of each following fiscal year, the Chief Fiscal Officer of the State shall transfer on his or her books and those of the Treasurer of State and the Auditor of State an amount not to exceed thirty-five million dollars ($35,000,000) from the funds available in the Restricted Reserve Fund and from any other funds designated by the Governor to the State Highway and Transportation Department Fund.
      2. The amount to be transferred under this subdivision (b)(2)(B)(iii) shall be calculated to provide the total sum of thirty-five million dollars ($35,000,000) to the State Highway and Transportation Department Fund when combined with the funds transferred in that fiscal year from the General Revenue Fund Account under subdivision (b)(2)(B)(ii) of this section;
    4. Next, the Treasurer of State shall deduct an amount sufficient to pay for cash rebates which have been paid or approved for payment during the current month upon applications filed therefor as authorized in §§ 26-51-601 — 26-51-608 [repealed] and deduct an amount sufficient to pay for refunds made during that month to taxpayers from overpayment of the income tax as certified by the Chief Fiscal Officer of the State and transfer that amount to the Individual Income Tax Withholding Fund, Corporate Income Tax Withholding Fund, and Home Owners Tax Relief Fund, as applicable;
    5. 1. Next, the Secretary of the Department of Finance and Administration shall certify the amount distributed to the General Revenue Fund Account from the sales tax and the special privilege tax on medical marijuana under § 17(c) of the Arkansas Medical Marijuana Amendment of 2016, Arkansas Constitution, Amendment 98, for the month.
      2. The Treasurer of State shall then deduct an amount equal to the amount certified under subdivision (b)(2)(B)(v)(a) of this section from the General Revenue Fund Account and transfer the amount to the University of Arkansas for Medical Sciences National Cancer Institute Designation Trust Fund; and
    6. The remaining revenue, known as general revenues available for distribution, in the General Revenue Fund Account shall be distributed as provided by this chapter to the various funds and fund accounts as created and established in § 19-5-301 et seq. and to any other fund or fund account as may be authorized by law. The Treasurer of State, after distributing the general revenues available for distribution due each fund or fund account, shall deduct the amount of any advance transfers made during the month from the distribution to each applicable fund or fund account.
In determining the percentage to be deducted from net general revenues as authorized in this section, the Chief Fiscal Officer of the State shall take into consideration all revenues accruing to the benefit and fund balances of the General Revenue Fund Account, as well as estimated expenditures and commitments for the year from the State Central Services Fund. In estimating the expenditures and commitments for the year, the Chief Fiscal Officer of the State shall use the estimates obtained from the agencies to which appropriations were made from the State Central Services Fund.
The Chief Fiscal Officer of the State, after determining the percentage deduction required to meet the obligations and commitments as set out in subsection (c) of this section, shall obtain approval from the Legislative Council.
1. It shall remain the jurisdiction of each agency to determine from which appropriations made payable from the General Revenue Fund Account the reductions in spending will be made to meet their estimated expenditure and commitment level, and each agency shall notify the Chief Fiscal Officer of the State of their proposed plan of expenditures.
2. The agencies may revise their spending plan from time to time as long as the total of the expenditures by the agency from the General Revenue Fund Account does not exceed the amount determined by the Chief Fiscal Officer of the State and shall notify the Chief Fiscal Officer of the State of the proposed revisions.
3. Nothing in this subsection shall be interpreted as requiring any purchasing or budget decision currently authorized by law for an elected constitutional officer or staff of a constitutional officer to be transferred to the Chief Fiscal Officer of the State.
The Chief Fiscal Officer of the State shall be responsible for ensuring that the expenditures from the State Central Services Fund do not in any year exceed the resources available to the General Revenue Fund Account, and to that end the Chief Fiscal Officer of the State shall set up the appropriate safeguards on the expenditures and obligations from the General Revenue Fund Account.
In order that the General Assembly may be made aware of potential problems as early as possible, the Department of Finance and Administration shall report on the financial condition of the State Central Services Fund to the Legislative Council and to the Legislative Joint Auditing Committee monthly in such detail as may be required.

History. Acts 1973, No. 750, § 4; 1975, No. 868, § 1; 1977, No. 955, § 2; 1983, No. 737, §§ 1, 2; A.S.A. 1947, § 13-510; Acts 1987, No. 945, § 1; 2003, No. 1022, § 1; 2019, No. 416, § 2; 2019, No. 580, § 6.

A.C.R.C. Notes. Acts 2019, No. 416, § 1, provided: “Legislative findings and intent.

“(a) The General Assembly finds that additional revenue will be available to the state resulting from anticipated savings generated by the transformation of state government, the creation of cabinet positions, and other reductions in state government, and from the growth of casino gambling resulting from the adoption of The Arkansas Casino Gaming Amendment of 2018, Arkansas Constitution, Amendment 100.

“(b) The General Assembly intends to use a portion of the anticipated savings described in subsection (a) of this section to make additional revenues available for use in maintaining and repairing public highways, streets, and bridges in the state”.

Amendments. The 2003 amendment rewrote (b)(2)(A); and made stylistic changes throughout (b).

The 2019 amendment by No. 416 inserted (b)(2)(B)(ii) and (b)(2)(B)(iii); and redesignated former (b)(2)(B)(ii) and (b)(2)(B)(iii) as (b)(2)(B)(iv) and (b)(2)(B)(v) [now (b)(2)(B)(vi)].

The 2019 amendment by No. 580 redesignated former (b)(2)(B)(iii) as (b)(2)(B)(iv) [now (b)(2)(B)(vi)]; and inserted (b)(2)(B)(iii) [now (b)(2)(B)(v)].

19-5-203. Special Revenue Fund Account.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund account to be known as the “Special Revenue Fund Account” of the State Apportionment Fund to which all gross special revenues are to be credited upon their receipt by the Treasurer of State, there to be distributed as provided in this section.
At the close of books at 12:00 noon on the last working day of each month, the Treasurer of State shall make the following distributions of the gross special revenues in the account on properly signed forms prescribed by him or her, with the approval of the Auditor of State and the Chief Fiscal Officer of the State:
1. From such gross special revenues received during each month, the Treasurer of State shall deduct the amounts represented by claims, taxes erroneously paid, and uncollected checks from the applicable revenues received during that month and shall keep a record of such for accounting purposes. The remaining revenue in the account shall be designated as net special revenues; and
2. 1. The Treasurer of State shall then deduct the same percentage as determined to be deducted from net general revenues in § 19-5-202 and be transferred under the same procedures as set forth in § 19-5-202 from each net special revenue collected by any of those agencies enumerated in § 19-5-205(b) and one-half (½) of the percentage deductions set out in § 19-5-202 and transferred in the same proportion to the State Central Services Fund and the Constitutional Officers Fund, from each net special revenue collected by any other department, board, agency, or commission.
  2. The Treasurer of State shall then transfer the remaining net special revenues to the proper fund or fund account as designated by law and shall notify the Auditor of State and the Chief Fiscal Officer of the State of the transfers and distributions on forms approved by the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State.

History. Acts 1973, No. 750, § 4; 1983, No. 392, § 1; A.S.A. 1947, § 13-510; Acts 1987, No. 945, § 2; 2003, No. 1022, § 2.

19-5-204. Revenue Holding Fund Account.

1. There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund account to be known as the “Revenue Holding Fund Account” of the State Apportionment Fund to which all taxes, licenses, fees, penalties, interest, or other income which, at the time of being deposited with the Treasurer of State, cannot be determined to be either special or general revenues or if any of the revenues were erroneously paid as nonrevenues, there to be distributed or transferred as provided in this section.
2. Revenues credited to the Revenue Holding Fund Account that are determined to be general revenues shall be transferred as gross general revenues to the General Revenue Fund Account. Those revenues determined to be special revenues shall be transferred as gross special revenues to the Special Revenue Fund Account as soon as such determination is made by the Treasurer of State. However, all such transfers shall be made on or before June 30 of the fiscal year during which the revenues were deposited with the Treasurer of State.
If it is determined by the Chief Fiscal Officer of the State that moneys credited to the Revenue Holding Fund Account of the State Apportionment Fund must be transferred, due to a worsening financial position of the benefiting agencies of such revenues, to the Special Revenue Fund Account or to the General Revenue Fund Account before the final determination of their classification can be made, then the Chief Fiscal Officer of the State may request the Treasurer of State to transfer to the appropriate fund account of the State Apportionment Fund from the Revenue Holding Fund Account an amount equal to no more than eighty percent (80%) of the estimated general or special revenues in the Revenue Holding Fund Account.

History. Acts 1973, No. 750, § 4; 1975, No. 868, § 1; 1977, No. 955, § 2; 1983, No. 392, § 1; 1983, No. 737, §§ 1, 2; 1985, No. 64, § 1; A.S.A. 1947, § 13-510.

19-5-205. Constitutional Officers Fund and State Central Services Fund.

The elected constitutional officers and their departments of government as established by the Arkansas Constitution and certain state departments and employees of state departments are known and recognized as performing and rendering, either individually or collectively, services to every other state agency. The General Assembly declares that the services rendered are embraced under or by one (1) or more of the items or agencies as follows:
1. Services rendered by the legislative, judicial, and executive departments of the state as recognized by the Arkansas Constitution;
2. Services rendered by the Chief Fiscal Officer of the State for management of the state's resources relating to general fiscal affairs, administering the budget, accounting, purchasing, personnel, and other applicable fiscal laws; and
3. Those agencies supported from the State Central Services Fund, which collect the general revenue and special revenues as defined in the Revenue Classification Law, § 19-6-101 et seq., or such other laws as may be enacted by the General Assembly.
1. Those departments and activities of the state which perform the services as set out in subdivision (a)(1) of this section are declared to be the following:
  1. The General Assembly, including State Capitol renovation of the General Assembly quarters, Senate and House of Representatives legislative session staff, interim expenses incurred by members of the Senate and House of Representatives, and the appropriations contained in the general appropriation bill made for services of the General Assembly;
  2. The Governor;
  3. The Lieutenant Governor;
  4. The Secretary of State;
  5. The Attorney General;
  6. The Treasurer of State;
  7. The Commissioner of State Lands;
  8. The Auditor of State;
  9. The Supreme Court;
  10. The Court of Appeals; and
  11. The circuit courts and prosecuting attorneys.
2. Those agencies and activities of the state which perform the services as set out in subdivisions (a)(2) and (3) of this section are declared to be the following:
  1. Senate and House of Representatives interim staff;
  2. The Bureau of Legislative Research, and interim committee and interim committee study expenses of the Legislative Council;
  3. Arkansas Legislative Audit;
  4. Grants and contributions for the Commission on Interstate Cooperation [abolished];
  5. The Secretary of State;
  6. Office of Administrative Services of the Department of Finance and Administration and Revenue Division of the Department of Finance and Administration;
  7. The Administrative Office of the Courts;
  8. The Office of the Prosecutor Coordinator;
  9. The Arkansas Governor's Mansion Commission;
  10. The Arkansas State Claims Commission; and
  11. Other activities supporting the legislative, executive, and judicial departments.
1. 1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Constitutional Officers Fund”, there to be used for the maintenance, operation, and improvements of those departments and activities as set out in subdivision (b)(1) of this section unless specific and separate funds are otherwise provided therefor.
  2. The Constitutional Officers Fund shall consist of:
    1. One-third (1/3) of the amount produced from the three percent (3%) deduction from the net general revenue deposited into the State Treasury;
    2. One-third (1/3) of the amount produced from the three percent (3%) deduction from the net special revenues collected and deposited into the State Treasury by the agencies set out in subsection (b) of this section; and
    3. One-third (1/3) of the amount produced from the one and one-half percent (1.5%) deduction from the net special revenues collected and deposited into the State Treasury by any other state agency, department, board, commission, or institution.
  3. 1. Any balance which remains in the Constitutional Officers Fund at the end of a fiscal year which exceeds seven percent (7%) of the anticipated obligations from the Constitutional Officers Fund for the fiscal year just ended or which is estimated to be available for the fiscal year may be transferred from time to time to the State Central Services Fund for use in the next fiscal year.
    2. If the funds transferred to the State Central Services Fund are based on an estimated balance which is less than the actual balance on June 30, the difference shall be transferred to the State Central Services Fund on or before August 1.
    3. If the funds transferred to the State Central Services Fund are based on an estimated balance which is higher than the actual balance on June 30, the difference shall be transferred from the State Central Services Fund to the Constitutional Officers Fund on or before August 1.
2. The Constitutional Officers Fund shall also be used to allow the payment of claims for judges due to overpayments into the Arkansas Judicial Retirement System prior to the enactment of §§ 24-6-204 and 24-8-201 — 24-8-211 by transfer to the Judges Retirement Fund in such amounts as may be appropriated by the General Assembly.
1. Facts before the General Assembly drawn from statistical computations, comparisons, and related data, taken over a period of many years in the past, are conclusive of the proposition that the cost of the services rendered by the agencies set out in subsection (b) of this section have amounted to not less than three percent (3%) of the total general revenues and special revenues as defined in the Revenue Classification Law, § 19-6-101 et seq.
2. It is therefore declared to be the policy of the State of Arkansas that every agency supported in whole or in part from the general revenues or special revenues deposited into the State Treasury shall contribute to the support of the services rendered by the agencies set out in subsection (b) of this section.
3. The purposes for which the taxes, licenses, or fees and other income defined to be general revenues or special revenues are raised and collected shall be deemed to include the services as defined in this section.
1. 1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “State Central Services Fund”, there to be used for the maintenance, operation, and improvements of those agencies and activities as set out in subdivision (b)(2) of this section unless specific and separate funds are otherwise provided therefor.
  2. The State Central Services Fund shall consist of:
    1. Those special revenues as specified in § 19-6-301(9), (11), (19), (21), (37), (75), (76), (77), (78), (79), (82), (83), (84), (85), (86), (87), (88), (89), (91), (96), (116), (118), (120), (124), (149), (188), (231), (244), (246), (247), (266), and (267) and eight percent (8%) of those special revenues as set out in § 19-6-301(20) of the Revenue Classification Law, § 19-6-101 et seq.;
    2. The amount produced from the deduction from the net general revenues deposited into the State Treasury;
    3. The amount produced from the deduction from the net special revenues collected and deposited into the State Treasury by the agencies set out in subsection (b) of this section;
    4. The amount produced from the deduction from the net special revenues collected and deposited into the State Treasury by any other state agency, department, board, commission, or institution;
    5. All earnings and income collected by any of those agencies set out in subsection (b) of this section;
    6. Funds received from federal funds on account of indirect cost reimbursement collected under a statewide indirect cost allocation plan and paid to any of the agencies set out in subsection (b) of this section;
    7. Any other funds received from the United States Government granted specifically to the agencies as set out in subsection (b) of this section, unless otherwise required by the grantor federal agency;
    8. Interest earned on Social Security trust funds which are remitted to the Arkansas Public Employees' Retirement System and held in banks until transmitted to the Social Security Administration;
    9. Reimbursements by transfer from the Ad Valorem Tax Fund on account of expenditures made to Arkansas Legislative Audit;
    10. Such general revenues as may be provided by the General Assembly;
    11. One and one-half percent (1.5%) of those cash funds of those state agencies as defined in § 19-5-206;
    12. Such fund balances as may exist on June 30, 1995, in the Public Defender Fund of the State Treasury [repealed] and all such funds as may accrue to and be transferred from the Public Defender Fund [repealed] by the Treasurer of State on the last day of each month;
    13. Moneys transferred or deposited from the State Administration of Justice Fund for the benefit of the Arkansas Public Defender Commission;
    14. Public defender attorney's fees to be used solely to defray costs for the Arkansas Public Defender Commission as set out in § 5-4-303(g)(2)(A);
    15. Public defender user fees to be used to defray the costs of the public defender system, § 16-87-213;
    16. That portion of nonrefundable fees charged by bail bond companies for the Arkansas Public Defender Commission, § 17-19-301(e); and
    17. The first one hundred thousand dollars ($100,000) collected in taxes and penalties under § 26-26-1614 and deposited as nonrevenue receipts during each fiscal year for use by the Revenue Division of the Department of Finance and Administration, § 26-26-1616.
2. If required to help meet the commitments of the State Central Services Fund and if funds are determined to be available, the Chief Fiscal Officer of the State may transfer a sum not to exceed four million dollars ($4,000,000) during any fiscal year from the Budget Stabilization Trust Fund to the State Central Services Fund.
3. 1. After all other deductions and transfers from other sources authorized by law have been made available to the State Central Services Fund, the Chief Fiscal Officer of the State shall transfer such additional amounts as may be required from the General Revenue Fund Account to the State Central Services Fund to fully finance the expenditures and obligations from the appropriations set out in this section.
  2. 1. The amount of the transfer shall be determined by subtracting the total of all estimated expenditures from the State Central Services Fund from the total resources available to the State Central Services Fund without a transfer of general revenue.
    2. Then the result shall be multiplied by the proportion that the estimated expenditures for the budgets as set out in subdivision (e)(3)(C) of this section bears to the total of all the estimated expenditures from the State Central Services Fund.
    3. The product shall be the amount of general revenue required to meet the expenditures and commitments of the agencies and budget set out in subdivision (e)(3)(C) of this section.
  3. The appropriations to which this subdivision (e)(3) applies are determined to be the:
    1. House of Representatives;
    2. Senate;
    3. Arkansas Legislative Audit;
    4. Bureau of Legislative Research;
    5. Bureau of Legislative Research — Disbursing Officer;
    6. Court of Appeals;
    7. Administrative Office of the Courts — Operations;
    8. Supreme Court;
    9. Governor;
    10. Lieutenant Governor;
    11. Attorney General;
    12. Auditor of State — Operations;
    13. Commissioner of State Lands;
    14. Secretary of State;
    15. Treasurer of State;
    16. Department of Finance and Administration — Division of Administrative Services:
      1. Director's Office;
      2. Director's Office — Office of Economic Analysis and Tax Research;
      3. Office of Accounting;
      4. Office of Budget;
      5. Office of Personnel Management; and
      6. Office of Administrative Services — Office of Information Services; and
    17. Department of Finance and Administration — Revenue Division.
  4. The Chief Fiscal Officer of the State shall notify the disbursing officers of the appropriations from the State Central Services Fund not enumerated in subdivision (e)(3)(C) of this section of the amount of their portion of any reduction required from their authorized appropriations in order to maintain the State Central Services Fund with a projected positive balance.
  5. In no event shall any funds or appropriations for that particular disbursing agency enumerated in subdivision (e)(3)(C) of this section be affected if a deficit occurs in other State Central Services Fund appropriations or funds not enumerated in subdivision (e)(3)(C) of this section for that particular disbursing agency.

History. Acts 1973, No. 750, § 5; 1979, No. 1013, § 1; 1983, No. 392, § 2; 1983, No. 801, § 3; 1985, No. 888, §§ 1, 2; 1985 (1st Ex. Sess.), No. 3, § 1; A.S.A. 1947, §§ 13-511, 13-511.1; Acts 1987, No. 945, § 3; 1987 (1st Ex. Sess.), No. 24, § 2; 1989, No. 629, § 1; 1991, No. 1135, § 1; 1995, No. 1021, § 1; 1995, No. 1163, §§ 1, 2; 1997, No. 1248, §§ 1, 2; 1997, No. 1355, § 15; 1999, No. 904, § 16; 1999, No. 1463, § 1; 2001, No. 1646, § 1; 2003, No. 1022, § 3; 2003 (1st Ex. Sess.), No. 55, §§ 1, 26; 2005, No. 196, § 9; 2005, No. 2282, §§ 1, 2; 2005, No. 2316, §§ 1, 2; 2007, No. 1032, § 1; 2007, No. 1201, § 1; 2010, No. 262, § 1; 2010, No. 296, § 1; 2011, No. 1136, § 1; 2013, No. 1516, § 1; 2013, No. 1517, § 1; 2015, No. 1144, § 2; 2015, No. 1145, § 2; 2019, No. 733, § 3.

A.C.R.C. Notes. Acts 2011, No. 1136, § 2, provides: “SUNSET PROVISION. The provisions of this Act shall be in effect only from its passage and approval through June 30, 2011.”

Identical Acts 2015, Nos. 1144 and 1145, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Identical Acts 2015, Nos. 1144 and 1145, § 11, provided: “DUPLICATE ACTS. If HB 1548 and SB 689 of the 2015 Regular Session of the 90th General Assembly are both enacted and adopted by the 90th General Assembly in identical form, then the last Act passed or latest expression shall supersede the other.”

Amendments. The 2003 amendment by No. 1022 inserted “(91)” and “(120)” in (e)(1)(B)(i); rewrote (e)(1)(B)(ii)-(iv); made minor stylistic changes throughout (e)(1); deleted former (e)(2); added present (e)(2)-(4); and deleted (f) and (g).

The 2003 (1st Ex. Sess.) amendment by No. 55 inserted (91) and (120) in (e)(1)(B)(i); and added “for use in the next fiscal year” to the end of (c)(1)(C)(i).

The 2005 amendment by No. 196 added (e)(3)(E).

The 2005 amendment by identical acts Nos. 2282 and 2316 substituted “eight percent (8%)” for “ten percent (10%)” in (e)(1)(B)(i) and added (e)(1)(B)(xvi) and (xvii).

The 2010 amendment by identical acts Nos. 262 and 296 inserted “(243)” in (e)(1)(B)(i).

The 2011 amendment rewrote former (e)(4).

The 2013 amendment by identical acts Nos. 1516 and 1517 substituted “(244), (246), and (247)” for “(243)” in (e)(1)(B)(i).

The 2015 amendment by identical acts Nos. 1144 and 1145 substituted “anticipated obligations” for “appropriations funded” in (c)(1)(C)(i).

The 2019 amendment inserted “(263), and (264)” [now “(266), and (267)”] in (e)(1)(B)(i).

19-5-206. Service charges against state agencies.

1. For the purpose of this section, the term “state agency” shall include all boards, commissions, departments, agencies, institutions, offices, or officers, and any other office or unit of the State of Arkansas created or established pursuant to law or pursuant to any action of the Governor, functioning under appropriation of the General Assembly or functioning as a representative of the State of Arkansas without appropriation of the General Assembly.
2. 1. “State agency” shall not include the Department of Education and any of its divisions, community colleges and branches thereof, universities and branches thereof, technical colleges, technical institutes, postsecondary vocational-technical schools, and comprehensive lifelong learning centers.
  2. “State agency” shall not include the office of the Commissioner of State Lands or the Department of Parks, Heritage, and Tourism.
Each state agency, whose annual income or revenue as reflected by the previous fiscal year's audit exceeds twenty-five thousand dollars ($25,000), shall remit by check on the first day of each calendar quarter to the Treasurer of State an amount equal to one and one-half percent (1 ½%) of the total expenditures of the previous calendar quarter from those cash funds as defined under § 19-4-801, excluding funds received from the United States Government or those held in trust by the state agency or those funds of the various state retirement systems. Funds received by the Division of Arkansas Heritage from voluntary donations shall also be excluded. In the event that a state agency elects to deposit its cash funds into the State Treasury under the provisions of § 19-4-503, then the amount required under this section shall be transferred from the state agency's treasury fund to the State Central Services Fund.
The Treasurer of State shall deposit each check as a nonrevenue receipt to the credit of the State Central Services Fund in order to provide financial support for certain required administrative functions of state government.

History. Acts 1993, No. 1230, § 1; 1997, No. 1115, § 58; 1997, No. 1248, § 3; 2019, No. 910, §§ 5668, 5669.

Amendments. The 2019 amendment substituted “Department of Parks, Heritage, and Tourism” for “Department of Parks and Tourism” in (a)(2)(B); and substituted “Division of Arkansas Heritage” for “Department of Arkansas Heritage” in the second sentence of (b).

19-5-207. Certain sales and use taxes not subject to deduction, transfer, or distribution.

The sales and use taxes levied under Arkansas Constitution, Amendment 91, § 3, are not subject to deduction, transfer, or distribution to the Constitutional Officers Fund or the State Central Services Fund under §§ 19-5-202, 19-5-203, and 19-5-205.

History. Acts 2016 (3rd Ex. Sess.), No. 1, § 5.

A.C.R.C. Notes. Acts 2016 (3rd Ex. Sess.), No. 1, § 1, provided: “This act shall be known and may be cited as the ‘Arkansas Highway Improvement Plan of 2016’.”

Subchapter 3 — General Revenue Operating Funds and Fund Accounts

Effective Dates. Acts 1973, No. 750, § 14: July 1, 1973. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that it is necessary to establish an orderly procedure which will insure the monthly distribution of funds for the necessary services and operations of the state government, as provided for in this Act; that only the provisions of this Act will correct many of our financial difficulties, which otherwise may deprive the citizens of this State from receiving the benefits for which the operation of state government contemplates. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after July 1, 1973.”

Acts 1977 (1st Ex. Sess.), No. 7, § 6: Aug. 15, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly, meeting in Special Session, that immediate passage of this act is necessary to prevent irreparable harm to the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1979, No. 1013, § 11: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the aformentioned sections of the Revenue Stabilization Law of Arkansas require amending to conform with legislation, and for more effective operations of state government. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1979, No. 1115, § 11: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the 72nd General Assembly that the amendments to the Revenue Stabilization Law are essential to the continued operation of state government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1981, No. 755, § 21: July 1, 1981. Emergency clause provided: “It is hereby found and determined by the Seventy-Third General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1981 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1981 could work irreparable harm upon the proper administration and providing of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1981.”

Acts 1987, No. 928, § 16: July 1, 1987. Emergency clause provided: “It is hereby found and determined by the Seventy-Sixth General Assembly that the amendments to the Revenue Stabilization Law are essential to the continued operation of State government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1987.”

Acts 1991, No. 335, § 6: July 1, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly, that Southern Arkansas University and its various branches and divisions currently receive State funding support through one fund; that the creation of separate funds for the various branches and divisions will promote greater efficiencies in budgeting procedures; and that the provisions of this Act provide for such efficiencies. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1991.”

Acts 1991, Nos. 930, 931, 935, 936, 937, 938, 939, 940, 942, 944, 945, and 1195, § 10: July 1, 1991. Emergency clauses provided: “It is hereby found and determined by the Seventy-Eighth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1991 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1991 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1991.”

Acts 1993, No. 728, § 53: July 1, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1993 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1993 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1993.”

Acts 1993, No. 911, § 38: July 1, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1993 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1993 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1993.”

Acts 1993, No. 953, § 24: July 1, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1993 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1993 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1993.”

Acts 1994 (2nd Ex. Sess.), No. 27, § 10: Aug. 23, 1994. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly meeting in Second Extraordinary Session, that it is necessary to establish a fund account on the books of the State Treasurer, State Auditor and Chief Fiscal Officer of the State in order to properly account for the funds of the Department of Human Services — Division of Youth Services and to continue to provide this essential governmental service; and that a delay in the effective date of this Act could work irreparable harm upon the proper administration and provision of essential governmental program. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1995, No. 158, § 31: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1995 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1995 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1995.”

Acts 1995, No. 455, § 5: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly meeting in Regular Session, that the provisions of this Act are of critical importance to the state's provision of a workers' compensation safety program within the Department of Labor; and that the current fund structure of the Department of Labor needs to be amended to allow for the financial support of the workers' compensation safety program by the Workers' Compensation Commission; and that a delay in the effective date of this Act could work irreparable harm on the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1995.”

Acts 1995, No. 1032, § 13: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly, that in order for the Department of Health to become more efficient in accounting and budgetary practices due to the transfer of the Bureau of Alcohol and Drug Abuse Prevention, changes in various funds are needed; and that the provisions of this Act provide such changes. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1995.”

Acts 1997, No. 156, § 7: July 1, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly, that the Constitution of the State of Arkansas was amended by Amendment 75; that Amendment 75 enacted an additional sales tax of 1/8¢ that was divided between the Game and Fish Commission, the Arkansas Department of Parks and Tourism, the Department of Arkansas Heritage, and Keep Arkansas Beautiful; that administrative legislation must be effective July 1, 1997 when the tax becomes effective so that the intent of the amendment is carried out. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1997.”

Acts 1997, No. 1007, § 10: Apr. 1, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly that funds provided by the General Assembly for the operations of the Department of Human Services are, due to unforeseen circumstances, insufficient for the Department of Human Services to continue to provide essential governmental services; that the provisions of this act will provide the necessary monies for the Department of Human Services to continue such services; and that a delay in the effective date of this Act could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1997, No. 1360, § 132: July 1, 1997, except § 115, effective Apr. 17, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1997 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1997 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety, Section 115 shall be in full force and effect from and after the date of passage and approval and the remainder of the Act shall be in full force and effect from and after July 1, 1997.”

Acts 1999, No. 253, § 7: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that changes to funds must take effect at the time that appropriations become effective and that not do so will create confusion in the state's financial records. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 1999.”

Acts 1999, No. 1508, § 19: Apr. 15, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that this act makes various technical corrections in the Arkansas Code; that this act further clarifies the law to provide that the Arkansas Code Revision Commission may correct errors resulting from enactments of prior sessions; and that this act should go into effect immediately in order to be applicable during the codification process of the enactments of this regular session. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1999, No. 1537, § 140: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1999 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1999 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1999.”

Acts 2001, No. 231, § 4: June 30, 2001. Emergency clause provided: “It is found and determined by the General Assembly that questions have arisen regarding the use of funds by the Model Vocational-Technical Education Resource Center; that it is currently operating without an approved budget, and its existence is preventing the proper use of resources which are needed to provide appropriate educational opportunities for the children of this state. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on June 30, 2001.”

Acts 2001, No. 292, § 16: July 1, 2001. Emergency Clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2001 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2001 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2001.”

Acts 2001, No. 297, § 9: July 1, 2001. Emergency Clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2001 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2001 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2001.”

Acts 2001, No. 577, § 8: July 1, 2001. Emergency clause provided: “It is hereby found and determined by the Eighty-third General Assembly that this act must go into effect on the date the biennial appropriation for the Department of Labor goes into effect, which is July 1, 2001, and that the delay in the effective date of this act could work irreparable harm upon the proper administration and provisions of essential government programs. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2001.”

Acts 2001, No. 1646, § 34: July 1, 2001. Emergency Clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2001 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2001 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2001.”

Acts 2003, No. 1052, § 13: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2003 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2003 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2003.”

Acts 2003, No 1290, § 8: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2003 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2003 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2003.”

Acts 2003 (1st Ex. Sess.), No. 17, § 24: July 1, 2003, except § 9, effective May 8, 2003. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2003 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2003 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2003, except for Section 9 which shall be in full force and effect from and after the date of passage and approval of this Act.”

Acts 2003 (1st Ex. Sess.), No. 25, § 40: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2003 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2003 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2003.”

Acts 2005, No. 2139, § 12: Apr. 13, 2005. Emergency clause provided: “It is found and determined by the General Assembly, that funds provided by the General Assembly for the operations of the Department of Education — Division of Public School Academic Facilities and Transportation are, due to unforeseen circumstances, insufficient for the Department of Education — Division of Public School Academic Facilities and Transportation to continue to provide essential governmental services; that the provisions of this act will provide the necessary monies for the Department of Education — Division of Public School Academic Facilities and Transportation to continue such services; and that a delay in the effective date of this Act could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2007, No. 182, § 32: Jan. 1, 2008.

Acts 2007, No. 260, § 5: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this bill calls for the renaming of Arkansas Valley Technical Institute of Arkansas Tech University to Arkansas Tech University — Ozark Campus and the ideal time for changing the name of the institute is at the beginning of the state's fiscal year. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2007.”

Acts 2009, No. 1414, § 17: July 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2009 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2009 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2009.”

Identical Acts 2009, Nos. 1440 and 1441, § 11: July 1, 2009. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, that if the current legislative session is extended such that the 90 day period is later than July 1, 2009 the changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2009.”

Acts 2010, No. 297, § 8: July 1, 2010. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2010 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2010 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2010.”

Acts 2011, No. 1095, § 18: July 1, 2011. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, that if the current legislative session is extended such that the 90 day period is later than July 1, 2011 the changes will not be timely. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2011.”

Acts 2011, No. 1115, § 18: July 1, 2011. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, that if the current legislative session is extended such that the 90 day period is later than July 1, 2011 the changes will not be timely. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2011.”

Identical Acts 2012, Nos. 271 and 287, § 10: July 1, 2012.

Identical Acts 2014, Nos. 290 and 299, § 15: July 1, 2014.

Identical Acts 2016, Nos. 242 and 270, § 8: July 1, 2016. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, and that if the current legislative session is extended such that the 90-day period ends after July 1, 2016, the changes will not be timely. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2016.”

Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 128: July 1, 2016.

Identical Acts 2017, No. 1083 and 1127, § 26: July 1, 2017. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that changes in the state’s fiscal laws must take effect at the beginning of the fiscal year, and that if the current legislative session is extended such that the ninety-day period is later than July 1, 2017, the changes required by this act will not be timely. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2017.”

Identical Acts 2018, Nos. 259 and 260, § 10: July 1, 2018.

Acts 2019, No. 873, § 45: July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2019 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2019 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2019”.

Identical Acts 2019, Nos. 998 and 1024, § 11: July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, and that if the current legislative session is extended such that the ninety-day period after adjournment sine die is later than July 1, 2019, the changes required by this act will not be timely. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

Acts 2020, No. 129, § 11: July 1, 2020. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2020 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2020 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2020”.

Acts 2020, No. 168, § 10: July 1, 2020. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2020 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2020 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2020”.

19-5-301. Funds and fund accounts — Generally.

There are established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State the general revenue operating funds and fund accounts in this subchapter which shall be used only for those purposes as set out in this subchapter. These funds shall consist of the governmental revenues as set out in this subchapter.

History. Acts 1973, No. 750, § 6; A.S.A. 1947, § 13-521.

19-5-302. State General Government Fund.

The State General Government Fund shall consist of the following fund accounts and funds made available for the support of the various departments of government as set out below and shall be used for the same purposes as set out for the following fund accounts:

Division of Correction Inmate Care and Custody Fund Account.
1. The Division of Correction Inmate Care and Custody Fund Account shall be used for the maintenance, operation, and improvement of the Division of Correction required in carrying out those powers, functions, and duties relating to nonfarm or crop-producing programs as established by law.
2. The Division of Correction Inmate Care and Custody Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Nonrevenue income derived from services provided by the inmate care and custody program;
  3. Excess farm profits as may be provided by law; and
  4. Any other funds provided by law, including federal reimbursements received for eligible expenditures by the various programs of the Division of Correction from appropriations made payable from the Division of Correction Inmate Care and Custody Fund Account;
Department of the Military Fund Account.
1. The Department of the Military Fund Account shall be used for the maintenance, operation, and improvement of the Department of the Military required in carrying out the powers, functions, and duties as set out in the Military Code of Arkansas, Title 12, Chapters 60-64, or other duties imposed by law upon the State Militia, Department of the Military, and the Arkansas Wing of the Civil Air Patrol, which was separated from the Department of Public Safety [abolished] by Acts 1981, No. 45, §§ 4 and 5.
2. The Department of the Military Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Nonrevenue income derived from services provided by the Department of the Military; and
  3. Any other funds as may be provided by law.
3. Federal reimbursement funds received on account of eligible expenditures by the State Militia or the Department of the Military shall be deposited into the Special Military Fund established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State, there to be used as may be provided by law;
Parks and Tourism Fund Account.
1. The Parks and Tourism Fund Account shall be used for the maintenance, operation, and improvement required by the Department of Parks, Heritage, and Tourism as created by § 25-43-1301, or other duties imposed by law upon the State Parks Division and the Tourism Division, the State Parks, Recreation, and Travel Commission, or upon any state park of Arkansas.
2. The Parks and Tourism Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Nonrevenue income derived from services provided by the various divisions of the State Parks Division and the Tourism Division; and
  3. Any other funds that may be provided by law.
3. Funds received by the various state parks under the direction of the Department of Parks, Heritage, and Tourism which are not required to be deposited into the State Treasury shall be deposited into banks, there to be disbursed as may be appropriated by the General Assembly or to be used as may be otherwise provided by law;
Division of Environmental Quality Fund Account.
1. The Division of Environmental Quality Fund Account shall be used for the maintenance, operation, and improvement required by the Division of Environmental Quality in carrying out the powers, functions, and duties as set out in Title 8, Chapters 1-10, or other duties imposed by law.
2. The Division of Environmental Quality Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Such funds received from the Arkansas State Game and Fish Commission and from the Oil and Gas Commission as may be provided by law;
  3. Nonrevenue income derived from services provided by the Division of Environmental Quality; and
  4. Any other funds provided by law;
Arkansas Economic Development Commission Fund Account.
1. The Arkansas Economic Development Commission Fund Account shall be used for the maintenance, operation, and improvement required by the Arkansas Economic Development Commission and the Arkansas Economic Development Council in carrying out the powers, functions, and duties as set out in §§ 15-4-101, 15-4-102, 15-4-201 — 15-4-204, 15-4-206, 15-4-209 — 15-4-212, 15-4-501 — 15-4-524, and 15-10-201 — 15-10-206, or other duties imposed by law upon the Arkansas Economic Development Commission or the Arkansas Energy Office of the Division of Environmental Quality.
2. The Arkansas Economic Development Commission Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Nonrevenue income derived from services performed by the various divisions of the Arkansas Economic Development Council; and
  3. Any other funds that may be provided by law;
Division of Higher Education Fund Account.
1. The Division of Higher Education Fund Account shall be used for the maintenance, operation, and improvement required by the Division of Higher Education in carrying out the duties imposed by law upon the Arkansas Higher Education Coordinating Board or the Commission on Coordination of Educational Finance, which was transferred to the Arkansas Higher Education Coordinating Board and to the Department of Higher Education, under the provisions of § 25-7-101.
2. The Division of Higher Education Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Federal reimbursement on account of eligible expenditures made by the Division of Higher Education;
  3. Nonrevenue income derived from services provided by the Division of Higher Education; and
  4. Any other funds provided by law.
3. Proceeds derived from the repayment of loans, grants, or scholarships funded by the Higher Education Grants Fund Account shall be deposited into the State Treasury fund from which it originated;
Department of Labor and Licensing Fund Account.
1. The Department of Labor and Licensing Fund Account shall be used for the maintenance, operation, and improvement required by the Department of Labor and Licensing in carrying out those powers, functions, and duties imposed by law upon the Secretary of the Department of Labor and Licensing or the Department of Labor and Licensing, or upon the State Mine Inspector as set out in § 11-7-201 et seq., or any other duties that may be imposed by law upon the Department of Labor and Licensing which was transferred to the Department of Labor and Licensing by § 25-12-101.
2. The Department of Labor and Licensing Fund Account shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds as may be provided by law, including federal reimbursement received on account of eligible expenditures by the various programs of the Department of Labor and Licensing operating from and having appropriations made payable from the Department of Labor and Licensing Fund Account;
Livestock and Poultry Fund Account.
1. The Livestock and Poultry Fund Account shall be used for the maintenance, operation, and improvement of the Arkansas Livestock and Poultry Commission, which was separated from the Department of Commerce [abolished] by Acts 1981, No. 867, § 1, in carrying out the functions, powers, and duties as set out in § 2-33-101 et seq., or other duties imposed by law upon the Arkansas Livestock and Poultry Commission.
2. The Livestock and Poultry Fund Account shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds provided by law;
Miscellaneous Agencies Fund Account.
1. The Miscellaneous Agencies Fund Account may be used for the state's membership in regional or national associations, grants to certain organizations, and maintenance, operations, and improvements of appropriation units as may be authorized by the General Assembly.
2. The Miscellaneous Agencies Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Nonrevenue income derived from services provided by the various agencies and programs funded from the Miscellaneous Agencies Fund Account;
  3. Federal reimbursement received on account of eligible expenditures of the various agencies and programs receiving primary support from the Miscellaneous Agencies Fund Account;
  4. Those special revenues as specified in subdivision (233) and that portion of subdivision (201) in § 19-6-301 of the Revenue Classification Law, § 19-6-101 et seq.;
  5. That portion of forfeited registration fees for beer kegs sold for off-site consumption; and
  6. Civil penalties paid or recovered as set out in § 2-24-108(d)(2).
3. If there are not sufficient funds available in the Miscellaneous Agencies Fund Account to support the amounts appropriated from the Miscellaneous Agencies Fund Account, the Chief Fiscal Officer of the State shall determine the amount of moneys to be made available for each of the appropriations made from the Miscellaneous Agencies Fund Account, after having first provided full funding for all national and regional association dues;
Division of Arkansas Heritage Fund Account. The Division of Arkansas Heritage Fund Account shall consist of those general revenues as provided by law for the Division of Arkansas Heritage and shall be used for the maintenance, operation, and improvement of the Division of Arkansas Heritage;
Higher Education Grants Fund Account.
1. The Higher Education Grants Fund Account shall be used for the:
  1. State's contribution for tuition support for Arkansas students attending out-of-state schools in dentistry, optometry, veterinary, podiatry, osteopathy, and chiropractic; and
  2. Disbursement of funds for the Arkansas Academic Challenge Scholarship Program — Part 2, and other various scholarship, loan, and grant programs as authorized by law and administered by the Division of Higher Education or other state agencies made disbursing agents by the General Assembly from the Higher Education Grants Fund Account.
2. The Higher Education Grants Fund Account shall consist of transfers from the Private Career School Student Protection Trust Fund under § 6-51-607 and those general revenues and any other funds as may be provided by law;
Division of Community Correction Fund Account.
1. The Division of Community Correction Fund Account shall be used for the maintenance, operation, and improvement of the Division of Community Correction required in carrying out those powers, functions, and duties as established by law.
2. The Division of Community Correction Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Nonrevenue income derived from services provided by the probation, parole, and community correction program; and
  3. Any other funds provided by law, including federal reimbursements received for eligible expenditures by the various programs of the Division of Correction from appropriations made payable from the Division of Community Correction Fund Account;
[Repealed.]
Department of Agriculture Fund Account.
1. The Department of Agriculture Fund Account shall be used for the maintenance, operation, and improvement required by the Department of Agriculture in carrying out those powers, functions, and duties imposed by law upon the Secretary of the Department of Agriculture as set out in Title 25, Chapter 38, or any other duties that may be imposed by law upon the Department of Agriculture which were transferred to the Department of Agriculture under the provisions of §§ 25-38-206 and 25-38-211.
2. The Department of Agriculture Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Nonrevenue income derived from services provided by the various divisions of the Department of Agriculture;
  3. Federal reimbursement received on account of eligible expenditures by the various programs of the Department of Agriculture operating from and having appropriations made payable from the Department of Agriculture Fund Account; and
  4. Any other funds as may be provided by law.

History. Acts 1973, No. 750, § 6; 1975, No. 868, §§ 4-7; 1977, No. 955, §§ 7-11; 1979, No. 1115, §§ 2, 9; 1981, No. 938, §§ 4-6; 1983, No. 801, § 9; 1985, No. 888, § 7; A.S.A. 1947, § 13-521; Acts 1989, No. 629, §§ 2, 3, 9; 1993, No. 324, § 3; 1993, No. 728, § 40; 1993, No. 911, § 10; 1993, No. 953, § 16; 1993, No. 1073, § 1; 1995, No. 158, § 22; 1995, No. 455, § 1; 1995, No. 1163, §§ 3-5, 28, 29; 1997, No. 156, § 3; 1997, No. 540, § 41; 1997, No. 1248, §§ 4, 5; 1999, No. 646, § 57; 1999, No. 935, § 6; 1999, No. 1164, § 157; 1999, No. 1323, § 48; 1999, No. 1463, §§ 2, 29; 1999, No. 1508, § 8; 2001, No. 577, § 2; 2001, No. 1646, §§ 2, 20; 2001, No. 1800, § 3; 2003 (1st Ex. Sess.), No. 25, § 15; 2003 (1st Ex. Sess.), No. 55, § 24; 2005, No. 2282, § 9; 2005, No. 2316, § 9; 2007, No. 1032, §§ 2, 3; 2007, No. 1201, §§ 2, 3; 2010, No. 297, § 3; 2011, No. 856, § 2; 2011, No. 1095, § 1; 2011, No. 1115, § 1; 2015, No. 1144, §§ 3, 4; 2015, No. 1145, §§ 3, 4; 2016, No. 242, § 2; 2016, No. 270, § 2; 2016 (3rd Ex. Sess.), No. 2, § 124; 2016 (3rd Ex. Sess.), No. 3, § 124; 2017, No. 707, § 49; 2017, No. 1083, §§ 2, 3; 2017, No. 1127, §§ 2, 3; 2019, No. 755, § 8; 2019, No. 873, § 23; 2019, No. 910, §§ 977-984; 2019, No. 1091, § 4.

A.C.R.C. Notes. Acts 2013, No. 263 § 2, provided: “FUNDING TRANSFER. There is hereby established a separate account within the Department of Correction Inmate Care and Custody Fund Account to be known as the ‘Straight Time Compensation Account’', which shall be used exclusively for straight time compensation. Immediately upon the effective date of this Act, the Department of Correction, with prior review and approval of the Chief Fiscal Officer of the State, shall have the authority to transfer funding between this account and the Holiday Compensation Account of the Department of Correction Inmate Care and Custody Fund Account as established by Section 2 of Act 240 of 2012.”

Identical Acts 2015, Nos. 1144 and 1145, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Acts 2016, No. 226, § 44, provided: “CARRY FORWARD — INDUSTRY TRAINING PROGRAM. Any unexpended balance of funds for the Industry Training Program in the Arkansas Economic Development Commission Fund Account which remain at the close of each state fiscal year shall be carried forward to the next state fiscal year to be used for the same intent and purposes as set forth in law.

“Any carry forward of unexpended balance of funding as authorized herein, may be carried forward under the following conditions:

“(1) Prior to June 30, 2015 the Agency shall by written statement set forth its reason(s) for the need to carry forward said funding to the Department of Finance and Administration Office of Budget;

“(2) The Department of Finance and Administration Office of Budget shall report to the Arkansas Legislative Council all amounts carried forward by the September Arkansas Legislative Council or Joint Budget Committee meeting which report shall include the name of the Agency, Board, Commission or Institution and the amount of the funding carried forward, the program name or line item, the funding source of that appropriation and a copy of the written request set forth in (1) above;

“(3) Each Agency, Board, Commission or Institution shall provide a written report to the Arkansas Legislative Council or Joint Budget Committee containing all information set forth in item (2) above, along with a written statement as to the current status of the project, contract, purpose etc. for which the carry forward was originally requested no later than thirty (30) days prior to the time the Agency, Board, Commission or Institution presents its budget request to the Arkansas Legislative Council/Joint Budget Committee; and

“(4) Thereupon, the Department of Finance and Administration shall include all information obtained in item (3) above in the budget manuals and/or a statement of non-compliance by the Agency, Board, Commission or Institution.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 236, § 23, provided: “REFUND TO EXPENDITURES. Proceeds derived from the repayment of loans, grants, or scholarships funded by the Higher Education Grants Fund Account shall be deposited into the State Treasury fund from which it originated.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Identical Acts 2016, Nos. 242 and 270, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Identical Acts 2016, Nos. 242 and 270, § 7, provided: “DUPLICATE ACTS. If HB1141 and SB129 of the 2016 Fiscal Session of the 90th General Assembly are both enacted and adopted by the 90th General Assembly in identical form, then the last Act passed or latest expression shall supersede the other.”

Identical Acts 2016 (3rd Ex. Sess.), Nos. 2 and 3, § 1, provided:

“(a) The General Assembly finds:

“(1) State government provides vital functions that impact the lives of Arkansas citizens on a daily basis;

Identical Acts 2017, No. 1083 and 1127, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Identical Acts 2017, No. 1083 and 1127, § 24, provided: “DUPLICATE ACTS. If HB1548 and SB295 of the 2017 Regular Session of the 91st General Assembly are both enacted and adopted by the 91st General Assembly in identical form, then the last Act passed or latest expression shall supersede the other.”

Publisher's Notes. As to Acts 1981, No. 45, §§ 4 and 5, see Publisher's Notes to § 12-61-101. As to Acts 1981, No. 867, § 1, see Publisher's Notes to § 2-33-101.

Amendments. The 2003 (1st Ex. Sess.) amendment by No. 25 added (14).

The 2003 (1st Ex. Sess.) amendment by No. 55 rewrote (10).

The 2005 amendment by identical acts Nos. 2282 and 2316 rewrote present (9)(C).

The 2007 amendment by identical acts Nos. 1032 and 1201 added (9)(B)(iv) and (v), made a related change; and added (14).

The 2010 amendment added “and ensured…allocation provided by law” at the end of (9)(C).

The 2011 amendment by acts Nos. 856, 1095, and 1115 substituted “Arkansas Economic Development Commission” for “Department of Economic Development” in two places in (5)(A) and in the introductory language of (5)(B).

The 2015 amendment by identical acts Nos. 1144 and 1145 added “including federal reimbursements received for eligible expenditures by the various programs of the Department of Correction from appropriations made payable from the fund account” in (1)(B)(iv) and (12)(B)(iii).

The 2016 amendment by identical acts Nos. 242 and 270 added (9)(B)(vi).

The 2016 (3rd Ex. Sess.) amendment by identical acts Nos. 2 and 3 deleted “the Arkansas History Commission” following “Advisory Commission” in (3)(A).

The 2017 amendment by No. 707, in (9)(C), substituted “Department of Transportation” for “State Highway and Transportation Department”, and substituted “under” for “pursuant to”.

The 2017 amendment by identical acts Nos. 1083 and 1127 deleted “and ensured that the appropriations made for the Arkansas State Highway and Transportation Department for road and bridge repair and maintenance are funded pursuant to the maximum funding allocation provided by law” at the end of (9)(C); and repealed (13).

The 2019 amendment by No. 755 inserted “transfers from the Private Career School Student Protection Trust Fund under § 6-51-607 and” in (11)(B).

The 2019 amendment by No. 873 added (6)(C).

The 2019 amendment by No. 910 rewrote (1), (2), (3), (4), (7), (10), (12), and (14) to conform the state department names; in (3)(A) substituted “25-43-1301” for “23-13-101”; and rewrote (4)(A).

The 2019 amendment by No. 1091 deleted “the Prairie Grove Battlefield State Park Advisory Commission” before “or upon any state park” in (3)(A).

19-5-303. Institutions of higher education funds.

University of Arkansas Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “University of Arkansas Fund”.
2. The University of Arkansas Fund shall be used for the maintenance, operation, and improvement of the University of Arkansas, including the Fayetteville campus, the University of Arkansas Cooperative Extension Service, the University of Arkansas agricultural experiment stations, the Graduate Institute of Technology, the Arkansas Archeological Survey, and for such other related and miscellaneous programs as may be provided by law.
3. The University of Arkansas Fund shall consist of:
  1. Those general revenues that may be provided by law;
  2. Those special revenues as set out in §§ 19-6-301(45), 19-6-301(229), and 19-6-301(232); and
  3. Funds received from the Budget Stabilization Trust Fund as authorized by § 19-5-501.
University of Arkansas Medical Center Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “University of Arkansas Medical Center Fund”.
2. The University of Arkansas Medical Center Fund is to be used for the maintenance, operation, and improvement of the University of Arkansas for Medical Sciences and its various divisions and programs, including the area health education centers and physician extender programs.
3. The University of Arkansas Medical Center Fund shall consist of:
  1. Those general revenues as may be provided by law;
  2. Those special revenues as set out in § 19-6-301(224); and
  3. Any other funds made available for the support of the University of Arkansas for Medical Sciences which are required to be deposited into the State Treasury.
University of Arkansas at Little Rock Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “University of Arkansas at Little Rock Fund”.
2. The University of Arkansas at Little Rock Fund shall be used for the maintenance, operation, and improvement of the Little Rock campus of the University of Arkansas and its various divisions and programs, including the Arkansas Economic Development Institute.
3. The University of Arkansas at Little Rock Fund shall consist of:
  1. Those general revenues as may be provided by law;
  2. Those special revenues as set out in § 19-6-301(229); and
  3. Any other funds made available for the support of the University of Arkansas at Little Rock which are required to be deposited into the State Treasury by law.
University of Arkansas at Monticello Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “University of Arkansas at Monticello Fund”.
2. The University of Arkansas at Monticello Fund shall be used for the maintenance, operation, and improvement of the Monticello campus of the University of Arkansas and its various divisions, the University of Arkansas at Monticello College of Technology-Crossett, and the University of Arkansas at Monticello College of Technology-McGehee.
3. The University of Arkansas at Monticello Fund shall consist of:
  1. Those general revenues as may be provided by law;
  2. The June 30, 2003, balances in the Forest Echoes Technical Institute Fund Account and the Great Rivers Comprehensive Lifelong Learning Center Fund Account; and
  3. Any other funds made available for the support of the University of Arkansas at Monticello which are required to be deposited into the State Treasury by law.
University of Arkansas at Pine Bluff Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “University of Arkansas at Pine Bluff Fund”.
2. The University of Arkansas at Pine Bluff Fund shall be used for the maintenance, operation, and improvement of the Pine Bluff campus of the University of Arkansas.
3. The University of Arkansas at Pine Bluff Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of the University of Arkansas at Pine Bluff and its various divisions, including the special teacher training program, which are required to be deposited into the State Treasury by law.
Arkansas State University Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas State University Fund”.
2. The Arkansas State University Fund shall be used for the maintenance, operation, and improvement of Arkansas State University.
3. The Arkansas State University Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of Arkansas State University which are required to be deposited into the State Treasury by law.
Arkansas State University — Beebe Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas State University — Beebe Fund”.
2. The Arkansas State University — Beebe Fund shall be used for the maintenance, operation, and improvement of Arkansas State University-Beebe, including Arkansas State Technical Institute, Arkansas State University-Searcy, and Arkansas State University-Heber Springs.
3. The Arkansas State University — Beebe Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of Arkansas State University-Beebe which are required to be deposited into the State Treasury by law.
Arkansas Tech University Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Tech University Fund”.
2. The Arkansas Tech University Fund shall be used for the maintenance, operation, and improvement of Arkansas Tech University.
3. The Arkansas Tech University Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of Arkansas Tech University which are required to be deposited into the State Treasury by law.
4. Any other funds made available for the support of Arkansas Tech University which are required to be deposited into the State Treasury by law.
Henderson State University Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Henderson State University Fund”.
2. The Henderson State University Fund shall be used for the maintenance, operation, and improvement of Henderson State University, including the nursing program.
3. The Henderson State University Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of Henderson State University which are required to be deposited into the State Treasury by law.
Southern Arkansas University Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Southern Arkansas University Fund”.
2. The Southern Arkansas University Fund shall be used for the maintenance, operation, and improvement of Southern Arkansas University.
3. The Southern Arkansas University Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of Southern Arkansas University and its programs which are required to be deposited into the State Treasury by law.
University of Central Arkansas Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “University of Central Arkansas Fund”.
2. The University of Central Arkansas Fund shall be used for the maintenance, operation, and improvement of the University of Central Arkansas.
3. The University of Central Arkansas Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of the University of Central Arkansas which are required to be deposited into the State Treasury by law.
University of Arkansas at Fort Smith Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “University of Arkansas at Fort Smith Fund”.
2. The University of Arkansas at Fort Smith Fund shall be used for the maintenance, operation, and improvement of the University of Arkansas at Fort Smith.
3. The University of Arkansas at Fort Smith Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of the University of Arkansas at Fort Smith which are required to be deposited into the State Treasury by law.
North Arkansas College Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “North Arkansas College Fund”.
2. The North Arkansas College Fund shall be used for the maintenance, operation, and improvement of North Arkansas College.
3. The North Arkansas College Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of North Arkansas College which are required to be deposited into the State Treasury by law.
East Arkansas Community College Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “East Arkansas Community College Fund”.
2. The East Arkansas Community College Fund shall be used for the maintenance, operation, and improvement of East Arkansas Community College.
3. The East Arkansas Community College Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of East Arkansas Community College which are required to be deposited into the State Treasury by law.
Arkansas Northeastern College Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Northeastern College Fund”.
2. The Arkansas Northeastern College Fund shall be used for the maintenance, operation, and improvement of Arkansas Northeastern College.
3. The Arkansas Northeastern College Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of Arkansas Northeastern College which are required to be deposited into the State Treasury by law.
Phillips Community College of the University of Arkansas Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Phillips Community College of the University of Arkansas Fund”.
2. The Phillips Community College of the University of Arkansas Fund shall be used for the maintenance, operation, and improvement of Phillips Community College of the University of Arkansas, including the Stuttgart and DeWitt campuses.
3. The Phillips Community College of the University of Arkansas Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of Phillips Community College of the University of Arkansas which are required to be deposited into the State Treasury by law.
University of Arkansas Community College at Rich Mountain Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “University of Arkansas Community College at Rich Mountain Fund”.
2. The University of Arkansas Community College at Rich Mountain Fund shall be used for the maintenance, operation, and improvement of the University of Arkansas Community College at Rich Mountain.
3. The University of Arkansas Community College at Rich Mountain Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of the University of Arkansas Community College at Rich Mountain which are required to be deposited into the State Treasury by law.
Northwest Arkansas Community College Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Northwest Arkansas Community College Fund”.
2. The Northwest Arkansas Community College Fund shall be used for the maintenance, operation, and improvement of Northwest Arkansas Community College.
3. The Northwest Arkansas Community College Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of Northwest Arkansas Community College which are required to be deposited into the State Treasury by law.
South Arkansas Community College Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “South Arkansas Community College Fund”.
2. The South Arkansas Community College Fund shall be used for the maintenance, operation, and improvement of South Arkansas Community College.
3. The South Arkansas Community College Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of South Arkansas Community College which are required to be deposited into the State Treasury by law.
SAU-Tech Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “SAU-Tech Fund”.
2. The SAU-Tech Fund shall be used for the maintenance, operation, and improvement of SAU-Tech, the Arkansas Fire Training Academy, and the Arkansas Environmental Training Academy.
3. The SAU-Tech Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of SAU-Tech and its programs which are required to be deposited into the State Treasury by law.
Arkansas State University Mid-South Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas State University Mid-South Fund”.
2. The Arkansas State University Mid-South Fund shall be used for the maintenance, operation, and improvement of Arkansas State University Mid-South.
3. The Arkansas State University Mid-South Fund shall consist of:
  1. Those general revenues as may be provided by law;
  2. Those special revenues as set out in § 19-6-301(183); and
  3. Any other funds made available for the support of Arkansas State University Mid-South which are required to be deposited into the State Treasury by law.
University of Arkansas Community College at Hope-Texarkana Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “University of Arkansas Community College at Hope-Texarkana Fund”.
2. The University of Arkansas Community College at Hope-Texarkana Fund shall be used for the maintenance, operation, and improvement of the University of Arkansas Community College at Hope-Texarkana.
3. The University of Arkansas Community College at Hope-Texarkana Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of the University of Arkansas Community College at Hope-Texarkana which are required to be deposited into the State Treasury by law.
University of Arkansas Community College at Batesville Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “University of Arkansas Community College at Batesville Fund”.
2. The University of Arkansas Community College at Batesville Fund shall be used for the maintenance, operation, and improvement of the University of Arkansas Community College at Batesville.
3. The University of Arkansas Community College at Batesville Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of the University of Arkansas Community College at Batesville which are required to be deposited into the State Treasury by law.
Higher Education Institutions Performance Fund.
1. The Higher Education Institutions Performance Fund shall be used to provide additional support for institutions of higher education on the basis of institutional performance as determined by the Arkansas Higher Education Coordinating Board and reported to the Legislative Council.
2. The Higher Education Institutions Performance Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds provided by law.
Arkansas State University — Newport Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas State University — Newport Fund”.
2. The Arkansas State University — Newport Fund shall be used for the maintenance, operation, and improvement of Arkansas State University — Newport.
3. The Arkansas State University — Newport Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of Arkansas State University — Newport which are required to be deposited into the State Treasury by law.
[Repealed.]
Cossatot Community College of the University of Arkansas Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Cossatot Community College of the University of Arkansas Fund”.
2. The Cossatot Community College of the University of Arkansas Fund shall be used for the maintenance, operation, and improvement of Cossatot Community College of the University of Arkansas.
3. The Cossatot Community College of the University of Arkansas Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of Cossatot Community College of the University of Arkansas which are required to be deposited into the State Treasury by law.
University of Arkansas Community College at Morrilton Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “University of Arkansas Community College at Morrilton Fund”.
2. The University of Arkansas Community College at Morrilton Fund shall be used for the maintenance, operation, and improvement of the University of Arkansas Community College at Morrilton.
3. The University of Arkansas Community College at Morrilton Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of the University of Arkansas Community College at Morrilton which are required to be deposited into the State Treasury by law.
Arkansas State University-Mountain Home Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas State University-Mountain Home Fund”.
2. The Arkansas State University-Mountain Home Fund shall be used for the maintenance, operation, and improvement of Arkansas State University-Mountain Home.
3. The Arkansas State University-Mountain Home Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of Arkansas State University-Mountain Home which are required to be deposited into the State Treasury by law.
National Park College Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “National Park College Fund”.
2. The National Park College Fund shall be used for the maintenance, operation, and improvement of National Park College.
3. The National Park College Fund shall consist of:
  1. Those general revenues transferred each month from the Garland County Community College Fund [repealed];
  2. The June 30, 2003, balances in the Garland County Community College Fund [repealed]; and
  3. Any other funds made available for the support of National Park College which are required to be deposited into the State Treasury by law.
School for Math, Sciences, and Arts Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “School for Math, Sciences, and Arts Fund”.
2. The School for Math, Sciences, and Arts Fund shall be used to provide for the maintenance, operation, and improvement required by the Arkansas School for Mathematics, Sciences, and the Arts in carrying out its powers, functions, and duties as set out by law.
3. The School for Math, Sciences, and Arts Fund shall consist of:
  1. Moneys allocated and transferred from the Educational Excellence Trust Fund;
  2. Any general revenues as may be provided under this chapter; and
  3. Any other moneys as may be authorized by law.
Ozarka College Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Ozarka College Fund”.
2. The Ozarka College Fund shall be used for the maintenance, operation, and improvement of Ozarka College.
3. The Ozarka College Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of Ozarka College which are required to be deposited into the State Treasury by law.
Southeast Arkansas College Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Southeast Arkansas College Fund”.
2. The Southeast Arkansas College Fund shall be used for the maintenance, operation, and improvement of Southeast Arkansas College.
3. The Southeast Arkansas College Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of Southeast Arkansas College which are required to be deposited into the State Treasury by law.
Arkansas State University Three Rivers Fund.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas State University Three Rivers Fund”.
2. The Arkansas State University Three Rivers Fund shall be used for the maintenance, operation, and improvement of the Arkansas State University Three Rivers.
3. The Arkansas State University Three Rivers Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of the Arkansas State University Three Rivers which are required to be deposited into the State Treasury by law.

History. Acts 1973, No. 750, § 6; 1975, No. 868, §§ 8, 9; 1977, No. 955, §§ 12, 13; 1979, No. 1013, § 9; 1979, No. 1077, § 3; 1981, No. 938, § 7; 1983, No. 801, §§ 5-7, 10; 1985, No. 888, § 8; A.S.A. 1947, § 13-521; Acts 1989, No. 629, § 4; 1991, No. 335, §§ 1, 2; 1991, No. 1135, § 2; 1993, No. 447, § 8; 1993, No. 1073, §§ 2, 3; 1995, No. 1163, §§ 6-9; 1995, No. 1296, § 70; 1997, No. 1248, §§ 6, 7; 1999, No. 1463, §§ 3-6; 2001, No. 90, § 9; 2001, No. 292, § 12; 2001, No. 297, § 5; 2003, No. 1290, § 4; 2003 (1st Ex. Sess.), No. 55, §§ 2, 3, 27, 29, 31, 34; 2005, No. 2282, § 3; 2005, No. 2316, § 3; 2007, No. 1032, §§ 4-6; 2007, No. 1201, §§ 4-6; 2009, No. 1440, § 1; 2009, No. 1441, § 1; 2011, No. 1095, § 2; 2011, No. 1115, § 2; 2012, No. 271, § 1; 2012, No. 287, § 1; 2013, No. 1131, § 1; 2016, No. 140, § 11; 2016, No. 141, § 11; 2017, No. 179, § 9; 2017, No. 1083, § 4; 2017, No. 1127, § 4; 2019, No. 204, § 3; 2020, No. 129, § 6.

A.C.R.C. Notes. As enacted by Acts 2003 (1st Ex. Sess.), No. 55, § 34, subdivision (ee)(1) began: “Only in the event that Garland County Community College and Quapaw Technical Institute merge,”.

Acts 2009, No. 1427, § 17, provided: “SCHOOL FOR MATH, SCIENCE AND ARTS FUNDING PROVISIONS. Funding provided to the University of Arkansas Fund for the Arkansas School for Mathematics, Sciences, and the Arts in Arkansas Code Annotated 19-5-401 et. seq. shall be transferred to the School for Math, Science and Arts Fund.”

Identical Acts 2017, Nos. 1083 and 1127, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Identical Acts 2017, Nos. 1083 and 1127, § 24, provided: “If HB1548 and SB295 of the 2017 Regular Session of the 91st General Assembly are both enacted and adopted by the 91st General Assembly in identical form, then the last Act passed or latest expression shall supersede the other.”

Amendments. The 2003 amendment added (aa).

The 2003 (1st Ex. Sess.) amendment added “the University of Arkansas at Monticello … Technology-McGehee” in (d)(2); inserted present (d)(3)(B) and redesignated former (d)(3)(B) as (d)(3)(C); inserted “Arkansas State University-Searcy” in (g)(2); inserted present (g)(3)(B) and redesignated former (g)(3)(B) as (g)(3)(C); substituted “University of Arkansas at Fort Smith” for “Westank College” throughout (l)(1)(A) and (B); substituted “Arkansas Northeastern” for “Mississippi County Community” throughout (p)(1); inserted present (p)(2)(B) and redesignated former (p)(2)(B) as (p)(2)(C); and added (bb)-(ee).

The 2005 amendment by identical acts Nos. 2282 and 2316 added (ff).

The 2009 amendment by identical acts Nos. 1440 and 1441 deleted (114) following “§ 19-6-301(45)” in (a)(3)(B), and made a related change.

The 2011 amendment by identical acts Nos. 1095 and 1115 deleted “and the Quapaw Technical Institute Fund Account” following “the Garland County Community College Fund” in (ee)(3)(A) and (ee)(3)(B).

The 2012 amendment by identical acts Nos. 271 and 287 added (gg), (hh), and (ii) (now (ff), (gg), and (hh)).

The 2013 amendment repealed former (o).

The 2016 amendment by No. 140 substituted “Arkansas State University Mid-South” for “Mid-South Community College” throughout (v) (now (u)).

The 2016 amendment by No. 141 substituted “National Park College” for “National Park Community College” throughout (ee) (now (dd)).

The 2017 amendment by No. 179 substituted “University of Arkansas Community College at Rich Mountain” for “Rich Mountain Community College” throughout (q).

The 2017 amendment by identical acts Nos. 1083 and 1127 repealed (z).

The 2019 amendment substituted “University of Arkansas Community College at Hope-Texarkana Fund” for “University of Arkansas Community College at Hope Fund” throughout (v); and substituted “University of Arkansas Community College at Hope-Texarkana” for “University of Arkansas Community College at Hope” in (v)(2) and (v)(3)(B).

The 2020 amendment substituted “Arkansas State University Three Rivers” for “College of the Ouachitas” throughout (hh).

19-5-304. Education Fund.

The Education Fund shall consist of the following funds and fund accounts made available for the support of the Division of Elementary and Secondary Education, the Division of Career and Technical Education, the Adult Education Section, and the Office of Skills Development, and shall be used for the same purposes as set out for the following fund accounts:

Division of Elementary and Secondary Education Fund Account.
1. The Division of Elementary and Secondary Education Fund Account shall be used to provide for the maintenance, operation, and improvement of the Division of Elementary and Secondary Education as created by § 6-10-101 et seq., and any other laws imposing functions, powers, and duties upon the State Board of Education, the Division of Elementary and Secondary Education, and the Commissioner of Elementary and Secondary Education, including, but not necessarily limited to, history textbooks expenses, the Publishing Revolving Account, audio-visual services, textbooks operation, compact for education, including the state's membership, and the state's contribution to the Southern Regional Education Board.
2. The Division of Elementary and Secondary Education Fund Account shall consist of:
  1. Those general revenues as may be provided by the Revenue Stabilization Law, § 19-5-101 et seq.; and
  2. Nonrevenue income derived from services provided by those programs supported from the Division of Elementary and Secondary Education Fund Account, including any rental property located on the State Capitol grounds owned by the Division of Elementary and Secondary Education;
Division of Career and Technical Education Fund Account.
1. The Division of Career and Technical Education Fund Account shall be used to provide support for those programs placed under the direction of the Director of the Division of Career and Technical Education as authorized by §§ 6-11-101, 6-11-102, 25-6-101, 25-6-102, and Acts 1981, No. 64, § 4, and any other laws imposing functions, powers, and duties upon the State Board of Education with respect to career and technical education, including without limitation the following:
  1. Vocational, technical, and adult education;
  2. Adult basic education;
  3. Manpower training;
  4. Vocational standards;
  5. Industry training programs; and
  6. Those functions, programs, and responsibilities transferred to the Division of Career and Technical Education, the Adult Education Section, and the Office of Skills Development, as authorized by these statutes.
2. The Division of Career and Technical Education Fund Account shall consist of those general revenues as may be provided by the Revenue Stabilization Law, § 19-5-101 et seq.;
Educational Television Fund Account.
1. The Educational Television Fund Account shall be used for the maintenance, operation, and improvement required by the Educational Television Division of the Division of Elementary and Secondary Education in carrying out those powers, functions, and duties of the Arkansas Educational Television Commission as set out in § 6-3-101 et seq. or other duties imposed by law upon the Arkansas Educational Television Commission.
2. The Educational Television Fund Account shall consist of those general revenues as may be provided by law and nonrevenue income derived from services provided by the Educational Television Division of the Division of Elementary and Secondary Education and any other nonfederal grant funds provided by law;
State Library Fund Account.
1. The State Library Fund Account shall be used for the maintenance, operation, and improvement required by the Library Division of the Department of Education in carrying out the powers, functions, and duties as set out in § 13-2-201 et seq. or any other duties imposed by law upon the State Library Commission, which were transferred to the Department of Education by §§ 6-11-101, 6-11-102, and 25-6-102.
2. The State Library Fund Account shall consist of those general revenues as may be provided by law and nonrevenue income derived from services provided by the Library Division of the Department of Education and any other nonfederal grant funds provided by law;
School for the Blind Fund Account.
1. The School for the Blind Fund Account shall be used for the maintenance, operation, and improvement required by the Arkansas School for the Blind in carrying out those powers, functions, and duties as set out in § 6-43-101 et seq. and § 6-43-201 et seq.
2. The School for the Blind Fund Account shall consist of those general revenues as may be provided by law and nonrevenue income derived from services provided by the Arkansas School for the Blind and any other nonfederal grant funds provided by law.
3. Federal reimbursement funds received on account of vocational education programs conducted by the Arkansas School for the Blind shall not be deposited into the School for the Blind Fund Account;
School for the Deaf Fund Account.
1. The School for the Deaf Fund Account shall be used for the maintenance, operation, and improvement required by the Arkansas School for the Deaf in carrying out the powers, functions, and duties as set out in § 6-43-301 et seq. or other duties imposed by law upon the Arkansas School for the Deaf, which were transferred to the Department of Education by §§ 6-11-101, 6-11-102, and 25-6-102.
2. The School for the Deaf Fund Account shall consist of those general revenues as may be provided by law and nonrevenue income derived from services provided by the Arkansas School for the Deaf and any other nonfederal grant funds provided by law.
3. Federal reimbursement funds received on account of vocational education programs conducted by the Arkansas School for the Deaf shall not be deposited into the School for the Deaf Fund Account;
Rehabilitation Services Fund Account.
1. The Rehabilitation Services Fund Account shall be used for the maintenance, operation, and improvement required by Arkansas Rehabilitation Services in carrying out the powers, functions, and duties as set out in § 6-52-101 et seq., the Rehabilitation Act of Arkansas, § 20-79-201 et seq., and § 25-30-201 et seq., and for the adult handicapped program at the Arkansas Health Center.
2. The Rehabilitation Services Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Nonrevenue income derived from services provided by rehabilitation programs of Arkansas Rehabilitation Services; and
  3. Any other nonfederal grant funds provided by law;
Technical Institute and Other Education Fund Accounts.
1. The Northwest Technical Institute Fund Account shall be used for the maintenance, operation, and improvement of Northwest Technical Institute. The Northwest Technical Institute Fund Account shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of Northwest Technical Institute which are required to be deposited into the State Treasury by law.
2. The Riverside Vocational Technical School Fund Account shall be used for the maintenance, operation, and improvement of Riverside Vocational Technical School. The Riverside Vocational Technical School Fund Account shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of Riverside Vocational Technical School which are required to be deposited into the State Treasury by law;
Educational Facilities Partnership Fund Account.
1. The Educational Facilities Partnership Fund Account shall be used for distribution of grants for programs providing academic school facility and transportation assistance to the public school districts as may be provided by law.
2. The Educational Facilities Partnership Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Moneys transferred from the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund; and
  3. Any other moneys as may be provided by law; and
Division of Public School Academic Facilities and Transportation Fund Account.
1. The Division of Public School Academic Facilities and Transportation Fund Account shall be used for the maintenance, operation, and improvement required by the Division of Public School Academic Facilities and Transportation as may be provided by law.
2. The Division of Public School Academic Facilities and Transportation Fund Account shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of the Division of Public School Academic Facilities and Transportation.

History. Acts 1973, No. 750, § 6; 1981, No. 938, § 1; 1985, No. 888, § 3; A.S.A. 1947, § 13-521; Acts 1991, No. 1135, § 3; 1993, No. 1073, § 22; 1995, No. 1163, § 10; 1999, No. 253, § 1; 2001, No. 152, § 2; 2001, No. 231, § 2; 2003 (1st Ex. Sess.), No. 55, §§ 4, 28, 30, 32, 33; 2005, No. 1962, §§ 80-82; 2005, No. 2139, § 5; 2007, No. 260, § 4; 2007, No. 827, § 143; 2011, No. 856, § 3; 2011, No. 1095, § 3; 2011, No. 1115, § 3; 2019, No. 82, § 8; 2019, No. 910, § 2259; 2019, No. 998, § 2; 2019, No. 1024, § 2.

A.C.R.C. Notes. Acts 2015, No. 319, § 7, provided:

“ARKANSAS VETERANS' INITIATIVE. The appropriation authorized in this Act for Arkansas Veterans' Initiative, Stories of Service is not intended to be carried forward into the base level for the purposes of budget preparation. Any appropriation request for this purpose shall be considered a new appropriation request, and therefore will be considered a change level budget request.

“Notwithstanding any law pertaining to the transfer of year-end fund balances or any law to the contrary, any funds provided to the Educational Television Fund Account for the purpose of funding the Arkansas Veterans' Initiative Appropriation which remain in the Educational Television Fund Account at the end of a fiscal year shall remain in the Educational Television Fund Account and shall continue to be allocated to Arkansas Veterans' Initiative Appropriation in the following fiscal year.”

“The provisions of this section shall be in effect only from July 1, 2015 through June 30, 2016.”

Acts 2016, No. 139, § 7, provided:

“Notwithstanding any law pertaining to the transfer of year-end fund balances or any law to the contrary, any funds provided to the Educational Television Fund Account for the purpose of funding the Arkansas Veterans' Initiative Appropriation which remain in the Educational Television Fund Account at the end of a fiscal year shall remain in the Educational Television Fund Account and shall continue to be allocated to the Arkansas Veterans' Initiative Appropriation in the following fiscal year.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2019, No. 82, § 1, provided: “Legislative intent.

It is the intent of the General Assembly that the creation of the Development and Enhancement Fund is necessary to provide a mechanism to disburse funds for:

“(1) Various construction and improvement projects;

“(2) Unforeseen needs;

“(3) Funding deficiencies; and

“(4) The completion of projects previously funded by the General Assembly”.

Identical Acts 2019, Nos. 998 and 1024, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law, § 19-5-101 et seq.”

Identical Acts 2019, Nos. 998 and 1024, § 10, provided: “DUPLICATE ACTS. If HB1876 and SB597 of the 2019 Regular Session of the 92nd General Assembly are both enacted and adopted by the 92nd General Assembly in identical form, then the last Act passed or latest expression shall supersede the other”.

Publisher's Notes. Pursuant to Acts 1993, No. 574, § 1, and effective July 1, 1993, the Division of Rehabilitation Services of the Department of Human Services was transferred to the Division of Vocational and Technical Education of the Department of Education, and was renamed Arkansas Rehabilitation Services.

Acts 1981, No. 64, § 4, provided: “SECTION 4. The powers, functions and duties heretofore vested in the Director of the Department of Higher Education, the Director of the Department of Economic Development, and in other state agencies relating to the administration and supervision of programs of vocational, technical and occupational education in state vocational schools, community colleges, universities and colleges, area vocational high schools, the public schools, or in any other public education facility, are hereby transferred to and shall hereafter be exercised by the State Board of Education and shall be administered through the Division of Vocational and Technical Education of the Department of Education. This section shall not replace the current authority vested in the Boards of Trustees of community colleges, universities, and colleges.”

Amendments. The 2003 (1st Ex. Sess.) repealed (8)(B) and (8)(D)-(8)(G).

The 2005 amendment by No. 1962 deleted “25-6-103 [repealed]” in (2)(A); substituted “§ 6-43-101 et seq. and § 6-43-201 et seq.” for “Acts 1879, No. 64, § 1 [superseded], or other duties imposed by law upon the Arkansas School for the Blind, which was transferred to the Department of Education by §§ 6-11-101, 6-11-102, and 25-6-102” in (5)(A); and substituted “§ 25-30-201 et seq.” for “§ 25-6-201 et seq. [repealed]” in (7)(A).

The 2005 amendment by No. 2139 added (9) and (10).

The 2007 amendment by No. 260 substituted “Arkansas Tech University — Ozark Campus” for “Arkansas Valley Technical Institute” three times in (8)(A) and once in (8)(A)(ii), and made a stylistic change.

The 2007 amendment by No. 827, in (3)(A), inserted “of the Department of Education” and “Arkansas Educational Television Commission,” substituted “commission” for “Commission, which was transferred to the Department of Education by §§ 6-11-101, 6-11-102, and 25-6-102,” and made related changes.

The 2011 amendment by No. 856 substituted “Department of Career Education” for “Department of Workforce Education” throughout (2); and substituted “State Board of Career Education” for “State Board of Workforce Education and Career Opportunities” in the introductory language of (2)(A).

The 2011 amendment by identical acts Nos. 1095 and 1115 substituted “Department of Career Education” for “Department of Workforce Education” throughout the section; substituted “State Board of Career Education” for “State Board of Workforce Education and Career Opportunities” in the introductory language of (2)(A); and deleted former (8)(A) and (8)(D) and redesignated the remaining subdivisions accordingly.

The 2019 amendment by No. 82 inserted “or its successor fund or fund accounts, including the Development and Enhancement Fund” in (9)(B)(ii).

The 2019 amendment by No. 910 substituted “Division of Elementary and Secondary Education” for “Department of Education” and “Division of Career and Technical Education” for “Department of Career Education” throughout the section; inserted “the Adult Education Section of the Division of Workforce Services, and the Office of Skills Development” in the introductory language of the section and in (2)(A)(vi); substituted “Commissioner of Elementary and Secondary Education” for “Commissioner of Education” in (1)(A); substituted “State Board of Education with respect to career and technical education” for “Career Education and Workforce Development Board” in (2)(A); and substituted “of the Division of Workforce Services” for “of the Department of Career Education” following “Arkansas Rehabilitation Services” in (7)(A) and (7)(B)(ii).

The 2019 amendment by identical acts Nos. 998 and 1024 repealed former (8)(A).

19-5-305. Public School Fund.

The Public School Fund shall consist of the following fund accounts and funds made available for the support of the Division of Elementary and Secondary Education, the Arkansas State Library, and the Division of Career and Technical Education and shall be used for the same purposes as set out for the following fund accounts:
1. Division of Elementary and Secondary Education Public School Fund Account. The Division of Elementary and Secondary Education Public School Fund Account shall be used for grants and aids for the programs administered by the Division of Elementary and Secondary Education as authorized by law;
2. Division of Career and Technical Education Public School Fund Account. The Division of Career and Technical Education Public School Fund Account shall be used for grants and aids for the programs administered by the Division of Career and Technical Education, the Adult Education Section, and the Office of Skills Development, consisting of, but not limited to:
  1. General adult education grants;
  2. Adult basic education grants;
  3. Manpower development and training grants;
  4. Vocational-technical and adult education; and
  5. Such other grants and aids as may be authorized by law for disbursement by the Division of Career and Technical Education, the Adult Education Section, and the Office of Skills Development; and
3. State Library Public School Fund Account. The State Library Public School Fund Account shall be used for State Aid to Public Libraries as administered by the Arkansas State Library.
The Public School Fund shall consist of those moneys as may be provided by:
1. The Revenue Stabilization Law, § 19-5-101 et seq.;
2. Any federal mineral leasing funds, federal forest reserve funds, federal flood control funds, or any other similar turnback funds in the State Treasury for which the eligible county or school district cannot be identified;
3. Fines collected pursuant to § 6-21-410 under the Free Textbook Act of 1975, § 6-21-401 et seq.;
4. Funds remitted by county treasurers for those school districts which have local revenue per student in excess of the local base per student, as set out in § 26-80-101(c);
5. Amusement machine revenues up to and including thirty thousand dollars ($30,000), as set out in § 26-57-407;
6. Twenty-five percent (25%) of additional rental vehicle tax revenues under § 26-63-302, to be used exclusively for teacher salaries; and
7. Such other funds as may be authorized by law.
1. There is authorized a transfer of up to two hundred thousand dollars ($200,000) per year from the Public School Fund to the Division of Elementary and Secondary Education Fund Account or the Division of Career and Technical Education Fund Account, or a portion thereof to both, by the Treasurer of State and the Chief Fiscal Officer of the State, upon certification as to the amount required by the Commissioner of Elementary and Secondary Education or by the Director of the Division of Career and Technical Education, or both, to the Chief Fiscal Officer of the State.
2. This transfer shall be used to provide additional support for the administration of the handicapped children program and the vocational-technical and adult education program.

History. Acts 1973, No. 750, § 6; 1975, No. 868, § 2; 1977, No. 955, § 3; A.S.A. 1947, § 13-521; Acts 1997, No. 1248, § 8; 1999, No. 253, § 2; 2001, No. 1646, § 3; 2003, No. 1052, § 10; 2003 (1st Ex. Sess.), No. 55, § 5; 2007, No. 182, § 15; 2007, No. 1032, § 7; 2007, No. 1201, § 7; 2011, No. 1095, § 4; 2011, No. 1115, § 4; 2019, No. 910, § 2260.

A.C.R.C. Notes. Acts 2011, No. 1095, § 9, provided:

“Any funds appropriated by the Eighty-Eighth General Assembly from the Department of Workforce Education Public School Fund Account shall be deemed payable from the Department of Career Education Public School Fund Account.”

Acts 2011, No. 1115, § 9, provided:

Amendments. The 2003 amendment, in (a), inserted “and the Arkansas State Library of the Department of Education”; deleted (a)(1)(P) and redesignated former (a)(1)(Q) as (a)(1)(P); and added (a)(3).

The 2003 (1st Ex. Sess.) amendment inserted present (b)(7) and redesignated former (b)(7) as (b)(8).

The 2011 amendment by identical acts Nos. 1095 and 1115, in the introductory language of (a), deleted “the Department of Workforce Education” following “the Department of Education” and inserted “the Department of Career Education”; rewrote (a)(1); and substituted “Department of Career Education” for “Department of Workforce Education” throughout (a)(2) and (c)(1).

The 2019 amendment substituted “Division of Elementary and Secondary Education” for “Department of Education” throughout (a) and in (c)(1); substituted “Division of Career and Technical Education” for “Department of Career Education” in the introductory language of (a), twice in (a)(2), and twice in (c)(1); substituted “Division of Career and Technical Education, Adult Education Section of the Division of Workforce Services, Office of Skills Development” for “Department of Career Education” in the introductory language of (a)(2) and in (a)(2)(E); and substituted “Commissioner of Elementary and Secondary Education” for “Commissioner of Education” in (c)(1).

19-5-306. Department of Human Services Fund.

The Department of Human Services Fund shall consist of the following fund accounts and funds made available for the support of the Department of Human Services and shall be used for the same purposes as set out for the following fund accounts:

Behavioral Health Services Fund Account.
1. The Behavioral Health Services Fund Account shall be used for the maintenance, operation, and improvement required by the Division of Aging, Adult, and Behavioral Health Services of the Department of Human Services in carrying out the powers, functions, and duties, as set out in § 20-46-101 et seq. and § 25-10-101 et seq., or other duties imposed by law upon the Arkansas State Hospital.
2. The Behavioral Health Services Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Nonrevenue income derived from services provided by the Arkansas State Hospital;
  3. Federal reimbursement received on account of eligible expenditures;
  4. Paying patient fees and other funds as may be provided by law;
  5. Funds received from local sources for community program matching; and
  6. Funds received from the Division of Medical Services;
Developmental Disabilities Services Fund Account.
1. The Developmental Disabilities Services Fund Account shall be used for the maintenance, operation, and improvement required by the Division of Developmental Disabilities Services in carrying out the powers, functions, and duties, as set out in § 20-48-101 et seq. and § 25-10-101 et seq., and all laws amendatory thereto, or other duties imposed by law upon the human development centers or the Board of Developmental Disabilities Services.
2. The Developmental Disabilities Services Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Nonrevenue income derived by services provided by the human development centers;
  3. Funds received from local sources to provide matching for community developmental disabilities services programs; and
  4. Reimbursement received from the Division of Medical Services;
Medical Services Fund Account.
1. The Medical Services Fund Account shall be used for the maintenance, operation, and improvement required by the Division of Medical Services in carrying out the powers, functions, and duties as set out in § 20-76-101 et seq. and § 25-10-101 et seq., including the support and administration costs of the expanded Medical Services Program of the Division of Medical Services for the working poor in Arkansas.
2. The Medical Services Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Nonrevenue income derived from services provided by the Division of Medical Services;
  3. Federal reimbursement received on account of eligible expenditures for the administration of medical services programs;
  4. Funds derived from fees collected pursuant to the provisions of §§ 20-10-213 — 20-10-228 to be used for the maintenance and operation of the long-term care facility licensure program of the Division of Medical Services; and
  5. Any other nonfederal grant funds provided by law.
3. Other federal reimbursement funds received by the Division of Medical Services shall be deposited into a separate federal reimbursement fund on the books of the Treasurer of State;
Youth Services Fund Account.
1. The Youth Services Fund Account shall be used for the maintenance, operation, and improvement required by the Division of Youth Services in carrying out the powers, functions, and duties as set out in § 9-28-201 et seq., including serious offender and community-based programs and the youth service centers.
2. The Youth Services Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Nonrevenue income derived from services provided by the various programs of the Division of Youth Services; and
  3. Any other nonfederal grants-in-aid funds provided by law.
3. Other federal reimbursement received by the Division of Youth Services shall be deposited into a separate federal reimbursement fund on the books of the Treasurer of State, including those received on account of eligible expenditures of the youth service centers' vocational education programs;
Children and Family Services Fund Account.
1. The Children and Family Services Fund Account shall be used for the maintenance, operation, and improvement required by the Division of Children and Family Services in carrying out those functions, powers, and duties as set out in § 25-10-101 et seq.
2. The Children and Family Services Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Nonrevenue income derived from services provided by the Division of Children and Family Services; and
  3. Any other nonfederal grant-in-aid funds provided by law;
Department of Human Services Administration Fund Account.
1. The Department of Human Services Administration Fund Account shall be used for the maintenance, operation, and improvement required by the office of the Secretary of the Department of Human Services in carrying out the administrative duties and shared business services of the Department of Human Services as set out in and under the restrictions and provisions of § 20-46-301 and § 25-10-101 et seq.
2. The Department of Human Services Administration Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Nonrevenue income derived from services provided by these divisions of the Department of Human Services; and
  3. Any other funds, including reimbursement for costs incurred by these divisions from the various other Department of Human Services' divisions from nongeneral revenue sources, as may be required and provided by law;
Aging and Adult Services Fund Account.
1. The Aging and Adult Services Fund Account shall be used for the maintenance, operation, and improvement required by the Division of Aging, Adult, and Behavioral Health Services of the Department of Human Services in carrying out the powers, functions, and duties as imposed by law, and § 25-10-101 et seq., upon the Division of Aging, Adult, and Behavioral Health Services of the Department of Human Services.
2. The Aging and Adult Services Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Fifty percent (50%) of those special revenues as specified in § 19-6-301(201), there to be used to assist the Meals on Wheels program, and any other special revenues as may be provided by law;
  3. Nonrevenue income derived from services provided by the Division of Aging, Adult, and Behavioral Health Services of the Department of Human Services;
  4. Federal reimbursement received on account of eligible expenditures of the Division of Aging, Adult, and Behavioral Health Services of the Department of Human Services; and
  5. The first three million dollars ($3,000,000) each year of the net revenues derived from the additional cigarette tax levied in § 26-57-802, to be used exclusively for transportation services benefiting the elderly, including the Meals on Wheels program;
[Repealed.]
County Operations Fund Account.
1. The County Operations Fund Account shall be used for the maintenance, operation, and improvement required by the Division of County Operations in carrying out the powers, functions, and duties as set out in § 25-10-102.
2. The County Operations Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Nonrevenue income derived from services provided by the various programs of the Division of County Operations;
  3. Any other nonfederal grants-in-aid funds provided by law;
  4. Funds received from the Division of Elementary and Secondary Education for surplus commodities; and
  5. Federal reimbursement received on account of eligible expenditures of the Division of County Operations.
3. Other federal reimbursement funds received by the Division of County Operations shall be deposited into a separate federal reimbursement fund on the books of the Treasurer of State;
Department of Human Services Grants Fund Account.
1. The Department of Human Services Grants Fund Account shall be used for the following grant programs to consist of general revenues and any other nonfederal funds, as may be appropriated by the General Assembly:
  1. Children's Medical Services;
  2. Food Stamp Employment and Training Program;
  3. Aid to the Aged, Blind, and Disabled;
  4. Transitional Employment Assistance Program;
  5. Private nursing home care;
  6. Infant Infirmary — nursing home care;
  7. Public Nursing Home Care;
  8. Prescription drugs;
  9. Hospital and Medical Services;
  10. Child and Family Life Institute;
  11. Community Services Block Grant Program;
  12. ARKids First Program;
  13. Child health management services; and
  14. Child Care Grant.
2. Federal reimbursement received by the Department of Human Services shall be deposited into separate funds on the books of the Treasurer of State;
Long-Term Care Facility Receivership Fund Account.
1. The Long-Term Care Facility Receivership Fund Account shall be used for paying the expenses of receivers appointed under the Arkansas Long-Term Care Facility Receivership Law, § 20-10-901 et seq., as administered and disbursed under the direction of the Secretary of the Department of Human Services.
2. The Long-Term Care Facility Receivership Fund Account shall consist of:
  1. Those general revenues and such other funds as may be provided by law; and
  2. The balance in the Long-Term Care Facility Receivership Fund Account which remains at the end of a fiscal year;
Child Care and Early Childhood Education Fund Account.
1. The Child Care and Early Childhood Education Fund Account shall be used for the maintenance, operation, and improvement required by the Division of Child Care and Early Childhood Education in carrying out those functions, powers, and duties as set out in the Childcare Facility Licensing Act, § 20-78-201 et seq., or other duties imposed by law upon the Division of Child Care and Early Childhood Education.
2. The Child Care and Early Childhood Education Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Nonrevenue income derived from services provided by the Division of Child Care and Early Childhood Education; and
  3. Any other nonfederal grant-in-aid funds provided by law; and
Provider Services and Quality Assurance Fund Account.
1. The Provider Services and Quality Assurance Fund Account shall be used for the maintenance, operation, and improvement required by the Division of Provider Services and Quality Assurance in carrying out its powers, functions, and duties.
2. The Provider Services and Quality Assurance Fund Account shall consist of:
  1. Those general revenues as may be provided by law;
  2. Nonrevenue income derived from services provided by the Division of Provider Services and Quality Assurance;
  3. Federal reimbursement received on account of eligible expenditures for the administration of medical services programs or other programs; and
  4. Any other nonfederal grant funds provided by law.

History. Acts 1973, No. 750, § 6; 1975, No. 868, § 3; 1977, No. 955, §§ 4-6; 1977 (1st Ex. Sess.), No. 7, § 2; 1979, No. 1115, § 4; 1981, No. 938, §§ 2, 3; 1983, No. 801, §§ 4-15; 1985, No. 888, § 5; A.S.A. 1947, § 13-521; Acts 1987, No. 928, § 1; 1989, No. 629, § 5; 1991, No. 1135, §§ 4, 16; 1993, No. 1073, §§ 4, 24; 1994 (2nd Ex. Sess.), No. 27, § 1; 1995, No. 1163, § 11; 1997, No. 1007, § 3; 1997, No. 1360, § 82; 1999, No. 1463, § 7; 1999, No. 1537, § 100; 2003 (1st Ex. Sess.), No. 17, § 10; 2003 (1st Ex. Sess.), No. 55, §§ 6-8; 2007, No. 1032, §§ 8-10; 2007, No. 1201, §§ 8-10; 2009, No. 1414, § 8; 2011, No. 42, § 4; 2011, No. 1095, § 5; 2011, No. 1115, § 5; 2017, No. 913, §§ 1, 47, 48; 2018, No. 259, § 5; 2018, No. 260, § 5; 2019, No. 910, §§ 5160, 5161; 2020, No. 168, § 5.

A.C.R.C. Notes. Acts 2016, No. 3, § 8, provided:

“DEPARTMENT OF HUMAN SERVICES GRANTS FUND ACCOUNT. The Department of Human Services Grants Fund Account shall be used for the following grant programs to consist of general revenues and any other nonfederal funds, as may be appropriated by the General Assembly:

“(i) Children's Medical Services;

“(ii) Food Stamp Employment and Training Program;

“(iii) Aid to the Aged, Blind, and Disabled;

“(iv) Transitional Employment Assistance Program;

“(v) Private nursing home care;

“(vi) Infant Infirmary — nursing home care;

“(vii) Public Nursing Home Care;

“(viii) Prescription Drugs;

“(ix) Hospital and Medical Services;

“(x) Child and Family Life Institute;

“(xi) Community Services Block Grant;

“(xii) ARKIDSFIRST;

“(xiii) Child Health Management Services; and

“(xiv) Child Care Grant.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Identical Acts 2018, Nos. 259 and 260, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law and to create funds, to repeal funds, and to make transfers to and from funds and fund accounts.”

Identical Acts 2018, Nos. 259 and 260, § 9, provided: “DUPLICATE ACTS. If HB1137 and SB122 of the 2018 Fiscal Session of the 91st General Assembly are both enacted and adopted by the 91st General Assembly in identical form, then the last Act passed or latest expression shall supersede the other.”

Publisher's Notes. Acts 1994 (2nd Ex. Sess.), No. 27, § 4, provided: “It is the purpose and intent of this act to assure that the revenues derived from the tax levied on soft drinks in Arkansas Code § 26-57-901 will never become general revenues of the state but will be used exclusively for matching federal funds available to the state for the Arkansas Medicaid Program or in the event the Arkansas Medicaid Program is discontinued for any reason, such revenues will be used exclusively to provide to Arkansas residents those kinds of services now provided by the Arkansas Medicaid Program.”

Amendments. The 2003 (1st Ex. Sess.) amendment by No. 17 added (10)(A)(xv).

The 2003 (1st Ex. Sess.) amendment by No. 55 substituted “§ 9-28-201 et seq.” for “§ 25-10-301 et seq. [repealed]” in (4)(A); added “Fifty percent (50%) … Meals on Wheels Program, and any other” to the beginning of (7)(B)(ii); and added (10)(C).

The 2007 amendment by identical acts Nos. 1032 and 1201 deleted former (10)(C) and (12); and redesignated former (13) as present (12).

The 2009 amendment deleted former (10)(A)(xv) and made related changes.

The 2011 amendment by No. 42 substituted “Community Service and Nonprofit Support” for “Volunteerism” in (6)(A).

The 2011 amendment by identical acts Nos. 1095 and 1115 substituted “Behavioral Health Services Fund Account” for “Mental Health Services Fund Account” in two places in (1)(A) and in the introductory language of (1)(B).

The 2017 amendment substituted “Division of Aging, Adult, and Behavioral Health Services” or “Division of Aging, Adult, and Behavioral Health Services of the Department of Human Services” for “Division of Behavioral Health Services” in (1)(A), (7)(A), (7)(B)(iii), and (7)(B)(iv); in (6)(A), inserted “and shared business services” and deleted “and of the Office of Finance and Administration of the Department of Human Services, and the Division of Community Service and Nonprofit Support of the Department of Human Services as set out in § 25-10-128” at the end.

The 2018 amendment by identical acts Nos. 259 and 260 added (13).

The 2019 amendment substituted “Secretary of the Department of Human Services” for “Director of the Department of Human Services” in (6)(A); and substituted “Division of Elementary and Secondary Education” for “Department of Education” in (9)(B)(iv).

The 2020 amendment repealed (8).

Case Notes

Exaction Case.

Arkansas Constitution did not provide a claim for illegal exaction because a citizen could not show that the expenditure was illegal, misapplied, or arbitrary; the State was authorized by statute to use State funds to pay for prescription drugs. Bowerman v. Takeda Pharms. U.S.A., 2014 Ark. 388, 442 S.W.3d 839 (2014).

19-5-307. Public Health Fund.

The Public Health Fund shall be used for the maintenance, operation, and improvement required by the regional health centers and the various divisions of the Department of Health in carrying out the powers, functions, and duties as set out in § 20-7-102 et seq. or other duties imposed by law upon:
1. The Department of Health;
2. The Secretary of the Department of Health;
3. The State Board of Health;
4. The Secretary of the State Board of Health, or the State Health Officer, whose office was transferred under § 25-9-101 [repealed] to the Department of Health; and
5. The State Cancer Commission, which was transferred to the Department of Health by § 25-9-101 [repealed].
The Public Health Fund shall consist of:
1. Those special revenues as set out in § 19-6-301(41), (65), (68), (69), (80), (97), (131), (132), (133), (136), (137), (140), (141), (142), (143), (144), (147), (155), (166), (177), (194), (204), (205), (250), and that portion of § 19-6-301(58) of the Revenue Classification Law, § 19-6-101 et seq.;
2. General revenues as may be provided by law;
3. Nonrevenue income derived from services provided by the various divisions of the Department of Health;
4. Federal reimbursement received on account of eligible expenditures by the various divisions of the Department of Health;
5. Other funds as may be provided by law;
6. Moneys transferred or deposited from the State Administration of Justice Fund to support alcoholism treatment programs and for use in the drug abuse prevention and treatment program of the Division of Aging, Adult, and Behavioral Health Services of the Department of Human Services;
7. Amusement machine revenues over thirty thousand dollars ($30,000), as set out in § 26-57-407; and
8. Criminal, civil, and administrative penalties collected under the Arkansas Lead-Based Paint-Hazard Act of 2011, § 20-27-2501 et seq.

History. Acts 1973, No. 750, § 6; 1983, No. 801, § 8; 1985, No. 888, § 6; A.S.A. 1947, § 13-521; Acts 1989, No. 629, § 6; 1991, No. 1135, § 5; 1993, No. 1073, § 5; 1995, No. 1032, § 8; 1995, No. 1296, § 71; 1997, No. 1248, § 9; 1999, No. 1463, § 8; 2001, No. 1646, § 4; 2003 (1st Ex. Sess.), No. 55, § 9; 2005, No. 2282, § 4; 2005, No. 2316, § 4; 2007, No. 1032, § 11; 2007, No. 1201, § 11; 2010, No. 262, § 2; 2010, No. 296, § 2; 2011, No. 856, § 4; 2013, No. 1107, § 17; 2014, No. 290, § 2; 2014, No. 299, § 2; 2017, No. 913, § 49; 2019, No. 910, § 4915.

A.C.R.C. Notes. Identical Acts 2014, Nos. 290 and 299, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Identical Acts 2014, Nos. 290 and 299, § 14, provided: “DUPLICATE ACTS. If HB 1159 and SB 147 of the 2014 Fiscal Session of the 89th General Assembly are both enacted and adopted by the 89th General Assembly in identical form, then the last Act passed or latest expression shall supersede the other.”

Amendments. The 2003 (1st Ex. Sess.) Amendment inserted “(80),” “(132),” and “(204), (205)” in (b)(1).

The 2005 amendment by identical acts Nos. 2282 and 2316, in (b)(1), deleted “(178)” and added “(208).”

The 2010 amendment by identical acts Nos. 262 and 296 inserted “(41)” in (b)(1).

The 2011 amendment deleted “and all laws amendatory thereto, and § 20-11-201 et seq. [repealed]” following “§ 20-7-102 et seq.” in the introductory language of (a); and deleted (a)(6).

The 2013 amendment substituted “Division of Behavioral Health Services” for “Office of Alcohol and Drug Abuse Prevention” in (b)(6).

The 2014 amendment by identical acts Nos. 290 and 299 inserted “(250)” in (b)(1); and added (b)(8).

The 2017 amendment substituted “Division of Aging, Adult, and Behavioral Health Services” for “Division of Behavioral Health Services” in (b)(6).

The 2019 amendment substituted “Secretary of the Department of Health” for “Director of the Department of Health” in (a)(2).

19-5-308. [Repealed.]

Publisher's Notes. This section, concerning the Arkansas Building Authority Account, was repealed by Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 14. The section was derived from Acts 1975, No. 1003, § 4; 1975 (Extended Sess., 1976), No. 1141, § 5; A.S.A. 1947, § 13-521.2; Acts 2005, No. 2282, § 5; 2005, No. 2316, § 5.

19-5-309. [Repealed.]

Publisher's Notes. This section, concerning the Bureau of Alcohol and Drug Abuse Prevention Fund, was repealed by Acts 1995, No. 1032, § 9. The section was derived from Acts 1993, No. 1073, § 23.

For present law, see § 19-5-1083.

19-5-310. Water, Sewer, and Solid Waste Systems Revolving Fund.

A special fund entitled the “Water, Sewer, and Solid Waste Systems Revolving Fund” is created to provide a depository for funds which may be appropriated or otherwise secured for the purposes of matching or supplementing federal grants and loans. The Water, Sewer, and Solid Waste Systems Revolving Fund shall be used to provide low interest loans to cities, towns, counties, and other eligible applicants. Funds from the repayment of loans made from the Water, Sewer, and Solid Waste Systems Revolving Fund shall return to the Water, Sewer, and Solid Waste Systems Revolving Fund and shall be reloaned in a manner which is consistent with the purposes of this section.

History. Acts 1981, No. 755, § 19; A.S.A. 1947, § 13-523.6.

A.C.R.C. Notes. Acts 2016, No. 256, § 20, provided: “TRANSFER PROVISION. At the end of each fiscal year, the Chief Fiscal Officer of the State shall authorize the transfer of obligated water, sewer, and solid waste funds, as provided in the appropriation act for the Natural Resources Commission in the appropriation entitled ‘Water, Sewer and Solid Waste — State’, from the Miscellaneous Agencies Fund Account, to the Water, Sewer and Solid Waste Revolving Fund.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

19-5-311. Technical college funds created.

1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Black River Technical College Fund”, there to be used for the maintenance, operation, and improvement of Black River Technical College.
2. The Black River Technical College Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of Black River Technical College which are required to be deposited into the State Treasury by law.
1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “University of Arkansas — Pulaski Technical College Fund”, there to be used for the maintenance, operation, and improvement of University of Arkansas — Pulaski Technical College.
2. The University of Arkansas — Pulaski Technical College Fund shall consist of:
  1. Those general revenues as may be provided by law; and
  2. Any other funds made available for the support of the University of Arkansas — Pulaski Technical College which are required to be deposited into the State Treasury by law.

History. Acts 1991, No. 930, § 3; 1991, No. 931, § 3; 1991, No. 935, § 3; 1991, No. 936, § 3; 1991, No. 937, § 3; 1991, No. 938, § 3; 1991, No. 939, § 3; 1991, No. 940, § 3; 1991, No. 942, § 3; 1991, No. 944, § 3; 1991, No. 945, § 3; 1991, No. 1195, § 3; 1993, No. 1073, §§ 16, 18; 1995, No. 1163, §§ 12, 13; 1997, No. 1248, §§ 10, 27; 1999, No. 1463, §§ 9-11; 2003 (1st Ex. Sess.), No. 55, §§ 10-13; 2012, No. 271, § 2; 2012, No. 287, § 2; 2017, No. 178, § 7.

Amendments. The 2003 (1st Ex. Sess.) amendment repealed (b), (g), and (k); and deleted “Technical” preceding “College” twice in the introductory language of (f) and in (f)(2).

The 2012 amendment by identical acts Nos. 271 and 287 deleted former (b), (c), and (e), and redesignated the remaining subsection accordingly.

The 2017 amendment inserted “University of Arkansas” before “Pulaski Technical College” throughout (b)(1) and (b)(2).

19-5-312. State Services for the Blind Fund.

The State Services for the Blind Fund shall be used for the maintenance, operation, and improvement required by the Division of State Services for the Blind in carrying out the powers, functions, and duties as set out in § 25-10-201 et seq. or other duties imposed by law upon the division.
The State Services for the Blind Fund shall consist of:
1. Those general revenues provided by law;
2. Nonrevenue income derived from services provided by programs of the division; and
3. Any other nonfederal grant funds provided by law.

History. Acts 2020, No. 168, § 6.

Subchapter 4 — Distribution of General Revenues

Effective Dates. Acts 1973, No. 750, § 14: July 1, 1973. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that it is necessary to establish an orderly procedure which will insure the monthly distribution of funds for the necessary services and operations of the state government, as provided for in this Act; that only the provisions of this Act will correct many of our financial difficulties, which otherwise may deprive the citizens of this State from receiving the benefits for which the operation of state government contemplates. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after July 1, 1973.”

Acts 1974 (1st Ex. Sess.), No. 90, § 5: July 23, 1974. Emergency clause provided: “It is hereby found and determined by the Sixty-Ninth General Assembly Meeting in Extraordinary Session that a method of funding for the various appropriations provided by the Special Session of the Sixty-Ninth General Assembly is required and that the elimination of certain technical errors in the Revenue Stabilization Law is essential prior to beginning the next fiscal year. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1981, No. 937, § 7: July 1, 1981. Emergency clause provided: “It is hereby found and determined by the Seventy-Third General Assembly that the amendments to the Revenue Stabilization Law are essential to the continued operation of State government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1981.”

Acts 1983 (1st Ex. Sess.), No. 119, § 2: Dec. 1, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly, meeting in Extraordinary Session, that a revision of the allocation of general revenues as provided in Section 11 of Act 750 of 1973, as amended, is critical to assure that the increased revenues to become available to the State in accordance with various tax increases enacted in this First Extraordinary Session of 1983 are made available to support the program of educational opportunity improvement also enacted. It is further found that delay beyond December 1, 1983, in the effectiveness of this revision will cause serious disruption in the flow of general revenues in the current fiscal year and critical delay in initiation of the programs for improvement of the education system in this state. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after December 1, 1983.”

Identical Acts 2012, Nos. 271 and 287, § 10: July 1, 2012.

Identical Acts 2014, Nos. 290 and 299, § 15: July 1, 2014.

Identical Acts 2014 (2nd Ex. Sess.), Nos. 1 and 5, § 3: July 3, 2014. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that funds provided by the General Assembly for the operations of the Department of Correction have, due to unforeseen circumstances, become insufficient for the department to provide essential governmental services; that this act provides additional funds that are necessary for the department to provide essential governmental services; and that a delay in this act's effective date would work irreparable harm upon the proper administration of the department and the performance of its duties. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Identical Acts 2017, Nos. 1083 and 1127, § 26: July 1, 2017. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that changes in the state’s fiscal laws must take effect at the beginning of the fiscal year, and that if the current legislative session is extended such that the ninety-day period is later than July 1, 2017, the changes required by this act will not be timely. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2017”.

Identical Acts 2018, Nos. 259 and 260, § 10: July 1, 2018.

Identical Acts 2020, Nos. 186 and 187, § 7: July 1, 2020.

Identical Acts 2020, Nos. 186 and 187, § 8: July 1, 2020. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year; and that it is necessary for this act to become effective on July 1, 2020, to avoid a lapse in critical and essential services that state government provides to the citizens of this state at the beginning of the next fiscal year. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2020”.

19-5-401. Allocations for fiscal year 2020-2021 and thereafter.

Commencing with the fiscal year beginning July 1, 2020, and each fiscal year thereafter, the Treasurer of State shall transfer all remaining general revenues available for distribution on the last day of business in July 2020, and on the last day of business in each calendar month thereafter during the fiscal year to the various funds and fund accounts participating in general revenues in the proportions of the maximum allocation as the individual allocation to the fund or fund account bears to the total of the maximum allocation as provided in § 19-5-402(a)-(e).

History. Acts 1973, No. 750, § 11; 1974 (1st Ex. Sess.), No. 90, § 1; 1975, No. 868, § 15; 1977, No. 955, § 1; 1977 (1st Ex. Sess.), No. 7, § 1; 1979, No. 1115, § 1; 1981, No. 937, § 1; 1983, No. 801, § 12; 1983 (1st Ex. Sess.), No. 119, § 1; 1985, No. 888, § 25; A.S.A. 1947, § 13-515; Acts 1987, No. 928, § 15; 1989, No. 629, § 14; 1991, No. 1135, § 12; 1993, No. 1073, § 30; 1995, No. 1163, § 31; 1997, No. 1248, § 28; 1999, No. 1463, § 30; 2001, No. 1646, § 29; 2003 (1st Ex. Sess.), No. 55, § 39; 2005, No. 2282, § 16; 2005, No. 2316, § 16; 2007, No. 1032, § 34; 2007, No. 1201, § 34; 2009, No. 1440, § 7; 2009, No. 1441, § 7; 2010, No. 262, § 12; 2010, No. 296, § 12; 2011, No. 1095, § 16; 2011, No. 1115, § 16; 2012, No. 271, § 6; 2012, No. 287, § 6; 2013, No. 1516, § 3; 2013, No. 1517, § 3; 2014, No. 290, § 9; 2014, No. 299, § 9; 2015, No. 1144, § 9; 2015, No. 1145, § 9; 2016, No. 242, § 3; 2016, No. 270, § 3; 2017, No. 1083, § 22; 2017, No. 1127, § 22; 2018, No. 259, § 3; 2018, No. 260, § 3; 2019, No. 998, § 8; 2019, No. 1024, § 8; 2020, No. 186, § 4; 2020, No. 187, § 4.

A.C.R.C. Notes. Identical Acts 2014, Nos. 290 and 299, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Identical Acts 2015, Nos. 1144 and 1145, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Identical Acts 2016, Nos. 242 and 270, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Identical Acts 2017, Nos. 1083 and 1127, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Identical Acts 2017, Nos. 1083 and 1127, § 24, provided: “DUPLICATE ACTS. If HB1548 and SB295 of the 2017 Regular Session of the 91st General Assembly are both enacted and adopted by the 91st General Assembly in identical form, then the last Act passed or latest expression shall supersede the other.”

Identical Acts 2019, Nos. 998 and 1024, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law, § 19-5-101 et seq.”

Identical Acts 2020, Nos. 186 and 187, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law and to create funds, to repeal funds, and to make transfers to and from funds and fund accounts”.

Identical Acts 2020, Nos. 186 and 187, § 6, provided: “DUPLICATE ACTS. If HB1096 and SB83 of the 2020 Fiscal Session of the 92nd General Assembly are both enacted and adopted by the 92nd General Assembly in identical form, then the last Act passed or latest expression shall supersede the other”.

Amendments. The 2003 (1st Ex. Sess.) amendment substituted “2003” for “2001” twice and “2004” for “2002”.

The 2005 amendment by identical acts Nos. 2282 and 2316 substituted “2005” for “2003”, “2006” for “2004”, and “§ 19-5-402(a) and (b)” for “§ 19-5-402.”

The 2009 amendment by identical acts Nos. 1440 and 1441 substituted “July 1, 2009” for “July 1, 2007,” June 30, 2010” for “June 30, 2008,” “July 2009” for “July 2007,” and “(b-1)” for “(a-1).”

The 2010 amendment by identical acts Nos. 262 and 296 substituted “2010-2011 and thereafter” for “2009-2010” in the section catchline, substituted “July 1, 2010, and each fiscal year thereafter” for “July 1, 2009, and ending June 30, 2010”, substituted “July 2010” for “July 2009”, and substituted “§ 19-5-402(a) and (b)” for “§ 19-5-402(a), (b-1), and (b)” at the end.

The 2011 amendment by identical acts Nos. 1095 and 1115 substituted “2011-2012 and thereafter” for “2009-2010” in the section heading; substituted “2011” for “2009” in two places; substituted “each fiscal year thereafter” for “ending June 30, 2010”; and substituted “§ 19-5-402(a) and (b)” for “§ 19-5-402(a), (b-1), and (b)”.

The 2012 amendment by identical acts Nos. 271 and 287 substituted “2012-2013” for “2011-2012” in the section heading; substituted “2012” for “2011” in two places; and substituted “§ 19-5-402(a)” for “§ 19-5-402(a) and (b)”.

The 2013 amendment by identical acts Nos. 1516 and 1517, substituted “2013-2014” for “2012-2013” in the section heading; substituted “July 1, 2013” for “July 1, 2012”; substituted “July 2013” for “July 2012”; and substituted “§ 19-5-402(a)-(c)” for “§ 19-5-402”.

The 2014 amendment by identical acts Nos. 290 and 299 substituted “2014” for “2013” twice.

The 2015 amendment by identical acts Nos. 1144 and 1145 substituted “2015-2016” for “2014-2015” in the section heading; and substituted “2015” for “2014” twice.

The 2016 amendment by identical acts Nos. 242 and 270 substituted “2016-2017” for “2015-2016” in the section heading; substituted “2016” for “2015” twice; and substituted “§ 19-5-402(a) and (b)” for “§ 19-5-402(a)-(c)”.

The 2017 amendment by identical acts Nos. 1083 and 1127 substituted “2017-2018” for “2016-2017” in the section heading; and, in the section, substituted “July 1, 2017” for “July 1, 2016”, and “July 2017” for “July 2016”.

The 2018 amendment by identical acts Nos. 259 and 260 substituted “2018-2019” for “2017-2018” in the section heading; and, in the section, substituted “July 1, 2018” for “July 1, 2017” and “July 2018” for “July 2017”.

The 2019 amendment by identical acts Nos. 998 and 1024 substituted “2019-2020” for “2018-2019” in the section heading; substituted “July 1, 2019” for “July 1, 2018”; substituted “July 2019” for “July 2018”; and substituted “§ 19-5-402(a)-(c)” for “§ 19-5-402(a) and (b)”.

The 2020 amendment by identical acts Nos. 186 and 187 substituted “2020-2021” for “2019-2020” in the section heading; substituted “July 1, 2020” for “July 1, 2019”; substituted “July 2020” for “July 2019”; and substituted “§ 19-5-402(a)-(e)” for “§ 19-5-402(a)-(c)”.

19-5-402. Maximum allocations of revenues for fiscal year 2020-2021 and thereafter.

1. ALLOCATION A. The Treasurer of State shall first make monthly allocations in the proportions set out in this subsection to the funds and fund accounts listed below until there has been transferred a total of five billion two hundred sixty-one million one hundred eighty-three thousand seven hundred eight dollars ($5,261,183,708) or so much thereof as may become available; provided, that the Treasurer of State shall make such monthly allocations in accordance with each fund or fund account's proportionate part of the total of all such allocations set forth in this subsection:
2. Sixty million three hundred sixty-eight thousand five hundred ninety-three dollars ($60,368,593), or so much thereof as is available shall be included and added to the amount distributed in subdivision (a)(1) of this section and shall be distributed by the Treasurer of State in monthly amounts with each allocation’s proportion of the total of subdivision (a)(1) of this section and this subdivision (a)(2) to supplement the Restricted Reserve Fund.
ALLOCATION A1. After making the maximum annual allocations provided for in subdivisions (a)(1) and (2) of this section, the Treasurer of State shall then make allocations from the remaining general revenues available for distribution, as set forth in this subsection, to the funds and fund accounts listed below until there has been transferred a total of one hundred eighty-four million three hundred fifty-five thousand five hundred forty-six dollars ($184,355,546) or so much thereof that may become available; provided, that the Treasurer of State shall make such monthly allocations in accordance with each fund or fund account's proportionate part of the total of all such allocations set forth in this subsection:
ALLOCATION B. Then after making the maximum annual allocations provided for in subsection (b) of this section, the Treasurer of State shall then make allocations from the remaining general revenues available for distribution, as set forth in this subsection, to the funds and fund accounts listed below until there has been transferred a total of ninety million six hundred ninety-six thousand seventy-seven dollars ($90,696,077) or so much thereof that may become available; provided, that the Treasurer of State shall make such monthly allocations in accordance with each fund or fund account's proportionate part of the total of all such allocations set forth in this subsection:
ALLOCATION C. Then after making the maximum annual allocations provided for in subsection (c) of this section, the Treasurer of State shall then make allocations from the remaining general revenues available for distribution, as set forth in this subsection, to the funds and fund accounts listed below until there has been transferred a total of ninety million six hundred ninety-six thousand seventy-seven dollars ($90,696,077) or so much thereof that may become available; provided, that the Treasurer of State shall make such monthly allocations in accordance with each fund or fund account's proportionate part of the total of all such allocations set forth in this subsection:
1. ALLOCATION D. Then after making the maximum annual allocations provided for in subsection (d) of this section, the Treasurer of State shall then make allocations from the remaining general revenues available for distribution, as set forth in this subsection, to the funds and fund accounts listed below until there has been transferred a total of one hundred ninety million four hundred seventy-three thousand one hundred twelve dollars ($190,473,112) or so much thereof that may become available; provided, that the Treasurer of State shall make such monthly allocations in accordance with each fund or fund account's proportionate part of the total of all such allocations set forth in this subsection:
2. 1. Five million nine hundred nine thousand dollars ($5,909,000) shall be included and added to the amount distributed in subdivision (e)(1) of this section and distributed by the Treasurer of State in monthly amounts to the Arkansas Medicaid Program Trust Fund under § 19-5-985.
  2. The amount allocated in subdivision (e)(2)(A) of this section or so much thereof as is available shall be distributed by the Treasurer of State in monthly amounts with each allocation’s proportion of the total of subdivisions (e)(1), (e)(2)(A), and (e)(3) of this section to supplement the Arkansas Medicaid Program Trust Fund.
3. Fifteen million eight hundred seventy-seven thousand four hundred seventy-six dollars ($15,877,476), or so much thereof as is available shall be included and added to the amount distributed in subdivision (e)(1) of this section and shall be distributed by the Treasurer of State in monthly amounts with each allocation’s proportion of the total of subdivisions (e)(1) and (e)(2)(A) of this section and this subdivision (e)(3) to supplement the Restricted Reserve Fund.

Maximum Name of Fund or Fund Account Allocation PUBLIC SCHOOL FUND (1) Division of Elementary and Secondary Education Public School Fund Account $2,078,286,320 (2) State Library Public School Fund Account $ 4,795,631 (3) Division of Career and Technical Education Public School Fund Account $ 27,169,899 EDUCATION FUND (1) Division of Elementary and Secondary Education Fund Account $ 13,894,450 (2) Educational Facilities Partnership Fund Account $ 39,737,503 (3) Division of Public School Academic Facilities and Transportation Fund Account $ 2,228,834 (4) Educational Television Fund Account $ 4,655,037 (5) School for the Blind Fund Account $ 6,160,910 (6) School for the Deaf Fund Account $ 8,952,818 (7) State Library Fund Account $ 3,074,283 (8) Division of Career and Technical Education Fund Account $ 8,500 (9) Rehabilitation Services Fund Account $ 10,159,546 Technical Institutes: (10) Northwest Technical Institute Fund Account $ 2,684,145 (11) Riverside Vocational Technical School Fund Account $ 2,004,850 DEPARTMENT OF HUMAN SERVICES FUND (1) Department of Human Services Administration Fund Account $ 20,222,380 (2) Children and Family Services Fund Account $ 106,434,324 (3) Child Care and Early Childhood Education Fund Account $ 1,797,685 (4) Youth Services Fund Account $ 43,662,765 (5) Developmental Disabilities Services Fund Account $ 56,950,665 (6) Medical Services Fund Account $ 1,987,198 (7) Department of Human Services Grants Fund Account $1,247,554,693 (8) Behavioral Health Services Fund Account $ 84,099,536 (9) Provider Services and Quality Assurance Fund Account $ 4,579,498 (10) County Operations Fund Account $ 40,976,754 STATE GENERAL GOVERNMENT FUND (1) Division of Arkansas Heritage Fund Account $ 6,389,884 (2) Department of Agriculture Fund Account $ 15,064,953 (3) Department of Labor and Licensing Fund Account $ 2,745,106 (4) Division of Higher Education Fund Account $ 9,847,629 (5) Higher Education Grants Fund Account $ 34,014,846 (6) Arkansas Economic Development Commission Fund Account $ 12,594,863 (7) Division of Correction Inmate Care and Custody Fund Account $ 353,771,903 (8) Division of Community Correction Fund Account $ 81,814,316 (9) Department of the Military Fund Account $ 5,713,274 (10) Parks and Tourism Fund Account $ 17,670,095 (11) Division of Environmental Quality Fund Account $ 3,370,609 (12) Miscellaneous Agencies Fund Account $ 55,100,035 COUNTY AID FUND $ 18,214,324 COUNTY JAIL REIMBURSEMENT FUND $ 16,461,053 CRIME INFORMATION SYSTEM FUND $ 3,195,654 CHILD SUPPORT ENFORCEMENT FUND $ 11,036,445 PUBLIC HEALTH FUND $ 70,461,440 PERFORMANCE FUND $ - MOTOR VEHICLE ACQUISITION REVOLVING FUND $ - MUNICIPAL AID FUND $ 24,966,284 DIVISION OF ARKANSAS STATE POLICE FUND $ 55,801,477 DIVISION OF WORKFORCE SERVICES FUND-TANF $ 3,285,114 DIVISION OF WORKFORCE SERVICES FUND-ADULT EDUCATION $ 804,976 STATE SERVICES FOR THE BLIND FUND ACCOUNT $ 1,671,239 SKILLS DEVELOPMENT FUND $ 3,203,435 INSTITUTIONS OF HIGHER EDUCATION (1) ARKANSAS STATE UNIVERSITY FUND $ 50,742,362 (2) ARKANSAS TECH UNIVERSITY FUND $ 28,379,264 (3) HENDERSON STATE UNIVERSITY FUND $ 16,176,319 (4) SOUTHERN ARKANSAS UNIVERSITY FUND $ 14,602,304 (5) UNIVERSITY OF ARKANSAS FUND $ 104,404,698 (6) UNIVERSITY OF ARKANSAS FUND-UA SYSTEM $ 2,957,552 (7) UNIVERSITY OF ARKANSAS FUND-ARCHEOLOGICAL SURVEY $ 2,013,882 (8) UNIVERSITY OF ARKANSAS FUND-DIVISION OF AGRICULTURE $ 55,930,117 (9) UNIVERSITY OF ARKANSAS FUND-CLINTON SCHOOL $ 1,986,361 (10) UNIVERSITY OF ARKANSAS FUND-CRIMINAL JUSTICE INSTITUTE $ 1,919,838 (11) SCHOOL FOR MATH, SCIENCES AND ARTS FUND $ 963,092 (12) UNIVERSITY OF ARKANSAS AT FORT SMITH FUND $ 17,295,121 (13) UNIVERSITY OF ARKANSAS AT LITTLE ROCK FUND $ 51,442,351 (14) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND $ 74,810,949 (15) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND - CHILD ABUSE/RAPE/DOMESTIC VIOLENCE $ 635,996 (16) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND - PEDIATRICS/PSYCHIATRIC RESEARCH $ 1,687,335 (17) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND - CHILD SAFETY CENTER $ 623,525 (18) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND - INDIGENT CARE $ 4,622,589 (19) UNIVERSITY OF ARKANSAS AT MONTICELLO FUND $ 13,577,420 (20) UNIVERSITY OF ARKANSAS AT PINE BLUFF FUND $ 22,280,280 (21) UNIVERSITY OF CENTRAL ARKANSAS FUND $ 46,965,206 (22) ARKANSAS NORTHEASTERN COLLEGE FUND $ 7,393,663 (23) ARKANSAS STATE UNIVERSITY - BEEBE FUND $ 9,988,213 (24) ARKANSAS STATE UNIVERSITY - MOUNTAIN HOME FUND $ 3,131,198 (25) ARKANSAS STATE UNIVERSITY - NEWPORT FUND $ 5,778,322 (26) COSSATOT COMMUNITY COLLEGE OF THE UNIVERSITY OF ARKANSAS FUND $ 2,954,633 (27) EAST ARKANSAS COMMUNITY COLLEGE FUND $ 7,007,659 (28) ARKANSAS STATE UNIVERSITY MID-SOUTH FUND $ 3,413,076 (29) ARKANSAS STATE UNIVERSITY MID-SOUTH FUND - ADTEC $ 1,320,900 (30) NATIONAL PARK COLLEGE FUND $ 7,498,431 (31) NORTH ARKANSAS COLLEGE FUND $ 6,636,016 (32) NORTHWEST ARKANSAS COMMUNITY COLLEGE FUND $ 10,346,862 (33) PHILLIPS COMMUNITY COLLEGE OF THE UNIVERSITY OF ARKANSAS FUND $ 7,640,389 (34) UNIVERSITY OF ARKANSAS COMMUNITY COLLEGE AT RICH MOUNTAIN FUND $ 3,027,201 (35) SAU - TECH FUND $ 4,735,275 (36) SAU - TECH FUND-ENVIRONMENTAL CONTROL CENTER $ 318,780 (37) SAU - TECH FUND-FIRE TRAINING ACADEMY $ 1,428,802 (38) SOUTH ARKANSAS COMMUNITY COLLEGE FUND $ 5,128,007 (39) UNIVERSITY OF ARKANSAS COMMUNITY COLLEGE AT BATESVILLE FUND $ 3,510,612 (40) UNIVERSITY OF ARKANSAS COMMUNITY COLLEGE AT HOPE-TEXARKANA FUND $ 4,240,731 (41) UNIVERSITY OF ARKANSAS COMMUNITY COLLEGE AT MORRILTON FUND $ 4,562,837 (42) BLACK RIVER TECHNICAL COLLEGE FUND $ 5,067,356 (43) ARKANSAS STATE UNIVERSITY THREE RIVERS FUND $ 2,950,245 (44) OZARKA COLLEGE FUND $ 2,591,465 (45) UNIVERSITY OF ARKANSAS - PULASKI TECHNICAL COLLEGE FUND $ 12,547,081 (46) SOUTHEAST ARKANSAS COLLEGE FUND $ 4,672,215

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Maximum Name of Fund or Fund Account Allocation PUBLIC SCHOOL FUND (1) Division of Elementary and Secondary Education Public School Fund Account $109,383,490 (2) State Library Public School Fund Account $ - (3) Division of Career and Technical Education Public School Fund Account $ - EDUCATION FUND (1) Division of Elementary and Secondary Education Fund Account $ - (2) Educational Facilities Partnership Fund Account $ 2,091,448 (3) Division of Public School Academic Facilities and Transportation Fund Account $ - (4) Educational Television Fund Account $ - (5) School for the Blind Fund Account $ - (6) School for the Deaf Fund Account $ - (7) State Library Fund Account $ - (8) Division of Career and Technical Education Fund Account $ - (9) Rehabilitation Services Fund Account $ - Technical Institutes: (10) Northwest Technical Institute Fund Account $ - (11) Riverside Vocational Technical School Fund Account $ - DEPARTMENT OF HUMAN SERVICES FUND (1) Department of Human Services Administration Fund Account $ - (2) Children and Family Services Fund Account $ - (3) Child Care and Early Childhood Education Fund Account $ - (4) Youth Services Fund Account $ - (5) Developmental Disabilities Services Fund Account $ - (6) Medical Services Fund Account $ - (7) Department of Human Services Grants Fund Account $ 65,660,773 (8) Behavioral Health Services Fund Account $ - (9) Provider Services and Quality Assurance Fund Account $ - (10) County Operations Fund Account $ - STATE GENERAL GOVERNMENT FUND (1) Division of Arkansas Heritage Fund Account $ - (2) Department of Agriculture Fund Account $ - (3) Department of Labor and Licensing Fund Account $ - (4) Division of Higher Education Fund Account $ - (5) Higher Education Grants Fund Account $ - (6) Arkansas Economic Development Commission Fund Account $ - (7) Division of Correction Inmate Care and Custody Fund Account $ 7,219,835 (8) Division of Community Correction Fund Account $ - (9) Department of the Military Fund Account $ - (10) Parks and Tourism Fund Account $ - (11) Division of Environmental Quality Fund Account $ - (12) Miscellaneous Agencies Fund Account $ - COUNTY AID FUND $ - COUNTY JAIL REIMBURSEMENT FUND $ - CRIME INFORMATION SYSTEM FUND $ - CHILD SUPPORT ENFORCEMENT FUND $ - PUBLIC HEALTH FUND $ - PERFORMANCE FUND $ - MOTOR VEHICLE ACQUISITION REVOLVING FUND $ - MUNICIPAL AID FUND $ - DIVISION OF ARKANSAS STATE POLICE FUND $ - DIVISION OF WORKFORCE SERVICES FUND-TANF $ - DIVISION OF WORKFORCE SERVICES FUND-ADULT EDUCATION $ - STATE SERVICES FOR THE BLIND FUND ACCOUNT $ - SKILLS DEVELOPMENT FUND $ - INSTITUTIONS OF HIGHER EDUCATION (1) ARKANSAS STATE UNIVERSITY FUND $ - (2) ARKANSAS TECH UNIVERSITY FUND $ - (3) HENDERSON STATE UNIVERSITY FUND $ - (4) SOUTHERN ARKANSAS UNIVERSITY FUND $ - (5) UNIVERSITY OF ARKANSAS FUND $ - (6) UNIVERSITY OF ARKANSAS FUND-UA SYSTEM $ - (7) UNIVERSITY OF ARKANSAS FUND-ARCHEOLOGICAL SURVEY $ - (8) UNIVERSITY OF ARKANSAS FUND-DIVISION OF AGRICULTURE $ - (9) UNIVERSITY OF ARKANSAS FUND-CLINTON SCHOOL $ - (10) UNIVERSITY OF ARKANSAS FUND-CRIMINAL JUSTICE INSTITUTE $ - (11) SCHOOL FOR MATH, SCIENCES AND ARTS FUND $ - (12) UNIVERSITY OF ARKANSAS AT FORT SMITH FUND $ - (13) UNIVERSITY OF ARKANSAS AT LITTLE ROCK FUND $ - (14) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND $ - (15) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND - CHILD ABUSE/RAPE/DOMESTIC VIOLENCE $ - (16) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND - PEDIATRICS/PSYCHIATRIC RESEARCH $ - (17) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND - CHILD SAFETY CENTER $ - (18) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND - INDIGENT CARE $ - (19) UNIVERSITY OF ARKANSAS AT MONTICELLO FUND $ - (20) UNIVERSITY OF ARKANSAS AT PINE BLUFF FUND $ - (21) UNIVERSITY OF CENTRAL ARKANSAS FUND $ - (22) ARKANSAS NORTHEASTERN COLLEGE FUND $ - (23) ARKANSAS STATE UNIVERSITY - BEEBE FUND $ - (24) ARKANSAS STATE UNIVERSITY - MOUNTAIN HOME FUND $ - (25) ARKANSAS STATE UNIVERSITY - NEWPORT FUND $ - (26) COSSATOT COMMUNITY COLLEGE OF THE UNIVERSITY OF ARKANSAS FUND $ - (27) EAST ARKANSAS COMMUNITY COLLEGE FUND $ - (28) ARKANSAS STATE UNIVERSITY MID-SOUTH FUND $ - (29) ARKANSAS STATE UNIVERSITY MID-SOUTH FUND - ADTEC $ - (30) NATIONAL PARK COLLEGE FUND $ - (31) NORTH ARKANSAS COLLEGE FUND $ - (32) NORTHWEST ARKANSAS COMMUNITY COLLEGE FUND $ - (33) PHILLIPS COMMUNITY COLLEGE OF THE UNIVERSITY OF ARKANSAS FUND $ - (34) UNIVERSITY OF ARKANSAS COMMUNITY COLLEGE AT RICH MOUNTAIN FUND $ - (35) SAU - TECH FUND $ - (36) SAU - TECH FUND-ENVIRONMENTAL CONTROL CENTER $ - (37) SAU - TECH FUND-FIRE TRAINING ACADEMY $ - (38) SOUTH ARKANSAS COMMUNITY COLLEGE FUND $ - (39) UNIVERSITY OF ARKANSAS COMMUNITY COLLEGE AT BATESVILLE FUND $ - (40) UNIVERSITY OF ARKANSAS COMMUNITY COLLEGE AT HOPE-TEXARKANA FUND $ - (41) UNIVERSITY OF ARKANSAS COMMUNITY COLLEGE AT MORRILTON FUND $ - (42) BLACK RIVER TECHNICAL COLLEGE FUND $ - (43) ARKANSAS STATE UNIVERSITY THREE RIVERS FUND $ - (44) OZARKA COLLEGE FUND $ - (45) UNIVERSITY OF ARKANSAS - PULASKI TECHNICAL COLLEGE FUND $ - (46) SOUTHEAST ARKANSAS COLLEGE FUND $ -

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Maximum Name of Fund or Fund Account Allocation PUBLIC SCHOOL FUND (1) Division of Elementary and Secondary Education Public School Fund Account $ - (2) State Library Public School Fund Account $ 282,096 (3) Division of Career and Technical Education Public School Fund Account $ 1,598,229 EDUCATION FUND (1) Division of Elementary and Secondary Education Fund Account $ 817,321 (2) Educational Facilities Partnership Fund Account $ - (3) Division of Public School Academic Facilities and Transportation Fund Account $ 131,108 (4) Educational Television Fund Account $ 273,826 (5) School for the Blind Fund Account $ 362,406 (6) School for the Deaf Fund Account $ 526,636 (7) State Library Fund Account $ 180,840 (8) Division of Career and Technical Education Fund Account $ 500 (9) Rehabilitation Services Fund Account $ 597,620 Technical Institutes: (10) Northwest Technical Institute Fund Account $ 157,891 (11) Riverside Vocational Technical School Fund Account $ 117,932 DEPARTMENT OF HUMAN SERVICES FUND (1) Department of Human Services Administration Fund Account $ 1,189,552 (2) Children and Family Services Fund Account $ 6,260,843 (3) Child Care and Early Childhood Education Fund Account $ 105,746 (4) Youth Services Fund Account $ 2,568,398 (5) Developmental Disabilities Services Fund Account $ 3,350,039 (6) Medical Services Fund Account $ 116,894 (7) Department of Human Services Grants Fund Account $ - (8) Behavioral Health Services Fund Account $ 4,947,032 (9) Provider Services and Quality Assurance Fund Account $ 269,382 (10) County Operations Fund Account $ 2,410,397 STATE GENERAL GOVERNMENT FUND (1) Division of Arkansas Heritage Fund Account $ 375,876 (2) Department of Agriculture Fund Account $ 886,174 (3) Department of Labor and Licensing Fund Account $ 161,477 (4) Division of Higher Education Fund Account $ 579,272 (5) Higher Education Grants Fund Account $ 2,000,873 (6) Arkansas Economic Development Commission Fund Account $ 740,874 (7) Division of Correction Inmate Care and Custody Fund Account $ - (8) Division of Community Correction Fund Account $ 4,812,607 (9) Department of the Military Fund Account $ 336,075 (10) Parks and Tourism Fund Account $ 1,039,417 (11) Division of Environmental Quality Fund Account $ 198,271 (12) Miscellaneous Agencies Fund Account $ 3,241,179 COUNTY AID FUND $ 1,071,431 COUNTY JAIL REIMBURSEMENT FUND $ 968,297 CRIME INFORMATION SYSTEM FUND $ 187,980 CHILD SUPPORT ENFORCEMENT FUND $ 649,203 PUBLIC HEALTH FUND $ 4,144,791 PERFORMANCE FUND $ - MOTOR VEHICLE ACQUISITION REVOLVING FUND $ - MUNICIPAL AID FUND $ 1,468,605 DIVISION OF ARKANSAS STATE POLICE FUND $ 3,282,440 DIVISION OF WORKFORCE SERVICES FUND-TANF $ 193,242 DIVISION OF WORKFORCE SERVICES FUND-ADULT EDUCATION $ 47,352 STATE SERVICES FOR THE BLIND FUND ACCOUNT $ 98,308 SKILLS DEVELOPMENT FUND $ 188,437 INSTITUTIONS OF HIGHER EDUCATION (1) ARKANSAS STATE UNIVERSITY FUND $ 2,984,845 (2) ARKANSAS TECH UNIVERSITY FUND $ 1,669,368 (3) HENDERSON STATE UNIVERSITY FUND $ 951,548 (4) SOUTHERN ARKANSAS UNIVERSITY FUND $ 858,959 (5) UNIVERSITY OF ARKANSAS FUND $ 6,141,453 (6) UNIVERSITY OF ARKANSAS FUND-UA SYSTEM $ 173,974 (7) UNIVERSITY OF ARKANSAS FUND-ARCHEOLOGICAL SURVEY $ 118,464 (8) UNIVERSITY OF ARKANSAS FUND-DIVISION OF AGRICULTURE $ 3,290,007 (9) UNIVERSITY OF ARKANSAS FUND-CLINTON SCHOOL $ 116,845 (10) UNIVERSITY OF ARKANSAS FUND-CRIMINAL JUSTICE INSTITUTE $ 112,932 (11) SCHOOL FOR MATH, SCIENCES AND ARTS FUND $ 56,652 (12) UNIVERSITY OF ARKANSAS AT FORT SMITH FUND $ 1,017,360 (13) UNIVERSITY OF ARKANSAS AT LITTLE ROCK FUND $ 3,026,021 (14) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND $ 4,400,644 (15) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND - CHILD ABUSE/RAPE/DOMESTIC VIOLENCE $ 37,412 (16) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND - PEDIATRICS/PSYCHIATRIC RESEARCH $ 99,255 (17) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND - CHILD SAFETY CENTER $ 36,678 (18) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND - INDIGENT CARE $ 271,917 (19) UNIVERSITY OF ARKANSAS AT MONTICELLO FUND $ 798,672 (20) UNIVERSITY OF ARKANSAS AT PINE BLUFF FUND $ 1,310,605 (21) UNIVERSITY OF CENTRAL ARKANSAS FUND $ 2,762,659 (22) ARKANSAS NORTHEASTERN COLLEGE FUND $ 434,921 (23) ARKANSAS STATE UNIVERSITY - BEEBE FUND $ 587,542 (24) ARKANSAS STATE UNIVERSITY - MOUNTAIN HOME FUND $ 184,188 (25) ARKANSAS STATE UNIVERSITY - NEWPORT FUND $ 339,901 (26) COSSATOT COMMUNITY COLLEGE OF THE UNIVERSITY OF ARKANSAS FUND $ 173,802 (27) EAST ARKANSAS COMMUNITY COLLEGE FUND $ 412,215 (28) ARKANSAS STATE UNIVERSITY MID-SOUTH FUND $ 200,769 (29) ARKANSAS STATE UNIVERSITY MID-SOUTH FUND - ADTEC $ 77,700 (30) NATIONAL PARK COLLEGE FUND $ 441,084 (31) NORTH ARKANSAS COLLEGE FUND $ 390,354 (32) NORTHWEST ARKANSAS COMMUNITY COLLEGE FUND $ 608,639 (33) PHILLIPS COMMUNITY COLLEGE OF THE UNIVERSITY OF ARKANSAS FUND $ 449,435 (34) UNIVERSITY OF ARKANSAS COMMUNITY COLLEGE AT RICH MOUNTAIN FUND $ 178,071 (35) SAU - TECH FUND $ 278,546 (36) SAU - TECH FUND-ENVIRONMENTAL CONTROL CENTER $ 18,752 (37) SAU - TECH FUND-FIRE TRAINING ACADEMY $ 84,047 (38) SOUTH ARKANSAS COMMUNITY COLLEGE FUND $ 301,647 (39) UNIVERSITY OF ARKANSAS COMMUNITY COLLEGE AT BATESVILLE FUND $ 206,507 (40) UNIVERSITY OF ARKANSAS COMMUNITY COLLEGE AT HOPE-TEXARKANA FUND $ 249,455 (41) UNIVERSITY OF ARKANSAS COMMUNITY COLLEGE AT MORRILTON FUND $ 268,402 (42) BLACK RIVER TECHNICAL COLLEGE FUND $ 298,080 (43) ARKANSAS STATE UNIVERSITY THREE RIVERS FUND $ 173,544 (44) OZARKA COLLEGE FUND $ 152,439 (45) UNIVERSITY OF ARKANSAS - PULASKI TECHNICAL COLLEGE FUND $ 738,064 (46) SOUTHEAST ARKANSAS COLLEGE FUND $ 274,836

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Maximum Name of Fund or Fund Account Allocation PUBLIC SCHOOL FUND (1) Division of Elementary and Secondary Education Public School Fund Account $ 9,717,486 (2) State Library Public School Fund Account $ 282,096 (3) Division of Career and Technical Education Public School Fund Account $ 1,598,229 EDUCATION FUND (1) Division of Elementary and Secondary Education Fund Account $ 817,321 (2) Educational Facilities Partnership Fund Account $ - (3) Division of Public School Academic Facilities and Transportation Fund Account $ 131,108 (4) Educational Television Fund Account $ 273,826 (5) School for the Blind Fund Account $ 362,406 (6) School for the Deaf Fund Account $ 526,636 (7) State Library Fund Account $ 180,840 (8) Division of Career and Technical Education Fund Account $ 500 (9) Rehabilitation Services Fund Account $ 597,620 Technical Institutes: (10) Northwest Technical Institute Fund Account $ 157,891 (11) Riverside Vocational Technical School Fund Account $ 117,932 DEPARTMENT OF HUMAN SERVICES FUND (1) Department of Human Services Administration Fund Account $ 1,189,552 (2) Children and Family Services Fund Account $ 6,260,843 (3) Child Care and Early Childhood Education Fund Account $ 105,746 (4) Youth Services Fund Account $ 2,568,398 (5) Developmental Disabilities Services Fund Account $ 3,350,039 (6) Medical Services Fund Account $ 116,894 (7) Department of Human Services Grants Fund Account $ 65,382,122 (8) Behavioral Health Services Fund Account $ 4,947,032 (9) Provider Services and Quality Assurance Fund Account $ 269,382 (10) County Operations Fund Account $ 2,410,397 STATE GENERAL GOVERNMENT FUND (1) Division of Arkansas Heritage Fund Account $ 375,876 (2) Department of Agriculture Fund Account $ 886,174 (3) Department of Labor and Licensing Fund Account $ 161,477 (4) Division of Higher Education Fund Account $ 579,272 (5) Higher Education Grants Fund Account $ 2,000,873 (6) Arkansas Economic Development Commission Fund Account $ 740,874 (7) Division of Correction Inmate Care and Custody Fund Account $ 1,892,427 (8) Division of Community Correction Fund Account $ 4,812,607 (9) Department of the Military Fund Account $ 336,075 (10) Parks and Tourism Fund Account $ 1,039,417 (11) Division of Environmental Quality Fund Account $ 198,271 (12) Miscellaneous Agencies Fund Account $ 3,241,179 COUNTY AID FUND $ 1,071,431 COUNTY JAIL REIMBURSEMENT FUND $ 968,297 CRIME INFORMATION SYSTEM FUND $ 187,980 CHILD SUPPORT ENFORCEMENT FUND $ 649,203 PUBLIC HEALTH FUND $ 4,144,791 PERFORMANCE FUND $ 19,785,000 MOTOR VEHICLE ACQUISITION REVOLVING FUND $ 3,000,000 MUNICIPAL AID FUND $ 1,468,605 DIVISION OF ARKANSAS STATE POLICE FUND $ 3,282,440 DIVISION OF WORKFORCE SERVICES FUND-TANF $ 193,242 DIVISION OF WORKFORCE SERVICES FUND-ADULT EDUCATION $ 47,352 STATE SERVICES FOR THE BLIND FUND ACCOUNT $ 98,308 SKILLS DEVELOPMENT FUND $ 188,437 INSTITUTIONS OF HIGHER EDUCATION (1) ARKANSAS STATE UNIVERSITY FUND $ 2,984,845 (2) ARKANSAS TECH UNIVERSITY FUND $ 1,669,368 (3) HENDERSON STATE UNIVERSITY FUND $ 951,548 (4) SOUTHERN ARKANSAS UNIVERSITY FUND $ 858,959 (5) UNIVERSITY OF ARKANSAS FUND $ 6,141,453 (6) UNIVERSITY OF ARKANSAS FUND-UA SYSTEM $ 173,974 (7) UNIVERSITY OF ARKANSAS FUND-ARCHEOLOGICAL SURVEY $ 118,464 (8) UNIVERSITY OF ARKANSAS FUND-DIVISION OF AGRICULTURE $ 3,290,007 (9) UNIVERSITY OF ARKANSAS FUND-CLINTON SCHOOL $ 116,845 (10) UNIVERSITY OF ARKANSAS FUND-CRIMINAL JUSTICE INSTITUTE $ 112,932 (11) SCHOOL FOR MATH, SCIENCES AND ARTS FUND $ 56,652 (12) UNIVERSITY OF ARKANSAS AT FORT SMITH FUND $ 1,017,360 (13) UNIVERSITY OF ARKANSAS AT LITTLE ROCK FUND $ 3,026,021 (14) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND $ 4,400,644 (15) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND - CHILD ABUSE/RAPE/DOMESTIC VIOLENCE $ 37,412 (16) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND - PEDIATRICS/PSYCHIATRIC RESEARCH $ 99,255 (17) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND - CHILD SAFETY CENTER $ 36,678 (18) UNIVERSITY OF ARKANSAS MEDICAL CENTER FUND - INDIGENT CARE $ 271,917 (19) UNIVERSITY OF ARKANSAS AT MONTICELLO FUND $ 798,672 (20) UNIVERSITY OF ARKANSAS AT PINE BLUFF FUND $ 1,310,605 (21) UNIVERSITY OF CENTRAL ARKANSAS FUND $ 2,762,659 (22) ARKANSAS NORTHEASTERN COLLEGE FUND $ 434,921 (23) ARKANSAS STATE UNIVERSITY - BEEBE FUND $ 587,542 (24) ARKANSAS STATE UNIVERSITY - MOUNTAIN HOME FUND $ 184,188 (25) ARKANSAS STATE UNIVERSITY - NEWPORT FUND $ 339,901 (26) COSSATOT COMMUNITY COLLEGE OF THE UNIVERSITY OF ARKANSAS FUND $ 173,802 (27) EAST ARKANSAS COMMUNITY COLLEGE FUND $ 412,215 (28) ARKANSAS STATE UNIVERSITY MID-SOUTH FUND $ 200,769 (29) ARKANSAS STATE UNIVERSITY MID-SOUTH FUND - ADTEC $ 77,700 (30) NATIONAL PARK COLLEGE FUND $ 441,084 (31) NORTH ARKANSAS COLLEGE FUND $ 390,354 (32) NORTHWEST ARKANSAS COMMUNITY COLLEGE FUND $ 608,639 (33) PHILLIPS COMMUNITY COLLEGE OF THE UNIVERSITY OF ARKANSAS FUND $ 449,435 (34) UNIVERSITY OF ARKANSAS COMMUNITY COLLEGE AT RICH MOUNTAIN FUND $ 178,071 (35) SAU - TECH FUND $ 278,546 (36) SAU - TECH FUND-ENVIRONMENTAL CONTROL CENTER $ 18,752 (37) SAU - TECH FUND-FIRE TRAINING ACADEMY $ 84,047 (38) SOUTH ARKANSAS COMMUNITY COLLEGE FUND $ 301,647 (39) UNIVERSITY OF ARKANSAS COMMUNITY COLLEGE AT BATESVILLE FUND $ 206,507 (40) UNIVERSITY OF ARKANSAS COMMUNITY COLLEGE AT HOPE-TEXARKANA FUND $ 249,455 (41) UNIVERSITY OF ARKANSAS COMMUNITY COLLEGE AT MORRILTON FUND $ 268,402 (42) BLACK RIVER TECHNICAL COLLEGE FUND $ 298,080 (43) ARKANSAS STATE UNIVERSITY THREE RIVERS FUND $ 173,544 (44) OZARKA COLLEGE FUND $ 152,439 (45) UNIVERSITY OF ARKANSAS - PULASKI TECHNICAL COLLEGE FUND $ 738,064 (46) SOUTHEAST ARKANSAS COLLEGE FUND $ 274,836

Click to view table.

History. Acts 1973, No. 750, § 11; 1974 (1st Ex. Sess.), No. 90, § 1; 1975, No. 868, § 15; 1977, No. 955, § 1; 1977 (1st Ex. Sess.), No. 7, § 1; 1979, No. 1115, § 1; 1981, No. 937, § 1; 1983, No. 801, § 12; 1983 (1st Ex. Sess.), No. 119, § 1; 1985, No. 888, § 25; A.S.A. 1947, § 13-515; Acts 1987, No. 928, § 15; 1989, No. 629, § 15; 1991, No. 1135, § 14; 1993, No. 1073, § 32; 1995, No. 1163, § 32; 1997, No. 1248, § 29; 1999, No. 1463, § 31; 2001, No. 1646, § 30; 2003 (1st Ex. Sess.), No. 55, § 40; 2005, No. 2282, § 17; 2005, No. 2316, § 17; 2007, No. 1032, § 35; 2007, No. 1201, § 35; 2009, No. 1440, § 8; 2009, No. 1441, § 8; 2010, No. 262, § 13; 2010, No. 296, § 13; 2011, No. 1095, § 17; 2011, No. 1115, § 17; 2012, No. 271, § 7; 2012, No. 287, § 7; 2013, No. 1516, § 4; 2013, No. 1517, § 4; 2014, No. 290, § 10; 2014, No. 299, § 10; 2014 (2nd Ex. Sess.), No. 1, § 2; 2014 (2nd Ex. Sess.), No. 5, § 2; 2015, No. 1144, § 10; 2015, No. 1145, § 10; 2016, No. 242, § 4; 2016, No. 270, § 4; 2017, No. 141, § 1; 2017, No. 1083, § 23; 2017, No. 1127, § 23; 2018, No. 259, § 4; 2018, No. 260, § 4; 2019, No. 998, § 9; 2019, No. 1024, § 9; 2020, No. 186, § 5; 2020, No. 187, § 5.

A.C.R.C. Notes. Identical Acts 2014, Nos. 290 and 299, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Identical Acts 2014 (2nd Ex. Sess.), Nos. 1 and 5, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Identical Acts 2015, Nos. 1144 and 1145, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Identical Acts 2016, Nos. 242 and 270, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Identical Acts 2017, Nos. 1083 and 1127, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Identical Acts 2017, Nos. 1083 and 1127, § 25, provided: “It is the intent of the General Assembly that if the Official General Revenue Forecast reduces the maximum annual allocations provided for in subsection (b) of this Act [§ 19-5-402(b)], the reduction or elimination of funding in allocation (b) [§ 19-5-402(b)] Department of Education Public School Fund Account shall only reduce funding for items identified by the Department of Education that are not necessary to provide public school students an equal opportunity for an adequate education.”

Identical Acts 2019, Nos. 998 and 1024, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law, § 19-5-101 et seq.”

Amendments. The 2005 amendment by identical acts Nos. 2282 and 2316 rewrote this section.

The 2009 amendment by identical acts Nos. 1440 and 1441 rewrote the section.

The 2010 amendment by identical acts Nos. 262 and 296 rewrote all dollar amounts under the “Maximum Allocation” heading throughout the section; substituted “four billion four hundred forty-four million three hundred eighty-six thousand eight hundred eighty-six dollars ($4,444,386,886)” for “four billion four hundred ninety-eight million seven hundred forty-nine thousand one hundred twelve dollars ($4,498,749,112)” in the introductory language of (a); deleted (b-1); substituted “thirty-four million five hundred thirteen thousand one hundred fourteen dollars ($34,513,114)” for “thirty-nine million four hundred twelve thousand four hundred ninety-two dollars ($39,412,492)” in (b); and substituted “2010-2011 and thereafter” for “2009-2010” in the section heading.

The 2011 amendment by identical acts Nos. 1095 and 1115 rewrote the section.

The 2012 amendment by identical acts Nos. 271 and 287 substituted “2012-2013” for “2011-2012” in the section heading; substituted “four billion seven hundred twenty-seven million five hundred thousand dollars ($4,727,500,000)” for “four billion five hundred sixty-four million twenty-five thousand dollars ($4,564,025,000)” in the introductory language; under the “INSTITUTIONS OF HIGHER EDUCATION” heading, inserted present (16) and (17) and redesignated the remaining subdivisions accordingly; rewrote the dollar amounts under the “Maximum Allocation” heading throughout the section; deleted the former last paragraph and former (b).

The 2013 amendment by identical acts Nos. 1516 and 1517 rewrote the section.

The 2014 amendment by identical acts Nos. 290 and 299 rewrote the section.

The 2014 (2nd Ex. Sess.) amendment by identical acts Nos. 1 and 5 substituted “four billion nine hundred seventy-one million five hundred eighty-seven thousand four hundred seventy-five dollars ($4,971,587,475)” for “four billion nine hundred sixty-five million three hundred eighty thousand two hundred twenty-six dollars ($4,965,380,226)” in (a)(1); and substituted “$319,205,478” for “$312,998,229” in (7) under the “STATE GENERAL GOVERNMENT FUND” heading.

The 2015 amendment by identical acts Nos. 1144 and 1145 rewrote the section.

The 2016 amendment by identical acts Nos. 242 and 270 rewrote the section.

The 2017 amendment by No. 141 added (a)(3).

The 2017 amendment by identical acts Nos. 1083 and 1127 rewrote the section.

The 2018 amendment by identical acts Nos. 259 and 260 rewrote the section.

The 2019 amendment by identical acts Nos. 998 and 1024 rewrote the section.

The 2020 amendment by identical acts Nos. 186 and 187 rewrote the section.

19-5-403. [Repealed.]

Publisher's Notes. This section, concerning allocations for fiscal year 2008-2009 and thereafter, was repealed by Acts 2010, No. 262 § 3, and Acts 2010, No. 296, § 3, effective July 1, 2010. The section was derived from Acts 1973, No. 750, § 11; 1974 (1st Ex. Sess.), No. 90, § 1; 1975, No. 868, § 15; 1977, No. 955, § 1; 1977 (1st Ex. Sess.), No. 7, § 1; 1979, No. 1115, § 1; 1981, No. 937, § 1; 1983, No. 801, § 12; 1983 (1st Ex. Sess.), No. 119, § 1; 1985, No. 888, § 25; A.S.A. 1947, § 13-515; Acts 1987, No. 928, § 15; 1989, No. 629, § 16; 1991, No. 1135, § 13; 1993, No. 1073, § 31; 1995, No. 1163, § 33; 1997, No. 1248, § 30; 1999, No. 1463, § 32; 2001, No. 1646, § 31; 2003 (1st Ex. Sess.), No. 55, § 41; 2005, No. 2282, § 18; 2005, No. 2316, § 18; 2007, No. 1032, § 36; 2007, No. 1201, § 36.

19-5-404. [Repealed.]

Publisher's Notes. This section, concerning the maximum allocations of revenues for fiscal year 2008-2009 and thereafter, was repealed by Acts 2010, No. 262 § 4, and Acts 2010, No. 296, § 4, effective July 1, 2010. The section was derived from Acts 1973, No. 750, § 11; 1974 (1st Ex. Sess.), No. 90, § 1; 1975, No. 868, § 15; 1977, No. 955, § 1; 1977 (1st Ex. Sess.), No. 7, § 1; 1979, No. 1115, § 1; 1981, No. 937, § 1; 1983, No. 801, § 12; 1983 (1st Ex. Sess.), No. 119, § 1; 1985, No. 888, § 25; A.S.A. 1947, § 13-515; Acts 1987, No. 928, § 15; 1989, No. 629, § 17; 1991, No. 1135, § 15; 1993, No. 1073, § 33; 1995, No. 1163, § 34; 1997, No. 1248, § 31; 1999, No. 1463, § 33; 2001, No. 1646, § 32; 2003 (1st Ex. Sess.), No. 55, § 42; 2005, No. 2282, § 19; 2005, No. 2316, § 19; 2007, No. 1032, § 37; 2007, No. 1201, § 37.

19-5-405. Authority of Treasurer of State.

The Treasurer of State, in calculating the proportionate share of the maximum allocation to determine the monthly distribution of net general revenues available for distribution for each fund or fund account, as authorized in this subchapter, shall compute the calculation of five (5) digits to the right of the decimal point, “rounded off”. In the event the Treasurer of State shall determine that there are errors in any of the totals of the respective funds or fund accounts for which distributions are authorized in this subchapter, the maximum allocation authorized for each fund and fund account within each subsection shall govern with respect to the allocation to be made to those funds and fund accounts. The Treasurer of State is authorized to correct errors in totals thereof, as reflected in this subchapter, prior to computing the calculations of the proportionate share of the maximum allocations to be determined in making monthly distributions of net general revenues available for distribution for each fund or fund account, as authorized within the respective priorities set forth in this subchapter.

Amendments. The 2010 amendment by identical acts Nos. 262 and 296 substituted “this subchapter” for “§§ 19-5-401 — 19-5-406” three times.

19-5-406. Transfer of remaining revenues.

After making the maximum annual allocation as provided for in § 19-5-402:

Seventy-five percent (75%) of the remaining general revenues available for distribution during each fiscal year shall be transferred on the last day of business in each calendar month to the General Revenue Allotment Reserve Fund, there to be used for the respective purposes as provided by law; and
Twenty-five percent (25%) of the remaining general revenues available for distribution during each fiscal year shall be transferred on the last day of business in each calendar month to the Arkansas Highway Transfer Fund.

A.C.R.C. Notes. Acts 2016 (3rd Ex. Sess.), No. 1, § 1, provided: “This act shall be known and may be cited as the ‘Arkansas Highway Improvement Plan of 2016’.”

Amendments. The 2010 amendment by identical acts Nos. 262 and 296 deleted “and 19-5-404” following “§§ 19-5-402”.

The 2016 (3rd Ex. Sess.) amendment rewrote the section.

Subchapter 5 — Budget Stabilization Trust Fund

Effective Dates. Acts 1973, No. 750, § 14: July 1, 1973. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that it is necessary to establish an orderly procedure which will insure the monthly distribution of funds for the necessary services and operations of the state government, as provided for in this Act; that only the provisions of this Act will correct many of our financial difficulties, which otherwise may deprive the citizens of this State from receiving the benefits for which the operation of state government contemplates. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after July 1, 1973.”

Acts 1977, No. 5, § 3: Jan. 25, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that a deficit may occur in the Constitutional and Fiscal Agencies Fund and that temporary financing is required to maintain an even flow of revenues to the Constitutional and Fiscal Agencies Fund and that the immediate passage of this Act is necessary to alleviate these problems. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 499, § 27: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1983 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1983 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1983.”

Acts 1987 (1st Ex. Sess.), Nos. 14 and 59, § 2: July 1, 1987. Emergency clauses provided: “It is hereby found and determined by the Seventy-Sixth General Assembly meeting in the First Extraordinary Session that several cities and counties of this state are suffering from severe financial limitations and are unable to pay for obligations which they have incurred in providing workers' compensation coverage for their employees without the provisions of this Act; therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1987.”

Acts 1987 (1st Ex. Sess.), No. 24, § 4: June 12, 1987. Emergency clause provided: “It is hereby found and determined by the 76th General Assembly meeting in 1st Extraordinary Session that the passage of this Act is necessary to provide for the orderly and continued operation of the agencies funded from the State Central Services Fund and to correct an oversight applicable to the Constitutional and Fiscal Agencies Fund. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 643, § 9: Mar. 23, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly meeting in Regular Session, that the provisions of this Act are of critical importance to the effective operations of the various state agencies which provide important goods and services to the people of the State of Arkansas. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 2015, No. 537, § 2: Mar. 18, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the operations funded by the funds established in the Revenue Classification Law are necessary for the preservation of the public peace, health, and safety; that reliable funding is essential to the performance of those operations; and that this act is necessary because without the increased ability to loan additional funds to maintain reliable funding, those operations may be compromised. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

19-5-501. Fund generally.

1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Budget Stabilization Trust Fund”.
2. The Budget Stabilization Trust Fund shall consist of funds made available and transferred to it from the Securities Reserve Fund as set out in § 19-5-905, the fund balance and other assets remaining in the State Budget Revolving Fund on June 30, 1987, and any other funds made available by law.
The Budget Stabilization Trust Fund shall be used for the purpose of:
1. 1. Making temporary loans to those funds and fund accounts as set out in § 19-5-401 et seq., to the Division of Correction Farm Fund for farm production purposes, to the Division of Correction Prison Industry Fund, to the Department of Parks, Heritage, and Tourism Fund Account, to the Income Tax Refund Fund, to the Gasoline Tax Refund Fund, to the Interstate Motor Fuel Tax Refund Fund, and to the various funds established in the Revenue Classification Law, § 19-6-101 et seq., and any other funds or fund accounts as may be specified elsewhere in this section. The loans made to the funds and fund accounts set out in § 19-5-401 et seq. shall be repaid on or before June 30 of the fiscal year in which the loan is made, except as provided elsewhere in this section.
  2. The loans made to the Division of Correction Farm Fund are to be repaid on or before June 30 of the fiscal year following the fiscal year in which the loan was made after the amount of the outstanding loan made the previous fiscal year has been reduced by the value of products produced or processed on the farm that were consumed by inmates and other authorized personnel, in amounts as determined and certified by the Legislative Auditor to the Chief Fiscal Officer of the State. Processed beef purchased by the Division of Correction must be U.S. labeled. The value of products produced or processed on the farm that were consumed by inmates and other authorized personnel shall be based upon prices obtained by the Division of Correction and the State Procurement Director for purchasing similar products and quantities on the open market for other state agencies, institutions, and universities. However, the Chief Fiscal Officer of the State may grant an extension not to exceed sixty (60) days for repayment of loans made to the Division of Correction Farm Fund upon receipt by the Chief Fiscal Officer of the State of a certification by the Director of the Division of Correction that farm products are held in storage or are on hand that exceed in market value the amount of loans that are due, and the Chief Fiscal Officer of the State may grant an additional extension not to exceed sixty (60) days for repayment of the loan made to the Division of Correction Farm Fund, after obtaining the advice of the Legislative Council in regard to a request from the Division of Correction for the additional sixty-day extension for repayment of the loan. Loans made to the Division of Correction Prison Industry Fund for operation expenses shall be repaid on or before June 30 of the fiscal year in which the loan was made, but loans made for the purchase of equipment necessary for implementing the various industries shall be repaid from time to time.
  3. 1. Except as otherwise provided in this subdivision (b)(1)(C), loans made to the Income Tax Refund Fund, to the Gasoline Tax Refund Fund, to the Interstate Motor Fuel Tax Refund Fund, and to those other funds established in the Revenue Classification Law, § 19-6-101 et seq., are to be repaid on the last day of the month of which the loan was made.
    2. Loans made under subdivision (b)(1)(D) of this section shall be repaid by June 30 of the fiscal year in which the loan was made.
    3. 1. Loans made to the Department of Human Services Fund during June of any fiscal year for making cash assistance payments to eligible individuals under the Temporary Assistance for Needy Families Program for delivery on or about July 1 of the following fiscal year shall be repaid on or before July 31 of the fiscal year following the fiscal year in which the loan was made.
      2. Loans made to the Department of Human Services for the Developmental Disabilities Services Fund Account and the Behavioral Health Services Fund Account in the last month of a fiscal year for federal reimbursement for Medicaid-eligible services and Medicare-eligible services shall be repaid immediately upon receipt of reimbursement but no later than July 31 of the fiscal year following the fiscal year in which the loan was made.
  4. 1. The maximum amount of funds that may be loaned to the funds established in the Revenue Classification Law, § 19-6-101 et seq., shall be one hundred fifty percent (150%) of the estimated revenues to be deposited into the State Treasury during that month to the credit of the State Apportionment Fund and which will become available to that operating fund at the end of the month, excluding the Division of Correction Farm Fund, the Division of Correction Prison Industry Fund, the Division of Arkansas State Police Fund, and the State Forestry Fund.
    2. Except with respect to the funds excluded under this subdivision (b)(1)(D), loans in excess of one hundred percent (100%) shall not be made more than four (4) times per fiscal year per fund.
    3. Loans and distribution of general revenue funds made to the County Aid Fund and the Municipal Aid Fund are to be made on the basis and to the extent of the funds estimated to be available as stated in § 19-5-402(a) so that an equal monthly distribution of general revenues is made, based upon the Chief Fiscal Officer of the State's monthly forecasts of general revenue distribution.
  5. Temporary loans may be made to the institutions of higher education for operational purposes. In making these loans, the following procedures shall be applicable. The institutions of higher education shall submit requests for loans to both the Director of the Division of Higher Education and the Chief Fiscal Officer of the State setting forth the need for the loan. The requests shall include at least the following:
    1. The current total cash balance of all accounts of the requesting institution's cash funds;
    2. The reasons why the cash fund balances and their general revenue fund balances are insufficient to meet current obligations;
    3. The anticipated duration of the loan; and
    4. A proposed repayment schedule.
  6. The Chief Fiscal Officer of the State and the Director of the Division of Higher Education shall review the request for the loan. The Director of the Division of Higher Education shall recommend, in writing, the approval or disapproval of the loan and the reasons for the recommendation to the Chief Fiscal Officer of the State. The Chief Fiscal Officer of the State shall review the institution's request, the funds available in the Budget Stabilization Trust Fund, and the recommendation of the Director of the Division of Higher Education. The Chief Fiscal Officer of the State may request such additional information as is deemed necessary to make a determination as to whether the request should be approved. If the Chief Fiscal Officer of the State determines that the request is proper and necessary for the operation of the institution and that sufficient funds are available, the Chief Fiscal Officer of the State shall approve the request and establish a repayment schedule for the loan. If the Chief Fiscal Officer of the State determines that the loan is not necessary or required, or that funds are not available, the Chief Fiscal Officer of the State shall deny the request. The Chief Fiscal Officer of the State shall communicate in writing to the institution and to the Director of the Division of Higher Education the reasons for disapproval of the requested loan. All loans made to the institutions of higher education under the provisions of this section shall be repaid in full by June 30 of the fiscal year in which the loan was made. In the event an agency or program is established by the General Assembly which is to be supported solely from other than general revenues or federal funds, the Chief Fiscal Officer of the State may make a temporary loan from the Budget Stabilization Trust Fund to the agency or program to the extent necessary for carrying out the intent of the enabling legislation. The amount of the loan shall be determined by the Chief Fiscal Officer of the State, and the loans shall be repaid in full by June 30 of the fiscal year in which the loan was made;
2. Making transfers to the University of Arkansas Fund on account of interest on the University of Arkansas Endowment Fund of an amount which, when added to the interest earned on the investment of the University of Arkansas Endowment Fund, shall not exceed the sum of six thousand six hundred thirty-three dollars and thirty-four cents ($6,633.34) during any fiscal year;
3. Making transfers to the Department of the Military Fund Account of the State General Government Fund as established in § 19-5-302(2)(A)-(C) for the purpose of providing reimbursement or immediate funding for expenses incurred by the Department of the Military on behalf of the Arkansas National Guard emergency call-up appropriation;
4. Making transfers to the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund, as established in § 19-5-1005 in order to provide supplemental funding for appropriations supported from the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund, as may be provided by law;
5. Providing funding, either in whole or in part, for programs as may be authorized by the General Assembly and which are specified as being funded in whole or in part from the Budget Stabilizaton Trust Fund;
6. Making transfers to the State Highway and Transportation Department Fund as may be authorized by law and making transfers not to exceed one million dollars ($1,000,000) in any one (1) fiscal year to provide the state's proportionate share of each declared emergency or major disaster as required by the federal Disaster Relief Act of 1974;
7. Making transfers to the Miscellaneous Revolving Fund, as established in § 19-5-1009, to provide funding in whole or in part for appropriations made payable from the Miscellaneous Revolving Fund;
8. Making temporary advances to the various federal accounts of state agencies upon certification of the pending availability of federal funding by the director of the state agency making the request. However, the requests shall be limited to those occasions whereby the continued operations of the state agency programs would be seriously impaired and unnecessary hardships would be created due to either administrative oversight, delays by the United States Government in forwarding the moneys, or by problems created by the federal fiscal year conversion. Furthermore, upon receipt of the grant award authorizations or letter of credit documents, the state agency director shall certify to the Chief Fiscal Officer of the State the amounts of temporary advances to be recovered, whereby the Chief Fiscal Officer of the State shall make recovery and notify the Treasurer of State and the Auditor of State of the recovery. Furthermore, the temporary advances shall be recovered on or before June 30 of the fiscal year in which the temporary advances were made; and
9. Those functions formerly performed by the State Budget Revolving Fund.
In addition to the purposes for which the Budget Stabilization Trust Fund may be used as set forth in this section, the Budget Stabilization Trust Fund shall also be used to make temporary loans to the Constitutional Officers Fund and the State Central Services Fund. Loans made to the Constitutional Officers Fund and the State Central Services Fund under the provisions of this section shall be repaid on or before June 30 of the fiscal year in which the loans are made.
The Chief Fiscal Officer of the State is authorized to transfer up to a maximum of four million dollars ($4,000,000) from the Budget Stabilization Trust Fund to the State Central Services Fund, only in those instances when obligations incurred by the State Central Services Fund are estimated to exceed or are actually exceeding estimated or actual available resources. The transfer shall also be utilized to provide a level of funding, for those appropriations made payable from the State Central Services Fund, equal to the previous year's expenditure or the current year appropriation, whichever is less, in the event that income from all sources does not provide that funding level. Any transfer made as authorized in this section shall require the review and advice of the Legislative Council prior to the transfer of those funds.

History. Acts 1973, No. 750, § 8; 1977, No. 5, § 2; A.S.A. 1947, §§ 13-523a, 13-531; Acts 1987, No. 928, § 9; 1987, No. 945, §§ 4, 7; 1987 (1st Ex. Sess.), No. 14, § 1; 1987 (1st Ex. Sess.), No. 24, § 1; 1987 (1st Ex. Sess.), No. 59, § 1; 1991, No. 1085, § 28; 1993, No. 618, §§ 12, 13; 1993, No. 643, § 1; 1995, No. 171, § 1; 1997, No. 1248, §§ 36, 37; 2001, No. 1646, §§ 5-7; 2011, No. 1095, § 6; 2011, No. 1115, § 6; 2015, No. 537, § 1; 2016 (3rd Ex. Sess.), No. 1, § 7; 2019, No. 82, § 9; 2019, No. 910, §§ 2261-2263.

A.C.R.C. Notes. Acts 1987 (1st Ex. Sess.), No. 59 was vetoed by the Governor. However, such veto was held invalid by the Attorney General (Opinion No. 87-241) on the grounds that the veto occurred after the expiration of the twenty-day period allowed by Ark. Const., Art. 6, § 15. Accordingly, the act became law on June 26, 1987.

Acts 1945, No. 249, provided:

“Whereas, by acceptance of the grant of the United States, as provided by the Act of Congress, approved July 2, 1862, entitled, ‘An Act donating public lands to the several states and territories which may provide colleges for the benefit of agriculture and the mechanic arts’, the State of Arkansas convenanted to invest the moneys, derived from the grants of land so received, in interest bearing obligations of the State of Arkansas or the United States of America; and

“Whereas, the University of Arkansas was designated as the college to receive the endowment, which is now represented by $132,666.67 principal amount of bonds of the State of Arkansas, known as University of Arkansas Endowment Fund Bonds maturing on July 1, 1947; and

“Whereas, by reason of the improved financial condition of the State of Arkansas, the time is opportune (1), to reduce the bonded debt of the State of Arkansas and (2), to invest the University of Arkansas Endowment Fund in long term interest-bearing direct obligation bonds of the United States;

“NOW THEREFORE,

Be It Enacted by the General Assembly of the State of Arkansas:

“Section 1. The State Board of Fiscal Control, hereinafter referred to as the Board, without giving prior notice by publication of its intention of so doing, is hereby authorized and empowered, by use of the moneys and for the purposes hereafter in this Act provided, to subscribe to and purchase not to exceed $132,700.00 principal amount of direct interest bearing obligations of the United States of America from the United State's Treasury Department, or its duly authorized fiscal officers, in those instances where the securities are part of a new issue and the original offering price does not exceed par and accrued interest.

“Whenever the balance in the Excess Par Value Bond Account, which shall hereafter be known as the Securities Reserve Fund, shall exceed $100,000.00, the Board may, by resolution duly adopted, use not to exceed $132,700.00 of the said balance in excess of $100,000.00 in making the purchases hereinbefore provided.

“All obligations purchased under the provisions of this Act shall be delivered to the Treasurer of State and shall, by said Treasurer, be held in trust in and for the benefit of the University of Arkansas Endowment Fund. Upon receipt of the obligations so purchased by the Board, the Treasurer of State shall cancel, by perforation, an equal principal amount of University of Arkansas Endowment Fund Bonds. Provided, after retirement in the manner hereinbefore provided of all other bonds of the issue, the Treasurer of State shall cancel University of Arkansas Endowment Fund bond number 133 for $666.67 principal amount, upon receipt from the Board of $700.00 principal amount of United States Treasury bonds.

“All interest received on the obligations so purchased shall, by the Treasurer of State, be deposited in the University of Arkansas Fund, and shall be expended for the use and benefit of the University of Arkansas as its Board of Trustees shall direct. In the event the interest derived each year from investments in the University of Arkansas Endowment Fund amounts to less than $6,633.34, the Treasurer of State shall transfer from the State Sinking Fund to the University of Arkansas fund such amounts as may be necessary to make the total income from interest, plus the transfers thus provided for, equal $6,633.34.

“Section 2. For the purpose of making all or a portion of the moneys available for investment, as herein provided, the Treasurer of State shall, upon resolution of the Board, transfer from the State Sinking Fund to the Securities Reserve Fund such amounts as may be set forth in said resolution. Provided, the Board shall not authorize the transfer of any moneys from the State Sinking Fund to the Securities Reserve Fund which are pledged for the payment of the principal of or interest on any other bonds which are a charge against the said State Sinking Fund.

“Section 3. There is hereby appropriated, to be payable from any moneys in the Securities Reserve Fund in excess of $100,000.00, for the fiscal year beginning July 1, 1945 and ending June 30, 1946, to be used in purchasing United States Treasury Bonds for the purposes herein provided, the sum of $132,700.00. Provided, any unexpended balance in the appropriation on June 30, 1946 shall, upon resolution of the Board, be brought forward and made available for such purposes during the fiscal year beginning July 1, 1946 and ending June 30, 1947.

“Section 4. In the event all University of Arkansas Endowment Fund Bonds shall not have been retired on or before July 1, 1947, the maturity date thereof, the Board shall, from time to time, extend the maturity date of such outstanding bonds, but no single extension shall be for more than one year.

“Section 5. The following laws or parts of laws enacted by the General Assembly of the State of Arkansas are hereby repealed; Act 149, approved May 23, 1901 (Sections 13132, 13133 and 13134 of Pope's Digest); Act 208, approved May 23, 1901 (Sections 13135 and 13136 of Pope's Digest); and, Act 252, approved March 16, 1917 (Sections 11966 to 11970, inclusive, of Pope's Digest).”

Acts 1945, No. 249 was approved March 20, 1945.

Acts 2016 (3rd Ex. Sess.), No. 1, § 1, provided: “This act shall be known and may be cited as the ‘Arkansas Highway Improvement Plan of 2016’.”

Acts 2019, No. 82, § 1, provided: “Legislative intent.

It is the intent of the General Assembly that the creation of the Development and Enhancement Fund is necessary to provide a mechanism to disburse funds for:

“(1) Various construction and improvement projects;

“(2) Unforeseen needs;

“(3) Funding deficiencies; and

“(4) The completion of projects previously funded by the General Assembly”.

Publisher's Notes. Former subsections (a) and (b) of this section, concerning the State Budget Revolving Fund generally, were repealed by Acts 1987, No. 945, § 7. They were derived from Acts 1973, No. 750, § 7; 1974 (1st Ex. Sess.), No. 90, § 2; 1975, No. 868, §§ 10, 11; 1975 (Extended Sess., 1976), No. 1014, § 1; 1977, No. 147, § 1; 1977, No. 955, § 14; 1979, No. 1013, § 3; 1979, No. 1115, §§ 6, 7; 1981, No. 30, § 1; 1981, No. 722, § 1; 1981, No. 938, § 9; 1983, No. 801, § 11; 1985, No. 888, § 19; A.S.A. 1947, § 13-523.

Amendments. The 2011 amendment by identical acts Nos. 1095 and 1115 substituted “Behavioral Health Services Fund Account” for “Mental Health Services Fund Account” in (b)(1)(C).

The 2015 amendment, in (b)(1)(C), inserted the (i)-(iii) designations, added the exception at the beginning of (b)(1)(C)(i), added (b)(1)(C)(ii), and deleted “However” at the beginning of (b)(1)(C)(iii) (a) ; and, in (b)(1)(D), inserted the (i)-(iii) designations, in (b)(1)(D)(i), substituted “one hundred fifty percent (150%)” for “ninety-seven percent (97%)”, added (b)(1)(D)(ii), and substituted “stated” for “set out” in (b)(1)(D)(iii).

The 2016 (3rd Ex. Sess.) amendment, in (a)(2), deleted “and this section” following “§ 19-5-905” in the first sentence and deleted the former second sentence.

The 2019 amendment by No. 82 inserted “or its successor fund or fund accounts, including the Development and Enhancement Fund” twice in (b)(4).

The 2019 amendment by No. 910 substituted “Division of Higher Education” for “Department of Higher Education” in the third sentence of the introductory language of (b)(1)(E) and four times in (b)(1)(F); and substituted “Department of the Military” for “State Military Department” twice in (b)(3).

U.S. Code. The Disaster Relief Act of 1974, also known as the Robert T. Stafford Disaster Relief and Emergency Assistance Act, Pub. L. No. 93-288, referred to in this section, is codified generally as 42 U.S.C. § 5121 et seq.

19-5-502. Loans from fund.

The Chief Fiscal Officer of the State shall be guided by the following limitations and procedures in making loans from the Budget Stabilization Trust Fund for the respective purposes for which the loans may be made, as established in this subsection:
1. State agencies supported solely from special revenues shall not be eligible to make applications for or receive loans from the Budget Stabilization Trust Fund; and
2. Moneys deposited into the Budget Stabilization Trust Fund shall not be used to make loans to any state agency without the state agency’s first submitting proof of the need for the moneys and submitting justification therefor verifying that other funds or resources are not available to the agency or cannot be obtained by the agency from other funds belonging to or available to the agency. In no event shall any loan from the Budget Stabilization Trust Fund be made to a state-supported institution of higher education in an amount equal to or exceeding eighty-five percent (85%) of its monthly guarantee of general revenues estimated to be available for distribution to the agency during the month.
Any official or employee knowingly submitting false information to the Chief Fiscal Officer of the State in support of any loan from the Budget Stabilization Trust Fund shall, upon conviction thereof, be guilty of misfeasance in office and shall be removed from the office or position of employment.
The Division of Elementary and Secondary Education shall have no authority to request loans from the Budget Stabilization Trust Fund to provide moneys for distribution to public school districts in this state, nor to write warrants payable from any funds borrowed from the Budget Stabilization Trust Fund, for making monthly payments to school districts in this state earlier than the fifth day prior to the end of the month.

History. Acts 1973, No. 750, § 8; A.S.A. 1947, § 13-531; Acts 1987, No. 945, § 4; 2019, No. 910, § 2264.

Publisher's Notes. Former § 19-5-502, concerning loans from the State Budget Revolving Fund, was repealed by Acts 1987, No. 945, § 7. The section was derived from Acts 1981, No. 938, § 14; 1983, No. 801, § 13; 1985, No. 888, § 18; A.S.A. 1947, § 13-523.7. The current section was added as part of an amendment to A.S.A. 1947, § 13-531.

Amendments. The 2019 amendment substituted “Division of Elementary and Secondary Education” for “Department of Education” in (c).

19-5-503. Work release centers.

The Community Correction Revolving Fund is authorized to borrow from the Budget Stabilization Trust Fund for the establishment of new work release centers for the Division of Correction. These loans shall be repaid by the end of the fiscal year in which the loans are made.

History. Acts 1983, No. 499, § 24; 1995, No. 1296, § 72; 2019, No. 910, § 985.

Amendments. The 2019 amendment substituted “Division of Correction” for “Department of Correction” at the end of the first sentence.

19-5-504. Loans of anticipated proceeds of Aging and Adult Services Fund Account.

In addition to those purposes for which the Budget Stabilization Trust Fund may be used, the Department of Human Services may borrow from the Budget Stabilization Trust Fund an amount equal to eighty percent (80%) of the anticipated proceeds made available to the Aging and Adult Services Fund Account from nursing home bed license fees. The borrowed amounts are to be transferred to the Aging and Adult Services Fund Account in such amounts and under such restrictions and conditions as are determined to be in the best interest of the state by the Chief Fiscal Officer of the State and, in any event, shall be repaid to the Budget Stabilization Trust Fund in full by June 30 of the year in which the funds were borrowed.

History. Acts 1987, No. 928, § 14; 1995, No. 1032, § 5.

19-5-505. [Transferred.]

A.C.R.C. Notes. This section, concerning loans to local school districts, has been renumbered as § 6-20-803.

19-5-506. Financial aid programs.

In order to provide timely payments under financial aid appropriations, the Chief Fiscal Officer of the State is authorized to provide loans from the Budget Stabilization Trust Fund to make available all funds attributable to the financial aid programs under the then current official revenue estimates. In the event of an unanticipated state revenue shortfall, any such loans remaining at the end of a fiscal year shall be repaid from revenues distributed in the first two (2) months of the next fiscal year. Funds for appropriations for purposes other than financial aid shall not be affected by the application of this provision.

History. Acts 1997, No. 342, § 32.

A.C.R.C. Notes. Acts 2016, No. 236, § 20, provided: “LOANS. In order to provide timely payments under financial aid appropriations made in this Act, the Chief Fiscal Officer of the State is authorized to provide loans from the Budget Stabilization Trust Fund to make available all funds attributable to the financial aid programs under the then current official revenue estimates. In the event of an unanticipated state revenue shortfall, any such loans remaining at the end of a fiscal year shall be repaid from revenues distributed in the first two months of the next fiscal year. Funds for appropriations made in this Act for purposes other than financial aid shall not be affected by the application of this provision.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Subchapter 6 — Municipal and County Aid Funds

A.C.R.C. Notes. Acts 2016, No. 166, § 11, provided: “LOANS TO CITIES AND COUNTIES. On July 1 of each fiscal year, the Chief Fiscal Officer of the State shall request a transfer by the State Treasurer from the Budget Stabilization Trust Fund to the County Aid Fund and to the Municipal Aid Fund to assist the various cities and counties in meeting cash flow needs early in the state fiscal year. The transfer shall be a loan to be repaid in equal installments from general revenue distributions each month during the fiscal year for which the loan was made and shall be in addition to any other loans authorized by law for the County Aid and Municipal Aid Funds. The amount of such loan for each fiscal year shall be $3,517,657 to the Municipal Aid Fund and $1,906,079 to the County Aid Fund, or so much thereof as may be available in the Budget Stabilization Trust Fund as determined by the Chief Fiscal Officer of the State. Upon such transfer being completed, the State Treasurer shall immediately distribute such funds to each of the several municipalities and counties in the same manner as general revenues are distributed.

“It is the intent of the General Assembly that the Chief Fiscal Officer of the State and the State Treasurer shall make every reasonable, and financially sound effort to insure that local governments receive the full amount of the loan authorized herein on July 1 of each year and that the monies authorized for local governments from general revenues be distributed in equal monthly payments.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 166, § 12, provided: “CARRY FORWARD. At the close of each fiscal year any unexpended funds for the County Aid and Municipal Aid line items shall be carried forward and distributed pursuant and in addition to the funding formula established under A.C.A 19-5-601 and 19-5-602 within forty-five (45) days.

“Any carry forward of unexpended balance of funding as authorized herein, may be carried forward under the following conditions:

“(1) Prior to June 30, 2017 the Agency shall by written statement set forth its reason(s) for the need to carry forward said funding to the Department of Finance and Administration Office of Budget;

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Cross References. Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq.

Arkansas Highway Revenue Distribution Law, § 27-70-201 et seq.

Direct deposits by the State into local government cash management trust account, § 19-8-311.

Revenue Classification Law, § 19-6-201 et seq.

Effective Dates. Acts 1973, No. 750, § 14: July 1, 1973. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that it is necessary to establish an orderly procedure which will insure the monthly distribution of funds for the necessary services and operations of the state government, as provided for in this Act; that only the provisions of this Act will correct many of our financial difficulties, which otherwise may deprive the citizens of this State from receiving the benefits for which the operation of state government contemplates. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after July 1, 1973.”

Acts 1975 (Extended Sess., 1976), No. 1112, § 2: Jan. 30, 1976. Emergency clause provided: “It is hereby found and determined by the General Assembly, that clarifying procedures relating to providing counties and municipalities an even flow of general revenues are essential in order to carry out the intent of the General Assembly. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1987, No. 22, § 2: Feb. 10, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that Arkansas Statutes 13-523 (B) (3) provides for a proportionate reduction in State aid to cities and towns which fail to levy the full constitutionally authorized five mill general ad valorem tax; that this penalty is to be applied beginning with the fifth year subsequent to the countywide reappraisal of property in the counties in which the respective cities and towns are located; that unless repealed or revised prior to the application of such penalties, this law will result in serious hardship to several cities and towns in the State or to the taxpayers in such cities and towns and that this Act is designed to repeal such law and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 874, § 3: Apr. 13, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1112 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 1135, § 20: July 1, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly that the distribution of general revenues and the creation of the various funds and fund accounts are essential to be in force at the beginning of the state fiscal year and that in the event that the General Assembly extends beyond the sixty day limit, the effective date of this act would not begin at that time creating confusion and not permitting the agencies to implement those programs as approved by the General Assembly. Therefore an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1991.”

Acts 1993, No. 1080, § 2: Apr. 13, 1993. Emergency clause provided: “It is hereby found and determined by the 79th General Assembly that no mechanism exists that allows for the correction of the distribution of state funds to municipalities due to errors in the federal decennial census and that such errors can result in a significant revenue loss. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

Case Notes

Turnback Funds.

Taxpayers who asserted that the distribution formula for county turnback funds had no rational basis and was therefore an illegal exaction and a denial of equal protection had the burden of proving the absence of any rational basis for the formula. Hall v. Fisher, 285 Ark. 222, 685 S.W.2d 803 (1985).

19-5-601. Municipal Aid Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Municipal Aid Fund”.
The Municipal Aid Fund shall consist of:
1. Such general revenues as may be made available to the Municipal Aid Fund by the Revenue Stabilization Law, § 19-5-101 et seq.;
2. Such special revenues derived from highway user imposts, known as highway revenues, as may be made available to the Municipal Aid Fund for the benefit of municipalities by the Arkansas Highway Revenue Distribution Law, § 27-70-201 et seq.; and
3. Those special revenues as specified in § 19-6-301(135) of the Revenue Classification Law, § 19-6-101 et seq.
1. All of the general revenues and the special revenues shall be distributed within ten (10) days after the close of each calendar month to the respective cities of the first and second class and incorporated towns on the basis of population according to the most recent federal decennial or special census.
2. The amount to be apportioned to each such city or incorporated town is to be in the proportion that each population bears to the total population of all such cities and incorporated towns.
3. In the event of an annexation, the population of the annexed area, as certified by the United States Bureau of the Census of the Department of Commerce, may be added to the most recent federal decennial or special census of the annexing municipality.
4. 1. The moneys received by the respective cities and incorporated towns under this section shall be revenues of the year in which received by them and shall not be revenues of the year in which such moneys were collected and paid into the State Treasury.
  2. Of the moneys so received by the respective cities and incorporated towns, the general revenues shall be used for general purposes of municipal government, and the special revenues derived from highway revenues shall be used as provided by the Arkansas Highway Revenue Distribution Law, § 27-70-201 et seq.
5. 1. In the event the Workers' Compensation Commission has paid claims from the Miscellaneous Revolving Fund on account of any municipal employee covered under workers' compensation, such amount is to be deducted from general revenue turnback as provided by §§ 14-26-103 and 14-60-103.
  2. The moneys so deducted are to be transferred to the Miscellaneous Revolving Fund, there to be used as provided by law.
It shall be unlawful for the Treasurer of State to distribute any general revenues and special revenues to any cities or incorporated towns in this state that have expended funds belonging to such city or town for the payment of annual membership dues to, or for the purchase of services rendered by, the Arkansas Municipal League or any other league or association of cities in this state unless the books, affairs, and records of such Arkansas Municipal League or other league or association of cities and towns of this state receiving moneys from cities or towns has been audited by Arkansas Legislative Audit or consent for such audit by Arkansas Legislative Audit has been given by any such league or association. Arkansas Legislative Audit is authorized to audit the books, affairs, and records of the Arkansas Municipal League or any other league or association of cities or incorporated towns in this state, upon request thereof by the appropriate officials of such league or associations.
In the event that the United States Bureau of the Census of the Department of Commerce determines that the population for a municipality is more than was originally certified in the decennial census or the population for a municipality was incorrectly assigned to another municipality and a census count correction or a correction to the designated municipality is received from the United States Bureau of the Census by the appropriate officials of the state, the Treasurer of State shall determine the amount of general and special revenue that the municipality should have received based upon the corrected census count. Such amounts are to be submitted to the Arkansas State Claims Commission for inclusion in the appropriation bill requested from the General Assembly for approved claims.

History. Acts 1973, No. 750, § 7; 1977, No. 732, § 1; 1981, No. 342, § 2; 1983, No. 816, § 1; A.S.A. 1947, § 13-523; Acts 1987, No. 22, § 1; 1989, No. 629, § 7; 1993, No. 1080, § 1; 1995, No. 331, § 1; 1995, No. 1163, § 14; 1997, No. 1248, § 11.

19-5-602. County Aid Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “County Aid Fund”.
The County Aid Fund shall consist of:
1. The general revenues as may be provided by the Revenue Stabilization Law, § 19-5-101 et seq., to the County Aid Fund;
2. Such special revenues derived from highway user imposts, known as highway revenues, as may be provided by the Arkansas Highway Revenue Distribution Law, § 27-70-201 et seq.;
3. Those special revenues as set out in § 19-6-301(74) and (117) and thirty-four percent (34%) of those special revenues as specified in § 19-6-301(20) of the Revenue Classification Law, § 19-6-101 et seq.; and
4. Twenty-five percent (25%) of all severance taxes other than those imposed upon saw timber and timber products as set out in § 19-6-301(18) of the Revenue Classification Law, § 19-6-101 et seq.
All of the general revenues and special revenues shall be distributed within ten (10) days after the close of each calendar month to the respective counties as follows:
1. 1. The general revenues made available to the County Aid Fund by the Revenue Stabilization Law, § 19-5-101 et seq., shall be distributed with seventy-five percent (75%) divided equally among the seventy-five (75) counties of this state and twenty-five percent (25%) distributed on the basis of population according to the most recent federal decennial or special census, with each county to receive the proportion that its population bears to the total population of the state.
  2. The moneys so received by the county treasurer shall be credited to the county general fund to be used for general county purposes, unless otherwise appropriated by the quorum court;
2. The special revenues distributed to the respective counties shall be distributed as may be authorized by law;
3. All moneys received by the respective counties under this section shall be revenues of the year in which received by them and shall not be revenues of the year in which such moneys were collected and paid into the State Treasury; and
4. 1. In the event the Workers' Compensation Commission has paid claims from the Miscellaneous Revolving Fund on account of any county employee covered under workers' compensation, this amount is to be deducted from county general revenue turnback funds as provided by §§ 14-26-103 and 14-60-103.
  2. Such moneys so deducted are to be transferred to the Miscellaneous Revolving Fund, there to be used as provided by law.
1. It shall be unlawful for the Treasurer of State to distribute any general revenues to any county in this state or any special revenues to any county in this state that has expended funds belonging to such county for the payments of annual membership dues to, or for the purchase of services rendered by, the Association of Arkansas Counties or to any other league or association of counties in this state unless the books, affairs, and records of such Association of Arkansas Counties or other league or association of counties in this state receiving moneys from the counties has been audited by Arkansas Legislative Audit or consent for such audit by Arkansas Legislative Audit has been given by such league or association.
2. Arkansas Legislative Audit may audit the books of the Association of Arkansas Counties or any other league or association of counties in this state upon request of the Association of Arkansas Counties or other league or association of counties by the appropriate official of the league or association.

History. Acts 1973, No. 750, § 7; 1985, No. 888, § 4; A.S.A. 1947, § 13-523; Acts 1989, No. 629, § 8; 1991, No. 1135, § 6; 1995, No. 1163, § 15; 1997, No. 1248, § 12; 1999, No. 891, § 1; 2005, No. 2282, § 6; 2005, No. 2316, § 6.

Amendments. The 2005 amendment by identical acts Nos. 2282 and 2316 substituted “thirty-four percent (34%)” for “forty-five percent (45%)” in (a)(3).

Cross References. County Solid Waste Management System Aid Fund, § 8-6-301 et seq.

19-5-603. Overpayments to funds.

In the event moneys are distributed to the County Aid Fund and Municipal Aid Fund during any month which are in excess of one-twelfth (1/12) of the amount estimated by the Chief Fiscal Officer of the State to become available to the County Aid Fund and Municipal Aid Fund during the then-current fiscal year, as certified monthly by the Chief Fiscal Officer of the State to the Treasurer of State, up to a maximum of that set out in §§ 19-5-402 and 19-5-404 [repealed] for the County Aid Fund and Municipal Aid Fund, there shall be transferred from the County Aid Fund and Municipal Aid Fund to the Budget Stabilization Trust Fund such amounts as are necessary to repay any loans outstanding from the Budget Stabilization Trust Fund to the County Aid Fund and Municipal Aid Fund before any distribution of general revenue is made to any county or municipality in this state.
The amount remaining to be distributed after repaying the loans under the provisions of this section shall not be less than one-twelfth (1/12) of the amount estimated by the Chief Fiscal Officer of the State to become available to the County Aid Fund and Municipal Aid Fund during the then-current fiscal year or the amount as set out for the County Aid Fund and Municipal Aid Fund in §§ 19-5-402 and 19-5-404 [repealed], whichever is the lesser.
The amount of moneys to be loaned to the County Aid Fund and Municipal Aid Fund in any month from the Budget Stabilization Trust Fund shall be determined by the Chief Fiscal Officer of the State after taking into consideration the amount distributed during the prior months in the then-current fiscal year as well as the amounts estimated to be distributed to the County Aid Fund and Municipal Aid Fund in succeeding months of the then-current fiscal year. It is the intent of the General Assembly to provide a distribution to the counties and municipalities each month of such general revenue as is available which, together with loans from the Budget Stabilization Trust Fund, will provide as even a flow of moneys as is possible throughout the fiscal year while at the same time maintaining the Budget Stabilization Trust Fund in a strong financial position.
All loans made to the County Aid Fund and Municipal Aid Fund from the Budget Stabilization Trust Fund are to be repaid by June 30 of the fiscal year in which the loans were made.

History. Acts 1975 (Extended Sess., 1976), No. 1112, § 1; A.S.A. 1947, § 13-515.2; reen. Acts 1987, No. 874, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 874, § 1. Acts 1987, No. 834, provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Subchapter 7 — Reimbursement of Unemployment Compensation Benefits

Effective Dates. Acts 1973, No. 750, § 14: July 1, 1973. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that it is necessary to establish an orderly procedure which will insure the monthly distribution of funds for the necessary services and operations of the state government, as provided for in this Act; that only the provisions of this Act will correct many of our financial difficulties, which otherwise may deprive the citizens of this State from receiving the benefits for which the operation of the state government contemplates. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after July 1, 1973.”

Acts 1977, No. 608, § 13: July 1, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly of the State of Arkansas that it is necessary that all State Agency programs, regardless of their funding source, contribute equally to the reimbursement to the Arkansas Employment Security Division for unemployment benefits paid on behalf of such Agency. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall take effect and be in full force from and after July 1, 1977.”

Acts 1979, No. 697, § 4: July 1, 1979. Emergency clause provided: “It has been found and determined by the General Assembly that existing legislation requiring payments for employer contributions is causing an exorbitant amount of paperwork, vouchers and employees' effort that can be avoided by this Act, thereby obviating unnecessary administrative costs. Therefore, an emergency is hereby declared to exist, and this Act is necessary in order to protect the public peace, health and safety, shall be in full force and effect from and after July 1, 1979.”

19-5-701. Purpose.

It is the purpose of this subchapter that all programs, regardless of their funding source, contribute equally to the cost of unemployment compensation benefits charged to the state agencies operating such programs. It is not the intent of this subchapter that the State of Arkansas relinquish its status as a nontaxable reimbursable employer under the Division of Workforce Services Law, § 11-10-101 et seq.

History. Acts 1977, No. 608, § 1; A.S.A. 1947, § 13-554; Acts 2019, No. 910, § 479.

Amendments. The 2019 amendment substituted “Division of Workforce Services Law” for “Department of Workforce Services Law”.

19-5-702. Definitions.

As used in this subchapter, unless the context otherwise requires:

“Contribution” means a percentage of payroll expenditures paid to the Unemployment Compensation Revolving Fund by a state agency in order to provide current and timely reimbursements of benefits paid by the Division of Workforce Services Law, § 11-10-101 et seq., for unemployment benefits charged to the agency;
“Experience rate” means the process of adjustment in a future period of the contribution rate of an agency based on the difference of the amounts paid to the revolving fund for a fiscal year compared to the amounts of unemployment benefits charged to the agency for a fiscal year in order to recover deficits and refund surpluses;
“Payroll” means the gross total amount expended for a payroll period for regular salaries, extra help, and authorized overtime payments; and
“State agency” means any state agency, board, commission, department, institution, college, university, and community junior college receiving an appropriation for regular salaries, extra help, and authorized overtime payable from funds deposited into the State Treasury or depositories other than the State Treasury by the General Assembly.

History. Acts 1977, No. 608, § 2; A.S.A. 1947, § 13-554.1; Acts 2019, No. 910, § 480.

Amendments. The 2019 amendment substituted “Division of Workforce Services Law” for “Department of Workforce Services Law” in (1).

19-5-703. Applicability.

The provisions and applicability of this subchapter shall be in conjunction with other state laws governing the unemployment compensation of state employees. Employee coverage shall be in conformity with state and federal laws applicable to state employees' unemployment compensation. Nothing contained in this subchapter shall be applicable or construed to be applicable to laws regulating unemployment compensation for municipal or county employees.

History. Acts 1977, No. 608, § 10; A.S.A. 1947, § 13-554.9.

19-5-704. Administration.

This subchapter shall be administered by the Chief Fiscal Officer of the State.
Upon certification to the Chief Fiscal Officer of the State by the Division of Workforce Services of unemployment compensation benefits paid during a benefit period and charged to a state agency, the Chief Fiscal Officer of the State shall direct that reimbursement be made to the division from the Unemployment Compensation Revolving Fund for such amounts as are properly certified.
The Chief Fiscal Officer of the State shall have the authority to make such rules as are necessary to enforce the provisions of this subchapter.

History. Acts 1977, No. 608, § 7; A.S.A. 1947, § 13-554.6; Acts 2019, No. 315, § 1739; 2019, No. 910, § 481.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (c).

The 2019 amendment by No. 910, in (b), substituted “Division of Workforce Services” for “Department of Workforce Services”, and substituted “division” for “department”.

19-5-705. Benefits claims investigations.

The Department of Workforce Services shall investigate all claims for benefits filed by state employees whether or not the employing state agency lodges a protest to the payment of such benefits. Such investigation shall result in a determination of the eligibility of the employee for benefit payments.

History. Acts 1977, No. 608, § 8; A.S.A. 1947, § 13-554.7.

19-5-706. Unemployment Compensation Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Unemployment Compensation Revolving Fund”.
The Unemployment Compensation Revolving Fund shall consist of employer unemployment contributions made under § 19-5-707 and temporary loans from the Budget Stabilization Trust Fund received under § 19-5-709.
The funds shall be used to reimburse the Division of Workforce Services, in a timely manner, for unemployment compensation benefits paid by the division and charged to a state agency, as provided in this subchapter and other laws applicable to state employees' unemployment compensation and for such other purposes as may be authorized by law.

History. Acts 1973, No. 750, § 8; 1977, No. 608, § 3; 1979, No. 1013, § 7; A.S.A. 1947, §§ 13-531, 13-554.2; Acts 2019, No. 910, § 482.

Publisher's Notes. Acts 1973, No. 750, § 8, as amended, is also codified as § 19-5-939.

Amendments. The 2019 amendment, in (c), substituted “Division of Workforce Services” for “Department of Workforce Services” and “division” for “department”.

19-5-707. Contributions generally.

Each state agency shall make contributions to the Unemployment Compensation Revolving Fund using the experience rate determined in accordance with § 11-10-704 from personal services matching costs funds within fourteen (14) calendar days following the end of each calendar quarter. The experience rate for each even-numbered fiscal year will be used to fix the rate for the next even-numbered fiscal year. Each odd-numbered fiscal year's experience rate will be used to fix the next odd-numbered fiscal year rate.
If during any fiscal year the Chief Fiscal Officer of the State determines that the contribution rate for any agency will result in a significant surplus or deficit for that fiscal year, then he or she shall have the authority to adjust the agency contribution rate to reduce such surplus or recover any such deficit, subject to the provisions of § 19-5-708.

History. Acts 1977, No. 608, § 4; 1979, No. 697, § 1; A.S.A. 1947, § 13-554.3.

19-5-708. Maximum contributions.

In no event shall any experience rate result in a state agency making contributions of more than three percent (3%) of its gross payroll expenditures. In the event that an agency builds a deficit which would require a contribution rate greater than three percent (3%), then that agency shall continue to make contributions at the rate of three percent (3%), even though eligible for an experience rate reduction, until any deficit owed the fund is repaid. Only then shall the actual experience rate be used to compute such agency contributions.

History. Acts 1977, No. 608, § 5; A.S.A. 1947, § 13-554.4.

19-5-709. Loans.

In the event that the Unemployment Compensation Revolving Fund does not have sufficient funds available from contributions by state agencies to make reimbursement to the Division of Workforce Services for benefits paid, loans may be made from the Budget Stabilization Trust Fund to make such payments.
Any loans made to the Unemployment Compensation Revolving Fund shall be repaid by June 30 of the first fiscal year after the fiscal year in which such loans were made.

History. Acts 1977, No. 608, § 6; A.S.A. 1947, § 13-554.5; Acts 2019, No. 910, § 483.

Amendments. The 2019 amendment substituted “Division of Workforce Services” for “Department of Workforce Services” in (a).

19-5-710. Financing.

Financing for the provisions of this subchapter shall be provided within the appropriations and financing authority authorized by the General Assembly for personal services matching costs.

History. Acts 1977, No. 608, § 9; 1979, No. 697, § 2; A.S.A 1947, § 13-554.8.

Subchapter 8 — Reimbursement of Workers' Compensation Benefits

Effective Dates. Acts 1973, No. 750, § 14: July 1, 1973. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that it is necessary to establish an orderly procedure which will insure the monthly distribution of funds for the necessary services and operations of the state government, as provided for in this Act; that only the provisions of this Act will correct many of our financial difficulties, which otherwise may deprive the citizens of this State from receiving the benefits for which the operation of the state government contemplates. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after July 1, 1973.”

Acts 1977, No. 924, § 12: July 1, 1977. Emergency clause provided: “It is hereby found and determined by the Seventy-First General Assembly of the State of Arkansas that it is necessary that all State Agency programs regardless of their funding source, contribute equally to the reimbursement to the Arkansas Workman's Compensation Commission for worker's compensation benefits paid on behalf of such Agency. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in full force from and after July 1, 1977.”

Acts 1979, No. 807, § 4: July 1, 1979. Emergency clause provided: “It has been found and determined by the General Assembly that existing legislation requiring payments for employer contributions is causing an exorbitant amount of paperwork, vouchers and employees' effort that can be avoided by this Act, thereby obviating unnecessary administrative costs. Therefore, an emergency is hereby declared to exist, and this Act is necessary in order to protect the public peace, health and safety, and it shall be in full force and effect from and after July 1, 1979.”

Acts 1981, No. 25, § 3: July 1, 1981. Emergency clause provided: “It has been found and determined by the General Assembly that existing legislation requiring payments for employer contributions is causing an exorbitant amount of paperwork, thereby obviating unnecessary administrative costs. Therefore, an emergency is hereby declared to exist, and this Act is necessary in order to protect the public peace, health and safety, shall be in full force and effect from and after July 1, 1981.”

19-5-801. Purpose.

It is the purpose of this subchapter that all programs, regardless of their funding source, contribute equally to the cost of workers' compensation benefits charged to the state agencies operating such programs.

History. Acts 1977, No. 924, § 1; A.S.A 1947, § 13-1407.1.

19-5-802. Definitions.

As used in this subchapter, unless the context otherwise requires:

“Contribution” means a percentage of payroll expenditures paid to the Workers' Compensation Revolving Fund by a state agency in order to provide current and timely reimbursements of benefits paid by the Workers' Compensation Commission for workers' compensation benefits charged to the agency;
“Experience rate” means the process of adjustment in a future period of the contribution rate of a state agency based on the difference of the amounts paid to the Workers’ Compensation Revolving Fund for a fiscal year compared to the amounts of workers' compensation benefits charged to the agency for a fiscal year in order to recover deficits and refund surpluses;
“Payroll” means the gross total amount expended for a payroll period for regular salaries, extra help, and authorized overtime payments; and
“State agency” means any state agency, board, commission, department, institution, college, university, and community junior college receiving appropriation for regular salaries, extra help, and authorized overtime payable from funds deposited into the State Treasury or depositories other than the State Treasury by the General Assembly.

History. Acts 1977, No. 924, § 2; A.S.A. 1947, § 13-1407.2.

19-5-803. Applicability.

It is the intent of the General Assembly that the provisions of the workers' compensation laws contained in § 11-9-502 apply to state agencies and that “employer” as used in that statute includes state agencies.

History. Acts 1977, No. 924, § 7; A.S.A 1947, § 13-1407.7.

19-5-804. Administration.

This subchapter shall be administered by the Chief Fiscal Officer of the State. The Chief Fiscal Officer of the State shall have the authority to establish procedures and to make such rules as are necessary to enforce the provisions of this subchapter.

History. Acts 1977, No. 924, § 8; A.S.A 1947, § 13-1407.8; Acts 2019, No. 315, § 1740.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in the second sentence.

19-5-805. Workers' Compensation Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Workers’ Compensation Revolving Fund”.
The Workers’ Compensation Revolving Fund shall consist of employer workers’ compensation benefits contributions made under § 19-5-806 and temporary loans from the Budget Stabilization Trust Fund received under § 19-5-808.
These funds shall be used to pay workers' compensation benefits awarded to state employees by the Workers’ Compensation Commission and for such other purposes as may be authorized by law.

History. Acts 1973, No. 750, § 8; 1977, No. 924, § 3; 1979, No. 1013, § 7; A.S.A. 1947, §§ 13-531, 13-1407.3.

Publisher's Notes. Acts 1973, No. 750, § 8, as amended, is also codified as § 19-5-940.

19-5-806. Contributions generally.

Each state agency shall make contributions to the Workers' Compensation Revolving Fund, using the experience rate determined in accordance with this section, from personal services matching costs funds within fourteen (14) calendar days following the end of each calendar quarter. The experience rate for each even-numbered fiscal year will be used to fix the rate for the next even-numbered fiscal year. Each odd-numbered fiscal year's experience rate will be used to fix the next odd-numbered fiscal year's rate.
If during any fiscal year the Chief Fiscal Officer of the State determines that the contribution rate for any agency will result in a significant surplus or deficit for that fiscal year, he or she shall have the authority to adjust the agency contribution rate to reduce such surplus or recover any such deficit, subject to the provisions of § 19-5-807.

History. Acts 1977, No. 924, § 4; 1979, No. 807, § 1; A.S.A. 1947, § 13-1407.4.

19-5-807. Maximum contributions.

In the event a state agency builds a deficit which would require a contribution rate greater than two percent (2%), the agency shall continue to make contributions at the rate of two percent (2%) until any deficit owed the fund is repaid. In the event an agency's experience rate exceeds two percent (2%) for one (1) full fiscal year, their contribution rate shall be adjusted to equal their experience rate, not to exceed a maximum of five percent (5%). Their contributions shall remain at that level until their experience rate decreases and their accumulated deficit is repaid.

History. Acts 1977, No. 924, § 5; 1981, No. 25, § 1; A.S.A 1947, § 13-1407.5.

19-5-808. Loans.

If the Workers' Compensation Revolving Fund does not have sufficient funds available from contributions by state agencies for paying awarded workers' compensation benefits to state employees, loans may be made from the Budget Stabilization Trust Fund to make such payments. Any loans made to the Workers' Compensation Revolving Fund shall be repaid by June 30 of the first fiscal year after the fiscal year in which such loans were made.

History. Acts 1977, No. 924, § 6; A.S.A 1947, § 13-1407.6.

19-5-809. Financing.

Financing the provisions of this subchapter shall be provided within the appropriations and financing authority as authorized by the General Assembly for personal services matching costs.

History. Acts 1977, No. 924, § 9; 1979, No. 807, § 2; A.S.A 1947, § 13-1407.9.

Subchapter 9 — Trust Funds

A.C.R.C. Notes. As to the Arkansas Educational Excellence Program, see A.C.R.C. Notes preceding § 26-51-401.

Preambles. Acts 2017, No. 775, contained a preamble which read:

“WHEREAS, it is beneficial to the State of Arkansas to be a good steward of public money for sustainable programs for the future; and

“WHEREAS, it is beneficial to the people of the State of Arkansas to recognize the inherent value and contribution of individuals with disabilities; and

“WHEREAS, it is the policy of the State of Arkansas to:

“(1) Respect the rights and privileges conveyed by federal and state law to beneficiaries who are individuals with disabilities;

“(2) Support the right of individuals with disabilities to receive quality services without discrimination; and

“(3) Allow an individual with disabilities to:

“(A) Participate in all decisions regarding his or her care, including the right to refuse treatment, the right to continuity of care, and the right to choose among providers who participate in his or her network; and

“(B) Receive services in his or her local community, or the community of his or her choice, and in the least restrictive setting; and

“WHEREAS, the State of Arkansas wishes to affirm the commitment to the principles of full and equal treatment and unlimited opportunities for all Arkansans that are afforded, as of February 1, 2017, to individuals with disabilities as a basic tenet of this legislation, NOW THEREFORE, … .”

Effective Dates. Acts 1973, No. 750, § 14: July 1, 1973. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that it is necessary to establish an orderly procedure which will insure the monthly distribution of funds for the necessary services and operations of the state government, as provided for in this Act; that only the provisions of this Act will correct many of our financial difficulties, which otherwise may deprive the citizens of this State from receiving the benefits for which the operation of the state government contemplates. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after July 1, 1973.”

Acts 1975 (Extended Sess., 1976), No. 1018, § 3: Jan. 27, 1976. Emergency clause provided: “It is hereby found and determined by the General Assembly that the securing of bonds issued by the Museum and Cultural Commission by a partial pledge of interest earnings derived from investment of idle State Treasury funds is necessary to ensure continued progress in promoting cultural activities for the citizens of Arkansas. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1975 (Extended Sess., 1976), No. 1020, § 2: Jan. 29, 1976. Emergency clause provided: “It is hereby found and determined by the General Assembly that there remains in the “Ad Valorem Tax Fund” on the books of the Treasurer of State, moneys over and above the amount that was needed to reimburse various state funds for expenses incurred by state agencies for the various local governmental units during the 1974-75 fiscal year, and that the State is prohibited from using such ad valorem tax moneys by the Constitution of the State of Arkansas. Therefore, an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1980 (1st Ex. Sess.), No. 29, § 5: Jan. 25, 1980. Emergency clause provided: “It is hereby found and determined by the Seventy-Second General Assembly, meeting in Extraordinary Session, that taxes have been collected under authority of Act 990 of 1975, beginning December 1, 1979, and that the local municipality affected is under a financial crisis which constitutes such emergency as to require immediate relief. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect after its passage and approval.”

Acts 1981, No. 769, § 21: July 1, 1981. Emergency clause provided: “It is hereby found and determined by the Seventy-Third General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1981 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1981 could work irreparable harm upon the proper administration and providing of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1981.”

Acts 1983, No. 364, § 11: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1983 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1983 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1983.”

Acts 1983, No. 926, § 56: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1983 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1983 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1983.”

Acts 1987, No. 860, § 3: Apr. 13, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1018 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 861, § 3: Apr. 13, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1020 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 949, § 8: July 1, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1991 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1991 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1991.”

Acts 1993, No. 881, § 21: July 1, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1993 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1993 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1993.”

Acts 1995, No. 308, § 8: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly meeting in Regular Session, that the provisions of this Act are of critical importance to the state's provision of employment service and unemployment programs as authorized by both the federal and state governments and administered through the Arkansas Employment Security Department; and that this act is necessary in order to comply with federal requirements on the interest earnings accumulated on federal funds deposited into the State Treasury; and that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1995 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1995 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1995.”

Acts 1997, No. 253, § 9: July 1, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly that the consolidation of the Forestry Commission's Trust Funds is essential to be in force at the beginning of the state fiscal year and that the effectiveness of this Act on July 1, 1997 is essential to the operation of the agency for which the trust funds in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1997 could work irreparable harm upon the proper administration and provision of essential governmental programs and would impede the Forestry Commission from complying with the policy of the State of Arkansas as set out in Arkansas Code § 19-4-509. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1997.”

Acts 1997, No. 1279, § 15: July 1, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly, the Constitution of the State of Arkansas prohibits the appropriation of funds for more than two (2) year period; that the effectiveness of this Act on July 1, 1997 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1997 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1997.”

Acts 1999, No. 342, § 12: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly, that the current contribution level for continuing education for county officials is insufficient and when the contribution level is raised, the appropriation for this purpose is insufficient. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1999.”

Acts 1999, No. 420, § 10: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1999 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1999 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1999.”

Acts 1999, No. 1217, § 20: Apr. 7, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that the first individuals to be affected by the two (2) year lifetime limit on Transitional Employment Assistance will soon reach that limit. This act will help those individuals to make the transition from welfare to long-term economic self-sufficiency. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 572, § 3: Mar. 6, 2001. Emergency clause provided: “It is found and determined by the General Assembly that confusion exists on the disposition of interest earnings on State Treasury funds in The State Insurance Department Trust Fund and that clarification is required so that funds are not lost by the General Improvement and Budget Stabilization Trust Funds. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Act 2005, No. 1824, § 20: July 1, 2005. Emergency clause provided: “The General Assembly of the State of Arkansas hereby finds and determines that the decision of the Arkansas Supreme Court in Arkansas Department of Environmental Quality v. Brighton Corp. 352 Ark. 396, 102 S.W.3d 458 (2003), has raised questions regarding the factual proof required to establish a claim for cost recovery under the Arkansas Remedial Action Trust Fund Act and regarding the retroactivity of the statute. The General Assembly further finds and determines that the doubts raised by the decision in the Brighton case have created substantial uncertainty regarding the enforcement authority of the Arkansas Department of Environmental Quality and the rights and responsibilities of private parties under the Arkansas Remedial Action Trust Fund Act, all of which require urgent resolution. Therefore, an emergency is declared to exist; and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2005, and shall apply retroactively.”

Act 2005, No. 2090, § 12: July 1, 2005. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2005 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2005 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2005.”

Acts 2007, No. 490, § 18: Mar. 26, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the act should go into effect as soon as possible in order to make needed technical changes; to enable the state to capture and utilize penalty and interest owing from claimants; and in order that the state might continue to be in compliance with the Federal Unemployment Tax Act, as amended. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, No. 1469, § 32: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that it is the state's constitutional obligation to provide a general, suitable, and efficient free system of public schools in the state; that the public school funding distribution changes in this act are needed to ensure that proper funding is provided to the affected public schools and school districts; and that this act is immediately necessary so that the affected public schools and school districts will receive the amount of funding for the current school year. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2011, No. 828, § 11: Oct. 1, 2011. Effective date clause provided: “Sections 1 through 10 of this act are effective on the first day of the calendar quarter following the effective date of this act [July 27, 2011].”

Acts 2011, No. 1011, § 8: July 1, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that lead and lead-based paint have been determined to be a human health concern posing an immediate danger to children, families, and the environment; and that this act is immediately necessary to prevent irreparable harm to children in this state. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2011.”

Acts 2013, No. 504, § 5: Mar. 26, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one-year period; that the effectiveness of this act as soon as possible is essential to the operation of the judiciary and the administration of justice; and that this act is immediately necessary because the delay in the effective date of this act could cause irreparable harm upon the proper administration of essential governmental programs. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2013, No. 956, § 10: Emergency clause failed to pass. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Department of Workforce Services must ensure the prompt determination of claims for unemployment insurance benefits; that the state's unemployment insurance program must remain in conformity with federal law requirements; and that this act is immediately necessary because a delay would interfere with continued provision of benefits and services to eligible persons. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2013.”

Acts 2013, No. 1165, § 2: July 1, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the effectiveness of this act on July 1, 2013, is essential to the operation of programs supported by funds transferred from the Ad Valorem Tax Fund; and that it is necessary that this act become effective on July 1, 2013, because if the legislative session is extended, a delay in the effective date of this act beyond July 1, 2013, could work irreparable harm on the proper administration and provision of essential governmental programs. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2013.”

Identical Acts 2014, Nos. 290 and 299, § 15: July 1, 2014.

Acts 2015, No. 268, § 16: July 1, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one-year period; that the act entitled ‘AN ACT TO MAKE AN APPROPRIATION FOR PERSONAL SERVICES AND OPERATING EXPENSES FOR THE ADMINISTRATIVE OFFICE OF THE COURTS FOR THE OFFICIAL COURT REPORTERS AND TRIAL COURT ADMINISTRATORS OF THE CIRCUIT COURTS FOR THE FISCAL YEAR ENDING JUNE 30, 2016; AND FOR OTHER PURPOSES.’ requires the passage of this act; that the effectiveness of this act on July 1, 2015, is essential to the operation of the Administrative Office of the Courts, and that in the event of an extension of the legislative session, the delay in the effective date of this act beyond July 1, 2015, could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall be in full force and effect on and after July 1, 2015.”

Acts 2015, No. 1185, § 9: Jan. 1, 2016.

Acts 2017, No. 508, § 13(a): Oct. 1, 2017. Effective date clause provided: “Sections 1, 2, 3, 6, 7, 8, 9, 10, 11, and 12 of this act become effective on October 1, 2017.”

Acts 2017, No. 141, § 63, as amended by Acts 2017, No. 596, § 1: Jan. 1, 2018. Effective date clause provided: “Sections 2 through 61 of this act are effective for tax years beginning on and after January 1, 2018.”

Acts 2017, No. 555, § 8: July 1, 2017. Emergency clause provided: “It is found and determined by the General Assembly that this act amends the investment and transfer authority of the Treasurer of State; that this act affects the ability of the Treasurer of State to invest and transfer state funds; and that this act should become effective as soon as possible to allow for implementation of the new provisions to benefit the State of Arkansas. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2017.”

Acts 2017, No. 565, § 29: Mar. 22, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act will create more efficient regulation of private career education; and that this act is immediately necessary to provide Arkansas citizens seeking private career education the consumer protection services they need. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 775, § 8: Mar. 31, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the current method of serving the enrollable Medicaid beneficiary populations is resulting in excessive and unnecessary costs to the Arkansas Medicaid Program and to the State of Arkansas; that the enrollable Medicaid beneficiary populations are growing at a rate that is unsustainable under the current method of serving the enrollable Medicaid beneficiary populations; that the Medicaid provider-led organized care system will improve quality and efficiencies of healthcare services to enrollable Medicaid beneficiary populations by enhancing the performance of the broader healthcare system with increased access to care; that the Medicaid Provider-Led Organized Care Act requires healthcare providers to create, present to the Department of Human Services and the Insurance Commissioner for approval, implement, and market a new kind of organization that offers a type of health insurance; and that this act is immediately necessary to ensure efficient use of taxpayer dollars and to provide healthcare providers certainty about the law creating the Medicaid Provider-Led Organized Care Act before fully investing time, funds, personnel, and other resources to the development of the new risk-based provider organizations. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 897, § 21: July 1, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that it would be prudent to abolish the State Child Abuse and Neglect Prevention Board and transfer the powers and duties of the State Child Abuse and Neglect Prevention Board to the Department of Human Services; that this act facilitates the timely transfer of the State Child Abuse and Neglect Prevention Board to the Department of Human Services; and that this act is necessary for alignment with the fiscal year. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall be- come effective on July 1, 2017.”

Research References

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Taxation, 1 U. Ark. Little Rock L.J. 258.

19-5-901. [Repealed.]

Publisher's Notes. This section, concerning the Escheat Fund, was repealed by Acts 2007, No. 1032, § 12 and 2007, No. 1201, § 12. The section was derived from Acts 1973, No. 750, § 8; A.S.A. 1947, § 13-531.

19-5-902. [Repealed.]

Publisher's Notes. This section, concerning the Income Tax Protest Fund, was repealed by identical Acts 2017, Nos. 1083 and 1127, § 5. The section was derived from Acts 1973, No. 750, § 8; A.S.A. 1947, § 13-531.

19-5-903. Corporate Income Tax Withholding Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Corporate Income Tax Withholding Fund”.
The Corporate Income Tax Withholding Fund shall consist of those general revenues transferred to the Corporate Income Tax Withholding Fund under the provisions of § 19-5-201 et seq. and those funds received from the Budget Stabilization Trust Fund as provided in § 19-5-501 et seq.
The Corporate Income Tax Withholding Fund shall be used to make income tax refunds to corporate taxpayers in such amounts as may be determined by the Chief Fiscal Officer of the State or the courts and for repaying temporary loans made during each month from the Budget Stabilization Trust Fund, as may be required.

History. Acts 1973, No. 750, § 8; A.S.A. 1947, § 13-531.

19-5-904. Individual Income Tax Withholding Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Individual Income Tax Withholding Fund”.
The Individual Income Tax Withholding Fund shall consist of those general revenues transferred to it under the provisions of § 19-5-202(b)(2) and those funds received from the Budget Stabilization Trust Fund as provided in § 19-5-501 et seq.
The Individual Income Tax Withholding Fund shall be used to make income tax refunds to individual taxpayers in such amounts as may be determined by the Chief Fiscal Officer of the State or the courts and for repaying temporary loans made during each month from the Budget Stabilization Trust Fund, as may be required.

History. Acts 1973, No. 750, § 8; A.S.A. 1947, § 13-531.

19-5-905. Securities Reserve Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Securities Reserve Fund”. The Securities Reserve Fund shall consist of moneys derived from savings effected in the retirement in advance of maturity of nonhighway direct general obligation bonds of the state, of discounts received in the purchase of securities, and of premiums and interest derived from the sale of securities held in the Securities Account by the Treasurer of State as custodian. The Securities Reserve Fund shall be used as follows:
1. To pay premiums and the purchase and absorbing of discounts in the sale of securities held in the Securities Account, not to exceed five hundred thousand dollars ($500,000) in any one (1) fiscal year;
2. To guarantee bonds in an aggregate principal amount not to exceed five million dollars ($5,000,000) outstanding at any time, with no bond bearing interest at a rate exceeding eight percent (8%) per annum, of the Museum and Cultural Commission Fund authorized, and in the manner prescribed in the Arkansas Museum and Cultural Center Act, § 13-5-301 et seq., not to exceed five hundred thousand dollars ($500,000) in any one (1) fiscal year;
3. To guarantee bonds of any other park or recreation facility approved by the Governor and the Department of Parks, Heritage, and Tourism, not to exceed five hundred thousand dollars ($500,000) in the aggregate, after seeking advice of the Legislative Council and the Legislative Joint Auditing Committee;
4. To guarantee industrial development bonds as authorized by §§ 15-4-702 — 15-4-710;
5. To absorb losses incurred in the investing of securities held in the Securities Account in the State Treasury and in bank depositories. The balance of the Securities Reserve Fund shall always be available for this purpose;
6. To guarantee loans to students to attend truck driving school at the Arkansas Commercial Driver Training Institute at Arkansas State University-Newport, in an aggregate principal amount not to exceed four hundred thousand dollars ($400,000) outstanding at any one (1) time;
7. To distribute:
  1. Interest income earned on investment of balances of the following:
    1. The State Highway and Transportation Department Fund, as authorized by § 27-70-204;
    2. The Game Protection Fund, as authorized by § 15-41-110;
    3. The funds deposited into the State Treasury by state agencies, boards, and commissions that were previously held as cash funds in a bank depository or investment depository, as authorized by § 19-3-518(d); and
    4. State and Local Fiscal Assistance Act of 1972, 31 U.S.C. § 6701 et seq., as authorized by § 19-3-521(c); and
  2. Interest income earned from investment of State Treasury balances by any other laws enacted by the General Assembly;
8. After the distributions enumerated in subdivision (a)(7) of this section, for a one-time transfer by the Chief Fiscal Officer of the State of one million five hundred thousand dollars ($1,500,000) to the Arkansas Highway Transfer Fund, to be transferred only in Fiscal Year 2017;
9. After the distributions enumerated in subdivisions (a)(7) and (8) of this section, for a transfer by the Chief Fiscal Officer of the State of five million dollars ($5,000,000) each fiscal year to the Budget Stabilization Trust Fund;
10. After the transfer to the Budget Stabilization Trust Fund enumerated in subdivision (a)(9) of this section, for a transfer by the Chief Fiscal Officer of the State of twenty million dollars ($20,000,000) beginning in Fiscal Year 2018 and each fiscal year thereafter to the Arkansas Highway Transfer Fund;
11. For a transfer by the Chief Fiscal Officer of the State on the last business day of the fiscal year to the Budget Stabilization Trust Fund to reimburse the Budget Stabilization Trust Fund for any current fiscal year transfers that have been made to the following:
  1. The Division of Correction Farm Fund under § 19-5-501(b)(1);
  2. The Department of the Military Fund Account under § 19-5-501(b)(3);
  3. The Disaster Assistance Fund under § 19-5-1006;
  4. The Miscellaneous Revolving Fund under § 19-5-1009;
  5. The State Central Services Fund under § 19-5-501(d); and
  6. The State Board of Election Commissioners, as authorized by law; and
12. After all distributions and transfers under this section, less one hundred thousand dollars ($100,000) under § 19-3-521(a)(2), for a transfer by the Chief Fiscal Officer of the State on the last business day of the fiscal year of the fund balance to the Long Term Reserve Fund.
If any loss is sustained in relation to securities at any time held in the Securities Account or in any bank depository and if the credit balance in the Securities Reserve Fund is insufficient to absorb the loss, the Chief Fiscal Officer of the State shall cause a transfer of moneys to be made from the Budget Stabilization Trust Fund to the Securities Reserve Fund in such amount as shall, when added to the credit balance in the Securities Reserve Fund, equal the amount of the loss. It is the intent of the General Assembly that no loss shall be sustained by any account the funds of which were used in making such investments and deposits.

History. Acts 1973, No. 750, § 8; 1975, No. 868, § 14; 1975 (Extended Sess., 1976), No. 1018, § 1; A.S.A. 1947, § 13-531; reen. Acts 1987, No. 860, § 1; 1995, No. 1084, § 1; 2016 (3rd Ex. Sess.), No. 1, § 8; 2017, No. 555, § 5; 2019, No. 910, § 986.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 860, § 1. Acts 1987, No. 834, provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Acts 2016 (3rd Ex. Sess.), No. 1, § 1, provided: “This act shall be known and may be cited as the ‘Arkansas Highway Improvement Plan of 2016’.”

Amendments. The 2016 (3rd Ex. Sess.) amendment, in the introductory language of (a), substituted “The Securities Reserve Fund” for “This fund” in the second sentence and substituted “The Securities Reserve Fund shall be used as follows” for “It shall be used for” at the end; substituted “in the Arkansas Museum and Cultural Center Act” for “by” in (a)(2); substituted “the Securities Reserve Fund” for “this fund” in (a)(5); added (a)(7) through (12); deleted former (b) and redesignated former (c) as present (b); and made stylistic changes.

The 2017 amendment deleted “average daily” following “investment of” in (a)(7)(A) and (a)(7)(B).

The 2019 amendment substituted “Division of Correction Farm Fund” for “Department of Correction Farm Fund” in (a)(11)(A); and substituted “Department of the Military Fund Account” for “State Military Department Fund Account” in (a)(11)(B).

19-5-906. Ad Valorem Tax Fund.

1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Ad Valorem Tax Fund”.
2. The Ad Valorem Tax Fund shall consist of those trust revenues derived from the ad valorem taxes as authorized by §§ 26-26-1614 — 26-26-1616 and § 26-26-1701 et seq.
3. The Ad Valorem Tax Fund shall be used to reimburse the State Central Services Fund on account of expenditures made for local audits by Arkansas Legislative Audit and to the appropriate fund or fund account from which the Tax Division of the Arkansas Public Service Commission and the Assessment Coordination Department derive their support, there to be used to reimburse such fund or fund account for expenditures made by Arkansas Legislative Audit, the Tax Division of the Arkansas Public Service Commission, and the Assessment Coordination Department each fiscal year.
All ad valorem tax moneys transferred to the appropriate fund or fund account from which the department derives its support, as required by subsection (a) of this section, remaining at the end of a fiscal year shall remain in the fund or fund account and shall be carried forward and made available to the department in the following fiscal year.
In the event there are insufficient moneys available in the Ad Valorem Tax Fund to fully reimburse the appropriate funds or fund accounts, the Chief Fiscal Officer of the State shall transfer to each fund an amount based upon the following:
1. Eighty percent (80%) to the State Central Services Fund for local audits by Arkansas Legislative Audit;
2. Five percent (5%) to the appropriate fund or fund account from which the Tax Division of the Arkansas Public Service Commission derives its support; and
3. Fifteen percent (15%) to the appropriate fund or fund account from which the Assessment Coordination Department derives its support.
1. Any moneys that may be available after reimbursing the various funds or fund accounts as provided in this section shall be transferred annually to the County Aid Fund by the Chief Fiscal Officer of the State.
2. Thereafter the Treasurer of State shall transmit the moneys to the respective county treasurers, as provided by §§ 26-26-1616, 26-26-1701, and 26-26-1707.

History. Acts 1973, No. 750, § 8; 1975 (Extended Sess., 1976), No. 1020, § 1; A.S.A. 1947, § 13-531; reen. Acts 1987, No. 861, § 1; 2005, No. 2090, § 8; 2007, No. 1032, § 13; 2007, No. 1201, § 13; 2013, No. 1165, § 1.

A.C.R.C. Notes. This section was reenacted by Acts 1987, No. 861, § 1. Acts 1987, No. 834, provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Amendments. The 2005 amendment, in (a)(3), substituted “Tax Division of the Arkansas Public Service Commission and the Assessment Coordination Department” for “Tax Division and Assessment Coordination Division of the Arkansas Public Service Commission” and “the divisions and the department” for “these divisions”; inserted present (b); redesignated former (b) and (c) as present (c) and (d); and substituted “and to the department in the preceding fiscal year” for “to be so reimbursed” in present (c).

The 2013 amendment rewrote (c).

Case Notes

Validity.

Absent a clear showing that an ad valorem tax is being used for state purposes only, with no benefit to local governments, ad valorem tax levied upon trucks and related equipment used in transportation of merchandise through or into this state, in interstate commerce is valid. Anderson Trucking Serv., Inc. v. Tax Div., Ark. Pub. Serv. Comm'n, 261 Ark. 69, 546 S.W.2d 430 (1977).

19-5-907. Revolving Loan Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Revolving Loan Fund”.
The fund shall consist of the repayment of moneys loaned or invested through the Revolving Loan Program of the Division of Elementary and Secondary Education.
The fund shall be used for the purpose of making loans to school districts and for investment purposes.

History. Acts 1973, No. 750, § 8; A.S.A. 1947, § 13-531; 2019, No. 910, § 2265.

Amendments. The 2019 amendment substituted “Division of Elementary and Secondary Education” for “Department of Education” in (b).

19-5-908. [Repealed.]

Publisher's Notes. This section, concerning the Public Elementary and Secondary School Insurance Fund, was repealed by Acts 2007, No. 738, § 8. The section was derived from Acts 1973, No. 750, § 8; A.S.A. 1947, § 13-531.

19-5-909. Revolving Loan Certificate Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Revolving Loan Certificate Fund”.
The fund shall consist of such income as may be provided by law, there to be used for purchasing revolving loan certificates of indebtedness by the various school districts and for such other purposes as may be authorized by law.

History. Acts 1973, No. 750, § 8; A.S.A. 1947, § 13-531.

19-5-910. Department of Health Building Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Department of Health Building Fund”.
The fund shall consist of moneys received from the lessee or purchaser as provided by Acts 1968 (2nd Ex. Sess.), No. 14, approved June 5, 1968, which is appropriation legislation, or subsequent law and shall be used as may be provided by law.

History. Acts 1973, No. 750, § 8; 1979, No. 1013, § 6; A.S.A. 1947, § 13-531.

Publisher's Notes. Act 14, approved June 15, 1968, referred to in this section, was an appropriation measure and has not been codified.

19-5-911. Second Injury Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Second Injury Trust Fund”.
The fund shall consist of the revenues provided by §§ 11-9-101 — 11-9-105, 11-9-107 — 11-9-112, 11-9-401 — 11-9-403, 11-9-409, 11-9-501 — 11-9-529, 11-9-601 — 11-9-603, 11-9-701, 11-9-702, 11-9-704 — 11-9-716, and 11-9-801 — 11-9-811 and shall be used for the purposes as set out in those statutes.

History. Acts 1973, No. 750, § 8; 1985, No. 888, § 11; A.S.A. 1947, § 13-531.

A.C.R.C. Notes. Acts 2016, No. 207, § 8, provided:

“INVESTMENTS. All such funds as are held at any time in the Death and Permanent Total Disability Trust Fund, Second Injury Trust Fund, and the Workers' Compensation Fund shall be invested and reinvested to the extent feasible, all such investments as authorized for use by the Office of the Treasurer shall be available to the listed funds. The movement of these funds into and out of investments shall be by fund transfers as directed by the Chief Executive Officer of the Workers' Compensation Commission.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Cross References. Workers' compensation funds, § 11-9-301.

19-5-912. Division of Workforce Services Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Division of Workforce Services Trust Fund”.
The fund shall consist of such revenues as may be authorized by the United States Government for support of various programs within the Division of Workforce Services, any interest accruing on these revenues, and any other funds made available by the General Assembly.
The fund shall be used for the payment of program expenses of the division.

History. Acts 1973, No. 750, § 8; A.S.A. 1947, § 13-531; Acts 1995, No. 308, § 1; 2009, No. 251, § 12; 2019, No. 910, § 484.

Amendments. The 2009 amendment substituted “Department of Workforce Services” for “Employment Security Department” in the section heading; substituted “Department of Workforce Services” for “Arkansas Employment Security Department” in (a); and made minor punctuation and stylistic changes.

The 2019 amendment substituted “Division of Workforce Services Trust Fund” for “Department of Workforce Services Trust Fund” in the section heading and (a); substituted “Division of Workforce Services” for “Department of Workforce Services” in (b); and substituted “division” for “department” in (c).

19-5-913. Gasoline Tax Refund Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Gasoline Tax Refund Fund”.
The fund shall consist of the special revenues mentioned in the Revenue Classification Law, § 19-6-101 et seq., and as provided by law.
The fund shall be used for making refunds of a portion of the tax paid on gasoline by users as authorized by law.

History. Acts 1973, No. 750, § 8; A.S.A. 1947, § 13-531.

19-5-914. Judges Retirement Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Judges Retirement Fund”.
The Judges Retirement Fund shall consist of trust funds as provided by law and moneys transferred or deposited from the State Administration of Justice Fund.
The Judges Retirement Fund shall be disbursed or transferred as provided by law for benefit of retirants and for investment purposes.

History. Acts 1973, No. 750, § 8; A.S.A. 1947, § 13-531; Acts 1997, No. 1248, § 13.

Cross References. Authority to establish bank trust funds for judicial retirement system, § 24-8-205.

19-5-915. [Repealed.]

Publisher's Notes. This section, concerning the United States Olympic Committee Program Trust Fund, was repealed by Acts 2017, No. 263, § 2. The section was derived from Acts 1995, No. 1163, § 16.

19-5-916. Teacher Retirement Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Teacher Retirement Fund”.
The fund shall consist of trust fund income as provided by law.
The fund shall be used for:
1. The operation, maintenance, and improvement of the Arkansas Teacher Retirement System;
2. Payment of retirement and disability benefits;
3. Making refunds; and
4. Investing surplus funds.

History. Acts 1973, No. 750, § 8; A.S.A. 1947, § 13-531.

19-5-917. State Police Retirement Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “State Police Retirement Fund”.
The State Police Retirement Fund shall consist of the trust funds designated by law, moneys transferred or deposited from the State Administration of Justice Fund and non-DWI driver's license reinstatement fees as set out in § 27-16-808.
The State Police Retirement Fund shall be used for payment of personal services, operating expenses, investments, benefits, refunds, and for such other purposes as may be authorized by law and in § 24-6-201 et seq.

History. Acts 1973, No. 750, § 8; 1981, No. 938, § 19; A.S.A. 1947, § 13-531; Acts 1997, No. 1248, § 14.

19-5-918. Arkansas State Highway Employees' Retirement System Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Arkansas State Highway Employees' Retirement System Fund”.
The fund shall consist of trust funds as provided by law.
The fund shall be used for:
1. The payment of retirement and disability benefits to members of the Arkansas State Highway Employees’ Retirement System;
2. Refunds to members of the system;
3. Investment purposes; and
4. Such other purposes as may be authorized by law.

History. Acts 1973, No. 750, § 8; A.S.A. 1947, § 13-531.

Cross References. Deposits for highway employees' retirement, § 19-4-1805.

19-5-919. Arkansas Public Employees' Retirement Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Arkansas Public Employees’ Retirement Fund”.
The fund shall consist of trust funds as provided by law.
The fund shall be used for the payment of personal services, operating expenses, investments, benefits, refunds, and for such other purposes as may be authorized by law.

History. Acts 1973, No. 750, § 8; 1981, No. 938, § 19; A.S.A. 1947, § 13-531.

19-5-920. [Repealed.]

Publisher's Notes. This section, concerning the Social Security Contribution Fund, was repealed by identical Acts 2017, Nos. 1083 and 1127, § 6. The section was derived from Acts 1973, No. 750, § 8; 1981, No. 938, § 19; A.S.A. 1947, § 13-531.

19-5-921. Educational Buildings Maintenance Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Educational Buildings Maintenance Fund”.
The fund shall consist of rents and any other revenues that are made available by law.
The fund shall be used for the purposes of operating expenses, maintenance, renovations, and repairs.

History. Acts 1973, No. 750, § 8; A.S.A. 1947, § 13-531; Acts 2009, No. 1469, § 28.

A.C.R.C. Notes. Acts 2009, No. 1469, § 29, provided: “Any appropriation or funds payable from the former Educational Building Revenue Bond Fund shall be deemed payable from the Educational Buildings Maintenance Fund.”

Amendments. The 2009 amendment substituted “Buildings Maintenance” for “Building Revenue Bond” in the section heading; and rewrote the section.

19-5-922. State Insurance Department Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “State Insurance Department Trust Fund”.
1. The fund shall consist of those special revenues specified in § 19-6-301(172), with the exception of § 19-6-301(172)(B), grants, refunds, gifts, and any remaining funds of the Arkansas Earthquake Authority as provided in § 23-102-119 and examination of insurers' payments as set out in §§ 23-61-201 — 23-61-206.
2. The fund shall be used:
  1. To defray the expenses of the State Insurance Department in the discharge of its administrative and regulatory powers and duties as prescribed by law and as set out in the State Insurance Department Trust Fund Act, § 23-61-701 et seq.;
  2. To defray the administrative expenses and losses incurred by the Arkansas Comprehensive Health Insurance Pool of the Comprehensive Health Insurance Pool Act, § 23-79-501 et seq., or its successor; and
  3. To fund capital expenditures and training for fire departments certified by the Division of Emergency Management.
Annually by June 30, one million five hundred thousand dollars ($1,500,000) shall be transferred from the State Insurance Department Trust Fund to the State Central Services Fund for the use of the Revenue Division of the Department of Finance Administration for expenses related to the online insurance verification system established under the Arkansas Online Insurance Verification System Act, § 27-22-201 et seq., and other related costs.

History. Acts 1973, No. 750, § 8; A.S.A. 1947, § 13-531; Acts 1995, No. 1163, § 17; 2001, No. 572, § 2; 2001, No. 1646, § 8; 2003, No. 1583, § 3; 2003 (1st Ex. Sess.), No. 55, § 14; 2015, No. 1144, § 5; 2015, No. 1145, § 5; 2019, No. 869, § 1.

A.C.R.C. Notes. Identical Acts 2015, Nos. 1144 and 1145, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Amendments. The 2015 amendment by identical acts Nos. 1144 and 1145 inserted “with the exception of item (B)” preceding “grants” in (b)(1).

The 2019 amendment added (c).

Cross References. Fraudulent insurance acts prevention, § 23-66-501 et seq.

State Insurance Department Criminal Investigation Division Trust Fund Act, § 23-100-101 et seq.

State Insurance Department Trust Fund Act, § 23-61-701 et seq.

19-5-923. Red River Waterways Project Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Red River Waterways Project Trust Fund”.
The Red River Waterways Project Trust Fund shall consist of those moneys approved by the General Assembly from the Budget Stabilization Trust Fund and the interest income earned from the investment of funds accruing to the Red River Waterways Project Trust Fund.
The Red River Waterways Project Trust Fund may be used for such purposes as may be authorized by law.
Investment of the funds available shall be by the Treasurer of State in such amounts and in such manner as may be directed by the Red River Commission. In no event, however, shall the funds be invested for longer than a continuous two-year period.

History. Acts 1973, No. 750, § 8; 1977, No. 955, § 17; A.S.A. 1947, § 13-531.

19-5-924. Workers' Compensation Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Workers’ Compensation Fund”.
The fund shall consist of the revenues provided by §§ 11-9-101 — 11-9-105, 11-9-107 — 11-9-112, 11-9-401 — 11-9-403, 11-9-409, 11-9-501 — 11-9-529, 11-9-601 — 11-9-603, 11-9-701, 11-9-702, 11-9-704 — 11-9-716, and 11-9-801 — 11-9-811, and shall be used for the purposes as set out in §§ 11-9-101 — 11-9-105, 11-9-107 — 11-9-112, 11-9-401 — 11-9-403, 11-9-409, 11-9-501 — 11-9-529, 11-9-601 — 11-9-603, 11-9-701, 11-9-702, 11-9-704 — 11-9-716, and 11-9-801 — 11-9-811.

History. Acts 1973, No. 750, § 8; 1985, No. 888, § 12; A.S.A. 1947, § 13-531.

A.C.R.C. Notes. Acts 2016, No. 207, § 8, provided:

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Cross References. Workers' compensation funds, § 11-9-301.

19-5-925. Death and Permanent Total Disability Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Death and Permanent Total Disability Trust Fund”.
The fund shall consist of the revenues provided by §§ 11-9-101 — 11-9-105, 11-9-107 — 11-9-112, 11-9-401 — 11-9-403, 11-9-409, 11-9-501 — 11-9-529, 11-9-601 — 11-9-603, 11-9-701, 11-9-702, 11-9-704 — 11-9-716, and 11-9-801 — 11-9-811, and shall be used for the purposes as set out in §§ 11-9-101 — 11-9-105, 11-9-107 — 11-9-112, 11-9-401 — 11-9-403, 11-9-409, 11-9-501 — 11-9-529, 11-9-601 — 11-9-603, 11-9-701, 11-9-702, 11-9-704 — 11-9-716, and 11-9-801 — 11-9-811.

History. Acts 1973, No. 750, § 8; 1985, No. 888, § 12; A.S.A. 1947, § 13-531.

A.C.R.C. Notes. Acts 2016, No. 207, § 8, provided:

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Cross References. Workers' compensation funds, § 11-9-301.

19-5-926. [Repealed.]

Publisher's Notes. This section, concerning the Arkansas Tuition Trust Operating Fund, was repealed by Acts 2003 (1st Ex. Sess.), No. 55, § 15. The section was derived from Acts 1995, No. 1163, § 18.

19-5-927. State Forestry Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “State Forestry Trust Fund”.
The fund shall consist of:
1. Income derived from management of state forests by the Arkansas Forestry Commission to the extent this income is not needed to fund the general operations of the commission; and
2. Income derived from management of state nurseries by the commission to the extent this income is not needed to fund the general operations of the commission.
The fund shall be used for:
1. The management and improvement of state forests;
2. Acquisition of state forests;
3. The purchase of fire fighting equipment and other forest fire suppression activities;
4. Improvements at commission's nurseries and the seedling storage and distribution system; and
5. Such other purposes as may be authorized by law.

History. Acts 1973, No. 750, § 8; 1979, No. 1013, § 7; A.S.A. 1947, § 13-531; Acts 1993, No. 881, § 14; 1997, No. 253, § 2.

Cross References. As to the income derived from the management of state forests, see § 15-31-113.

19-5-928. State Insurance Department Criminal Investigation Division Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “State Insurance Department Criminal Investigation Division Trust Fund”.
The fund shall consist of those special revenues as specified in § 19-6-301(191), interest income, grants, refunds, gifts, or any other resources.
The fund shall be used to defray the expenses of the Criminal Investigation Division of the State Insurance Department in the discharge of its administrative and regulatory powers and duties as prescribed by law and as set out in the State Insurance Department Criminal Investigation Division Trust Fund Act, § 23-100-101 et seq.

History. Acts 1999, No. 1463, § 12; 2007, No. 1032, § 14; 2007, No. 1201, § 14.

Publisher's Notes. Former § 19-5-928, concerning the Emergency Fire Trust Fund, was repealed by Acts 1997, No. 253, § 4. The section was derived from Acts 1973, No. 750, § 8; A.S.A. 1947, § 13-531; Acts 1993, No. 881, § 15. For present law, see § 19-5-927.

Amendments. The 2007 amendment by identical acts Nos. 1032 and 1201 substituted “State Insurance Department Criminal” for “Insurance Fraud” in the section heading and in (a) and (c).

19-5-929. [Repealed.]

Publisher's Notes. This section, concerning the Emergency Response Fund, was repealed by Acts 2005, No. 1824, § 18. The section was derived from Acts 1973, No. 750, § 8; 1985, No. 888, § 12; A.S.A. 1947, § 13-531; Acts 1999, No. 1164, § 158; 1999, No. 1463, § 13.

19-5-930. Hazardous Substance Remedial Action Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Hazardous Substance Remedial Action Trust Fund”.
The Hazardous Substance Remedial Action Trust Fund shall consist of all moneys appropriated by the General Assembly to the Hazardous Substance Remedial Action Trust Fund, gifts, donations, interest earnings, fees on the generation of hazardous waste, punitive damages, penalties, and any other moneys legally designated, with the exception of those moneys deposited into the Environmental Education Fund as set out in § 8-7-509(d), all moneys received as penalties under §§ 8-4-101 — 8-4-106, 8-4-201 — 8-4-229, 8-4-301 — 8-4-313, 8-6-201 — 8-6-212, 8-6-213 [repealed], 8-6-214, 8-7-201 — 8-7-226, 8-7-504, and 20-27-1001 — 20-27-1007, and all punitive damages collected under § 8-7-517, there to be administered by the Director of the Division of Environmental Quality as provided in § 8-7-509.

History. Acts 1973, No. 750, § 8; 1985, No. 888, § 12; A.S.A. 1947, § 13-531; Acts 1987, No. 928, § 4; 1993, No. 1073, § 6; 1999, No. 1164, § 159; 2007, No. 1032, § 15; 2007, No. 1201, § 15; 2011, No. 1011, § 4; 2019, No. 910, § 3187.

Amendments. The 2007 amendment by identical acts Nos. 1032 and 1201 inserted “any moneys remaining … pursuant to § 8-7-517” in (b).

The 2011 amendment deleted “8-4-401 — 8-4-409” following “8-4-313” in (b).

The 2019 amendment substituted “Director of the Division of Environmental Quality” for “Director of the Arkansas Department of Environmental Quality” in (b).

19-5-931. [Repealed.]

Publisher's Notes. This section, concerning the Nongame Preservation Fund, was repealed by Acts 2003 (1st Ex. Sess.), No. 55, § 16. The section was derived from Acts 1973, No. 750, § 8; 1985, No. 888, § 12; A.S.A. 1947, § 13-531.

19-5-932. Public Facilities Debt Service Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Public Facilities Debt Service Fund”.
The fund shall consist of those revenues as specified in the Public Facilities Finance Act of 1983, § 22-3-1201 et seq., and shall be used for the purposes as set out in the Public Facilities Finance Act of 1983, § 22-3-1201 et seq.

History. Acts 1973, No. 750, § 8; 1985, No. 888, § 12; A.S.A. 1947, § 13-531.

19-5-933. Vietnam Veterans Monument Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Vietnam Veterans Monument Fund”.
The fund shall consist of gifts, grants, and donations from individuals and organizations and other funds as may be provided by law.
The fund shall be used exclusively for the purpose of erecting and maintaining a suitable monument on the State Capitol Grounds, in recognition and appreciation of the State of Arkansas Vietnam Veterans, as provided in § 22-3-215.

History. Acts 1973, No. 750, § 8; 1985, No. 888, § 12; A.S.A. 1947, § 13-531.

19-5-934. Local Sales and Use Tax Trust Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Local Sales and Use Tax Trust Fund”.
The fund shall be used for the refund of taxes as may be authorized by law.

History. Acts 1980 (1st Ex. Sess.), No. 29, § 1; A.S.A. 1947, § 13-523.5.

Cross References. Trust fund for the remittance of local sales and use taxes, § 26-74-221.

19-5-935. Employment Security Advance Interest Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Employment Security Advance Interest Trust Fund”.
The Employment Security Advance Interest Trust Fund shall consist of receipts from the advance interest tax and any penalties and interest, as transferred from the Unemployment Compensation Fund Clearing Account, there to be used for:
1. Paying interest incurred by the state on advances from the Federal Unemployment Trust Fund;
2. Making refunds of advance interest taxes or interest and penalty payments which were erroneously paid; and
3. Returning moneys to the account which were incorrectly identified and erroneously transferred.

History. Acts 1987, No. 928, § 4.

Publisher's Notes. Former § 19-5-935, concerning the Hazardous Substance Response Trust Fund, was repealed by Acts 1987, No. 928, § 6. The former section was derived from Acts 1983, No. 539, § 14; A.S.A. 1947, § 13-523.10.

Cross References. Future rates — Advance interest tax, § 11-10-708.

19-5-936. State Library Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “State Library Revolving Fund”.
The fund shall consist of moneys collected from payments for lost books, use of copy machines, charges for database searches, and other miscellaneous sources. The fund shall be used to replace lost books, pay copy machine costs, and for such other purposes as authorized by law.

History. Acts 1983, No. 364, § 8; A.S.A. 1947, § 13-523.8.

19-5-937, 19-5-938. [Repealed.]

Publisher's Notes. These sections, concerning the Fraud Prevention Fund and the Vocational-Technical Education Contingency Fund, were repealed by identical Acts 2017, Nos. 1083 and 1127, §§ 7 and 8. The sections were derived from the following sources:

19-5-937. Acts 1983, No. 926, § 51; A.S.A. 1947, § 13-523.11.

19-5-938. Acts 1981, No. 769, § 12.

19-5-939. Unemployment Compensation Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Unemployment Compensation Revolving Fund”.
The Unemployment Compensation Revolving Fund shall consist of employer unemployment contributions made under § 19-5-707 and temporary loans from the Budget Stabilization Trust Fund received under § 19-5-709.
The funds shall be used to reimburse the Division of Workforce Services, in a timely manner, for unemployment compensation benefits paid by the division and charged to a state agency, as provided in § 19-5-701 et seq., and other laws applicable to state employees' unemployment compensation and for such other purposes as may be authorized by law.

History. Acts 1973, No. 750, § 8; 1977, No. 608, § 3; 1979, No. 1013, § 7; A.S.A. 1947, §§ 13-531, 13-554.2; Acts 2019, No. 910, § 485.

Publisher's Notes. Acts 1973, No. 750, § 8, as amended, is also codified as § 19-5-706.

Amendments. The 2019 amendment, in (c), substituted “Division of Workforce Services” for “Department of Workforce Services” and “division” for “department”.

19-5-940. Workers' Compensation Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Workers’ Compensation Revolving Fund”.
The Workers’ Compensation Revolving Fund shall consist of employer workers’ compensation benefits contributions made under § 19-5-806 and temporary loans from the Budget Stabilization Trust Fund received under § 19-5-808.
These funds shall be used to pay workers' compensation benefits awarded to state employees by the Workers' Compensation Commission and for such other purposes as may be authorized by law.

History. Acts 1973, No. 750, § 8; 1977, No. 924, § 3; 1979, No. 1013, § 7; A.S.A. 1947, §§ 13-531, 13-1407.3.

Publisher's Notes. Acts 1973, No. 750, § 8, as amended, is also codified as § 19-5-805.

Cross References. Workers' Compensation Revolving Fund, § 19-10-403.

19-5-941. [Repealed.]

Publisher's Notes. This section, concerning the establishment of the Arkansas Science and Technology Authority Endowment Fund, was repealed by Acts 2010, No. 262, § 7, and Acts 2010, No. 296, § 7. The section was derived from Acts 1987, No. 928, § 5.

19-5-942. Educational Excellence Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Educational Excellence Trust Fund”.
The fund shall consist of those additional revenues enacted by the Seventy-Eighth General Assembly meeting in regular session, the phrase “those additional revenues” being limited to any increases enacted in those taxes classified as general revenues in the Revenue Classification Law, § 19-6-101 et seq., there to be distributed to the various funds and fund accounts as set out in § 6-5-301 et seq.

History. Acts 1987, No. 928, § 5; 1991, No. 10, § 1; 1993, No. 1073, § 7.

19-5-943. [Repealed.]

Publisher's Notes. This section, concerning the Department of Arkansas Heritage Endowment Trust Fund, was repealed by identical Acts 2017, Nos. 1083 and 1127, § 9. The section was derived from Acts 1987, No. 928, § 5.

19-5-944. County Assessors' Continuing Education Trust Fund.

1. 1. There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State the “County Assessors’ Continuing Education Trust Fund”.
  2. 1. The quorum court of each county shall annually appropriate and pay into the County Assessors’ Continuing Education Trust Fund in the State Treasury the sum of six hundred dollars ($600) from fees of the office of the county assessor.
    2. If any quorum court shall fail or refuse to appropriate and pay over the funds to the County Assessors’ Continuing Education Trust Fund in the State Treasury, the Treasurer of State shall withhold funds from the county aid due to the county and shall credit the funds to the County Assessors’ Continuing Education Trust Fund.
2. The County Assessors’ Continuing Education Trust Fund shall consist of all moneys required to be paid in annually as set out in this section, all interest earned from the investment of fund balances, and any remaining fund balances carried forward from year to year.
The funds in the County Assessors’ Continuing Education Trust Fund shall be used exclusively for the establishment and operation of a continuing education program for county assessors and for paying the meals, lodging, registration fees, and mileage at the rate prescribed in state travel rules of county assessors who attend the continuing education programs.

History. Acts 1991, No. 949, § 2; 1999, No. 342, § 3; 2007, No. 259, § 1; 2019, No. 315, § 1741.

A.C.R.C. Notes. Acts 1993, No. 1073, § 8, was originally codified as § 19-5-944, but because it duplicated Acts 1991, No. 949, § 2, Acts 1991, No. 949, § 2 was codified as this section in 1993, and Acts 1993, No. 1073, § 8 appears as a note under this section.

Publisher's Notes. Former § 19-5-944, concerning the Construction Grants Revolving Loan Fund, was repealed by Acts 1991, No. 718, § 6. The former section was derived from Acts 1987, No. 1030, § 5.

Acts 1993, No. 1073, § 8, provided:

“There is established on the books of the Treasurer of State, Auditor of State, and Chief Fiscal Officer of the State a fund to be known as the ‘County Assessors’ Continuing Education Trust Fund’. This fund shall consist of moneys appropriated annually by each county quorum court, or funds transferred from the County Aid Fund in the event such appropriations are not made, and all interest earnings, there to be used exclusively for the establishment and operation of a continuing education program for county assessors as set out in Section 2 of Act 949 of 1991.”

For amount of appropriation for continuing education for County Assessors of the Assessment Coordination Department — Continuing Education, see Acts 1999, No. 342, § 6.

Acts 1999, No. 342, §§ 7 and 8, provided that:

“Disbursement of funds authorized by this act shall be limited to the appropriation for such agency and funds made available by law for the support of such appropriations; and the restrictions of the State Purchasing Law, the General Accounting and Budgetary Procedures Law, the Revenue Stabilization Law, the Regular Salary Procedures and Restrictions Act, or their successors, and other fiscal control laws of this State, where applicable, and regulations promulgated by the Department of Finance and Administration, as authorized by law, shall be strictly complied with in disbursement of said funds.

“It is the intent of the General Assembly that any funds disbursed under the authority of the appropriations contained in this act shall be in compliance with the stated reasons for which this act was adopted, as evidenced by the Agency Requests, Executive Recommendations and Legislative Recommendations contained in the budget manuals prepared by the Department of Finance and Administration, letters, or summarized oral testimony in the official minutes of the Arkansas Legislative Council or Joint Budget Committee which relate to its passage and adoption.”

Amendments. The 2007 amendment substituted “six hundred dollars ($600)” for “four hundred fifty dollars ($450)” in (a)(1)(B)(i).

The 2019 amendment substituted “rules” for “regulations” in (b).

19-5-945. Court Awards Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Court Awards Fund”.
The fund shall consist of state and federal asset forfeitures.
The fund shall be used for expenditures of the Division of Arkansas State Police for the respective purposes as provided by law.

History. Acts 1987, No. 1037, § 10; 2017, No. 818, § 1.

A.C.R.C. Notes. Acts 2016, No. 265, § 14, provided: “COURT AWARDS FUND TRANSFER PROVISION. Monies deposited in the Court Awards Fund each fiscal year may be used for motor vehicle purchases and associated taxes and/or motor vehicle equipping and renovation costs, overtime, personal services matching, agency operational needs and capital improvements for the Department of Arkansas State Police. Provided however, funds received from the Special State Assets Forfeiture Fund shall be deposited into the Court Awards Fund to be used by the Department of Arkansas State Police for law enforcement purposes consistent with governing federal law. The Department of Arkansas State Police may also request a fund transfer from the Court Awards Fund or the Department of Arkansas State Police Fund to the Motor Vehicle Acquisition Revolving Fund. The provisions of this section shall be subject to prior review and approval of the Arkansas Legislative Council or Joint Budget Committee.

“Determining the maximum number of employees and the maximum amount of appropriation and general revenue funding for a state agency each fiscal year is the prerogative of the General Assembly. This is usually accomplished by delineating such maximums in the appropriation act(s) for a state agency and the general revenue allocations authorized for each fund and fund account by amendment to the Revenue Stabilization law. Further, the General Assembly has determined that the Department of Arkansas State Police may operate more efficiently if some flexibility is provided to the Department of Arkansas State Police authorizing broad powers under this Section. Therefore, it is both necessary and appropriate that the General Assembly maintain oversight by requiring prior approval of the Legislative Council or Joint Budget Committee as provided by this section. The requirement of approval by the Legislative Council or Joint Budget Committee is not a severable part of this section. If the requirement of approval by the Legislative Council or Joint Budget Committee is ruled unconstitutional by a court of competent jurisdiction, this entire section is void.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2017, No. 1026, § 20, provided: “QUARTERLY REPORTING.

The Department of Arkansas State Police shall on a quarterly basis provide to the Arkansas Legislative Council or Joint Budget Committee a report detailing expenditures from the Court Awards Fund of the Confiscated Funds Transfer appropriation of this Act. The report shall include the State Police division, purpose and amount of expenditures.

“The quarterly reports shall be provided no later than the 15th day of the month immediately following the end of each quarter.

“The provisions of this section shall be in effect only from July 1, 2017 through June 30, 2018.”

Publisher's Notes. Acts 1993, No. 508, § 13 provided:

“A sum equal to fifty percent (50%), of the first three million dollars ($3,000,000) or so much thereof as is available in the Court Awards Fund each fiscal year shall be used exclusively for motor vehicle purchases and associated taxes and/or motor vehicle renovation costs for the Department of Arkansas State Police.”

Amendments. The 2017 amendment added (b); redesignated former (c) as (b); and, in (c), substituted “expenditures of” for “fund transfers to” and deleted “Fund there to be used” following “Police”.

19-5-946. County Collectors' Continuing Education Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “County Collectors’ Continuing Education Trust Fund”.
The County Collectors’ Continuing Education Trust Fund shall consist of fees, as annually appropriated by the quorum court of each county, of the office of county collector and such funds withheld from the County Aid Fund for those counties which fail or refuse to provide such appropriated fees, there to be used exclusively for the establishment and operation of a continuing education program for county collectors and sheriff-collectors as set out in § 14-15-1001.

History. Acts 1991, No. 1135, § 7.

A.C.R.C. Notes. Acts 1991, No. 1135, § 7, purported to amend former § 19-5-946 which had previously been repealed by Acts 1989 (3rd Ex. Sess.), No. 39, § 3; the 1991 act has been treated as an enactment.

19-5-947. County Treasurers' Continuing Education Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “County Treasurers’ Continuing Education Fund”.
The County Treasurers’ Continuing Education Fund shall consist of fees from the office of county treasurer, as appropriated by the quorum court of each county and any moneys transferred from the County Aid Fund, there to be used exclusively for the establishment and operation of a continuing education program for county treasurers and payment of expenses for attending the program, all as provided in § 14-15-811.

History. Acts 1989, No. 629, § 11.

19-5-948. Manufactured Housing Recovery Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Manufactured Housing Recovery Fund”.
The fund shall consist of fees assessed under the Arkansas Manufactured Home Recovery Act, § 20-29-101 et seq., by the Arkansas Manufactured Home Commission, there to be used for such purposes as set out in §§ 20-29-104 — 20-29-108 and 20-29-110.

History. Acts 1989, No. 629, § 11.

19-5-949. Children's Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Children’s Trust Fund”.
The fund shall consist of those special revenues as specified in § 19-6-301(189) and moneys received from the United States Government, other governments, or persons or any other entities that do not obligate the State of Arkansas, there to be used by the Department of Human Services.

History. Acts 1989, No. 629, § 11; 1995, No. 1163, § 19; 2017, No. 897, § 12.

Amendments. The 2017 amendment, in (b), substituted “entities that” for “entities which”, and substituted “Department of Human Services” for “State Child Abuse and Neglect Prevention Board as set out in the Child Abuse and Neglect Prevention Act, § 9-30-101 et seq.”

19-5-950. Crime Victims Reparations Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Crime Victims Reparations Revolving Fund”.
The Crime Victims Reparations Revolving Fund shall consist of moneys transferred or deposited from the State Administration of Justice Fund, twenty-four percent (24%) of the fees collected under § 12-12-1510(c), and all other moneys received by the Crime Victims Reparations Board, there to be used to compensate and assist victims of criminal acts as set out in the Arkansas Crime Victims Reparations Act, § 16-90-701 et seq.

History. Acts 1989, No. 629, § 11; 1993, No. 1073, § 9; 1997, No. 1248, § 15; 2015, No. 1185, § 7.

A.C.R.C. Notes. Acts 2016, No. 251, § 61, provided: “YEARLY FUND TRANSFERS. On July 1, 2010 and each July 1, thereafter, if the fund balance of the Crime Victims Reparation Revolving Fund falls below one million dollars ($1,000,000), the Chief Fiscal Officer of the State may transfer on his or her books and those of the State Treasurer and the Auditor of the State a sum not to exceed one million dollars ($1,000,000) or so much thereof as is available from fund balances that exceed seven million dollars ($7,000,000) as determined by the Chief Fiscal Officer of the State, from the State Administration of Justice Fund to the Crime Victims Reparations Revolving Fund to provide funds for personal services, operating expenses and claims for the Office of the Attorney General — Crime Victims Reparations Program.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Amendments. The 2015 amendment, in (b), inserted “twenty-four percent (24%) of the fees collected under § 12-12-1510(c)” and “the Arkansas Crime Victims Reparations Act”.

19-5-951. Arkansas Natural and Cultural Resources Grants and Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Natural and Cultural Resources Grants and Trust Fund”.
The fund shall consist of eighty percent (80%) of those special revenues as specified in § 19-6-301(145), there to be used by the Arkansas Natural and Cultural Resources Council for use in the acquisition, management, and stewardship of state-owned lands and other purposes as set out in §§ 15-12-101 — 15-12-103.

History. Acts 1989, No. 629, § 11.

19-5-952. Natural and Cultural Resources Historic Preservation Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Natural and Cultural Resources Historic Preservation Fund”.
The fund shall consist of ten percent (10%) of those special revenues as specified in § 19-6-301(145), there to be used by the Arkansas Natural and Cultural Resources Council for providing a source of funds for the operation of the Arkansas Historic Preservation Program and the Main Street Arkansas program as set out in § 15-12-103.

History. Acts 1989, No. 629, § 11.

19-5-953. Long-Term Care Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Long-Term Care Trust Fund”.
The Long-Term Care Trust Fund shall consist of all moneys and interest received from the imposition of civil penalties levied by the state on long-term care facilities found to be out of compliance with the requirements of federal law or regulations, or state law or rules, there to be administered by the Secretary of the Department of Human Services solely for the protection of the health or property of residents of long-term care facilities, including, but not limited to, the payment for the costs of relocation of residents to other facilities, maintenance and operation of a facility pending correction of deficiencies or closure, and reimbursement of residents for personal funds lost.
Funds from the Long-Term Care Trust Fund may also be administered by the Secretary of the Department of Human Services for programs or uses that, in the determination of the Director of the Office of Long-Term Care, enhance the quality of life for long-term care facility residents through the adoption of principles and building designs established by the Eden Alternative, Inc., or Green House Project programs or other means.

History. Acts 1989, No. 629, § 11; 2009, No. 251, § 13; 2019, No. 315, § 1742; 2019, No. 910, § 5162.

Amendments. The 2009 amendment added (c).

The 2019 amendment by No. 315 substituted “federal law or regulations, or state law or rules” for “federal or state law or regulations” in (b).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Human Services” for “Director of the Department of Human Services” in (b) and (c); and inserted “Inc.” in (c).

19-5-954. Fidelity Bond Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Fidelity Bond Trust Fund”.
The fund shall consist of bond premiums collected under § 21-2-701 et seq., there to be administered and disbursed by the Governmental Bonding Board for the use and benefit of participating governmental entities for bond claims and board expenses.

History. Acts 1989, No. 629, § 11.

19-5-955. Special Needs Trust Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Special Needs Trust Revolving Fund”.
The fund shall consist of all moneys received from individuals who establish or maintain eligibility for benefits under a medical assistance program, but possess income or resources in excess of established federal eligibility requirements, and moneys received from any other source and interest income, there to be used for implementing the provisions of § 20-77-701 et seq.

History. Acts 1989, No. 629, § 11; 1995, No. 1163, § 20.

19-5-956. Tourism Development Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Tourism Development Trust Fund”.
The fund shall consist of those special revenues as specified in § 19-6-301(146) and fifty percent (50%) of those special revenues as specified in § 19-6-301(262), there to be used by the Department of Commerce exclusively for the promotion of wine tourism in Arkansas.

History. Acts 1989, No. 629, § 11; 2017, No. 508, § 7; 2019, No. 910, § 5670.

Amendments. The 2017 amendment, in (b), inserted “and fifty percent (50%) of those special revenues as specified in § 19-6-301(262)” and substituted “promotion of wine tourism” for “promotion of tourism”.

The 2019 amendment substituted “Department of Commerce” for “Department of Parks and Tourism” in (b).

Effective Dates. Acts 2017, No. 508, § 13(a): Oct. 1, 2017. Effective date clause provided: “Sections 1, 2, 3, 6, 7, 8, 9, 10, 11, and 12 of this act become effective on October 1, 2017.”

19-5-957. Identification Pending Trust Fund for Local Sales and Use Taxes.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Identification Pending Trust Fund for Local Sales and Use Taxes”.
The Identification Pending Trust Fund for Local Sales and Use Taxes shall consist of money reported as local sales and use taxes collected in local taxing jurisdictions that are not immediately identifiable and money collected in local jurisdictions that have no tax, and the money in the Identification Pending Trust Fund for Local Sales and Use Taxes is to be used for transfers to the Local Sales and Use Tax Trust Fund when a local tax jurisdiction is identified for money and for transfers to general revenues when the total amount in this fund exceeds fifty thousand dollars ($50,000) as stated in §§ 26-74-221, 26-74-317, and 26-82-113, and shall also consist of vending devices sales taxes, § 26-57-1002(d)(2), and that portion of vending devices decal fees and penalties, §§ 26-57-1206 and 26-57-1208(b)(2), there to be distributed to cities and counties under §§ 26-74-221(a)(2)(C)(ii), 26-75-223(a)(2)(C)(ii), and 26-82-113(a)(2)(A)(ii).

History. Acts 1991, No. 1135, § 10; 1999, No. 1463, § 14; 2011, No. 828, § 7.

Amendments. The 2011 amendment, in (b), inserted “and 26-82-113” and added “and 26-82-113(a)(2)(A)(ii)” at the end.

19-5-958. Insurance Continuing Education Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Insurance Continuing Education Trust Fund”.
The fund shall consist of certification filing fees as provided in § 23-64-306, there to be used for administering continuing education provisions for insurance agents, solicitors, consultants, and brokers as set out in § 23-64-301 et seq.

History. Acts 1991, No. 1135, § 10.

19-5-959. Petroleum Storage Tank Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Petroleum Storage Tank Trust Fund”.
The Petroleum Storage Tank Trust Fund shall consist of the petroleum environmental assurance fees as provided in § 8-7-906, all other fees assessed under the Petroleum Storage Tank Trust Fund Act, § 8-7-901 et seq., gifts, grants, donations, such other funds made available by the General Assembly, the excess of a reserve of two (2) months’ requirements of debt service from fees in the Petroleum Storage Tank Trust Fund Revenue Bond Debt Service Fund under § 15-5-1206 and any moneys recovered by the Division of Environmental Quality which are attributable to collections of civil penalties under § 8-7-806 or to costs under § 8-7-807 not owed the Regulated Substance Storage Tank Program Fund, there to be administered by the Director of the Division of Environmental Quality, who shall make disbursements from the Petroleum Storage Tank Trust Fund as authorized by the Petroleum Storage Tank Trust Fund Act, § 8-7-901 et seq.

History. Acts 1991, No. 1135, § 10; 1993, No. 1073, § 10; 1997, No. 1248, § 16; 1999, No. 1164, § 160; 2019, No. 910, § 3188.

Amendments. The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” twice in (b).

19-5-960. Private Career School Student Protection Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Private Career School Student Protection Trust Fund”.
The fund shall consist of a fee to be set by the Division of Higher Education in consultation with the State Board of Private Career Education as provided in § 6-51-607, there to be used for paying claims and other expenses as set out in § 6-51-607.

History. Acts 1991, No. 1135, § 10; 2017, No. 565, § 24; 2019, No. 910, § 2266.

Amendments. The 2017 amendment inserted “Department of Higher Education in consultation with the” in (b).

The 2019 amendment substituted “Division of Higher Education” for “Department of Higher Education” in (b).

19-5-961. Solid Waste Management and Recycling Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Solid Waste Management and Recycling Fund”.
The fund shall consist of those special revenues specified in §§ 19-6-301(154) and 19-6-301(240), reimbursement of funds pursuant to § 8-6-610, federal funds which may become available, interest earnings, gifts, donations, and any other funds made available by the General Assembly, there to be administered by the Division of Environmental Quality as set out in the Solid Waste Management and Recycling Fund Act, § 8-6-601 et seq.

History. Acts 1991, No. 1135, § 10; 1999, No. 1164, § 161; 2009, No. 1440, § 2; 2009, No. 1441, § 2; 2013, No. 1516, § 2; 2013, No. 1517, § 2; 2017, No. 624, § 8; 2019, No. 910, § 3189.

Amendments. The 2009 amendment by identical acts Nos. 1440 and 1441 inserted “and (239)” in (b).

The 2013 amendment by identical acts Nos. 1516 and 1517 substituted “19-6-301(240)” for “19-6-301(239)” in (b).

The 2017 amendment inserted “trust” in (a).

The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (b).

19-5-962. State Health Department Building and Local Grant Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “State Health Department Building and Local Grant Trust Fund”.
Except as provided in § 20-7-203(b), the fund shall consist of moneys authorized by law to be used only for expansion, renovation, construction, or improvements to the State Health Department building and for grants for construction, renovation, or other expansion of approved local health unit facilities in this state and moneys authorized under § 20-7-408(f).

History. Acts 1991, No. 1135, § 10; 1995, No. 1163, § 21; 2017, No. 206, § 4 ; 2017, No. 752, § 1.

Publisher's Notes. Acts 2017, No. 752, § 1 specifically amended this section as amended by Acts 2017, No. 206, § 4.

Amendments. The 2017 amendment by No. 206, in (b), substituted “Except as provided in § 20-7-203(b), the” for “The” and “moneys authorized by law to be used only” for “that portion of local health unit fees specified in § 20-7-127, and any other moneys authorized by law, there to be used, except as provided in § 20-7-203(b), only”.

The 2017 amendment by No. 752 inserted “and moneys authorized under § 20-7-408(f)” at the end of (b).

19-5-963. [Repealed.]

Publisher's Notes. This section, concerning the War Memorial Stadium Improvement and Expansion Fund, was repealed by Acts 2007, No. 1032, § 16. The section was derived from Acts 1991, No. 1135, § 10.

19-5-964. Water Resources Development Bond Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Water Resources Development Bond Fund”.
The fund shall consist of proceeds from the sale of bonds as issued by the Arkansas Natural Resources Commission and revenues derived from projects financed under the Arkansas Water Resources Development Act of 1981, § 15-22-601 et seq., in amounts or portions as set forth in the resolution or trust indenture authorizing or securing such bonds, general revenues, and any other funds made available by the General Assembly, there to be used only to provide for payment of all or part of debt service on bonds issued under the Arkansas Water Resources Development Act of 1981, § 15-22-601 et seq., either at maturity or upon redemption prior to maturity, as administered by the Treasurer of State.

History. Acts 1991, No. 1135, § 10.

19-5-965. Water Resources Development Debt Service Reserve Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Water Resources Development Debt Service Reserve Fund”.
The fund shall consist of proceeds from the sale of bonds as issued by the Arkansas Natural Resources Commission and revenues derived from projects financed under the Arkansas Water Resources Development Act of 1981, § 15-22-601 et seq., in amounts or portions as set forth in the resolution or trust indenture authorizing or securing such bonds, general revenues, and any other funds made available by the General Assembly, there to be used only to ensure prompt payment of debt service on bonds issued under the Arkansas Water Resources Development Act of 1981, § 15-22-601 et seq., either at maturity or upon redemption prior to maturity, as administered by the Treasurer of State.

History. Acts 1991, No. 1135, § 10.

19-5-966. Water Resources Development Operation and Maintenance Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Water Resources Development Operation and Maintenance Fund”.
The fund shall consist of proceeds from the sale of bonds as issued by the Arkansas Natural Resources Commission and revenues derived from projects financed under the Arkansas Water Resources Development Act of 1981, § 15-22-601 et seq., in amounts or portions as set forth in the resolution or trust indenture authorizing or securing such bonds, there to be used for all or a part of the operation and maintenance needs of projects financed under the provisions of the Arkansas Water Resources Development Act of 1981, § 15-22-601 et seq.

History. Acts 1991, No. 1135, § 10.

19-5-967. Water Resources Development Construction Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Water Resources Development Construction Fund”.
The fund shall consist of proceeds from the sale of bonds as issued by the Arkansas Natural Resources Commission, there to be used, pursuant to appropriation by the General Assembly, for projects developed under the Arkansas Water Resources Development Act of 1981, § 15-22-601 et seq.

History. Acts 1991, No. 1135, § 10.

19-5-968. Waste Disposal and Pollution Abatement Facilities Construction Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Waste Disposal and Pollution Abatement Facilities Construction Fund”.
The fund shall consist of proceeds from the sale of bonds as issued by the Arkansas Natural Resources Commission and revenues derived from projects financed under § 15-22-701 et seq., in amounts or portions as set forth in the resolution or trust indenture authorizing or securing such bonds, there to be used for the development of projects and the payment of the costs and expenses of the issuance of the bonds.

History. Acts 1991, No. 1135, § 10.

19-5-969. Waste Disposal and Pollution Abatement Facilities Bond Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Waste Disposal and Pollution Abatement Facilities Bond Fund”.
The fund shall consist of proceeds from the sale of bonds as issued by the Arkansas Natural Resources Commission and revenues derived from projects financed under the Arkansas Waste Disposal and Pollution Abatement Facilities Financing Act of 1987, § 15-22-701 et seq., in amounts or portions as set forth in the resolution or trust indenture authorizing or securing such bonds; general revenues; and any other funds made available by the General Assembly; there to be used only to provide for payment of all or part of debt service on bonds issued under the Arkansas Waste Disposal and Pollution Abatement Facilities Financing Act of 1987, § 15-22-701 et seq., either at maturity or upon redemption prior to maturity, as administered by the Treasurer of State.

History. Acts 1991, No. 1135, § 10.

19-5-970. Waste Disposal and Pollution Abatement Facilities Debt Service Reserve Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Waste Disposal and Pollution Abatement Facilities Debt Service Reserve Fund”.
The fund shall consist of proceeds from the sale of bonds as issued by the Arkansas Natural Resources Commission and revenues derived from projects financed under the Arkansas Waste Disposal and Pollution Abatement Facilities Financing Act of 1987, § 15-22-701 et seq., in amounts or portions as set forth in the resolution or trust indenture authorizing or securing such bonds, general revenues, and any other funds made available by the General Assembly; there to be used only to ensure prompt payment of debt service on bonds issued under the Arkansas Waste Disposal and Pollution Abatement Facilities Financing Act of 1987, § 15-22-701 et seq., either at maturity or upon redemption prior to maturity, as administered by the Treasurer of State.

History. Acts 1991, No. 1135, § 10.

19-5-971. Waste Disposal and Pollution Abatement Facilities Operation and Maintenance Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Waste Disposal and Pollution Abatement Facilities Operation and Maintenance Fund”.
The fund shall consist of proceeds from the sale of bonds as issued by the Arkansas Natural Resources Commission and revenues derived from projects financed under the Arkansas Waste Disposal and Pollution Abatement Facilities Financing Act of 1987, § 15-22-701 et seq., in amounts or portions as set forth in the resolution or trust indenture authorizing or securing such bonds, there to be used for all or a part of the operation and maintenance of the projects financed under the Arkansas Waste Disposal and Pollution Abatement Facilities Financing Act of 1987, § 15-22-701 et seq.

History. Acts 1991, No. 1135, § 10.

19-5-972. Special State Assets Forfeiture Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Special State Assets Forfeiture Fund”.
The fund shall consist of revenues as provided in § 5-64-505(i)(1)(B)(iv) and any other revenues as may be provided by law, there to be administered through rules established by the Arkansas Drug Director and distributed by the Arkansas Alcohol and Drug Abuse Coordinating Council in accordance with the intent and purposes of the Uniform Controlled Substances Act, § 5-64-101 et seq.

History. Acts 1991, No. 1135, § 10; 1999, No. 1120, § 6; 2019, No. 315, § 1743.

A.C.R.C. Notes. Acts 1999, No. 1120, § 1, provided:

“As stated in the comment to section 505 of the Uniform Controlled Substances Act, ‘Effective law enforcement demands that there be a means of confiscating the vehicles and instrumentalities used by drug traffickers in committing violations under this act. The reasoning is to prevent their use in the commission of subsequent offenses involving transportation or concealment of controlled substances and to deprive the drug trafficker of needed mobility.’ The General Assembly recognizes the importance of asset forfeiture as a means to confront drug trafficking. However, the General Assembly also recognizes that under the system that existed prior to the enactment of this act, the lack of uniformity and accountability in forfeiture procedures across the state has undermined confidence in the system. As the United States Supreme Court has stated, ‘Forfeiture provisions are powerful weapons in the war on crime; like any such weapons, their impact can be devastating when used unjustly.’ In order to alleviate the problems resulting from the lack of uniformity and accountability, the General Assembly has determined that time limits for initiating forfeiture proceedings and stricter controls over forfeited property will help alleviate such problems while strengthening forfeiture as a vital weapon against drug trafficking. Specifically, it is the intent of § 5-64-505(a) that there be no forfeitures based solely upon a misdemeanor possession of a controlled substance. However, if the prosecuting attorney can prove that other evidence exists to establish a basis for forfeiture, the property may be forfeited. It is the intent of § 5-64-505(d) to reduce the conflict between state and federal authorities over seizures executed by state law enforcement officers. It is the intent of § 5-64-505(h) to allow law enforcement agencies and drug task forces to maintain forfeited property for official use, provided that the final order disposing of such property defines the legal entity that is responsible for such property. Section 5-64-505(i)(1)(D) governs those situations in which a seizure results in the forfeiture of money and or property in excess of two hundred fifty thousand dollars ($250,000). It is the specific intent of the General Assembly that forfeiture proceedings not be structured in such a way as to defeat the General Assembly's intent that money or property in excess of two hundred fifty thousand dollars ($250,000) be transferred to the Special State Assets Forfeiture Fund. It is determined that such fund can best be used to combat drug trafficking statewide.”

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (b).

19-5-973. Public Facilities Construction Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Public Facilities Construction Fund”.
The fund shall consist of the remainder of the proceeds from the sale of certificates of indebtedness as provided in § 22-3-1214, there to be used only for the redemption of the 1977 bonds and the 1979 bonds and for the construction of buildings authorized under the Public Facilities Finance Act of 1983, § 22-3-1201 et seq.

History. Acts 1991, No. 1135, § 10.

19-5-974. Higher Education Projects Development Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Higher Education Projects Development Fund”.
The fund shall consist of proceeds from the sale of bonds as issued by the Arkansas Development Finance Authority and revenues derived from any project financed under the Arkansas College Savings Bond Act of 1989, § 6-62-701 et seq., in amounts or portions as set forth in the resolution or trust indenture authorizing or securing such bonds, there to be used to provide for the development of projects at state institutions of higher education and the payment of project costs and expenses of the issuance of bonds as set out in the Arkansas College Savings Bond Act of 1989, § 6-62-701 et seq.

History. Acts 1991, No. 1135, § 10.

19-5-975. College Savings Bond Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “College Savings Bond Fund”.
The fund shall consist of proceeds from the sale of bonds as issued by the Arkansas Development Finance Authority and revenues derived from any project financed under the Arkansas College Savings Bond Act of 1989, § 6-62-701 et seq., in amounts or portions as set forth in the resolution or trust indenture authorizing or securing such bonds; general revenues; and any other funds made available by the General Assembly; there to be used only to provide for payment of all or a part of debt service on bonds issued under the Arkansas College Savings Bond Act of 1989, § 6-62-701 et seq., either at maturity or upon redemption prior to maturity, as administered by the Treasurer of State.

History. Acts 1991, No. 1135, § 10.

19-5-976. College Savings Debt Service Reserve Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “College Savings Debt Service Reserve Fund”.
The fund shall consist of proceeds from the sale of bonds as issued by the Arkansas Development Finance Authority and revenues derived from any project financed under the Arkansas College Savings Bond Act of 1989, § 6-62-701 et seq., in amounts or portions as set forth in the resolution or trust indenture authorizing or securing such bonds; general revenues; and any other funds made available by the General Assembly; there to be used only to ensure prompt payment of debt service on bonds issued under the Arkansas College Savings Bond Act of 1989, § 6-62-701 et seq., either at maturity or upon redemption prior to maturity, as administered by the Treasurer of State.

History. Acts 1991, No. 1135, § 10.

19-5-977. [Repealed.]

Publisher's Notes. This section, concerning the Home Delivered Meal Fund for the Elderly, was repealed by Acts 2009, No. 251, § 14. The section was derived from Acts 1991, No. 172, § 3.

19-5-978. Inventors' Assistance Program Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Inventors’ Assistance Program Fund”.
The Inventors’ Assistance Program Fund shall consist of all moneys received by the Center for Prototype Development and Emerging Technologies to be developed and operated by the University of Arkansas at Little Rock for implementation of the Inventors' Assistance Act, § 15-4-1401 et seq., and all fees received pursuant to the Inventors’ Assistance Act, § 15-4-1401 et seq., there to be used for the implementation of the Inventors’ Assistance Act, § 15-4-1401 et seq.
Any amount in the Inventors’ Assistance Program Fund not directly needed for implementation of the Inventors’ Assistance Act, § 15-4-1401 et seq., shall be transferred to the General Revenue Fund Account of the State Apportionment Fund.

History. Acts 1993, No. 1073, § 11.

19-5-979. Landfill Post-Closure Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Landfill Post-Closure Trust Fund”.
The fund shall consist of those special revenues as specified in § 19-6-301(167), federal funds, interest earned, and any gifts or donations, there to be used solely for the administration of and for landfill post-closure corrective action as administered by the Division of Environmental Quality as set out in § 8-6-1001 et seq., and shall not be appropriated for any other purpose.

History. Acts 1993, No. 1073, § 11; 1997, No. 1248, § 17; 1999, No. 1164, § 162; 2005, No. 25, § 1; 2019, No. 910, § 3190.

Amendments. The 2005 amendment, in (b), inserted “solely” preceding “for the administration of” and added “and shall not be appropriated for any other purpose” to the end.

The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (b).

19-5-980. [Repealed.]

Publisher's Notes. This section, concerning the Waste Tire Grant Fund, was repealed by Acts 2017, No. 317, § 2. The section was derived from Acts 1993, No. 1073, § 11; 1999, No. 1164, § 163.

19-5-981. [Repealed.]

Publisher's Notes. This section, concerning the School Vehicle Insurance Reserve Trust Fund, was repealed by Acts 2007, No. 738, § 9. The section was derived from Acts 1993, No. 1073, § 11.

19-5-982. Arkansas Military War Veterans Monument Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Military War Veterans Monument Fund”.
The fund shall consist of gifts, grants, and donations from individuals and organizations, there to be used exclusively for constructing and erecting a military war veterans monument as set out in § 22-3-219.

History. Acts 1993, No. 1073, § 11.

19-5-983. Land Reclamation Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Land Reclamation Fund”.
1. The fund shall consist of open-cut mining civil penalties and bond forfeiture amounts, quarry operation reclamation, operation, and safe closure fees, fines, and bond forfeitures, gifts, grants, donations, and such other funds as may be made available by the General Assembly, including all interest earned on moneys in the fund.
2. The fund shall be used for the reclamation of affected lands as administered by the Division of Environmental Quality as set out in the Arkansas Open-Cut Land Reclamation Act, § 15-57-301 et seq., and for contract awards for affected lands as required by the Arkansas Quarry Operation, Reclamation, and Safe Closure Act, § 15-57-401 et seq.

History. Acts 1993, No. 1073, § 11; 1999, No. 1164, § 164; 1999, No. 1463, § 15; 2019, No. 910, § 3191.

Amendments. The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (b)(2).

19-5-984. Division of Workforce Services Special Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Division of Workforce Services Special Fund”.
1. The fund shall consist of unemployment compensation contribution interest and penalty payments collected under §§ 11-10-716 — 11-10-723 and interest and penalty payments on overpayments collected under § 11-10-532.
2. The fund shall be used for refunds of interest and penalties erroneously paid and other additional purposes as determined by the Director of the Division of Workforce Services under §§ 11-10-532 and 11-10-716 — 11-10-723 to be necessary to the proper administration of the following:
  1. The Division of Workforce Services Law, § 11-10-101 et seq.;
  2. The Arkansas Workforce Innovation and Opportunity Act, § 15-4-3701 et seq., or its successor;
  3. The Temporary Assistance for Needy Families Program, § 20-76-101 et seq., or its successor;
  4. The Arkansas Works Act of 2016, § 23-61-1001 et seq., or its successor; and
  5. Any other programs transferred under the direction and supervision of the Division of Workforce Services, by either executive order or legislative enactment, or their successor programs.
1. The fund shall include a subaccount for penalties collected under § 11-10-532(a)(3) that are in excess of fifteen percent (15%) of the overpayment.
2. The subaccount under subdivision (c)(1) of this section shall be used exclusively for activities to protect the integrity of the unemployment insurance program that are necessary to the proper administration of the Division of Workforce Services Law, § 11-10-101 et seq., as determined by the director.
The director shall report to the Legislative Council on a quarterly basis on all uses of the fund and the subaccount.

History. Acts 1993, No. 1073, § 11; 1999, No. 1463, § 16; 2005, No. 4, § 1; 2007, No. 490, § 17; 2007, No. 1032, § 17; 2007, No. 1201, § 17; 2013, No. 956, § 9; 2019, No. 374, § 1; 2019, No. 375, § 2; 2019, No. 910, § 486.

Amendments. The 2005 amendment added (c).

The 2007 amendment by No. 490 substituted “Department of Workforce Services Special Fund” for “Employment Security Special Fund” in the section heading and (a); substituted “and interest and penalty payments on overpayments collected under § 11-10-532(c) and § 11-10-532(d)” for “and the proceeds of the one-twentieth of one percent (.05%) stabilization tax, § 11-10-706(f)” in (b)(1); and substituted “Department of Workforce Services as set out in § 11-10-532(c) and (d) and” for “Arkansas Employment Security Department as set out in” in (b)(2).

The 2007 amendment by identical acts Nos. 1032 and 1201 substituted “11-10-723” for “11-10-722” twice in (b).

The 2013 amendment, in (b)(1), substituted “under” for “pursuant to” and deleted “(c) and (d)” from the end; substituted “under § 11-10-532” for “as set out in § 11-10-532(c) and (d)” in (b)(2).

The 2019 amendment by No. 374 rewrote (b)(2).

The 2019 amendment by No. 375 inserted (c)(1) and (c)(2) and redesignated former (c) as (d); and added “and the subaccount” in (d).

The 2019 amendment by No. 910 substituted “Division of Workforce Services Special Fund” for “Department of Workforce Services Special Fund” in the section heading and (a); and, in (b)(2), substituted “Division of Workforce Services Law” for “Department of Workforce Services Law” and “Division of Workforce Services” for “Department of Workforce Services”.

19-5-985. Arkansas Medicaid Program Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Medicaid Program Trust Fund”.
1. The fund shall consist of the following:
  1. All revenues derived from taxes levied on soft drinks sold or offered for sale in Arkansas under the Arkansas Soft Drink Tax Act, § 26-57-901 et seq., there to be used exclusively for the state match of federal funds participation under the Arkansas Medicaid Program;
  2. The additional ambulance annual fees stated in § 20-13-212;
  3. The special revenues specified in §§ 19-6-301(156) and 19-6-301(236);
  4. The amounts collected under §§ 26-57-604 and 26-57-605 above the forecasted level for insurance premium taxes set by the Chief Fiscal Officer of the State under § 10-3-1404(a)(1)(A);
  5. The amount provided for in § 19-5-402(a)(3); and
  6. Payments from surety bonds issued regarding risk-based provider organizations, as defined in § 20-77-2703.
2. If the Arkansas Medicaid Program should be discontinued for any reason, the revenues derived from the soft drink tax levied in the Arkansas Soft Drink Tax Act, § 26-57-901 et seq., and the funds described in subdivision (b)(1)(E) of this section shall be used exclusively to provide services to Arkansas residents comparable to the services now provided under the Arkansas Medicaid Program.

History. Acts 1993, No. 1073, § 11; 1994 (2nd Ex. Sess.), No. 27, § 3; 1997, No. 1248, § 18; 2007, No. 1201, § 18; 2013, No. 1224, § 2; 2017, No. 141, § 2; 2017, No. 775, § 2.

A.C.R.C. Notes. Acts 1994 (2nd Ex. Sess.), No. 27, § 4, provided:

“It is the purpose and intent of this act to assure that the revenues derived from the tax levied on soft drinks in Arkansas Code § 26-57-901 will never become general revenues of the state but will be used exclusively for matching federal funds available to the state for the Arkansas Medicaid Program or in the event the Arkansas Medicaid Program is discontinued for any reason, such revenues will be used exclusively to provide to Arkansas residents those kinds of services now provided by the Arkansas Medicaid Program.”

Amendments. The 2013 amendment inserted (A) through (D) designations in (b)(1); substituted “Arkansas under the Arkansas Soft Drink Tax Act” for “Arkansas as provided in” in (b)(1)(A); in (b)(1)(B), substituted “stated in” for “as set out in” and deleted “and those” from the end; and substituted “§ 10-3-1404(a)(1)(A)” for “§ 10-3-1404(a)” in (b)(1)(D).

The 2017 amendment by No. 141 inserted (b)(1)(E); and inserted “and the funds described in subdivision (b)(1)(E) of this section” in (b)(2).

The 2017 amendment by No. 775 added (b)(1)(D) [now (b)(1)(F)].

Effective Dates. Acts 2017, No. 141, § 63, as amended by Acts 2017, No. 596, § 1: Jan. 1, 2018, except §§ 1, 62, effective Aug. 1, 2017. Effective date clause provided: “Sections 2 through 61 of this act are effective for tax years beginning on and after January 1, 2018.”

19-5-986. Arkansas State Parks Trust Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas State Parks Trust Fund”, there to be used by the State Parks, Recreation, and Travel Commission as appropriations are available. The commission shall annually expend at least ninety percent (90%) of the funds available for the purpose of development, preservation, and protection of the infrastructure in the existing state parks of Arkansas.
The fund shall consist of severance taxes collected from diamond mining pursuant to § 26-58-107.

History. Acts 1993, No. 1156, § 1; 1995, No. 1163, § 22; 1999, No. 15, § 3.

19-5-987. Interstate Alternative Fuels Refund Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Interstate Alternative Fuels Refund Fund”.
The fund shall consist of the amount, estimated quarterly, which is transferred monthly from gross alternative fuel tax collections, there to be used to pay refunds to licensed interstate users and licensed IFTA carrier users of alternative fuels as provided by law and as set out in § 26-62-210.

History. Acts 1995, No. 1163, § 23.

Cross References. Definition of “IFTA carrier”, § 26-62-102.

19-5-988. [Repealed.]

Publisher's Notes. This section, concerning the Health Resources Commission Fund, was repealed by Acts 2001, No. 1646, § 9. The section was derived from Acts 1995, No. 1163, § 23.

19-5-989. [Repealed.]

Publisher's Notes. This section, concerning the Law Enforcement Officers' Memorial Fund, was repealed by Acts 2017, No. 625, § 2. The section was derived from Acts 1995, No. 1163, § 23.

19-5-990. Soybean Board Escrow Account Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Soybean Board Escrow Account Trust Fund”.
The fund shall consist of those moneys required for the payment of refunds in such amounts and for such time periods as is required by the Secretary of Agriculture of the United States or as is authorized by § 2-20-401 et seq., and determined by the Arkansas Soybean Promotion Board.

History. Acts 1995, No. 1163, § 23.

19-5-991. Interstate Motor Fuel Tax Refund Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Interstate Motor Fuel Tax Refund Fund”.
The fund shall consist of the amount, estimated quarterly, which is transferred monthly from gross motor fuel taxes and gross special motor fuel tax collections, there to be used to pay refunds to interstate users of motor fuels and special motor fuels as set out in §§ 26-55-714 and 26-56-215.

History. Acts 1995, No. 1163, § 23.

19-5-992. Mining Reclamation Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Mining Reclamation Trust Fund”.
The fund shall consist of all forfeitures collected under the Arkansas Surface Coal Mining and Reclamation Act of 1979, § 15-58- 101 et seq., and interest earned on the fund, there to be used only to accomplish reclamation of land covered by forfeitures of performance bonds for surface coal mining.

History. Acts 1997, No. 1248, § 19.

Cross References. Performance bonds, § 15-58-509.

19-5-993. State Administration of Justice Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “State Administration of Justice Fund”.
1. The fund shall consist of court costs and filing fees under §§ 9-15-202, 16-10-305, 16-17-705, 16-90-1419(b)(1), and 21-6-403, the special revenues from real estate transfer taxes under § 19-6-301(117), district court installment fees under § 16-13-704(b)(3)(E)(ii), and any interest earned.
2. The fund shall be used for:
  1. Trial court administrators as stated in § 16-13-3301 et seq.;
  2. Substitute trial court administrators as stated in § 16-10-801 et seq.; and
  3. The distribution of revenue as stated in § 16-10-310.

History. Acts 1997, No. 1248, § 19; 1999, No. 1463, § 17; 2013, No. 504, § 4; 2014, No. 290, § 3; 2014, No. 299, § 3; 2015, No. 268, § 11.

A.C.R.C. Notes. Identical Acts 2014, Nos. 290 and 299, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Acts 2016, No. 239, § 39, provided: “TRANSFER AUTHORITY. The Department of Finance and Administration shall transfer funds, from time to time, from the State Administration of Justice Fund to the State Central Services Fund in such amounts as are required to reimburse the State Central Services Fund for a portion of the expenses of the Administrative Office of the Courts — Division of Dependency-Neglect Representation.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Amendments. The 2013 amendment inserted “trust” following “State a” in (a); in (b)(1), substituted “filing fees under §§ 16-10-305” for “fees as set out in §§ 16-10-303, 16-10-305, 16-14-105 [Repealed]” and “under § 19-6-301(117), and any interest earned” for “as set out in § 19-6-301(117)”; substituted “stated” for “set out” twice in (b)(2).

The 2014 amendment by identical acts Nos. 290 and 299, in (b)(1), inserted “9-15-202”, “16-90-1419(b)(1)”, and “district court installment fees under § 16-13-704(b)(3)(E)(ii)”.

The 2015 amendment redesignated and rewrote (b)(2).

19-5-994. Arkansas Fire and Police Pension Guarantee Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Fire and Police Pension Guarantee Fund”.
The fund shall consist of a portion of the taxes levied on insurers or any other state funds designated for support of fire and police retirement programs, there to be used for those purposes as set out in § 24-11-209 [repealed].

History. Acts 1997, No. 1248, § 19.

A.C.R.C. Notes. Acts 2013, No. 443, § 78, provided: “FUND TRANSFER. On July 1, 2013, the Chief Fiscal Officer of the State shall transfer on his or her books and those of the State Treasurer and the Auditor of State the balances of the Arkansas Fire and Police Pension Guarantee Fund to the Firemen's and Police Officers' Pension and Relief Fund.”

19-5-995. Uniform Tax Rate Trust Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Uniform Tax Rate Trust Fund”.
The fund shall consist of those moneys received from local governments and transmitted to the State Treasury as required by Arkansas Constitution, Amendment 74, and shall be used for such purposes as set out therein.
The Auditor of State shall issue warrants drawn from the fund as requested by vouchers submitted by the Treasurer of State upon certification by the Chief Fiscal Officer of the State that funds will be available when the warrants are presented for payment.
The Treasurer of State may voucher a single warrant payable to the Treasurer of State for the purpose of distributing funds to multiple payees from the fund. Documentation shall accompany the voucher indicating the payees, amount, and account numbers to which the distribution is to be made.

History. Acts 1997, No. 860, § 2; 1999, No. 1463, § 18.

19-5-996. [Repealed.]

Publisher's Notes. This section, concerning the Uniform Tax Rate Trust Fund — Warrants, was repealed by Acts 1999, No. 1463, § 28. The section was derived from Acts 1997, No. 860, § 3.

19-5-997. [Repealed.]

Publisher's Notes. This section, concerning the Center for Rural Arkansas Trust Fund, was repealed by identical Acts 2017, Nos. 1083 and 1127, § 10. The section was derived from Acts 1997, No. 1279, § 9; 1999, No. 935, § 7; 2015 (1st Ex. Sess.), No. 7, § 133; 2015 (1st Ex. Sess.), No. 8, § 133.

19-5-998. Abandoned Agricultural Pesticide and Plant Regulator Disposal Trust Fund — Definitions.

Fund Created.
1. There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State the “Abandoned Agricultural Pesticide and Plant Regulator Disposal Trust Fund” to consist of funds transferred therein from the Remedial Action Trust Fund and such other funds as are made available by law.
2. The Abandoned Agricultural Pesticide and Plant Regulator Disposal Trust Fund shall be used by the State Plant Board to defray the costs of developing and implementing a plan for the disposal of abandoned agricultural pesticides and plant regulators.
Intent of Fund. The General Assembly intends to provide a method for disposal of agricultural pesticides which have been abandoned due to a change of ownership of the real property or a change in agricultural practices in a region of the state.
Definitions. As used in this section:
1. “Abandoned” means chemicals which are no longer used and for which there is no planned use;
2. “Agricultural pesticide” means any substance or mixture of substances:
  1. Intended for:
    1. Preventing, destroying, repelling or mitigating any pests; or
    2. Use as a plant regulator, defoliant, or desiccant; and
  2. Intended to be used as a spray adjuvant; and
3. 1. “Plant regulator” means any substance or mixture of substances intended through physiological action for accelerating or retarding the rate of growth or rate of maturation or for otherwise altering the behavior of plants or the produce thereof.
  2. The term shall not include substances to the extent that they are intended as plant nutrients, trace elements, nutritional chemicals, plant inoculants, or soil amendments.

History. Acts 1999, No. 420, §§ 3-5; 2010, No. 262, § 8; 2010, No. 296, § 8.

Amendments. The 2010 amendment by identical acts Nos. 262 and 296 substituted “State Plant Board” for “Arkansas Department of Enviromental Quality” in (a)(2).

Cross References. Abandoned agricultural pesticide disposal, § 8-7-1201 et seq.

19-5-999. Individual Development Account Trust Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund for the Division of Workforce Services to be designated the “Individual Development Account Trust Fund”.
The fund shall consist of Transitional Employment Assistance Program funds under § 20-76-401.
The fund shall be used for the purposes set forth in § 20-86-101 et seq.

History. Acts 1999, No. 1217, § 14; 2007, No. 252, § 6; 2015, No. 1144, § 6; 2015, No. 1145, § 6; 2019, No. 910, § 487.

A.C.R.C. Notes. Identical Acts 2015, Nos. 1144 and 1145, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Amendments. The 2007 amendment substituted “Department of Workforce Services” for “Department of Human Services” in (a).

The 2015 amendment by identical acts Nos. 1144 and 1145 substituted “20-76-401” for “20-6-401” in (b).

The 2019 amendment substituted “Division of Workforce Services” for “Department of Workforce Services” in (a).

Cross References. Family Savings Initiative Act, § 20-86-101 et seq.

Subchapter 10 — Miscellaneous Funds

Cross References. Department of Information Systems Revolving Fund, § 25-4-121.

Information Technology Reserve Fund, § 25-4-123.

Safe Drinking Water Fund, § 15-22-1101 et seq.

Preambles. Acts 1985, No. 219 contained a preamble which read:

“Whereas, the U.S. Corps of Engineers, acting pursuant to the authority of the Senate Committee on Public Works resolution dated May 25, 1967, has conducted an investigation to determine the feasibility of providing a year-round, shallow draft, navigation channel on the White River from Batesville, Arkansas to the Mississippi River; and

“Whereas, the U.S. Corps of Engineers has completed such study and has submitted a proposal to the Congress of the United States for river channel improvements on the White River in Arkansas, from Arkansas Post Channel (Mile 10) to Newport (Mile 254), to provide a channel width of 200 feet and a depth of nine feet, available 95 percent of the time, together with bank channelization and public recreational facilities to be built as a part of the project; and

“Whereas, the proposed White River project will be located in six Arkansas counties having high levels of unemployment, and would contribute significantly to the economic development and improvement of the area;

“Now, therefore … .”

Acts 1985, No. 913 contained a preamble which read:

“Whereas, a study authorized in a Senate Committee on Public Works's resolution adopted May 19, 1972 by the Congress of the United States has recommended that the Congress provide funds for the ‘Mississippi River, Phillips County (Helena Harbor), Arkansas’ Project, that would provide access to industrial sites within the Helena Port by providing a 300-foot-wide, 2.25-mile-long navigation channel that would provide 250 acres of flood-free fill for harbor development, together with accompanying recreational facilities consisting of an overlook park to provide the populace with an esthetic view of the Mississippi River; and

“Whereas, the Helena Harbour Port Project would be located in an area of this State having one of the highest unemployment rates, and the development of this Project would be of extreme benefit to the economy and employment in Eastern Arkansas, which would benefit the industrial and agricultural economy of the entire State;

“Now, therefore … .”

Effective Dates. Acts 1961 (1st Ex. Sess.), No. 9, § 6: approved Sept. 8, 1961. Emergency clause provided: “It has been found and determined by the General Assembly that the student population of the Training School for Girls is annually increasing; that the present facilities were designed to accommodate 40 girls; that there has been as high as 82 girls committed to the Training School for Girls; that an additional dormitory is required to alleviate the over crowding of the present and future students; that the water supply has at times been determined unsafe for drinking; that an adequate water supply is required for the general health and well being of the students and staff; and that the immediate passage of this Act is necessary to provide funds for the construction and equipping of the new dormitory, and to provide an adequate water supply. Therefore, an emergency is declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage.”

Acts 1973, No. 750, § 14: July 1, 1973. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that it is necessary to establish an orderly procedure which will insure the monthly distribution of funds for the necessary services and operations of the state government, as provided for in this Act; that only the provisions of this Act will correct many of our financial difficulties, which otherwise may deprive the citizens of this State from receiving the benefits for which the operation of state government contemplates. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after July 1, 1973.”

Acts 1975, No. 230, § 6: Feb. 10, 1975. Emergency clause provided: “It is hereby found and determined by the Seventieth General Assembly that due to inflationary pressures in the economy, participation by the various state agencies in the Marketing and Redistribution Program has been minimal, causing income to be below a level that would sustain operation; and in order for the Marketing and Redistribution Section to operate at a level of maximum efficiency, additional funding is necessary to continue this program and in order to improve the marketing and redistribution of certain inventories classified as miscellaneous or junk, proper accounting and administrative controls must be maintained to insure maximum utilization of the State's assets, then the immediate passage of this Act is necessary. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after February 10, 1975.”

Acts 1977, No. 825, § 3: July 1, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that Subsection (L) of Section 7 of the Revenue Stabilization Law of Arkansas requires amending to conform with legislation for effective funding State Employees Worker's Compensation and Unemployment Compensation Claims, therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1977.”

Acts 1979, No. 1115, § 11: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the 72nd General Assembly that the amendments to the Revenue Stabilization Law are essential to the continued operation of state government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1979.”

Acts 1980 (1st Ex. Sess.), No. 1, § 5: Jan. 23, 1980. Emergency clause provided: “It is hereby found and determined by the Seventy Second General Assembly, meeting in Extraordinary Session, that the promulgation of rules regarding the depositing of withholding taxes will result in a windfall of moneys to the State; that without immediate remedies every general revenue supported program will receive an extraordinary amount of funds which will be impossible to sustain throughout this biennium; and that even with the windfall of funds, certain commitments will still remain unmet. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1980 (1st Ex. Sess.), No. 39, § 3: Jan. 25, 1980. Emergency clause provided: “It is hereby found and determined by the 72nd General Assembly, meeting in Extraordinary Session, that by mistake, Act 24 of 1979 was not provided moneys with which to fulfill the State's commitments to counties on account of trial expenses and that without this assistance, certain counties would suffer severe financial hardships. Therefore, an emergency is hereby declared to exist and this Act being necessary to protect the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1983, No. 141, § 8: Feb. 10, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly that the Marketing and Redistribution Section of the Department of Finance and Administration provides services essential to the effective efficient operation of state government by providing a means of distribution of surplus property; that the buildings and grounds used by such section have become inadequate to the extent that the operations of such section are greatly impaired; that suitable new property is currently available for purchase; that the provisions of this Act provide the moneys necessary for such purchase; that the delay in the effective date of this Act could result in the delay of purchasing the property; that such delay could result in increased cost of said property; and that such increased cost would thereby result in irreparable harm to the proper administration and provision of essential governmental services. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 219, § 4: Feb. 28, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that the White River Navigation project, if implemented, would provide improvements to navigation on the White River vital to the economic welfare and economy of this State, and that it is immediately necessary to establish a White River Navigation Project Fund, through which monies may be provided by the General Assembly to be available to provide necessary State funds that may be required in connection with such project under federal laws which may require State fund participation in the cost of the Project as a condition precedent to its implementation, and that the immediate passage of this Act is necessary to accomplish such purposes. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 352, § 3: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly, that the transfer of funds authorized by this Act provided a mechanism to help alleviate the detrimental effects of Ad Valorem tax collection shortfalls and the resulting effect that the provisions of this Act will provide a more even flow of funds to continue said operations. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

Acts 1985, No. 603, § 8: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1985 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1985 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

Acts 1985, No. 719, § 4: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1985, is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1985, could work irreparable harm upon the proper administration and providing of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

Acts 1985, No. 913, § 4: Apr. 15, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that the development of an improved harbor on the Mississippi River at Helena, which has been recommended by the U.S. Corps of Engineer pursuant to a study authorized by the Congress of the United States, is needed to improve the economy of this State and to relieve unemployment and to provide improved economic conditions in the Eastern Arkansas area, which would benefit the economy of the entire State; that the obtaining of an improved harbor on the Mississippi River for the movement of Arkansas' agricultural, forest, timber, and industrial products would provide economic benefits not only to Eastern Arkansas but to the entire State, and that the immediate passage of this Act is necessary to establish a Fund into which monies may be deposited, to be available in the event of the enactment by the Congress of the United States of legislation authorizing the U.S. Corps of Engineers to proceed with such project in the near future. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and welfare, shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 986, § 6: July 1, 1985.

Acts 1985 (1st Ex. Sess.), No. 5, § 3: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly, meeting in Extraordinary Session, that various appropriation enacted by the General Assembly could have the effect of placing the Constitutional and Fiscal Agencies Fund in an unsound financial condition and that the mechanism provided for in this Act will help to alleviate such conditions and maintain the financial integrity of the State. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

Acts 1989, No. 402, § 7: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly that current State accounting and budgetary procedures cause considerable expense to and place undo restrictions on Institutions of Higher Education; that the recovery of general revenue fund balances from the Vocational Technical Schools and the State Scholarship Assistance Grants Program restrict educational opportunities for the citizens of this State; and that the provisions of this Act will remedy such situations. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1989.”

Acts 1989 (3rd Ex. Sess.), No. 77, § 12: Nov. 17, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly, meeting in Third Extraordinary Session, that this act is necessary to prohibit the unnecessary incarceration of juveniles, to prohibit such juveniles from being treated as criminals, to place such juveniles under proper care, and to prohibit juveniles from associating with hardened adult criminals; and that the immediate passage and approval of this act is necessary for the protection of juveniles. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation and protection of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 644, § 9: July 1, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1991 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1991 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1991.”

Acts 1991, No. 1023, § 9: Apr. 8, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly that this act establishes the Arkansas Medicaid Rebate Trust Fund; that this fund is to consist of monies received by the Department of Human Services in the form of rebates from drug manufacturers; that establishing this rebate program immediately is in the best interests of this state; and that this act should be effective immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 1135, § 20: July 1, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly that the distribution of general revenues and the creation of the various funds and fund accounts are essential to be in force at the beginning of the state fiscal year and that in the event that the General Assembly extends beyond the sixty day limit, the effective date of this act would not begin at that time creating confusion and not permitting the agencies to implement those programs as approved by the General Assembly. Therefore an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1991.”

Acts 1992 (1st Ex. Sess.), No. 23, § 11: Mar. 4, 1992. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly meeting in First Extraordinary Session, that the provisions of this Act are of critical importance to the State's effort to restructure the child welfare service system. Be it further determined, that the Child Welfare Compliance and Oversight Committee as provided for herein, should act to insure that the appropriations, funds, personnel and any other provisions concerning the restructuring of the child welfare system are spent, utilized and administered in accordance with law and with the intent of enhancing the quality and availability of services provided the children of this State. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 1223, § 21: July 1, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1993 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1993 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1993.”

Acts 1993, No. 1239, § 125: July 1, 1993, except § 119, effective Apr. 20, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1993 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1993 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety, Section 119 shall be in full force and effect from and after the date of passage and approval and the remainder of the Act shall be in full force and effect from and after July 1, 1993.”

Acts 1995, No. 1078, § 12: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1995 is essential to the operation of the agency or institution of higher education for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1995 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1995.”

Acts 1995, No. 1185, § 40: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1995 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1995 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1995.”

Acts 1995, No. 1198, § 110: July 1, 1995, except § 99, effective Apr. 11, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1995 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1995 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety; Section 99 shall be in full force and effect from and after the date of passage and approval and the remainder of the Act shall be in full force and effect from and after July 1, 1995.”

Acts 1997, No. 788, § 36: became law without the Governor's signature. Noted Mar. 11, 1997. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the effectiveness of this act on July 1, 1997 is essential to the operation of the state court system, and that in the event of an extension of the Regular Session, the delay in the effective date of this act beyond July 1, 1997 could work irreparable harm upon the proper administration and provision of essential governmental progress. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after July 1, 1997.”

Acts 1997, No. 815, § 19: July 1, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1997 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1997 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1997.”

Acts 1999, No. 959, § 9: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1999 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1999 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1999.”

Acts 1999, No. 1347: Apr. 12, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that the State's program for capital improvements for public roads and financing thereof is inadequate, that the economic and other benefits to the state and its people resulting from capital improvements are essential to the people of Arkansas, and that providing tax credits to taxpayers for contributions in aid of construction of public roads will encourage public and private participation and thereby promote the economic welfare of this state and its people and the public interest. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 1308, § 16: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2001 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2001 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2001.”

Acts 2001, No. 1531, § 17: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2001 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2001 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2001.”

Acts 2001, No. 1674, § 48: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2001 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2001 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2001.”

Acts 2005, No. 2115, § 35: July 1, 2005. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2005 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2005 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2005.”

Acts 2007, No. 1234, § 17: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2007 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2007 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2007.”

Acts 2007, No. 1290, § 95: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2007 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2007 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2007.”

Acts 2009, No. 1330, § 35: July 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2009 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2009 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2009.”

Acts 2010, No. 42, § 24: July 1, 2010. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2010 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2010 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2010.”

Acts 2012, No. 283, § 15: July 1, 2012. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2012 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2012 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2012.”

Acts 2013, No. 1202, § 49: July 1, 2013. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2013 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2013 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2013.”

Acts 2013, No. 1283, § 6: Emergency clause failed to pass. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that collection of fees for bail bonds fund various necessary programs in our state; that the law is currently unclear on the collection of these fees; and that this act is necessary because the law needs to be clear on the collection of these fees so that the programs are funded properly in a timely manner. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2013.”

Identical Acts 2014, Nos. 290 and 299, § 15: July 1, 2014.

Acts 2015, No. 1185, § 9: Jan. 1, 2016.

Identical Acts 2018, Nos. 259 and 260, § 10: July 1, 2018.

19-5-1001. Publication Development and Resale Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Publication Development and Resale Revolving Fund”.
The fund shall consist of income derived from the sale of publications by the Division of Arkansas Heritage or its successor, there to be used to develop or purchase additional publications for resale.
The fund shall be administered by the Central Administration Division of the Department of Parks, Heritage, and Tourism or its successor.
Any funds remaining in the fund from which it derives its support at the end of each fiscal year shall carry forward and be made available for the same purpose for the next fiscal year.

History. Acts 1973, No. 750, § 7; 1985, No. 888, § 9; A.S.A. 1947, § 13-523; Acts 2019, No. 910, § 5671.

Amendments. The 2019 amendment substituted “Division of Arkansas Heritage” for “Department of Arkansas Heritage” in (b); and substituted “Department of Parks, Heritage, and Tourism” for “Department of Arkansas Heritage” in (c).

Cross References. Publication Development and Resale Revolving Fund, establishment, § 25-3-106.

19-5-1002. Motor Vehicle Acquisition Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Motor Vehicle Acquisition Revolving Fund”.
The fund shall be used for the purpose of acquiring motor vehicles as authorized by §§ 22-8-201 — 22-8-209.
The fund shall be financed by:
1. Its proportionate share of moneys made available from the allocation of general revenues as authorized by the Revenue Stabilization Law, § 19-5-101 et seq.;
2. Moneys made available upon the disposal of used vehicles, which moneys shall be deposited to the credit of the Motor Vehicle Acquisition Revolving Fund rather than being deposited to the owing state agency's fund;
3. Deposits of moneys from benefiting state agencies; and
4. Transfers from other State Treasury funds and fund accounts of benefiting state agencies.

History. Acts 1973, No. 750, § 7; 1985, No. 888, § 9; A.S.A. 1947, § 13-523.

A.C.R.C. Notes. Acts 2016, No. 265, § 16, provided: “MOTOR VEHICLE ACQUISITION REVOLVING FUND — MOTOR VEHICLE PURCHASES/RENOVATION. At least fifty percent (50%) of the general revenues and/or general improvement funds deposited into the Motor Vehicle Acquisition Revolving Fund shall be used for motor vehicle purchases and/or motor vehicle renovation costs for the Department of Arkansas State Police.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

19-5-1003. Historic Preservation Revolving Loan Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the Historic Preservation Revolving Loan Fund.
The fund shall consist of any private funds, federal funds, any portion of real estate transfer taxes deemed appropriate by the Arkansas Historic Preservation Program, and repayment of loans made pursuant to the Historic Preservation Loan Act, § 13-7-501 et seq., there to be used to make loans as set out in the Historic Preservation Loan Act, § 13-7-501 et seq., as administered by the Arkansas Historic Preservation Program.

History. Acts 1995, No. 1163, § 24.

Publisher's Notes. Former § 19-5-1003, concerning the Indigent Health Care Fund, was repealed by Acts 1993, No. 792, § 4. The former section was derived from Acts 1973, No. 750, § 7; 1985, No. 888, § 9; A.S.A. 1947, § 13-523; Acts 1993, No. 403, § 10.

19-5-1004. General Revenue Allotment Reserve Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “General Revenue Allotment Reserve Fund”.
Unless otherwise provided by law, the General Revenue Allotment Reserve Fund shall consist of:
1. The remainder of the general revenues collected by the state after deductions as specified in § 19-5-202 have been made and which are not required to fulfill the requirements of the maximum allotments of general revenues as may be provided in the Revenue Stabilization Law, § 19-5-101 et seq., for the fiscal year in which the general revenues were collected and deposited into the State Treasury; and
2. The portion not determined to be special revenues by § 19-6-110 of the year-end fund balances of the funds and fund accounts created in § 19-5-302, except for § 19-5-302(11)(A), and in §§ 19-5-304(2)-(7) and (10), 19-5-306, 19-5-307, 19-6-404, and 19-6-411, which fund balances are to be transferred on or before August 15 of the fiscal year next following the fiscal year during which balances accrued.
Any funds that remain in the Division of Career and Technical Education Fund Account or the fund accounts created in § 19-5-304(8) at the end of a fiscal year due to the provisions of this section shall be transferred by the Chief Fiscal Officer of the State to the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund, there to be used exclusively to provide additional funding for appropriations for the applicable vocational and technical schools, technical institutes, or comprehensive lifelong learning centers, that are made payable from the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund.
However, any funds that remain in the General Revenue Allotment Reserve Fund or in the funds or fund accounts subject to the provisions of this section that have been reappropriated by the General Assembly may be carried forward from one fiscal year to the next, in such amounts that do not exceed the actual remaining balance of available appropriation as certified by the Chief Fiscal Officer of the State.
The General Revenue Allotment Reserve Fund shall be used for such purposes as may be authorized by law.

History. Acts 1973, No. 750, § 7; 1985, No. 64, § 2; A.S.A. 1947, § 13-523; Acts 1989, No. 402, § 4; 1991, No. 1135, § 8; 1993, No. 1073, § 19; 1995, No. 1163, § 25; 1999, No. 253, § 3; 2005, No. 2139, § 6; 2019, No. 82, § 10; 2019, No. 910, § 2267.

A.C.R.C. Notes. Acts 2019, No. 82, § 1, provided: “Legislative intent.

It is the intent of the General Assembly that the creation of the Development and Enhancement Fund is necessary to provide a mechanism to disburse funds for:

“(1) Various construction and improvement projects;

“(2) Unforeseen needs;

“(3) Funding deficiencies; and

“(4) The completion of projects previously funded by the General Assembly”.

Amendments. The 2005 amendment inserted “and (10)” in (b)(2) and made a related change.

The 2019 amendment by No. 82 inserted “including the Development and Enhancement Fund” twice in (c).

The 2019 amendment by No. 910 substituted “Division of Career and Technical Education Fund Account” for “Department of Career Education Fund Account” in (c).

19-5-1005. Development and Enhancement Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Development and Enhancement Fund”.
The Development and Enhancement Fund shall consist of those special revenues specified in § 19-6-301(171) and any other funds made available by the General Assembly from time to time.
The Development and Enhancement Fund shall be used to provide financing of various projects authorized by the General Assembly and to make temporary loans or provide funding for appropriations authorized by the General Assembly.
The Development and Enhancement Fund shall be the successor fund to the General Improvement Fund for the payment of any outstanding balances, warrants, and reappropriations enacted by the General Assembly previously payable from the General Improvement Fund.

History. Acts 1973, No. 750, § 7; A.S.A. 1947, § 13-523; Acts 1991, No. 786, § 32; 2003 (1st Ex. Sess.), No. 55, § 19; 2019, No. 82, § 11.

A.C.R.C. Notes. Identical Acts 2016, Nos. 242 and 270, § 5, provided: “FUNDING TRANSFER. Immediately upon the effective date of this act, the Chief Fiscal Officer of the State shall transfer on his or her books and those of the State Treasurer and the Auditor of the State the sum of fifty million dollars ($50,000,000) from the unobligated funds in the General Improvement Fund to supplement the fund established as a set-aside in the 90th Session Projects Account of the General Improvement Fund in Section 3 (a) (11) of Act 1147 of 2015 of the General Improvement Distribution Act, for transfers, from time to time, to any fund or fund account authorized by the General Assembly, or for transfers, from time to time, for projects in the Executive Discretionary Division authorized in subsection (d) of Section 3 of Act 1147 of 2015, upon approval by the Arkansas Legislative Council or Joint Budget Committee.”

Acts 2019, No. 82, § 1, provided: “Legislative intent.

It is the intent of the General Assembly that the creation of the Development and Enhancement Fund is necessary to provide a mechanism to disburse funds for:

“(1) Various construction and improvement projects;

“(2) Unforeseen needs;

“(3) Funding deficiencies; and

“(4) The completion of projects previously funded by the General Assembly”.

Amendments. The 2019 amendment substituted “Development and Enhancement Fund” for “General Improvement Fund” in the section heading and (a); substituted "Development and Enhancement Fund" for "fund" in (b); substituted “or provide funding for appropriations authorized by the General Assembly” for “to funds receiving general revenue as set out in § 19-5-302” in (c); and added (d).

19-5-1006. Disaster Assistance Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Disaster Assistance Fund”.
The Disaster Assistance Fund shall consist of moneys received from the Budget Stabilization Trust Fund in such amounts as may be required to provide state moneys for each declared emergency or major disaster as required by the Arkansas Emergency Services Act of 1973, § 12-75-101 et seq., but not to exceed in the aggregate the sum of thirteen million two hundred fifty thousand dollars ($13,250,000) per fiscal year.
1. The Chief Fiscal Officer of the State may authorize temporary loans of moneys from the Budget Stabilization Trust Fund to the Disaster Assistance Fund for making available immediate payments to individuals, families, and public assistance grants for providing assistance to such recipients that may be eligible for federal assistance.
2. 1. These temporary loans shall be repaid to the Budget Stabilization Trust Fund upon receipt of any federal funds for each declared emergency.
  2. For each declared emergency, the temporary loans shall be repaid on or before June 30 in the year the loan was made.
  3. However, the temporary loan shall not be necessarily repaid on or before June 30 of the fiscal year in which the loan was made, but may be repaid upon availability of federal moneys for such purpose.
1. Funds credited to the Disaster Assistance Fund shall be used for making grants, loans, and assistance payments, as authorized by the Arkansas Emergency Services Act of 1973, § 12-75-101 et seq., and applicable federal laws for making grants and assistance payments to eligible recipients enumerated in the Arkansas Emergency Services Act of 1973, § 12-75-101 et seq.
2. The moneys or funds may also be used for making refunds of federal moneys or funds advanced or determined to be ineligible disbursements.

History. Acts 1973, No. 750, § 7; 1975, No. 868, § 12; 1985, No. 888, § 20; A.S.A. 1947, § 13-523; Acts 1991, No. 786, § 33; 1995, No. 1163, § 26; 2001, No. 1646, § 12; 2003 (1st Ex. Sess.), No. 55, § 20; 2007, No. 1290, § 42.

Publisher's Notes. Acts 1991, No. 786, § 37, provided:

“The enactment and adoption of this Act shall not repeal, expressly or impliedly, the acts passed at the regular session of the 78th General Assembly. All such acts shall have full effect and, so far as those acts intentionally vary from or conflict with any provision contained in this Act, those acts shall have the effect of subsequent acts and as amending or repealing the appropriate parts of the Arkansas Code of 1987.”

Amendments. The 2003 (1st Ex. Sess.) amendment substituted “ten million two hundred fifty thousand dollars ($10,250,000)” for “nine million five hundred thousand dollars ($9,500,000)” in (b).

The 2007 amendment substituted “thirteen million two hundred fifty thousand dollars ($13,250,000)” for “ten million two hundred fifty thousand dollars ($10,250,000)” in (b).

19-5-1007. Special Military Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Special Military Fund”.
The Special Military Fund is to consist of federal reimbursement received on account of eligible expenditures by the Department of the Military and shall be used to provide funding wholly or partially for appropriations made payable from the Special Military Fund and to provide supplemental support, to the extent necessary, to the Department of the Military Fund Account of the State General Government Fund, there to be used solely for the programs of the department.

History. Acts 1973, No. 750, § 7; A.S.A. 1947, § 13-523; Acts 1993, No. 1073, § 12; 2019, No. 910, § 5544.

Amendments. The 2019 amendment substituted “Department of the Military” for “State Military Department” twice in (b).

19-5-1008. Armory Construction Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Armory Construction Fund”.
The fund shall consist of proceeds derived from the sale or other disposition of National Guard armories or property thereof, there to be used for the construction, improvement, or equipping of National Guard armories or for such other purposes as may be provided by law.

History. Acts 1973, No. 750, § 7; A.S.A. 1947, § 13-523.

19-5-1009. Miscellaneous Revolving Fund.

There is created and established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Miscellaneous Revolving Fund”.
The Miscellaneous Revolving Fund shall consist of such general revenues as may be provided by the Revenue Stabilization Law, § 19-5-101 et seq., and moneys transferred from the Budget Stabilization Trust Fund in such amounts as may be required to provide funding for authorized expenditures as appropriated by the General Assembly for:
1. The Governor's Emergency Fund;
2. Noncontroversial claims;
3. Small controversial claims;
4. Claims awarded to surviving spouses or dependent children of deceased police officers, firefighters, and Arkansas Department of Transportation employees killed in performing their official duties;
5. Workers' compensation claims for municipal and county employees;
6. Claims for payment of college scholarships to surviving children of law enforcement officers and firefighters killed in the official line of duty;
7. Miscellaneous tax refunds; and
8. Livestock and poultry indemnities, not to exceed those amounts appropriated by the General Assembly for the then-current biennial period.
1. Excepting disbursement for livestock and poultry indemnities, claims awarded to surviving spouses or dependent children of deceased police officers, firefighters, and highway employees, college scholarships to surviving children of law enforcement officers and firefighters killed in the official line of duty, and workers' compensation claims for municipal and county employees, the various funds shall reimburse the Miscellaneous Revolving Fund for expenditures made for which the Miscellaneous Revolving Fund is the beneficiary, upon request by the Chief Fiscal Officer of the State.
2. This reimbursement shall be done after determining that it will not jeopardize the then-current fiscal year's operation of the affected state agency or State Treasury fund from which the agency is being supported.
3. The reimbursements shall be made to reimburse the Budget Stabilization Trust Fund.

History. Acts 1973, No. 750, § 7; 1977, No. 825, § 1; 1979, No. 1013, § 4; 1980 (1st Ex. Sess.), No. 39, § 2; A.S.A. 1947, § 13-523; Acts 1993, No. 656, § 2; 2001, No. 1674, § 44; 2009, No. 1330, § 31; 2017, No. 707, §§ 50, 51.

A.C.R.C. Notes. Acts 2016, No. 261, § 14, provided: “REIMBURSEMENT. The Miscellaneous Revolving Fund shall be reimbursed in the manner provided by law.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Amendments. The 2009 amendment deleted (b)(9).

The 2017 amendment redesignated (c) as (c)(1) through (c)(3); substituted “surviving spouses” for “widows” in (b)(4) and (c)(1); and substituted “Department of Transportation” for “State Highway and Transportation Department” in (b)(4).

19-5-1010. Property Sales Holding Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Property Sales Holding Fund”.
The fund shall consist of the proceeds of property sold, transferred, or rented by the Marketing and Redistribution Section, as authorized by law, and such other funds as may be authorized by law.
The fund shall be used for the expenditure of proceeds from the sale or disposition of property by the benefiting state agency and for the maintenance, operation, and improvement of the Marketing and Redistribution Section.

History. Acts 1973, No. 750, § 7; 1975, No. 230, § 3; 1983, No. 141, § 1; A.S.A. 1947, § 13-523.

A.C.R.C. Notes. The Marketing and Redistribution Section, referred to in this section, is part of the Office of State Procurement of the Department of Finance and Administration. See § 25-8-106.

19-5-1011. Crime Information System Fund.

1. The Crime Information System Fund shall consist of those special revenues as specified in §§ 19-6-301(14) and 19-6-301(235), thirty-eight percent (38%) of the fees collected under § 12-12-1510(c), and fifty percent (50%) of § 19-6-301(176) of the Revenue Classification Law, § 19-6-101 et seq., allocations of general revenues as authorized by the General Assembly, moneys transferred or deposited from the State Administration of Justice Fund, and such federal grants and aid or reimbursements as may be received.
2. The Crime Information System Fund shall be used for the maintenance, operation, improvement, and necessary expenditures for administering the Arkansas Crime Information System.
3. The Crime Information System Fund may be used for personal services and operating expenses as provided by law.
The then-current year allocations of general revenues not used or needed for current year operations shall be transferred by the Chief Fiscal Officer of the State to the General Revenue Allotment Reserve Fund.
Beginning July 1, 2013, excluding the disposal fees that are to be deposited into the Marketing Recyclables Program Fund under § 8-6-607(b)(2), the first one hundred fifty thousand dollars ($150,000) of fees collected each fiscal year under § 8-6-607 shall be deposited into the State Treasury and credited to the Crime Information System Fund to be used exclusively for the scrap metal logbook program.
Notwithstanding any other rule or provision of law to the contrary, the Arkansas Crime Information Center may transfer appropriation from the Contingency line item authorized for the Arkansas Crime Information Center to the Scrap Metal Logbook line item appropriation.
Moneys remaining in the Crime Information System Fund at the end of each fiscal year shall carry forward and be made available for the purposes stated in this section in the next fiscal year.

History. Acts 1973, No. 750, § 7; 1981, No. 938, § 8; A.S.A. 1947, § 13-523; Acts 1993, No. 1073, § 13; 1997, No. 1248, § 20; 1999, No. 1463, § 20; 2007, No. 1032, § 19; 2007, No. 1201, § 19; 2012, No. 283, § 11; 2013, No. 1202, § 46; 2015, No. 1185, § 5; 2017, No. 1067, § 8; 2019, No. 315, § 1744.

Amendments. The 2012 amendment added (c).

The 2013 amendment, in (c), substituted “July 1, 2013” for “July 1, 2012” and substituted “one hundred fifty thousand dollars ($150,000)” for “one hundred twenty-five thousand dollars ($125,000)”; and added (d).

The 2015 amendment inserted “thirty-eight percent (38%) of the fees collected under § 12-12-1510(c)” in (a)(1); and added (a)(3) and (e).

The 2017 amendment substituted “Marketing Recyclables Program Fund” for “Marketing Board Fund” in (c).

The 2019 amendment deleted “regulation” following “rule” in (d).

19-5-1012. [Repealed.]

Publisher's Notes. This section, concerning the Merit System Fund, was repealed by Acts 2007, No. 1201, § 20 and 2007, No. 1032, § 20. The section was derived from Acts 1973, No. 750, § 7; A.S.A. 1947, § 13-523.

19-5-1013. Performance Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Performance Fund”.
The fund shall be used for transfer of funds and appropriations to various state agencies, funded, in whole or in part, with general revenues, for regular salary and personal services matching adjustments authorized by the General Assembly and to award raises to employees based upon the performance evaluation system and in accordance with rules promulgated by the Chief Fiscal Officer of the State and which do not have sufficient funding or appropriations to pay for the raises or increases.
The fund shall consist of those general revenues provided by law.
Any references to the Merit Adjustment Fund in the Arkansas Code or acts of the General Assembly, including without limitation appropriation acts, shall be deemed and interpreted as the Performance Fund.

History. Acts 1973, No. 750, § 7; 1985, No. 888, § 10; A.S.A. 1947, § 13-523; Acts 2017, No. 365, § 5; 2018, No. 259, § 8; 2018, No. 260, § 8.

A.C.R.C. Notes. Identical Acts 2018, Nos. 259 and 260, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law and to create funds, to repeal funds, and to make transfers to and from funds and fund accounts.”

Amendments. The 2017 amendment, in (b), inserted “and appropriations”, substituted “for regular salary and personal services matching adjustments authorized by the General Assembly and” for “which have”, deleted “and regulations” following “rules”, and substituted “funding or appropriations to pay for the raises or increases” for “funding to pay for such raises”.

The 2018 amendment by identical acts Nos. 259 and 260 substituted “Performance Fund” for “Merit Adjustment Fund” in the section heading and in (a); substituted “award raises” for “award merit raises” in (b); and added (d).

19-5-1014. [Repealed.]

Publisher's Notes. This section, concerning the Social Services Community Services Fund, was repealed by Acts 2007, No. 1201, § 21 and 2007, No. 1032, § 21. The section was derived from Acts 1973, No. 750, § 7; 1977, No. 955, § 16; A.S.A. 1947, § 13-523.

19-5-1015. Child Support Enforcement Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State the Child Support Enforcement Fund.
The Child Support Enforcement Fund will be used for deposit of funds collected by the Office of Child Support Enforcement under Title IV, Part D, of the Social Security Act.
Funds received in the Child Support Enforcement Fund shall include:
1. The state share of funds collected by the Office of Child Support Enforcement that were previously paid by the state as Aid to Families with Dependent Children payments;
2. All incentive payments received from the federal government for both Aid to Families with Dependent Children and non-Aid to Families with Dependent Children collections;
3. All amounts received as reimbursement from the state and federal programs; and
4. All amounts earned as interest on these amounts.
It is the intent of the General Assembly that the Office of Child Support Enforcement operated under Title IV, Part D, of the Social Security Act utilize funds retained in the Child Support Enforcement Fund for operation and improvement of the program in this state. All funds accumulated in the Child Support Enforcement Fund shall be retained by the program to pay expenses incurred in the operation and improvement of the program in Arkansas.

History. Acts 1973, No. 750, § 7; 1977, No. 955, § 16; A.S.A. 1947, § 13-523; Acts 1993, No. 180, § 1; 1995, No. 1184, § 31.

U.S. Code. Title IV, Part D of the Social Security Act, referred to in this section, is codified as 42 U.S.C. § 651 et seq.

19-5-1016. Rural Fire Protection Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Rural Fire Protection Revolving Fund”.
The fund shall consist of such general revenues as may be provided by law and any other funds made available thereto by § 14-284-301 et seq.
The fund shall be used for the purposes set out in § 14-284-305.

History. Acts 1973, No. 750, § 7; 1979, No. 1013, § 5; 1979, No. 1115, § 3; A.S.A. 1947, § 13-523.

19-5-1017. [Repealed.]

Publisher's Notes. This section, concerning the Property Reappraisal Revolving Fund, was repealed by identical Acts 2017, Nos. 1083 and 1127, § 11. The section was derived from Acts 1973, No. 750, § 7; 1980 (1st Ex. Sess.), No. 1, § 3; A.S.A. 1947, § 13-523.

19-5-1018. Higher Education Building Maintenance Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Higher Education Building Maintenance Fund”.
The Higher Education Building Maintenance Fund shall consist of those moneys received by the state under the provisions of § 19-7-801(b)(1) and § 19-7-802(a)(1) [repealed] after having been transferred from the General Revenue Fund Account of the State Apportionment Fund as specified in subsection (c) of this section.
At the close of each quarter of each state fiscal year, the Chief Fiscal Officer of the State shall cause to be transferred on the books and on those of the Treasurer of State from the General Revenue Fund Account of the State Apportionment Fund to the Higher Education Building Maintenance Fund an amount equal to those funds received under the provisions of § 19-7-801(b)(1) and § 19-7-802(a)(1) [repealed] during the quarter just closed.
Those funds accruing to the Higher Education Building Maintenance Fund under the provisions of this section shall be disbursed by the Director of the Division of Higher Education in accordance with the recommendations of the Arkansas Higher Education Coordinating Board, but only after the board shall determine the projects and priorities for which the funds shall be used, and after the board shall have sought the advice of the Legislative Council with respect to them.

History. Acts 1985, No. 603, §§ 1-3; A.S.A. 1947, §§ 13-558 — 13-560; Acts 2009, No. 251, § 15; 2019, No. 910, § 2268.

Amendments. The 2009 amendment inserted “the Auditor of State, and the Chief Fiscal Officer of the State” in (a), and made minor stylistic and punctuation changes.

The 2019 amendment substituted “Division of Higher Education” for “Department of Higher Education” near the beginning of (d).

19-5-1019. County Solid Waste Management System Aid Fund — Definitions.

1. There is established in the State Treasury a fund to be known as the “County Solid Waste Management System Aid Fund”, to consist of such special or general revenues or other moneys that may be deposited into the County Solid Waste Management System Aid Fund as provided by the General Assembly, to be used for the purpose of providing financial assistance to counties in the manner provided in this section, for the establishment, expansion, maintenance, and operation of county solid waste collection and disposal systems.
2. 1. A “solid waste management system” shall be defined as the entire process of storage, collection, transportation, processing, treatment, and disposal of solid waste.
  2. As used in this section, the term “county solid waste collection and disposal system” or the term “county solid waste management system” shall mean and include either of the following:
    1. A county-owned and operated solid waste management and disposal system funded by moneys appropriated by the quorum court;
    2. A municipally owned and operated solid waste management and disposal system located within the county or adjoining counties, operated under contract with the county whereby the county is provided access thereto, and the quorum court appropriates funds to defray the county's share of the cost of operating such facility;
    3. A privately owned solid waste management and disposal system located within the county, or an adjoining county, in which the county has entered into a contract providing access and services of such facilities for the use and benefit of the county under the terms of which the county's share of the operating cost is funded by an appropriation made by the quorum court of the county; or
    4. A solid waste collection and disposal system operated by two (2) or more counties, or by one (1) or more counties and one (1) or more municipalities, or operated by a private owner, under a compact or agreement whereby each of the participating counties and municipalities has access to the facilities of the system, and appropriates, through its governing body, funds to defray their respective shares of the cost of such facility.
All of the general revenues and special revenues and other funds deposited into the County Solid Waste Management System Aid Fund during each fiscal year shall be allocated by the Treasurer of State to each of the counties in the state, to be distributed to the counties only as provided in this section, on the basis of seventy-five percent (75%) divided equally among the seventy-five (75) counties of the state and twenty-five percent (25%) on the basis of population according to the most recent federal decennial census, with each county to receive an allocation of the funds in the proportion that its population bears to the total population of the state.
1. Before any county shall be eligible to receive its portion of the moneys in the County Solid Waste Management System Aid Fund during any fiscal year, the county, on or before the first day of the fiscal year, shall furnish the Treasurer of State the following information on forms to be developed by the Treasurer of State:
  1. Proof that the county operates, or is in the process of establishing, a solid waste management system for that county and that such solid waste management system is available to serve the residents of the county and may be available for service to various cities and towns within the counties through interlocal agreements, compacts, or authorities;
  2. That the quorum court of the county has established and approved a budget for the operation of the county solid waste management system for the fiscal year and has appropriated funds for it in an amount sufficient to support not less than fifty percent (50%) of the costs of operating the solid waste management system and that the funds appropriated for this purpose will be used solely for the cost of establishing, operating, and maintaining the solid waste system, and for the hiring of personnel and for the acquisition of equipment and land required to operate the solid waste management system and disposal; and
  3. That the amount of funds allocated to the county for the year under this section will be used exclusively for establishing, operating, and maintaining the solid waste management system, meeting the requirements of this section, including the acquisition of land, and acquisition, maintenance, repair, and operation of equipment used in connection with the operation of the solid waste management system.
2. If any county shall fail, during any fiscal year, to expend an amount of county funds equal to at least fifty percent (50%) of the cost of operating its solid waste management system, or shall use any of the state funds allocated under the provisions of this section for any purpose other than as intended by it, the county shall be ineligible to receive moneys during the next-following fiscal year from the County Solid Waste Management System Aid Fund. However, the quorum court may make reapplication for state assistance funds during the year thereafter, upon offering the appropriate assurances in writing that it will meet the full requirements of the intent and purposes of this section in the use of such funds.
1. The moneys saved from legislation enacted by the Seventy-Fifth General Assembly which reduced contributions made by the state for state employees who are employed by a state agency funded, in whole or in part, with general revenues shall be set aside and implemented by the Chief Fiscal Officer of the State and the Treasurer of State in the amount and in accordance with procedures set forth in this subsection:
  1. Beginning the month after the month in which the reductions in retirement contributions occur, the Chief Fiscal Officer of the State shall determine the amount of such general revenue savings, by fund or fund account, based upon the previous month's payroll deductions for retirement contributions to the Arkansas Public Employees' Retirement System;
  2. During each fiscal year, the Chief Fiscal Officer of the State shall cause to be transferred on the books and those of the Treasurer of State the amount of such monthly general revenue savings from each affected fund or fund account to the Revenue Holding Fund Account of the State Apportionment Fund before the close of business on the last day of each month until an aggregate of five million dollars ($5,000,000) of such general revenue savings during a fiscal year has been transferred to the Revenue Holding Fund Account from such sources. Monthly transfers of such general revenue savings to the Revenue Holding Fund Account shall thereupon cease for the remainder of the fiscal year; and
  3. After providing for the distribution of general revenues available for distribution, the Treasurer of State shall transfer the total amount of such general revenue savings as certified to the Treasurer of State by the Chief Fiscal Officer of the State from the Revenue Holding Fund Account to the County Solid Waste Management System Aid Fund. This amount shall be used to make monthly distributions from the County Solid Waste Management System Aid Fund in the manner provided by law to the respective counties of this state to be used for the support of the county solid waste management system as provided in this section.
2. If any county shall fail to qualify for its proportionate share of the moneys in the County Solid Waste Management System Aid Fund during any fiscal year, the moneys shall be reapportioned among various counties which qualify to receive their proportionate shares of the County Solid Waste Management System Aid Fund moneys during the fiscal year, in accordance with the distribution formula set forth in subsection (b) of this section. The Treasurer of State shall monthly distribute moneys to the eligible counties as authorized in this section in the same manner as other county aid funds are distributed, and they shall be credited and used solely for the support and operation of the county solid waste management system.

History. Acts 1985, No. 986, §§ 1-4; 1985 (1st Ex. Sess.), No. 5, § 1; A.S.A. 1947, §§ 13-564 — 13-567.

Publisher's Notes. Acts 1985, No. 986, as amended, is also codified as § 8-6-301 et seq.

Cross References. County Solid Waste Management System Aid Fund, § 8-6-301 et seq.

19-5-1020. Department of Human Services Renovation Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Department of Human Services Renovation Fund”.
The fund shall be used for constructing, acquiring, renovating, maintaining, repairing, and equipping facilities of the Department of Human Services and for paying disallowances by the United States Government.
The fund shall consist of:
1. Federal reimbursement received by the department and deposited into the various fund accounts of the department;
2. 1. General revenues transferred from the Division of Youth Services, the Division of Aging, Adult, and Behavioral Health Services of the Department of Human Services, and the Division of Developmental Disabilities Services for the purposes of repairing, renovating, equipping, acquiring, and constructing department facilities with an annual maximum of five million dollars ($5,000,000).
  2. The projects for which these transfers are authorized must be projects which were unanticipated during the preceding regular session of the General Assembly and must be projects which, if not carried out in the interim period between regular sessions of the General Assembly, would cause greater harm to the facilities, clients, or programs of the department than if carried out during the next regular session; and
3. Other nongeneral revenue funds as may be available within the department that can be used for the purposes of the fund.
1. At the request of the Secretary of the Department of Human Services and upon certification of the availability of such funds, the Chief Fiscal Officer of the State shall initiate the necessary transfer documents to reflect the transfer on the books of record of the Treasurer of State, the Auditor of State, the Chief Fiscal Officer of the State, and the department.
2. The secretary shall submit any transfer plan to and must receive approval of the plan from the Chief Fiscal Officer of the State, the Governor, and the Legislative Council prior to the effective date of the transfer.
Provided, that any nongeneral revenue funding that may remain in the fund at the end of any fiscal year shall be carried over into the next fiscal year, and all obligated general revenue funding that may remain in the fund at the end of any fiscal year shall be carried over into the next fiscal year to satisfy such legal and contractual obligations that have been entered into prior to the end of the fiscal year.
Determining the amount of funds appropriated to a state agency is the prerogative of the General Assembly and is usually accomplished by delineating specific line items and by identifying the appropriation and funding attached to that line item. The General Assembly has determined that the department could be operated more efficiently if some flexibility is given to that agency. That flexibility is being accomplished by providing transfer authority in subsection (d) of this section, and since the General Assembly has granted the agency broad powers under the transfer authority concept, it is both necessary and appropriate that the General Assembly maintain oversight of the utilization of the transfer authority by requiring prior approval of the Legislative Council in the utilization of this transfer authority. Therefore, the requirement of approval by the Legislative Council is not a severable part of this section. If the requirement of approval by the Legislative Council is ruled unconstitutional by a court of competent jurisdiction, this entire section is void.

History. Acts 1985, No. 719, § 1; A.S.A. 1947, § 13-562; Acts 1995, No. 1198, § 104; 1997, No. 1360, § 64; 1999, No. 1537, § 80; 2019, No. 910, § 5163.

A.C.R.C. Notes. Acts 2016, No. 268, § 16, provided: “HUMAN SERVICES RENOVATION FUND. Department of Human Services Renovation Fund.

“(a) There is established on the books of the Treasurer of State, Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the Department of Human Services Renovation Fund.

“(b) This fund shall be used for constructing, acquiring, renovating, maintaining, repairing, and equipping facilities of the Department of Human Services and for paying disallowances by the federal government.

“(c) The fund shall consist of:

“(1) Federal reimbursement received by the Department of Human Services and deposited in the various fund accounts of the department; and

“(2) General revenues transferred from the Division of Youth Services, the Division of Behavioral Health, and the Division of Developmental Disabilities Services for the purposes of repairing, renovating, equipping, acquiring and constructing Department of Human Services facilities with an annual maximum of five million dollars ($5,000,000). The projects for which these transfers are authorized must be projects which were unanticipated during the preceding regular session of the Arkansas General Assembly and must be projects which, if not carried out in the interim period between regular sessions of the Arkansas General Assembly would cause greater harm to the facilities, clients or programs of the Department of Human Services than to wait until the next regular session.

“(3) Other non-general revenue funds as may be available within the Department of Human Services that can be used for the purposes of this fund.

“(d)(1) At the request of the Director of the Department of Human Services, and upon certification of the availability of such funds, the Chief Fiscal Officer of the State shall initiate the necessary transfer documents to reflect the transfer on the books of record of the Treasurer of State, the Auditor of State, the Chief Fiscal Officer of the State, and the Department of Human Services.

“(2) The Director of the Department of Human Services shall submit any transfer plan to and must receive approval of the plan from the Chief Fiscal Officer of the State, the Governor and the Arkansas Legislative Council prior to the effective date of the transfer.

“(e) Provided, that any non-general revenue funding that may remain in the fund at the end of any fiscal year shall be carried over into the next fiscal year and all obligated general revenue funding that may remain in the fund at the end of any fiscal year shall be carried over into the next fiscal year to satisfy such legal and contractual obligations that have been entered into prior to the end of the fiscal year.

“(f) Determining the amount of funds appropriated to a state agency is the prerogative of the General Assembly and is usually accomplished by delineating specific line items and by identifying the appropriation and funding attached to that line item. The General Assembly has determined that the Department of Human Services could be operated more efficiently if some flexibility is given to that agency. That flexibility is being accomplished by providing transfer authority in subsection (d) of this section, and since the General Assembly has granted the agency broad powers under the transfer authority concept, it is both necessary and appropriate that the General Assembly maintain oversight of the utilization of the transfer authority by requiring prior approval of the Legislative Council in the utilization of this transfer authority. Therefore, the requirement of approval by the Legislative Council is not a severable part of this section. If the requirement of approval by the Legislative Council is ruled unconstitutional by a court of competent jurisdiction, this entire section is void.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Amendments. The 2019 amendment substituted “Secretary of the Department of Human Services” for “Director of the Department of Human Services” in (d)(1); and substituted “secretary” for “director” in (d)(2).

19-5-1021. White River Navigation Fund.

There is established in the State Treasury a fund to be known as the “White River Navigation Fund”, into which shall be deposited and allocated such moneys as may be provided therefor by the General Assembly.
These moneys shall be used by the Arkansas Waterways Commission in making available the state funds that may be required by the United States Congress in connection with the White River Navigation Improvement Project, in the event the United States Congress shall authorize the project, and shall provide funds to the United States Army Corps of Engineers for the project, conditioned upon the State of Arkansas providing financial assistance in connection with defraying a portion of the cost of the project.

History. Acts 1985, No. 219, § 2.

19-5-1022. [Repealed.]

Publisher's Notes. This section, concerning the Helena Harbor Port Project Fund, was repealed by identical Acts 2017, Nos. 1083 and 1127, § 12. The section was derived from Acts 1985, No. 913, § 2; 1987, No. 928, § 2.

19-5-1023. Special account for youth services centers.

All funds received by the youth services centers from tie-in fees charged persons who connect with the water lines installed under the provisions of Acts 1961 (1st Ex. Sess.), No. 9, shall be deposited into the State Treasury to the credit of a special account to be used for future construction, repairs, and improvements at the youth services centers.

History. Acts 1961 (1st Ex. Sess.), No. 9, § 3; A.S.A. 1947, § 46-385.

19-5-1024. Public Service Commission Tax Division Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Public Service Commission Tax Division Fund”.
The Public Service Commission Tax Division Fund shall be used for the maintenance, operations, and improvement of the Tax Division of the Arkansas Public Service Commission in carrying out its functions, powers, and duties as set out by law and by rules not inconsistent with law.
The Public Service Commission Tax Division Fund shall consist of:
1. The proportion due the Tax Division of the Arkansas Public Service Commission of those ad valorem taxes levied on rolling stock as set out in §§ 26-26-1614 — 26-26-1616, as prescribed in § 19-5-906;
2. Moneys transferred from the Public Service Commission Fund in such amount as provided by this section in order to support those activities of the Tax Division of the Arkansas Public Service Commission that relate to the assessment and levying of taxes on utility property; and
3. Moneys transferred from the Miscellaneous Agencies Fund Account in an amount that shall not exceed the difference between the total appropriation provided by the General Assembly for the Tax Division of the Arkansas Public Service Commission and the aggregate total of:
  1. The prior year remaining balance in the Public Service Commission Tax Division Fund; and
  2. The transfer provided from the Public Service Commission Fund.
On July 1 of each fiscal year, the amount of the transfer from the Public Service Commission Fund to the Public Service Commission Tax Division Fund shall be in an amount which is equal to sixty-five percent (65%) of the difference between the total appropriation provided by the General Assembly for personal services and operating expenses of the Tax Division of the Arkansas Public Service Commission for the current fiscal year and the balance remaining in the Public Service Commission Tax Division Fund on the immediately preceding June 30.

History. Acts 1985, No. 352, §§ 1, 2; A.S.A. 1947, §§ 13-531.1, 13-531.2; Acts 2009, No. 251, § 16; 2019, No. 315, § 1745.

Amendments. The 2009 amendment inserted “the Auditor of State, and the Chief Fiscal Officer of the State” in (a), and made minor stylistic and punctuation changes.

The 2019 amendment substituted “rules” for “rule and regulation” in (b).

19-5-1025. Department of Human Services Consolidated Cost Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Department of Human Services Consolidated Cost Revolving Fund”.
The Treasurer of State is authorized to establish a revolving fund for the Office of Finance and Administration of the Department of Human Services, for the purposes of providing a system to charge consolidated costs for such items as postage, vehicle maintenance, vehicle insurance, vehicle license and title fees, tires and tubes, fuel, credit card purchases, office supplies, duplication supplies, micrographic supplies, equipment acquisition, equipment maintenance and repair, sales and use taxes, and various other licenses and permits. These items will be purchased by the Office of Finance and Administration through the use of the revolving fund and charged to each division and office as that division or office uses them. This will allow for the expenditure to be appropriately charged to the benefiting program.
The replenishment of the revolving fund will consist of such funds as budgeted by the division and offices for these items of cost which could be general revenue, special revenue, federal funds, cash funds, or any other funds under the authority of the divisions and offices.
Said account shall be replenished as needed but not less than six (6) times per fiscal year. Said account shall be established and maintained in accordance with procedures established by the Chief Fiscal Officer of the State.

History. Acts 1991, No. 1135, § 9; 1993, No. 1239, § 63.

A.C.R.C. Notes. Acts 1991, No. 1135, § 9, purported to amend former § 19-5-1025 which had previously been repealed by Acts 1987, No. 928, § 6; the 1991 act has been treated as an enactment.

19-5-1026. [Repealed.]

Publisher's Notes. This section, concerning the Arkansas Adult Probation Commission Fund, was repealed by identical Acts 2017, Nos. 1083 and 1127, § 13. The section was derived from Acts 1987, No. 928, § 3.

19-5-1027. Environmental Education Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Environmental Education Fund”.
The Environmental Education Fund shall consist of that portion of moneys transferred, not to exceed two hundred seventy-five thousand dollars ($275,000) per fiscal year, from the Hazardous Substance Remedial Action Trust Fund as set out in § 8-7-509, there to be used by the Division of Environmental Quality to provide environmental educational materials and training.

History. Acts 1987, No. 928, § 3; 1993, No. 1073, § 14; 1995, No. 1296, § 73; 1999, No. 1164, § 165; 2019, No. 910, § 3192.

Amendments. The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (b).

19-5-1028. Abandoned Mine Reclamation Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Abandoned Mine Reclamation Fund”.
The fund shall consist of moneys received through a grant from the United States Secretary of the Interior pursuant to the state abandoned mine reclamation program, there to be used by the Division of Environmental Quality for that program.

History. Acts 1987, No. 928, § 3; 1999, No. 1164, § 166; 2019, No. 910, § 3193.

Amendments. The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (b).

Cross References. Definitions, § 15-58-104.

19-5-1029. Surface Coal Mining Operation Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Surface Coal Mining Operation Fund”.
The fund shall consist of application and permit fees for surface coal mining, there to be used by the Division of Environmental Quality only for the administration and enforcement of the Arkansas Surface Coal Mining and Reclamation Act of 1979, § 15-58-101 et seq., and as the state's matching percentage share for any grants available to the state for the administration and enforcement of the state program as defined in § 15-58-104.

History. Acts 1987, No. 928, § 3; 1999, No. 1164, § 167; 2009, No. 251, § 17; 2019, No. 910, § 3194.

Amendments. The 2009 amendment, in (b), inserted “the Arkansas Surface Coal Mining and Reclamation Act of 1979” and “as defined in § 15-58-104,” and made a related change.

The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (b).

Cross References. Fees — Surface Coal Mining Operation Fund, § 15-58-508.

19-5-1030. Lead-Based Paint-Hazard Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Lead-Based Paint-Hazard Fund”.
The Lead-Based Paint-Hazard Fund shall consist of all moneys remaining in the Lead-Based Paint-Hazard Fund as of July 1, 2011, all moneys recovered under the Arkansas Lead-Based Paint-Hazard Act of 2011, § 20-27-2501 et seq., and any other moneys received by the state as a gift or donation to the Lead-Based Paint-Hazard Fund to be used for the lead-based program as administered by the Department of Health as set out in the Arkansas Lead-Based Paint-Hazard Act of 2011, § 20-27-2501 et seq.

History. Acts 1999, No. 1463, § 21; 2011, No. 1011, § 5.

A.C.R.C. Notes. Acts 2011, No. 1011, § 1, provided:

“TRANSFER OF FUND.

“(a) The Lead-Based Paint-Hazard Fund established by Act 309 of 1997, concerning its powers, duties, functions, assets, records, properties, funds, and appropriations are transferred by a Type 2 transfer as provided in § 25-2-105 from the Arkansas Department of Environmental Quality to the Department of Health.

“(b) For the purposes of this act, the Department of Health shall be considered a principal department established by Act 38 of 1971.”

The 2011 amendment by Act 1011 added language to subsection (b) without underlining the language to indicate that it was new.

Publisher's Notes. Former § 19-5-1030, concerning the Mining Reclamation Trust Fund, was repealed by Acts 1997, No. 1248, § 27. This former section was derived from Acts 1987, No. 928, § 3; 1995, No. 194, § 1; 1995, No. 278, § 1.

For present law concerning the Mining Reclamation Trust Fund, see § 19-5-992.

Amendments. The 2011 amendment rewrote (b).

19-5-1031. Solid Waste Performance Bond Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Solid Waste Performance Bond Fund”.
The fund shall consist of all forfeitures collected under the Arkansas Solid Waste Management Act, § 8-6-201 et seq., there to be used only to accomplish remedial action, including closure of lands covered by performance bonds forfeited under the Arkansas Solid Waste Management Act, § 8-6-201 et seq.

History. Acts 1987, No. 928, § 3.

Cross References. Solid Waste Performance Bond Fund, § 8-6-1604.

19-5-1032. [Repealed.]

Publisher's Notes. This section, concerning the Future Operations Reserve Fund, was repealed by identical Acts 2017, Nos. 1083 and 1127, § 14. The section was derived from Acts 1987, No. 928, § 3.

19-5-1033. [Repealed.]

Publisher's Notes. This section, concerning the Juvenile Detention Facilities Capital Grant Fund, was repealed by Acts 2007, No. 1201, § 22 and No. 1032, § 22. The section was derived from Acts 1989 (3rd Ex. Sess.), No. 77, § 1.

19-5-1034. Juvenile Detention Facilities Operating Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Juvenile Detention Facilities Operating Fund”.
The Juvenile Detention Facilities Operating Fund shall consist of moneys transferred from the Youth Services Fund Account of the Department of Human Services Fund.

History. Acts 1989 (3rd Ex. Sess.), No. 77, § 2; 2001, No. 1531, § 13.

19-5-1035. [Repealed.]

Publisher's Notes. This section, concerning the Juvenile Detention Facilities Revolving Loan Fund, was repealed by Acts 2007, No. 1234, § 14. The section was derived from Acts 1989 (3rd Ex. Sess.), No. 77, § 4.

19-5-1036. Research Development Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Research Development Fund”.
The Research Development Fund shall consist of funds transferred from the Higher Education Building Maintenance Fund and any other moneys provided by the General Assembly, there to be used for the administration and operations of the Arkansas Research Development Program of the Division of Higher Education, as set out in the Arkansas Research Development Act, § 6-61-801 et seq.

History. Acts 1991, No. 1135, § 11; 2019, No. 910, § 2269.

A.C.R.C. Notes. Acts 2016, No. 236, § 22, provided: “BUILDING MAINTENANCE FUND. After the sum of $13,200,000 has been deposited into the Higher Education Building Maintenance Fund, any additional deposits are to be transferred to the Research Development Fund there to be used as provided by law.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Amendments. The 2019 amendment substituted “Division of Higher Education” for “Department of Higher Education” in (b).

19-5-1037. [Repealed.]

Publisher's Notes. This section, concerning the Motion Picture Office Fund, was repealed by Acts 2007, No. 1201, § 23 and No. 1032, § 23. The section was derived from Acts 1991, No. 1135, § 11.

19-5-1038. Revenue Local Tax Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Revenue Local Tax Revolving Fund”.
The fund shall consist of income taxes or any taxes not otherwise prohibited by law levied by counties or municipalities and for which the collection and administration of such taxes are performed by the state, as authorized in § 26-73-105, there to be transmitted at least quarterly in each state fiscal year to the local government levying the tax, all as set out in §§ 26-73-101 — 26-73-109.

History. Acts 1991, No. 1135, § 11.

19-5-1039. Rural Health Services Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Rural Health Services Revolving Fund”.
The Rural Health Services Revolving Fund shall consist of funds transferred from the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund, or any other funds made available by the General Assembly, there to be used to provide matching funds, on a fifty-fifty (50:50) cash basis up to a maximum of two hundred thousand dollars ($200,000) per applicant, for assisting in the stabilizing of necessary medical services provided by county, local, commercial, or nonprofit operations, all as administered by the Department of Health as set out in the Rural Health Services Revolving Fund Act, § 20-12-401 et seq.

History. Acts 1991, No. 1135, § 11; 2019, No. 82, § 12.

A.C.R.C. Notes. Acts 2019, No. 82, § 1, provided: “Legislative intent.

It is the intent of the General Assembly that the creation of the Development and Enhancement Fund is necessary to provide a mechanism to disburse funds for:

“(1) Various construction and improvement projects;

“(2) Unforeseen needs;

“(3) Funding deficiencies; and

“(4) The completion of projects previously funded by the General Assembly”.

Amendments. The 2019 amendment inserted “fund or fund accounts, including the Development and Enhancement Fund” in (b).

19-5-1040. Rural Medical Clinic Revolving Loan Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Rural Medical Clinic Revolving Loan Fund”.
The fund shall consist of moneys provided by law, there to be used solely and exclusively for the making of loans by the State Board of Finance, upon application therefor, for the construction and equipping of rural medical clinics in rural areas of this state, as defined in § 20-12-202.

History. Acts 1991, No. 1135, § 11.

19-5-1041. City-County Tourist Facilities Aid Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “City-County Tourist Facilities Aid Fund”.
The City-County Tourist Facilities Aid Fund shall consist of moneys deducted from the General Revenue Fund Account of the State Apportionment Fund in such amounts necessary to meet the quarterly payments to cities and counties that are parties to an agreement with the state, entered into pursuant to §§ 14-171-204 — 14-171-209 [repealed] and 14-171-210, there to be administered by the State Board of Finance and disbursed by the Treasurer of State as set out in the City-County Tourist Meeting and Entertainment Facilities Assistance Law, § 14-171-201 et seq.

History. Acts 1991, No. 1135, § 11.

19-5-1042. Arkansas Water Resources Cost Share Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Water Resources Cost Share Revolving Fund”.
1. The fund shall consist of funds appropriated or otherwise secured for the purposes of cost sharing with the federal government in local water resources development projects and loan repayments to the fund, there to be used to provide loans or grants to local governments for the purposes as established in the Arkansas Water Resources Cost Share Finance Act, § 15-22-801 et seq.
2. The fund may also be used to allow up to twenty percent (20%) of the total cost of a project as administrative costs.

History. Acts 1991, No. 1135, § 11; 2001, No. 1646, § 24.

19-5-1043. Drug Abuse Prevention and Treatment Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Drug Abuse Prevention and Treatment Fund”.
The Drug Abuse Prevention and Treatment Fund shall consist of:
1. Those moneys transferred or deposited from the State Administration of Justice Fund;
2. Such general revenue as transferred from the Behavioral Health Services Fund Account;
3. Federal reimbursement received on account of eligible expenditures; and
4. Other funds as may be provided by law.

History. Acts 1991, No. 1135, § 19; 1997, No. 1248, § 21; 2005, No. 2115, § 32; 2011, No. 1095, § 7; 2011, No. 1115, § 7.

Amendments. The 2005 amendment inserted the subdivision (1) designation in (b) and made related changes; and added (b)(2)-(4).

The 2011 amendment by identical acts Nos. 1095 and 1115 substituted “Behavioral Health Services Fund Account” for “Mental Health Services Fund Account” in (b)(2).

19-5-1044. Law Enforcement and Prosecutor Drug Enforcement Training Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Law Enforcement and Prosecutor Drug Enforcement Training Fund”.
The Law Enforcement and Prosecutor Drug Enforcement Training Fund shall consist of those moneys transferred or deposited from the State Administration of Justice Fund.

History. Acts 1991, No. 1135, § 19; 1997, No. 1248, § 22.

19-5-1045. County Jail Reimbursement Fund.

The County Jail Reimbursement Fund is created and established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State and shall consist of those general revenues or general improvement funds that may be provided by law.
The fund shall be used by the Division of Correction for reimbursing counties housing prisoners sentenced to the Division of Correction.
The fund shall be used by the Division of Community Correction for reimbursing counties that are housing prisoners:
1. Sentenced to the Division of Community Correction;
2. Placed on probation if the probation is accompanied by incarceration in the Division of Community Correction; or
3. Confined in a county jail under any prerelease program or sanction imposed in response to a violation of a supervised condition.

History. Acts 1991, No. 644, § 2; 2003, No. 370, § 3; 2003 (2nd Ex. Sess.), No. 16, § 2; 2013, No. 1282, § 2; 2019, No. 910, § 987.

A.C.R.C. Notes. Acts 2016, No. 266, § 23, provided: “COUNTY JAIL REIMBURSEMENT FUND YEAR-END FUND BALANCE CARRY FORWARD. Notwithstanding any law pertaining to the transfer of year-end fund balances or any law to the contrary, any funds which remain in the County Jail Reimbursement Fund at the end of a fiscal year shall remain in the County Jail Reimbursement Fund and made available to fund appropriations authorized by law payable from the County Jail Reimbursement Fund for the following fiscal year.

“Any carry forward of unexpended balance of funding as authorized herein, may be carried forward under the following conditions:

“(2) The Department of Finance and Administration Office of Budget shall report to the Arkansas Legislative Council all amounts carried forward from the first fiscal year to the second fiscal year by the September Arkansas Legislative Council or Joint Budget Committee meeting which report shall include the name of the Agency, Board, Commission or Institution and the amount of the funding carried forward from the first fiscal year to the second fiscal year, the program name or line item, the funding source of that appropriation and a copy of the written request set forth in (1) above;

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Amendments. The 2003 amendment inserted “solely” in (b).

The 2003 (2nd Ex. Sess.) amendment deleted “solely” following “used,” in (b); and added (c).

The 2013 amendment inserted “that are” preceding “housing prisoners” in the introductory language of (c); added subdivision designations in (c); and added (c)(3).

The 2019 amendment substituted “Division of Correction” for “Department of Correction” twice in (b); and substituted “Division of Community Correction” for “Department of Community Correction” three times in (c).

Research References

Ark. L. Rev.

Mason L. Boling, Legislative Note: That Was the Easy Part: The Development of Arkansas's Public Safety Improvement Act of 2011, and Why the Biggest Obstacle to Prison Reform Remains Intact, 66 Ark. L. Rev. 1109 (2013).

19-5-1046. Building Authority Division Maintenance Fund.

1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Building Authority Division Maintenance Fund”.
2. The fund shall be used for the maintenance, operation, and improvement of lands, buildings, and facilities that may be acquired by the Building Authority Division.
1. The fund shall consist of all moneys received in connection with the leasing, management, and operation of building facilities and lands belonging to or managed by the division.
2. The moneys received by the division are declared to be nonrevenue receipts.

History. Acts 1987, No. 928, § 3; 1991, No. 786, § 31; 2005, No. 2282, § 7; 2005, No. 2316, § 7; 2015 (1st Ex. Sess.), No. 7, § 15; 2015 (1st Ex. Sess.), No. 8, § 15; 2019, No. 910, § 6096.

A.C.R.C. Notes. Acts 2003, No. 250, § 4, provided:

“The Arkansas State Building Services Maintenance Fund, as established in Arkansas Code § 19-5-1406, shall be known as the Arkansas Building Authority Maintenance Fund.”

Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 1, provided: “Transfer of the Arkansas Building Authority to the Department of Finance and Administration.

“(a)(1) The Arkansas Building Authority is transferred to the Department of Finance and Administration by a type 2 transfer under § 25-2-105.

“(2) For the purposes of this act, the Department of Finance and Administration shall be considered a principal department established by Acts 1971, No. 38.

“(e) The Arkansas Code Revision Commission shall make appropriate name changes in the Arkansas Code to implement this act.”

Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 152, provided:

“(a) Any funds authorized by the Ninetieth General Assembly from the Arkansas Building Authority Maintenance Fund may be deemed payable from the Building Authority Division Maintenance Fund.

“(b) Any funds authorized by the Ninetieth General Assembly from the Arkansas Building Authority Real Estate Fund may be deemed payable from the Building Authority Division Real Estate Fund.”

Publisher's Notes. Concerning the effect of Acts 1991, No. 786 on the acts passed at the Regular Session of the 78th General Assembly, see the Publishers Note under § 19-5-1006.

Amendments. The 2005 amendment by identical acts Nos. 2282 and 2316 substituted “Arkansas Building Authority” for “Arkansas State Building Services” in (a)(1) and (a)(2).

The 2015 amendment by Acts 2015 (1st Ex. Sess.), Nos. 7 and 8 substituted “Building Authority Division Maintenance Fund” for “Arkansas Building Authority Maintenance Fund” in the section heading and in (a)(1); substituted “Building Authority Division of the Department of Finance and Administration” for “Arkansas Building Authority” in (a)(2); and substituted “division” for “authority” in (b)(1) and (b)(2).

The 2019 amendment deleted “of the Department of Finance and Administration” following “Building Authority Division” in (a)(2).

19-5-1047. Arkansas Medicaid Rebate Program Revolving Fund — Arkansas Medicaid Rebate Program Revolving Fund Act of 1991 — Definition.

This section shall be known and may be cited as the “Arkansas Medicaid Rebate Program Revolving Fund Act of 1991”.
As used in this section, the term “drug manufacturer” means any person, partnership, corporation, or other institution or entity which is engaged in the production, preparation, propagation, compounding, conversion, or processing of drugs, either directly or indirectly by extraction from the substance of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, or in the packaging, repackaging, labeling, relabeling, and distribution of drugs.
There is established a fund to be known as the “Arkansas Medicaid Rebate Program Revolving Fund” which is created on the books of the Treasurer of State. The fund shall be administered by the Division of Medical Services.
1. The Department of Human Services is authorized to receive moneys in the form of rebates from drug manufacturers as established by contract or pursuant to the provisions of the Omnibus Budget Reconciliation Act of 1990, Pub. L. No. 101-508.
2. Any moneys accruing to the department through these rebates shall be deposited into the State Treasury as nonrevenue receipts to be credited to the fund and transferred by the Secretary of the Department of Human Services to the Department of Human Services Medicaid Paying Accounts Account to be used solely for paying pharmacy claims in the Arkansas Medicaid Drug Rebate Program.
3. Any general revenues that accrue as a result of the receipt of the Medicaid rebate shall be transferred to the Department of Human Services Grants Fund Account.

History. Acts 1991, No. 1023, §§ 1-4; 1993, No. 289, § 1; 2019, No. 910, § 5164.

Amendments. The 2019 amendment substituted “Secretary of the Department of Human Services” for “Director of the Department of Human Services” in (d)(2).

U.S. Code. The Omnibus Budget Reconciliation Act of 1990, referred to in this section, is codified throughout the U.S. Code.

19-5-1048. [Repealed.]

Publisher's Notes. This section, concerning the Quality Management State Agency Training Fund, was repealed by Acts 2009, No. 251, § 18. The section was derived from Acts 1991, No. 1166, § 6.

19-5-1049. [Repealed.]

Publisher's Notes. This section, concerning the Industry and Aerospace Development Fund, was repealed by Acts 2007, No. 1201, § 24 and No. 1032, § 24. The section was derived from Acts 1992 (1st Ex. Sess.), No. 21, § 2; 1995, No. 1163, § 30; 1997, No. 540, § 42.

19-5-1050. [Repealed.]

Publisher's Notes. This section, concerning the Child Welfare Compliance and Oversight Fund, was repealed by identical Acts 2017, Nos. 1083 and 1127, § 15. The section was derived from Acts 1992 (1st Ex. Sess.), No. 23, § 3.

19-5-1051. Parks and Tourism Outdoor Recreation Grants Fund.

There is created and established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Parks and Tourism Outdoor Recreation Grants Fund”.
The fund shall consist of ten percent (10%) of those special revenues as specified in § 19-6-301(145), there to be used by the Department of Parks, Heritage, and Tourism for making grants for outdoor recreational purposes to cities and counties of this state in accordance with the Arkansas Statewide Comprehensive Outdoor Recreation Plan as set out in § 15-12-103.

History. Acts 1993, No. 728, § 41; 2019, No. 910, § 5672.

Amendments. The 2019 amendment, in (b), inserted “Heritage” and “Arkansas”.

19-5-1052. Justice Building Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Justice Building Fund”.
The Justice Building Fund shall consist of all moneys transferred or deposited from the State Administration of Justice Fund, there to be used exclusively by the Building Authority Division for the maintenance of the Arkansas Justice Building.

History. Acts 1993, No. 1223, § 11; 1997, No. 1248, § 23; 2007, No. 186, § 4; 2015 (1st Ex. Sess.), No. 7, § 16; 2015 (1st Ex. Sess.), No. 8, § 16; 2019, No. 910, § 6097.

A.C.R.C. Notes. Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 1, provided: “Transfer of the Arkansas Building Authority to the Department of Finance and Administration.

“(a)(1) The Arkansas Building Authority is transferred to the Department of Finance and Administration by a type 2 transfer under § 25-2-105.

“(2) For the purposes of this act, the Department of Finance and Administration shall be considered a principal department established by Acts 1971, No. 38.

“(e) The Arkansas Code Revision Commission shall make appropriate name changes in the Arkansas Code to implement this act.”

Amendments. The 2007 amendment substituted “Arkansas Building Authority” for “Arkansas State Building Services” in (b).

The 2015 amendment by Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, in (b), substituted “The Justice Building Fund” for “The fund”, “Building Authority Division of the Department of Finance and Administration” for “Arkansas Building Authority”, and “Arkansas Justice Building” for “Justice Building”.

The 2019 amendment deleted “of the Department of Finance and Administration” preceding “for the maintenance” in (b).

19-5-1053. Trial Expense Assistance Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Trial Expense Assistance Fund”.
The Trial Expense Assistance Fund shall consist of moneys transferred to it from the Miscellaneous Revolving Fund, there to be paid for reimbursement of costs incurred in certain trials as set out in § 16-92-109.

History. Acts 1993, No. 1073, § 15.

19-5-1054. Cities in School Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Cities in School Fund”.
The Cities in School Fund shall consist of those moneys transferred from the General Revenue Fund Account of the State Apportionment Fund, there to be used for providing grants to community-based pilot programs directed toward solving problems of children and their families as set out in Acts 1992 (1st Ex. Sess.), No. 1, §§ 7 and 8.

History. Acts 1993, No. 1073, § 15.

Publisher's Notes. Acts 1992 (1st Ex. Sess.), No. 1, §§ 7 and 8 provided:

“SECTION 7. There is hereby created and established on the books of the State Auditor, State Treasurer and Chief Fiscal Officer of the State a fund to be known as the Cities in School Fund, which shall consist of those funds as may be provided by law. Such funds shall be distributed to community-based pilot programs as grants not to exceed twenty five thousand dollars each, to partially defray the cost of employing a coordinator who will be responsible for the coordination of existing state, federal and local programs that are directed toward solving problems of children and their families. The Director of the Department of Human Services, the State Board of Health and its designee, the State Board of Education and its designee and appropriate local officials shall cooperate and coordinate their efforts, including the reassigning of its employees and the redirection of funds, to assist the efforts of the community-based pilot programs directed toward solving problems of children and their families and each shall designate one of their employees located in the grantee's location as being the person responsible for liaison between their employer and the coordinator. The Department of Finance and Administration shall promulgate the appropriate regulations required to implement the Cities and School grant program by May 1, 1992 and shall award all grants on or before July 15, 1992. Such regulations shall include a requirement that the grantee shall submit performance goals that are acceptable to the Department of Finance and Administration and shall propose a system to allow the Department of Finance and Administration to measure the progress of the grantee towards meeting those goals.

“SECTION 8. Upon certification by the Chief Fiscal Officer, from time-to-time to the State Treasurer, the State Treasurer shall transfer such certified amounts, not to exceed in total, the sum of three hundred thousand dollars ($300,000) during the 1991-93 biennium, from the General Revenue Fund Account of the State Apportionment Fund to the Cities in School Fund for the purpose of providing grants not to exceed twenty five thousand dollars each, to community-based pilot programs directed toward solving problems of children and their families.”

19-5-1055. Division of Information Systems Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Division of Information Systems Revolving Fund”.
1. The fund shall consist of nonrevenue receipts derived from services provided to various agencies of the federal, state, city, and county governments, and any other moneys which may be provided by law.
2. The fund shall be used for the maintenance, operation, and improvement of the Division of Information Systems as set out in the Arkansas Information Systems Act of 1997, § 25-4-101 et seq.

History. Acts 1993, No. 1073, § 15; 1999, No. 1463, § 22; 2003 (1st Ex. Sess.), No. 55, § 21; 2019, No. 910, § 6098.

Amendments. The 2003 (1st Ex. Sess.) amendment, in (b)(2), substituted “the” for “major information technology acquisitions, personal services,” following “used for,” deleted “only those activities or programs of” preceding “the Department,” and “which are responsible for providing the services from which the revenues are derived” following “Systems”.

The 2019 amendment substituted “Division of Information Systems” for “Department of Information Systems” in the section heading, and in (a) and (b)(2).

19-5-1056. Information Technology Reserve Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Information Technology Reserve Fund”.
1. The Information Technology Reserve Fund shall consist of those funds transferred from the Division of Information Systems Revolving Fund in an amount up to the authorized reserve for equipment acquisition as certified by the Chief Fiscal Officer of the State within thirty (30) days following the closing of each fiscal year, any loans which may be received from the Budget Stabilization Trust Fund, and any other moneys which may be provided by law.
2. The Information Technology Reserve Fund shall be used exclusively for major equipment acquisitions or improvements as set out in § 25-4-122.

History. Acts 1993, No. 1073, § 15; 1999, No. 1463, § 23; 2019, No. 910, § 6099.

Amendments. The 2019 amendment substituted “Division of Information Systems” for “Department of Information Systems” in (b)(1).

Cross References. Budget procedures, § 25-4-119.

19-5-1057. [Repealed.]

Publisher's Notes. This section concerning the Child Support Enforcement Fund was repealed by Acts 2001, No. 1646, § 13. The section was derived from Acts 1993, No. 957, § 3.

19-5-1058. [Repealed.]

Publisher's Notes. This section concerning the Delta Service Corps Scholarship Revolving Fund was repealed by Acts 2007, No. 1201, § 25 and No. 1032, § 25. The section was derived from Acts 1993, No. 1239, § 119.

19-5-1059. Technology Equipment Revolving Loan Fund.

There is established a cash fund, as defined by § 19-4-801, to be known as the “Technology Equipment Revolving Loan Fund”.
The funds for the Technology Equipment Revolving Loan Fund shall consist of all moneys appropriated for the purpose of the fund, all moneys transferred to the fund pursuant to law, all moneys required by the provisions of this section or any other law to be paid into or credited to the fund, all moneys, including interest, paid by borrowers to the fund in repayment of loans made from the fund, and all moneys given to the fund by interested individuals or entities, and the Technology Equipment Revolving Loan Fund Committee shall be authorized to accept the moneys on behalf of the fund from any source, including federal and state grants.
The purpose of the fund shall be to provide qualified individuals with disabilities and their family members with the financial opportunity to purchase or modify equipment, facilities, and related services used by one (1) or more persons with a disability to enhance independence, productivity, and full participation in the community. Expenditures from the fund may include, but are not limited to, communication devices, prostheses, wheelchairs, wheelchair car-lifts, ramps and roll-in showers and telecommunication devices for persons who are deaf or hearing impaired, and devices which allow persons who are blind or visually impaired to discern printed materials.
Unexpended moneys contained in the fund at the end of the fiscal year shall be carried forward from year to year.

History. Acts 1993, No. 384, §§ 1-3, 5; 1997, No. 815, § 11.

Cross References. Technology Equipment Revolving Loan Fund, § 20-79-301 et seq.

19-5-1060. Major Industry Facilities Incentive Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Major Industry Facilities Incentive Fund”.
The Major Industry Facilities Incentive Fund shall consist of those moneys transferred from the General Revenue Fund Account of the State Apportionment Fund, there to be used for making payments to state agencies or political subdivisions as set out in the Major Industry Facilities Incentive Act, § 15-4-1801 et seq.

History. Acts 1995, No. 1163, § 27.

19-5-1061. [Repealed.]

Publisher's Notes. This section, concerning the Public Defender Fund, was repealed by Acts 2013, No. 1146, § 3. The section was derived from Acts 1995, No. 1163, § 27.

19-5-1062. [Repealed.]

Publisher's Notes. This section, concerning the State Capitol Grounds Memorial Fund, was repealed by Acts 2001, No. 1646, § 14. The section was derived from Acts 1995, No. 1163, § 27.

19-5-1063. Emergency Medical Services Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Emergency Medical Services Revolving Fund”.
The fund shall consist of those funds which may be made available, there to be administered by the Department of Health as set out in § 20-13-101 et seq.

History. Acts 1995, No. 1163, § 27.

19-5-1064. [Repealed.]

Publisher's Notes. This section, concerning the Building Trades Revolving Fund, was repealed by Acts 2019, No. 335, § 2, effective July 24, 2019. The section was derived from Acts 1995, No. 1163, § 27.

19-5-1065. [Repealed.]

Publisher's Notes. This section, concerning the Nursing Student Loan Revolving Fund, was repealed by Acts 2001, No. 1692, § 12. The section was derived from Acts 1995, No. 1163, § 27.

19-5-1066. Nursing Student Scholarship Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Nursing Student Scholarship Fund”.
The fund shall consist of funds appropriated for nursing student scholarships, and grants, contributions, or gratuities derived from federal means or private persons or corporations, there to be used for providing scholarships or financial assistance to nursing students, as administered by the Graduate Nurse Educator Loan and Scholarship Board as set out in § 6-81-1201 et seq.

History. Acts 1995, No. 1163, § 27.

19-5-1067. Geology Map Resale Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Geology Map Resale Revolving Fund”.
The fund shall consist of moneys received from the resale of publications of maps by the Arkansas Geological Survey, there to be used for personal services and operating expenses relating to the purchase of publications of maps for resale by the Arkansas Geological Survey, as authorized in Acts 1975, No. 80, § 6.

History. Acts 1995, No. 1163, § 27.

19-5-1068. County Road Construction and Maintenance Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “County Road Construction and Maintenance Revolving Fund”.
The County Road Construction and Maintenance Revolving Fund shall consist of moneys transferred from the Budget Stabilization Trust Fund from time to time, not to exceed the amount as set out in § 27-72-317, there to be used for making advance transfers to the several county highway funds, state-aid road funds, federal-aid secondary road funds, and all other provisions of county road construction assistance as administered by the Chief Fiscal Officer of the State, as set out in §§ 27-72-301, 27-72-305, 27-72-312, 27-72-313, 27-72-315, and 27-72-317 — 27-72-319.

History. Acts 1995, No. 1163, § 27.

19-5-1069. [Repealed.]

Publisher's Notes. This section, concerning the Arkansas Water Resources Cost Share Revolving Fund, was repealed by identical Acts 2015, Nos. 1144 and 1145, § 7. This section was derived from Acts 1995, No. 1163, § 27.

19-5-1070. Arkansas Agricultural Marketing Grants Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Agricultural Marketing Grants Fund”.
The fund shall consist of the fees specified by § 19-6-839(b) and such moneys as may be provided by law, there to be used for making payments of grants to eligible Arkansas wineries with respect to the purchase of grapes, fruits, berries, or vegetables produced in this state and purchased for use in this state for the production of wine.

History. Acts 1995, No. 1163, § 27; 2019, No. 1050, § 4.

Amendments. The 2019 amendment, in (b), inserted “the fees specified by § 19-6-839(b) and” and deleted “exclusively” preceding “for making payments”.

19-5-1071. Wastewater Licensing Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Wastewater Licensing Fund”.
1. The fund shall consist of examination, license, and license renewal fees as set out in § 8-5-209.
2. The fund shall be used only for the administration of § 8-5-201 et seq.

History. Acts 1999, No. 1463, § 24.

19-5-1072. [Repealed.]

Publisher's Notes. This section, concerning the Telecommunications and Information Technology Fund, was repealed by Acts 2009, No. 251, § 19. The section was derived from Acts 1995, No. 737, § 10.

19-5-1073. [Repealed.]

Publisher's Notes. This section, concerning the Higher Education Classified Employee Salary Adjustment Fund, was repealed by identical Acts 2017, Nos. 1083 and 1127, § 16. The section was derived from Acts 1995, No. 1078, § 5; 1997, No. 1248, § 24.

19-5-1074. Information Network of Arkansas Fund.

All moneys received by the Information Network of Arkansas from gifts, donations, grants, or any other sources available by law shall be deposited into the State Treasury and credited to the Information Network of Arkansas Fund, which is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State until expended or otherwise exhausted pursuant to the Information Network of Arkansas Act, § 25-27-101 et seq.

History. Acts 1995, No. 1139, § 6.

19-5-1075. [Repealed.]

Publisher's Notes. This section, concerning the Small City Street Fund, was repealed by Acts 2019, No. 998, § 3, and Acts 2019, No. 1024, § 3, effective July 1, 2019. The section was derived from Acts 1995, No. 1145, §§ 1-3.

19-5-1076. Higher Education Tuition Adjustment Fund — Intent.

The Higher Education Tuition Adjustment Fund is created upon the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State. The fund shall consist of such revenues allocated to it by law.
It is the intent of the General Assembly that the fund ensure that bona fide Arkansas income taxpayers, and their dependents, who are residents of a bordering state in a contiguous county to the Arkansas state line, which is contiguous to a county where an institution of higher education is located receive the same higher education opportunities as all other said taxpayers.
1. In establishing this policy, it is the intent of the General Assembly that taxpayers should have affordable access to the state's higher education institutions.
2. Further, the Division of Higher Education will require each institution to track and report the number of qualifying students each year.
3. A list of students who benefit from the out-of-state tuition waiver, including their Social Security number or their Arkansas taxpaying parents' or guardians' names and Social Security numbers, will be furnished by the division to the Department of Finance and Administration for confirmation that they or their parents are employed in Arkansas at a wage in excess of five thousand five hundred dollars ($5,500) per annum.
4. Documentation should be either an official W-2 form from an Arkansas employer reflecting wages of at least five thousand five hundred dollars ($5,500) in the tax year prior to enrollment in college or official employer verification of a current year salary minimum of at least five thousand five hundred dollars ($5,500), which the college will keep on file for enrollment audit purposes.
1. The Director of the Division of Higher Education shall determine the difference between the amount of tuition revenue which would have been generated by charging the Arkansas Higher Education Coordinating Board-approved out-of-state tuition rate to said students as compared to approved in-state or out-of-district rates.
2. Upon such determination, the director shall certify to the Chief Fiscal Officer of the State and the Treasurer of State such amounts as are required to be transferred from the fund.
3. Upon receiving such certification, the Chief Fiscal Officer of the State and the Treasurer of State shall cause to be transferred the necessary funds and appropriation to the fund account of the institution receiving such certification from the director.

History. Acts 1995, No. 1185, § 34; 2019, No. 910, §§ 2270, 2271.

Amendments. The 2019 amendment substituted “Division of Higher Education” for “Department of Higher Education” in (c)(2), (c)(3), and throughout (d).

19-5-1077. Administrative Services — Client Specific Emergency Services Revolving Fund Paying Account.

The Office of Finance and Administration of the Department of Human Services is authorized to establish and maintain as a cash fund account the Client Specific Emergency Services Revolving Fund Paying Account consisting of federal grants, aids, cash donations, reimbursements, and state general revenue, not to exceed a daily balance of ten thousand dollars ($10,000), for delivery of immediate care, short-term, or emergency services to eligible clients.
The account shall be established and maintained in accordance with procedures established by the Chief Fiscal Officer of the State for cash funds and shall be administered under the direction of the Secretary of the Department of Human Services.

History. Acts 1985, No. 772, § 9; 1995, No. 1198, § 64; 1997, No. 1360, § 66; 2019, No. 910, § 5165.

Publisher's Notes. Acts 1995, No. 1198, § 64 is also codified as § 20-76-211.

Amendments. The 2019 amendment substituted “Secretary of the Department of Human Services” for “Director of the Department of Human Services” in (b).

19-5-1078. EMS Enhancement Revolving Fund.

1. There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “EMS Enhancement Revolving Fund”.
2. The EMS Enhancement Revolving Fund shall consist of such revenue as may be provided by law.
Any funds remaining in the EMS Enhancement Revolving Fund at the end of the fiscal year shall be made available for distribution as follows:
1. Fifty percent (50%) of the funds shall be available for distribution to the eligible state-licensed emergency medical services through a grant program managed by the Division of Emergency Medical Services of the Department of Health pursuant to § 20-13-103;
2. Ten percent (10%) of the funds shall be authorized for use by the division for administering the grant program prescribed in § 20-13-103, as well as for training, education, equipment, and supplies as needed to maintain staff proficiency in emergency medical services and testing support;
3. 1. Five percent (5%) of the funds shall be authorized for the purposes of upgrading or instituting educational training sites and the increased availability of emergency medical services training programs.
  2. The training sites must meet the certification standards of the division;
4. 1. Ten percent (10%) of the funds shall be authorized for the purpose of instituting special projects managed by the division that are directed toward the improvement of emergency medical services and the presentation of specialized training programs.
  2. Such programs or projects shall meet the standards set forth in the United States Department of Transportation's National Standard Curriculum of 1998 for Emergency Medical Technician training and approved by the division;
5. Twenty percent (20%) of the funds shall be authorized for the purpose of instituting and maintaining a trauma system and trauma registry; and
6. Five percent (5%) of the funds shall be authorized for use by the division for:
  1. Maintaining quality emergency medical services; and
  2. Ensuring public safety and proper medical care by inspecting and licensing ambulance services and registering emergency medical services vehicles.

History. Acts 1995, No. 1271, § 1.

19-5-1079. [Repealed.]

Publisher's Notes. This section, concerning the Arkansas Code Revision Fund, was repealed by Acts 2001, No. 1308, § 7. The section was derived from Acts 1997, No. 1248, § 25.

19-5-1080. Highway Safety Special Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Highway Safety Special Fund”.
1. The Highway Safety Special Fund shall consist of those moneys transferred or deposited from the State Administration of Justice Fund.
2. The Highway Safety Special Fund shall be used for support of programs of the Arkansas Highway Safety Program.

History. Acts 1997, No. 1248, § 25; 1999, No. 1463, § 25.

19-5-1081. District Court Judge and District Court Clerk Education Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “District Court Judge and District Court Clerk Education Fund”.
The District Court Judge and District Court Clerk Education Fund shall consist of those moneys transferred or deposited from the State Administration of Justice Fund, there to be used for providing continuing education opportunities within the State of Arkansas to district court judges and district court clerks.

History. Acts 1997, No. 1248, § 25; 2003, No. 1185, § 254.

Amendments. The 2003 amendment substituted “district” for “municipal” throughout the section.

19-5-1082. Court Reporter's Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Court Reporter's Fund”.
1. The Court Reporter’s Fund shall consist of those moneys transferred or deposited from the State Administration of Justice Fund.
2. The Court Reporter’s Fund shall be used for paying such salaries, transcript fees, and expenses of court reporters as may be provided by law to be paid from state funds, as set out in § 16-13-508.

History. Acts 1997, No. 1248, § 25; 1999, No. 1463, § 26.

19-5-1083. Arkansas Counties Alcohol and Drug Abuse and Crime Prevention Program Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Counties Alcohol and Drug Abuse and Crime Prevention Program Fund”.
The Arkansas Counties Alcohol and Drug Abuse and Crime Prevention Program Fund shall consist of those moneys transferred or deposited from the State Administration of Justice Fund, and nonrefundable administrative bail bond fees collected under § 17-19-301(f)(1), there to be used exclusively for the establishment and operation of alcohol abuse, drug abuse, and crime prevention programs, and other related purposes in the counties.

History. Acts 1997, No. 1248, § 25; 2014, No. 290, § 4; 2014, No. 299, § 4.

A.C.R.C. Notes. Identical Acts 2014, Nos. 290 and 299, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Amendments. The 2014 amendment by identical acts Nos. 290 and 299, in (b), inserted “and nonrefundable administrative bail bond fees collected under § 17-19-301(f)(1)” and “and other related purposes”.

19-5-1084. Waterworks Operators Licensing Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Waterworks Operators Licensing Fund”.
The fund shall consist of fines collected under § 17-51-102, there to be used to defray the costs of administering § 17-51-101 et seq.

History. Acts 1997, No. 1248, § 26.

19-5-1085. Judicial Fine Collection Enhancement Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Judicial Fine Collection Enhancement Fund”.
The fund shall consist of the time-payment fees established by § 16-13-704, electronic payment access fees established by § 16-92-118, court technology fees established by § 21-6-416, federal court certified question fees and fees for Court of Appeals or Supreme Court decision petitions for rehearing established by § 21-6-401(a)(2) and (3), respectively, and fees for electronic filing and public online access to court decisions and other court records established by § 21-6-401(d), there to be used by the Administrative Office of the Courts for the purchase of computer hardware and software as set out in § 16-13-712.

History. Acts 1997, No. 1248, § 26; 2007, No. 1032, § 26; 2007, No. 1201, § 26; 2010, No. 262, § 9; 2010, No. 296, § 9.

Amendments. The 2007 amendment by identical acts Nos. 1032 and 1201 inserted “and fees for electronic access to court decisions and other court records, established by § 21-6-401(d)” in (b) and made a related change.

The 2010 amendment by identical acts Nos. 262 and 296, in (b), inserted “electronic payment access fees…§ 21-6-401(a)(2) and (3), respectively” and “filing and public online”.

19-5-1086. Higher Education Consolidation Matching Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Higher Education Consolidation Matching Fund”.
The fund shall consist of funds made available by the General Assembly, there to be used to match documented savings at public institutions of higher education that consolidate or merge as set out in § 6-60-102.

History. Acts 1997, No. 1248, § 26.

19-5-1087. Justice Building Construction Fund.

There is created in accordance with §§ 19-4-801 — 19-4-803, 19-4-805, 19-4-806, and the Revenue Classification Law, § 19-6-101 et seq., a cash fund entitled the “Justice Building Construction Fund”, which shall be maintained in such depository bank or banks as may, from time to time, be designated by the Building Authority Division.
All moneys transferred to and deposited into the fund, whether pursuant to § 16-10-310 or otherwise, and all income, interest, and earnings thereof, are declared to be cash funds, restricted in their use, and dedicated and are to be used solely for the financing of additions, extensions, and improvements to, the renovation of, and the equipping of such additions, extensions, and improvements of the Arkansas Justice Building situated on the State Capitol grounds. Such cash funds shall not be deemed to be a part of the State Treasury for any purpose, including, without limitation, the provisions of Arkansas Constitution, Article 5, § 29, Article 16, § 12, or Amendment 20, or any other constitutional or statutory provision.
The fund shall be held and the amounts therein invested by the division in accordance with the authority provided in the Arkansas Justice Building Act, § 22-3-901 et seq. The division may also use the fund to provide for the repayment of obligations issued by the Arkansas Development Finance Authority pursuant to the State Agencies Facilities Acquisition Act of 1991, § 22-3-1401 et seq., to accomplish the purposes specified in subsection (b) of this section and to pay the costs and expenses related to the issuance of such obligations.
The provisions of §§ 22-3-1402(c) [repealed] and 22-3-1406 [repealed] shall not be applicable in any respect to the construction of additions or extensions to, the renovation of, or the equipping of such additions, extensions, and renovations of the Arkansas Justice Building, and shall not, under any circumstances, constitute a limitation on or prohibition to the financing of such capital improvements by the Arkansas Development Finance Authority.

History. Acts 1997, No. 788, § 26; 1997, No. 901, § 1; 2007, No. 186, §§ 5, 6; 2015 (1st Ex. Sess.), No. 7, §§ 17, 18; 2015 (1st Ex. Sess.), No. 8, §§ 17, 18; 2019, No. 910, § 6100.

A.C.R.C. Notes. Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 1, provided: “Transfer of the Arkansas Building Authority to the Department of Finance and Administration.

“(a)(1) The Arkansas Building Authority is transferred to the Department of Finance and Administration by a type 2 transfer under § 25-2-105.

“(2) For the purposes of this act, the Department of Finance and Administration shall be considered a principal department established by Acts 1971, No. 38.

“(e) The Arkansas Code Revision Commission shall make appropriate name changes in the Arkansas Code to implement this act.”

Amendments. The 2007 amendment substituted “Arkansas Building Authority” for “State Building Services Department” in (a) and near the middle of (c), and for “Arkansas State Building Services Department” near the beginning of (c).

The 2015 amendment by Acts 2015 (1st Ex. Sess.), Nos. 7 and 8 substituted “Building Authority Division of the Department of Finance and Administration” for “Arkansas Building Authority” in (a); and substituted “division” for “Arkansas Building Authority” twice in (c).

The 2019 amendment deleted “of the Department of Finance and Administration” at the end of (a).

Cross References. Justice Building, § 22-3-901 et seq.

Justice Building Fund, § 19-5-1052.

19-5-1088. Bail Bondsman Board Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Bail Bondsman Board Fund”.
The fund shall consist of those moneys collected under §§ 17-19-111 and 17-19-301 and other moneys from the collection of fees, there to be used exclusively for the operation of the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board.

History. Acts 1997, No. 1248, § 40; 2013, No. 1283, § 4.

A.C.R.C. Notes. Acts 2016, No. 173, § 5, provided:

“FUND TRANSFER. The Professional Bail Bondsman Licensing Board shall deposit as special revenues sufficient fees and penalties directly into the Bail Bondsman Board Fund to provide for the personal services and operating expenses of the board. At the end of each fiscal year, the Professional Bail Bondsman Licensing Board shall be allowed to retain a fund balance sufficient to cover the personal services and operating expenses of the board for the following fiscal year. Seventy-five percent (75%) of any funds remaining in excess of this balance shall be transferred to the General Revenue Fund Account in the State Treasury.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Amendments. The 2013 amendment added subsection designations; deleted “hereby” preceding “established” in (a); substituted “collected under §§ 17-19-111 and 17-19-301” for “transferred from the State Insurance Department Trust Fund” in (b).

19-5-1089. Health Facility Services Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Health Facility Services Revolving Fund”. The fund shall consist of those fees collected under §§ 17-107-205, 20-7-117(e), 20-9-214(b), 20-9-222, and 20-10-812(a), and deposited as nonrevenue receipts, to be used by the Division of Health Facility Services of the Department of Health for the purpose of supporting and operating programs through which these fees were collected. Any unexpended balance of such fees at the end of each state fiscal year shall be carried forward to the next fiscal year to be used for the same intent and purposes as set forth in §§ 17-107-205, 20-7-117(e), 20-9-214(b), 20-9-222, and 20-10-812(a).

History. Acts 1997, No. 574, § 5; 2007, No. 174, § 2.

Amendments. The 2007 amendment inserted “17-107-205” in two places.

19-5-1090. [Repealed.]

Publisher's Notes. This section, concerning the Arkansas Home Inspectors Registration Fund, was repealed by Acts 2013, No. 1146, § 4. The section was derived from Acts 1997, No. 791, § 6.

19-5-1091. [Repealed.]

Publisher's Notes. This section, concerning the Arkansas Catfish Promotion Fund, was repealed by Acts 2001, No. 1646, § 15. The section was derived from Acts 1999, No. 790, § 12.

For present law, see § 19-6-464.

19-5-1092. [Repealed.]

Publisher's Notes. This section, concerning definitions in the State Plant Board Operations and Facilities Construction Fund, was repealed by Acts 2001, No. 1553, § 59. The section was derived from Acts 1999, No. 846, § 1.

For present law, see § 2-16-108.

19-5-1093, 19-5-1094. [Repealed.]

Publisher's Notes. These sections, concerning the State Plant Board Operations and Facilities Construction Fund, were repealed by Acts 2001, No. 1553, § 28. The sections were derived from the following sources:

19-5-1093. Acts 1999, No. 846, § 2.

19-5-1094. Acts 1999, No. 846, § 3.

For present law, see § 2-16-108.

19-5-1095. Military Support Revolving Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Military Support Revolving Fund”.
1. The Military Support Revolving Fund shall consist of:
  1. All funds provided by law for the Military Support Revolving Fund;
  2. All moneys received by the Department of the Military from the United States Army, the United States Air Force, the United States Navy, foreign allied governments, and reserve forces of the United States, allied nations, and other federal agencies; and
  3. All federal reimbursements received by the Department of the Military under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. § 5121 et seq., for expenditures from the Military Support Revolving Fund.
2. All reimbursements and payments to the Military Support Revolving Fund from any source shall be considered a refund to expenditures.
The Military Support Revolving Fund shall be used by the department to pay reimbursements for periodic, short-term personnel augmentation for National Guard members on state active duty for costs incurred in training activities, which shall include without limitation, goods, supplies, rations, fuel, operating expenses, and related costs and expenses.
As federal reimbursements replenish the Military Support Revolving Fund, the department is authorized to return funds, as necessary, to the Special Military Fund.

History. Acts 1999, No. 959, § 3; 2009, No. 251, § 20; 2010, No. 42, § 19; 2019, No. 459, § 1; 2019, No. 910, § 5545.

Amendments. The 2009 amendment rewrote the section.

The 2010 amendment substituted “Military Support Revolving Fund” for “fund” in the introductory language of (b)(1), in (b)(1)(A), (b)(2) and (c); substituted “the Military Support Revolving Fund” for “this fund” in (c); and added (d).

The 2019 amendment by No. 459 added (b)(1)(C).

The 2019 amendment by No. 910 substituted “Department of the Military” for “State Military Department” in (b)(1)(B).

19-5-1096. Arkansas Real Property Reappraisal Fund.

1. There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Real Property Reappraisal Fund”.
2. 1. The proceeds of the fund shall be used to pay counties and professional reappraisal companies for the reappraisal of real property required by § 26-26-1901 et seq. and shall be in lieu of real property reappraisal funding by the local taxing units in each county of this state.
  2. There shall be no deduction from the proceeds of the fund to pay any other fees or expenses except as provided in § 26-26-1901 et seq.
For cause and after an opportunity for hearing, the Director of the Assessment Coordination Division may suspend or terminate the contract of any appraisal firm or county.
1. The fund proceeds shall be distributed monthly, except when there is a determination by the Assessment Coordination Division that proper reappraisal procedures established by the division are not being followed.
2. 1. 1. Upon a finding by the division that proper reappraisal procedures are not being followed, the county assessor or contractor shall be notified that the reappraisal is out of compliance with accepted guidelines established in § 26-26-1901 et seq. and rules enacted pursuant thereto.
    2. The division shall notify the county assessor or contractor in writing that the assessor or contractor has thirty (30) days in which to bring the reappraisal into compliance.
  2. If there is a further finding that proper reappraisal procedures are not being followed, the contract shall be promptly terminated and the division shall negotiate another contract and management plan for the completion of the reappraisal project.
Based on its expertise and the criteria and requirements set forth in § 26-26-1901 et seq., the division shall establish by rule the findings that indicate that proper reappraisal procedures are not being followed.
At the end of each countywide reappraisal, the division shall issue a report of the status of the county.

History. Acts 1999, No. 1185, § 6; 2001, No. 1553, § 29; 2019, No. 388, § 3.

Publisher's Notes. Section 19-5-1096 does not contain the entire substance of § 6 of Act 1185. The remainder of § 6 is codified as § 26-26-1907.

Amendments. The 2019 amendment inserted “on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as” in (a)(1); added the (a)(2)(A) designation; substituted “§ 26-26-1901 et seq.” for “this subchapter” in (a)(2)(A); and added (a)(2)(B).

Cross References. Uniform System of Real Property Appraisal, § 26-26-1901 et seq.

19-5-1097. Public Roads Incentive Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Public Roads Incentive Fund” of the Arkansas Economic Development Council.
The fund shall consist of contributions made by taxpayers for public roads projects approved by the Director of the Arkansas Economic Development Commission and any other funds as are designated or deposited into the fund by law.
1. A separate account shall be established for each project, and contributions for a project shall be applied to provide funding assistance for that project.
2. Any contributions which remain in the fund when a project is completed or terminated shall be held and applied to other public roads projects in such manner as the director shall direct.

History. Acts 1999, No. 1347, § 1; 2019, No. 910, §§ 488, 489.

Amendments. The 2019 amendment deleted “Executive” preceding “Director” in (b) and deleted “executive” preceding “director” in (c)(2).

Cross References. Arkansas Public Roads Improvements Credit Act, § 15-4-2301 et seq.

19-5-1098. Breast Cancer Research Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Breast Cancer Research Fund”.
1. The fund shall consist of twenty percent (20%) of those special revenues as specified in § 19-6-301(192), that portion of those special revenues as specified in § 19-6-301(201), and those general revenues as may be provided by law.
2. The fund shall be used exclusively for those purposes as set out in § 20-15-1303.

History. Acts 1999, No. 1463, § 27; 2007, No. 1032, § 27; 2007, No. 1201, § 27.

Amendments. The 2007 amendment by identical acts Nos. 1032 and 1201 inserted “that portion of those special revenues as specified in § 19-6-301(201)” in (b)(1).

19-5-1099. Breast Cancer Control Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Breast Cancer Control Fund”.
1. The fund shall consist of that portion set out in § 26-57-1106 of those special revenues specified in § 19-6-301(192), that portion of those special revenues specified in § 19-6-301(201), and those general revenues provided by law.
2. The fund shall be used exclusively for those purposes set out in § 20-15-1304 and, at the option of the Department of Health and in amounts not to exceed that appropriated by the General Assembly for such purposes, for cervical cancer.

History. Acts 1999, No. 1463, § 27; 2001, No. 1646, § 25; 2007, No. 1032, § 28; 2007, No. 1201, § 28.

Amendments. The 2007 amendment by identical acts Nos. 1032 and 1201 inserted “that portion of those special revenues as specified in § 19-6-301(201)” in (b)(1).

Subchapter 11 — Trust Funds Continued

Preambles. Identical Acts 2013, Nos. 1497 and 1498, contained a preamble which read:

“WHEREAS, Arkansas has historically addressed state-specific needs to achieve personal responsibility and affordable health care for its citizens such as the ARHealthNetworks partnership between the state and small businesses; and

“WHEREAS, Arkansas has initiated nationally recognized and transformative changes in the healthcare delivery system through alignment of payment incentives, health care delivery system improvements, enhanced rural health care access, initiatives to reduce waste, fraud and abuse, policies and plan structures to encourage the proper utilization of the healthcare system, and policies to advance disease prevention and health promotion; and

“WHEREAS, Arkansas is uniquely situated to serve as a laboratory of comprehensive and innovative healthcare reform that can reduce the state and federal obligations to entitlement spending; and WHEREAS, faced with the disruptive challenges from federal legislation and regulations, the General Assembly asserts its responsibility for local control and innovation to achieve health care access, improved health care quality, reduce traditional Medicaid enrollment, remove disincentives for work and social mobility, and required cost-containment; and

“WHEREAS, the General Assembly hereby creates the Health Care Independence Act of 2013; NOW THEREFORE,

“BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:”

Identical Acts 2016 (2nd Ex. Sess.), Nos. 1 and 2, contained a preamble which read:

“WHEREAS, the State of Arkansas continues to seek strategies to provide health insurance for low-income and other vulnerable populations in a manner that will encourage employer-based insurance, incentivize program beneficiaries to work or seek work opportunities, promote personal responsibility, and enhance program integrity; and

“WHEREAS, the General Assembly affirms its responsibility to safeguard consumers and businesses from federal mandates by asserting local control and implementation of modernized health insurance policies and programs that utilize the private market to improve access to health insurance, enhance the quality of health insurance, and reduce health insurance costs; and

“WHEREAS, Arkansas recognizes the need to encourage employment among beneficiaries of public assistance programs, offer enhanced opportunities for beneficiaries to obtain jobs and job training, and endow beneficiaries with the tools to achieve economic advancement; and

“WHEREAS, the Health Care Independence Program will terminate on December 31, 2016; and

“WHEREAS, the General Assembly hereby creates the Arkansas Works Act of 2016 to provide health insurance to qualifying individuals, NOW THEREFORE, … .”

Effective Dates. Acts 1999, No. 1210, § 10: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1999 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1999 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1999.”

Acts 1999, No. 1400, § 45: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1999 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1999 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1999.”

Acts 2001, No. 1416, § 55: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2001 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2001 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2001.”

Acts 2001, No. 1646, § 34: July 1, 2001. Emergency clause provided that: “It is hereby found and determined by the General Assembly that changes in the state's fiscal laws must take effect at the beginning of the fiscal year and that if the current legislative session is extended such that the 90 day period is later than July 1, 2001 such changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2005, No. 2315, § 20: July 1, 2005. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that changes in the state's fiscal laws must take effect at the beginning of the fiscal year, that if the current legislative session is extended such that the 90 day period is later than July 1, 2005 the changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2005.”

Acts 2007, No. 182, § 32: Jan. 1, 2008.

Acts 2007, No. 551, § 4: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the creation of the Department of Workforce Services Training Trust Fund and the Department of Workforce Services Unemployment Insurance Administration Fund is necessary for the development of the workforce of the State of Arkansas and for the proper administration of the Arkansas Employment Security Law; that any delays in implementing these funds could cause irreparable harm to the administration of those programs; and that this act is necessary to achieve the purposes of those funds. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2007.”

Acts 2007, No. 751, § 38: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act dissolves and transfers the duties of the Executive Chief Information Officer, Chief Information Officer, and Office of Information Technology; and that dissolving the offices at the beginning of the state's fiscal year will result in a more efficient transfer of responsibilities and funds. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2007.”

Acts 2007, No. 1055, § 8: July 1, 2007, except § 5, effective Apr. 4, 2007. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas requires an adequate education system for the state and that the efficient and effective operation of state government is critical to the health and welfare of the citizens of the state; that the provisions of this Act will provide the necessary funds and procedures to assist in alleviating the effects of an economic downturn on essential government programs; that the effectiveness of this Act on July 1, 2007 is essential to the operation of state government; with the exception that Section 5 in this Act shall be in full force and effect from and after the date of its passage and approval, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2007, with the exception that Section 5 in this Act shall be in full force and effect from and after the date of its passage and approval, could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2007; with the exception that Section 5 in this Act shall be in full force and effect from and after the date of its passage and approval. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date of the last house overrides the veto.”

Acts 2009, No. 692, § 3: July 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the cat and dog populations in Arkansas are expanding exponentially, that animal shelters are overrun with unwanted cats and dogs, that municipalities and counties lack the funds to keep up with the expanding cat and dog populations, that the recent downturn in the economy is adding to the unwanted cat and dog problem, and that additional funds are drastically needed to contend with the ever-expanding cat and dog populations. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2009.”

Acts 2009, No. 1300, § 6: Apr. 9, 2009. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on the date of its passage and approval is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond the date of its passage and approval could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2011, No. 860, § 3: May 1, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Arkansas Capitol Grounds Monument and Memorial Preservation Fund is unfunded; that the monuments and memorial areas on the State Capitol grounds often need maintenance and repair; that clarification is necessary so that the Secretary of State can perform his duties; and that this act is necessary to provide the necessary funding for the Arkansas Capitol Grounds Monument and Memorial Preservation Fund. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on May 1, 2011.”

Identical Acts 2012, Nos. 271 and 287, § 10: July 1, 2012.

Acts 2013, No. 1411, § 7: July 1, 2014.

Acts 2013, No. 1496, § 26: July 1, 2013, except §§ 21-23, effective Apr. 23, 2013. Emergency clause provided:

“(a) It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2013, is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2013, could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and Sections 1-20 and 24-25 of this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2013.

“(b) It is found and determined by the General Assembly of the State of Arkansas that the Health Care Independence Program requires private insurance companies to create, present to the Department of Human Services for approval, implement, and market a new kind of insurance policy; and that the private insurance companies need certainty about the law creating the Health Care Independence Program before fully investing time, funds, personnel, and other resources to the development of the new insurance policies. Therefore, an emergency is declared to exist, and Sections 21-23 of this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2013, No. 1497, § 5: Apr. 23, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Health Care Independence Program requires private insurance companies to create, present to the Department of Human Services for approval, implement, and market a new kind of insurance policy; and that the private insurance companies need certainty about the law creating the Health Care Independence Program before fully investing time, funds, personnel, and other resources to the development of the new insurance policies. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2013, No. 1498, § 5: Apr. 23, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Health Care Independence Program requires private insurance companies to create, present to the Department of Human Services for approval, implement, and market a new kind of insurance policy; and that the private insurance companies need certainty about the law creating the Health Care Independence Program before fully investing time, funds, personnel, and other resources to the development of the new insurance policies. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 402, § 5: Mar. 12, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Arkansas National Guard members risk their lives to protect and defend our country; that the Military Family Relief Trust Fund and the Military Family Relief Check-Off Program were created to provide short term emergency financial assistance in the form of grants to members and their families; that the fund provides a valuable means to assist and improve morale and welfare of members of the Arkansas National Guard and reserve components of the armed forces, and that there is a need to modify the Military Family Relief Fund and the Military Family Relief Check-Off Program because there are members and their families in current circumstances beyond the control of the members who require assistance that is not currently available from any other reasonable source, and if assistance is not made available, irreparable harm will result. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 895, § 49: Apr. 1, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that prison overcrowding is one of the largest problems currently burdening the state both from a public safety and budgetary standpoint; that safe and effective measures are needed to immediately combat this problem; and that this act is immediately necessary because in the interests of public safety and the state budget the Department of Correction, Department of Community Correction, Department of Human Services, and the Parole Board should be allowed to immediately implement these new measures. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 1233, § 3: Apr. 7, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there is a lack of available information to support the required evaluation of state programs and the deliberations of policymakers within the timeframe required by the Health Care Reform Act of 2015, and that there is an immediate need to collect data to support these activities so that policymakers may make more informed decisions about the cost-effectiveness of current programs and the future of the state's healthcare system. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Identical Acts 2016 (2nd Ex. Sess.), Nos. 1 and 2, § 9: Apr. 8, 2016. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the federal laws established by Pub. L. No. 111-148, have caused disruptive challenges to the State of Arkansas in the health insurance industry and the medical assistance industry; that the Arkansas Works Program utilizes the private insurance market to improve access to health insurance, enhances quality of health insurance, and reduces health insurance and medical assistance costs; that the Arkansas Works Program requires private insurance companies and employers to create, present, implement, and market a new type of health insurance policy; and that this act is immediately necessary because the private insurance companies and employers need certainty about the law creating the Arkansas Works Program before fully investing time, funds, personnel, and other resources into the development of new health insurance policies. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2016 (3rd Ex. Sess.), No. 1, § 22: July 1, 2017. Effective date clause provided: “Sections 9-12, 14, 16 and 17 of this act are effective on and after July 1, 2017.”

Acts 2020, No. 139, § 60: July 1, 2020. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2020 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2020 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2020”.

19-5-1101. [Repealed.]

Publisher's Notes. This section, concerning the Post-Secondary Education Holding Trust Fund, was repealed by identical Acts 2017, Nos. 1083 and 1127, § 17. The section was derived from Acts 1999, No. 1400, § 38.

19-5-1102. Performance Partnership Trust Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State the “Performance Partnership Trust Fund”, to consist of funds transferred from the Landfill Post-Closure Trust Fund and such other funds as are made available by law.
The Performance Partnership Trust Fund shall be used by the Division of Environmental Quality to defray the costs of developing and implementing a management organization utilizing the principles of the National Environmental Performance Partnership System, advocated by the United States Environmental Protection Agency, which integrates environmental indicators, management information, and performance-based budgeting and accounting to measure agency performance.

History. Acts 1999, No. 1210, § 4; 2019, No. 910, § 3195.

Amendments. The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (b).

19-5-1103. Property Tax Relief Trust Fund. [Effective until July 1, 2017.]

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Property Tax Relief Trust Fund”.
The fund shall consist of such revenues as generated by §§ 26-52-302(c), 26-52-317(c)(1)(B), 26-52-319(a)(2)(B), 26-53-107(c), 26-53-145(c)(1)(B), 26-53-148(a)(2)(B), 26-56-201(g)(1)(C), and 26-56-224(c)(2) and shall be used for such purposes as set out in § 26-26-310.

History. Acts 2001, No. 1646, § 10; 2007, No. 110, § 7; 2009, No. 1440, § 3; 2009, No. 1441, § 3; 2012, No. 271, § 3; 2012, No. 287, § 3; 2013, No. 1411, § 3.

Publisher's Notes. Former § 19-5-1103, concerning contingent creation of a Property Tax Relief Trust Fund, was repealed by identical Acts 2000 (2d Ex. Sess.), Nos. 1 and 2, § 1. The section was derived from Acts 1999, No. 1492, § 6. For present law, see Ark. Const. Amend. 79.

For text of section effective July 1, 2017, see the following version.

Amendments. The 2009 amendment by identical act Nos. 1440 and 1441 inserted “26-52-319(a)(3)(B)” and “26-53-148(a)(3)(B), and 26-56-224(c)(2)” in (b), and made related changes.

The 2012 amendment by identical acts Nos. 271 and 287 inserted “26-56-201(g)(1)(C)” in (b).

The 2013 amendment, in (b), substituted “26-52-319(a)(2)(B)” for “26-52-319(a)(3)(B)” and “26-53-148(a)(2)(B)” for “26-53-148(a)(3)(B)”.

Cross References. Additional taxes levied, §§ 26-52-302, 26-53-107.

Certification of amount of property tax reduction, § 26-26-310.

Limitation on increase of property's assessed value, § 26-26-1118.

Property tax relief, Ark. Const. Amend. 79.

19-5-1103. Property Tax Relief Trust Fund. [Effective July 1, 2017.]

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Property Tax Relief Trust Fund”.
The fund shall consist of such revenues as generated by §§ 26-52-302(c), 26-52-317(c)(1)(B), 26-52-319(a)(2)(B), 26-53-107(c), 26-53-145(c)(1)(B), 26-53-148(a)(2)(B), and 26-56-224(c)(2) and shall be used for such purposes as set out in § 26-26-310.

History. Acts 2001, No. 1646, § 10; 2007, No. 110, § 7; 2009, No. 1440, § 3; 2009, No. 1441, § 3; 2012, No. 271, § 3; 2012, No. 287, § 3; 2013, No. 1411, § 3; 2016 (3rd Ex. Sess.), No. 1, § 9.

A.C.R.C. Notes. Acts 2016 (3rd Ex. Sess.), No. 1, § 1, provided: “This act shall be known and may be cited as the ‘Arkansas Highway Improvement Plan of 2016’.”

Publisher's Notes. For text of section effective until July 1, 2017, see the preceding version.

Amendments. The 2016 (3rd Ex. Sess.) amendment deleted “26-56-201(g)(1)(C)” following “26-53-148(a)(2)(B)” in (b).

Effective Dates. Acts 2016 (3rd Ex. Sess.), No. 1, § 22: July 1, 2017.

19-5-1104. Arkansas Disaster Relief Program Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Disaster Relief Program Trust Fund”.
1. The fund shall consist of state income tax checkoff funds certified each quarter in accordance with § 26-51-2502, interest earnings, gifts, grants, bequests, devises, donations, and any other moneys made available by law.
2. The fund shall be administered by the Department of Finance and Administration and disbursed as appropriated for the Arkansas Disaster Relief Program set out in § 26-51-2502 et seq.

History. Acts 1999, No. 1463, § 19.

19-5-1105. Small Business Revolving Loan Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Small Business Revolving Loan Fund”.
1. The Small Business Revolving Loan Fund shall consist of moneys transferred from the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund, interest earnings, repayment of loans, and moneys recovered for loan losses under the loan program created in the Small Business Revolving Loan Fund for Pollution Control and Prevention Technologies Act, § 8-5-801 et seq., and any other moneys made available by law or from any other source.
2. The Small Business Revolving Loan Fund shall be administered by the Division of Environmental Quality and used exclusively for those purposes set out in the Small Business Revolving Loan Fund for Pollution Control and Prevention Technologies Act, § 8-5-801 et seq.

History. Acts 1999, No. 1463, § 19; 2019, No. 82, § 13; 2019, No. 910, § 3196.

A.C.R.C. Notes. Acts 2019, No. 82, § 1, provided: “Legislative intent.

It is the intent of the General Assembly that the creation of the Development and Enhancement Fund is necessary to provide a mechanism to disburse funds for:

“(1) Various construction and improvement projects;

“(2) Unforeseen needs;

“(3) Funding deficiencies; and

“(4) The completion of projects previously funded by the General Assembly”.

Amendments. The 2019 amendment by No. 82 inserted “or its successor fund or fund accounts, including the Development and Enhancement Fund” in (b)(1).

The 2019 amendment by No. 910 substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (b)(2).

19-5-1106. State Insurance Department Prepaid Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “State Insurance Department Prepaid Trust Fund”.
1. The State Insurance Department Prepaid Trust Fund shall consist of investment income, grants, refunds, gifts, and all license fees paid into the State Insurance Department Prepaid Trust Fund pursuant to the Arkansas Prepaid Funeral Benefits Law, § 23-40-101 et seq.
2. The State Insurance Department Prepaid Trust Fund shall be used for the operations and improvements of the Division of Prepaid Funeral Benefits of the State Insurance Department, as administered by the Insurance Commissioner and the Treasurer of State as set out in § 23-40-107.
3. The State Insurance Department Prepaid Trust Fund shall also consist of the assets of the Prepaid Funeral Contracts Recovery Program Fund, there to be administered by the Insurance Commissioner and the Prepaid Funeral Contracts Recovery Program Board as set out in § 23-40-125.

History. Acts 1999, No. 1463, § 19; 2003 (1st Ex. Sess.), No. 55, § 17.

Amendments. The 2003 (1st Ex. Sess.) amendment added (b)(3).

19-5-1107. Natural Resources Damages Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Natural Resources Damages Trust Fund”.
1. The fund shall consist of payments to the State of Arkansas for restoration, rehabilitation, replacement, or acquisition of natural resources, gifts, donations, federal funds, interest income, and such other funds as may be made available by the General Assembly.
2. The fund shall be used for natural resource restoration, rehabilitation, replacement, or acquisition, as authorized by the Natural Resources Damages Advisory Board, contingent upon any order of a court of appropriate jurisdiction and conditions contained in gifts or donations, as may be provided by law.

History. Acts 1999, No. 1463, § 19.

Cross References. Natural Resources Damages Trust Fund, § 8-12-103.

19-5-1108. Water, Waste Disposal, and Pollution Abatement General Obligation Bond Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Water, Waste Disposal, and Pollution Abatement General Obligation Bond Fund”.
1. The fund shall consist of proceeds from the sale of bonds issued by the Arkansas Natural Resources Commission and revenues derived from projects financed under the Arkansas Water, Waste Disposal and Pollution Abatement Facilities Financing Act of 1997 in amounts or portions as set forth in the resolution or trust indenture authorizing or securing such bonds.
2. The fund shall be used for the development of projects and the payment of the costs and expenses of the issuance of the bonds.

History. Acts 1999, No. 1463, § 19.

Publisher's Notes. The Arkansas Water, Waste Disposal and Pollution Abatement Facilities Financing Act of 1997, referred to in subsection (b) of this section, was enacted by Acts 1997, No. 607, which is set out in the Appendix to this title.

19-5-1109. Ouachita River Waterways Project Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Ouachita River Waterways Project Trust Fund”.
The Ouachita River Waterways Project Trust Fund shall consist of those moneys approved by the General Assembly and the interest income earned from the investment of funds accruing to the Ouachita River Waterways Project Trust Fund.
1. The Ouachita River Waterways Project Trust Fund may be used for such purposes authorized by law, including, but not limited to, wildlife and recreation purposes and bank stabilization.
2. The funds shall not be used for bend cuts or bend widenings.
Investment of the funds available shall be by the Treasurer of State in such amounts and in such manner as may be directed by the Ouachita River Commission. In no event, however, shall the funds be invested for longer than a continuous two-year period.

History. Acts 1999, No. 1532, § 6.

Cross References. Ouachita River Commission, § 15-23-801 et seq.

19-5-1110. [Repealed.]

Publisher's Notes. This section, concerning the Property Tax Relief Trust Fund, was repealed by Acts 2003 (1st Ex. Sess.), No. 55, § 25. The section was derived from Acts 2000 (2d Ex. Sess.), Nos. 1 and 2, § 2.

19-5-1111. Environmental Settlement Trust Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State, the “Environmental Settlement Trust Fund” to consist of funds received by the State of Arkansas pursuant to settlement agreements for environmental or natural resources damages, interest earnings, and any other moneys designated to be deposited into the fund, there to be administered by the Director of the Division of Environmental Quality.

History. Acts 2001, No. 1416, § 44; 2019, No. 910, § 3197.

Amendments. The 2019 amendment deleted “ADEQ” preceding “Environmental Settlement Trust Fund” in the section heading and the section; and substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality”.

19-5-1112. Geographic Information Systems Fund.

1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Geographic Information Systems Fund”.
2. The fund shall consist of:
  1. Funds approved by the General Assembly;
  2. Grants, gifts, and donations received by the State of Arkansas for the purposes of this section;
  3. Agency investments toward enterprise geographic information systems projects;
  4. Federal funds; and
  5. Any other funds allowable by law.
3. The fund shall be used to:
  1. Carry out the duties, responsibilities, and authority of the Arkansas Geographic Information Systems Board as described by § 15-21-504;
  2. Create, operate, and maintain GeoStor, the Arkansas Spatial Data Infrastructure; and
  3. Create, update, maintain, and disseminate framework spatial data as defined by § 15-21-502.
1. 1. The State Geographic Information Officer shall manage the fund, and the Governor shall oversee the expenditures from the fund.
  2. The board shall establish standards and methodologies for evaluating the funding of enterprise-level geographic information systems projects.
2. 1. The State Geographic Information Officer, with advice from the board, shall evaluate, prioritize, and approve proposals for geographic information systems projects.
  2. The proposals and requests for funding shall demonstrate any or all of the following:
    1. Improvement in the quality of life for Arkansans;
    2. Elimination of redundant systems;
    3. Improved service for Arkansas citizens;
    4. Enhanced economic development opportunities in Arkansas;
    5. Implementation of electronic government twenty-four (24) hours a day, seven (7) days a week;
    6. Substantial benefit to more than one (1) agency through lower operating costs; and
    7. Continued development of the Arkansas Spatial Data Infrastructure.

History. Acts 2001, No. 1249 §§ 1, 2; 2007, No. 751, § 8; 2009, No. 244, § 2.

Amendments. The 2007 amendment substituted “Director of the Department of Information Systems” for “Executive Chief Information Officer” in (b)(1)(A) and (b)(2)(A).

The 2009 amendment substituted “Geographic Information Systems” for “State Land Information” in (a)(3)(A); in (b), substituted “State Geographic Information Officer” for “Director of the Department of Information Systems” in (b)(1)(A) and substituted “State Geographic Information Officer” for “director” in (b)(2)(A); and made minor stylistic and punctuation changes.

19-5-1113. Policemen's Pension Supplement Program Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Policemen's Pension Supplement Program Fund”.
1. The fund shall consist of that portion of those unallocated premium taxes levied on insurers for the support of police retirement programs set out in §§ 24-11-211 and 24-11-302(j)(3) [repealed].
2. The fund shall be used for providing financial assistance to certain retired police officers and their survivors who are receiving pensions from policemen's pension and relief funds as set out in § 24-11-211.

History. Acts 2001, No. 1646, § 11.

19-5-1114. Arkansas Construction Industry Craft Training Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Construction Industry Craft Training Trust Fund”.
1. The fund shall consist of the net proceeds of the construction permit surcharge as set out in § 6-55-106.
2. The fund shall be used to support training programs set out in the Arkansas Construction Industry Craft Training Act, § 6-55-101 et seq., administered by the Office of Skills Development and the State Apprenticeship Coordination Steering Committee.

History. Acts 2001, No. 1646, § 11; 2019, No. 910, § 2272.

Amendments. The 2019 amendment substituted “Office of Skills Development” for “Department of Career Education” in (b)(2).

19-5-1115. Arkansas Healthy Century Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Healthy Century Trust Fund”.
1. The fund shall consist of an initial principal amount of $100,000,000 of tobacco settlement funds as provided in § 19-12-104 and interest earnings.
2. The fund shall be used for those programs set out in § 19-12-107, administered by the State Board of Finance.

History. Acts 2001, No. 1646, § 11.

A.C.R.C. Notes. Acts 2013, No. 1496, § 19, provided: “FUND TRANSFER PROVISION - MEDICAID PROGRAM. Notwithstanding the provisions of Initiated Act 1 of 2000, or Arkansas Code 19-12-107 regarding the establishment of the Arkansas Healthy Century Trust Fund, or any other law to the contrary, immediately upon the effective date of this act, the Chief Fiscal Officer of the State shall transfer on his or her books and those of the State Treasurer and Auditor of State the balance of all moneys in excess of one hundred million dollars ($100,000,000) in the Arkansas Healthy Century Trust Fund from the Arkansas Healthy Century Trust Fund to the Medicaid Expansion Program Account of the Tobacco Settlement Program Fund.”

19-5-1116. Tobacco Settlement Program Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Tobacco Settlement Program Fund”.
1. The Tobacco Settlement Program Fund shall consist of those moneys deposited from the Tobacco Settlement Cash Holding Fund provided in § 19-12-104 and interest earnings.
2. The Tobacco Settlement Program Fund shall be used for the transfer of funds to the various funds and fund accounts set out in § 19-12-108, administered by the State Board of Finance.

History. Acts 2001, No. 1646, § 11.

Acts 2013, No. 1496, § 20, provided: “FUND TRANSFER PROVISION - MEDICAID PROGRAM. Notwithstanding the provisions of Initiated Act 1 of 2000, or Arkansas Code 19-12-104 regarding the establishment and administration of the Tobacco Settlement Cash Holding Fund, or any other laws to the contrary, the entire amount of the settlement funds received, approximately twenty-two million seven hundred sixty-eight thousand one hundred twenty-six dollars ($22,768,126), or so much as is actually awarded and received by the state, through the settlement agreement in the nearly decade old dispute between Arkansas and the tobacco companies that signed the Master Settlement Agreement, shall be deposited into the Tobacco Settlement Cash Holding Fund and not distributed under the provisions of the Tobacco Settlement Proceeds Act, but instead such settlement funds shall be deposited directly into and credited to the Medicaid Expansion Program Account of the Tobacco Settlement Program Fund.”

19-5-1117. Arkansas Tobacco Settlement Commission Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Tobacco Settlement Commission Fund”.
1. The Arkansas Tobacco Settlement Commission Fund shall consist of investment earnings transferred from the Tobacco Settlement Program Fund and each of the Tobacco Settlement Program Accounts as provided in § 19-12-108 and interest earnings.
2. The Arkansas Tobacco Settlement Commission Fund shall be used for those purposes set out in § 19-12-108, administered by the State Board of Finance.

History. Acts 2001, No. 1646, § 11.

19-5-1118. Prevention and Cessation Program Account.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Prevention and Cessation Program Account”.
1. The Prevention and Cessation Program Account shall consist of those moneys transferred from the Tobacco Settlement Program Fund as provided in § 19-12-108 and interest earnings.
2. The Prevention and Cessation Program Account shall be used by the Department of Health for those purposes set out in § 19-12-109.

History. Acts 2001, No. 1646, § 11.

19-5-1119. Targeted State Needs Program Account.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Targeted State Needs Program Account”.
1. The Targeted State Needs Program Account shall consist of those moneys transferred from the Tobacco Settlement Program Fund as provided in § 19-12-108 and interest earnings.
2. The Targeted State Needs Program Account shall be used for those purposes set out in § 19-12-110.

History. Acts 2001, No. 1646, § 11.

19-5-1120. Arkansas Biosciences Institute Program Account.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Biosciences Institute Program Account”.
1. The Arkansas Biosciences Institute Program Account shall consist of those moneys transferred from the Tobacco Settlement Program Fund as provided in § 19-12-108 and interest earnings.
2. The Arkansas Biosciences Institute Program Account shall be used for those purposes set out in § 19-12-111.

History. Acts 2001, No. 1646, § 11.

19-5-1121. Medicaid Expansion Program Account.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Medicaid Expansion Program Account”.
1. The Medicaid Expansion Program Account shall consist of those moneys transferred from the Tobacco Settlement Program Fund as provided in § 19-12-108 and interest earnings.
2. The Medicaid Expansion Program Account shall be used by the Department of Human Services for those purposes set out in § 19-12-112.

History. Acts 2001, No. 1646, § 11.

19-5-1122. Juvenile Accountability Incentive Block Grant Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Juvenile Accountability Incentive Block Grant Trust Fund”.
1. The fund shall consist of those federal funds received through a grant award under the Juvenile Accountability Incentive Block Grants Program.
2. The fund shall be used to provide funds to state and local units of government to establish a coordinated enforcement plan for reducing juvenile crime developed by a Juvenile Crime Enforcement Coalition, as administered by the Division of Youth Services of the Department of Human Services.

History. Acts 2001, No. 1646, § 11.

19-5-1123. Baby Sharon's Children's Catastrophic Illness Grant Program Trust Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Baby Sharon's Children's Catastrophic Illness Grant Program Trust Fund”.
1. All moneys collected under § 26-51-2504 shall be deposited into the State Treasury to the credit of the fund.
2. The fund shall also consist of any other revenues authorized by law.
The fund shall be used exclusively by the Baby Sharon's Children's Catastrophic Illness Grant Program Committee for the Baby Sharon's Children's Catastrophic Illness Grant Program.
The Treasurer of State shall credit to the fund the amount certified each quarter in accordance with § 26-51-2504.
1. The moneys credited to the fund shall be held as trust funds in interest-bearing accounts only.
2. All interest earned shall be credited to the fund and shall be used only for the purposes of the fund.
All moneys deposited into the fund, all interest earned on deposits, and the fund balance in the fund may be disbursed as appropriated in each fiscal year of the biennium for the program.

History. Acts 2003, No. 279, § 2; 2005, No. 415, § 5[4].

Publisher's Notes. Acts 2005, No. 415, contained only four sections; however, the last section was labeled as “Section 5.”

Amendments. The 2005 amendment substituted “Baby Sharon's Children's … Catastrophic Illness Grant Program” for “Arkansas Children's Hospital to assist with the medical expenses incurred by the families of children with catastrophic illnesses or injuries by awarding grants to the families who are liable for the medical expenses” in (c).

Cross References. Baby Sharon Act, § 26-51-2504.

19-5-1124. [Repealed.]

Publisher's Notes. This section, concerning the Arkansas Delta Region Trust Fund, was repealed by Acts 2009, No. 1484, § 5. The section was derived from Acts 2003, No. 1473, § 35.

19-5-1125. Arkansas Capitol Grounds Monument and Memorial Preservation Fund — Definitions.

As used in this section:
1. “Memorial area” means the designated area of the State Capitol grounds for use in remembrance and honoring a person or group of persons; and
2. “Monument” means a statue, display, or other artful fixture that is constructed to be attached to a memorial area.
1. There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Capitol Grounds Monument and Memorial Preservation Fund”.
2. The fund shall consist of funds made available from private donations received by the Capitol Arts and Grounds Commission, fees paid by sponsors of the monuments and memorial areas, and any additional moneys appropriated to the fund by the General Assembly.
1. 1. Except as provided under subdivision (c)(1)(B) of this section, following the enactment of an act authorizing the memorial area or monument and before construction, improvement, or placement begins, a group or organization that sponsors and pays the cost of the construction, improvement, placement, or replacement of a memorial area or monument on the State Capitol grounds shall pay to the Secretary of State a fee for placement, improvements to, or replacement of the monument or memorial area of:
    1. Ten percent (10%) of the cost of the monument; and
    2. Ten percent (10%) of the construction cost of the memorial area.
  2. The Secretary of State may allow the beginning of construction of a memorial area on State Capitol grounds if:
    1. A dedicated funding source has been established for the purpose of payment of the fees under this subsection; and
    2. The organization demonstrates that substantial funds have been raised to complete the project.
2. The fee collected under subdivision (c)(1) of this section:
  1. Shall be deposited into the fund; and
  2. May be used for the maintenance of any monument or memorial area on the State Capitol grounds.
3. The amount of the fee may be reviewed by the commission as to how the fee under subsection (c) of this section was calculated by the Secretary of State.
1. All moneys deposited into the fund and any accrued interest shall remain in the fund to maintain, restore, and preserve all monuments and memorial areas on the State Capitol grounds.
2. The Secretary of State shall administer the fund.
3. The accrued interest from the fund shall be appropriated to the fund.
1. The commission may receive gifts, grants, and donations from private or public sources for the fund.
2. In addition to any other moneys appropriated or transferred by the General Assembly, the gifts, grants, and donations shall be transmitted to the Treasurer of State, who shall credit the amount to the fund.

History. Acts 2003 (1st Ex. Sess.), No. 55, § 18; 2005, No. 1962, § 83; 2011, No. 860, § 1.

Amendments. The 2005 amendment, in (b)(1), substituted “Following the enactment of an act” for “Upon passage of an act” and deleted “by the General Assembly” following the first occurrence of “monument.”

The 2011 amendment rewrote the section.

19-5-1126. Arkansas Public Transit Trust Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Public Transit Trust Fund”.
The fund shall consist of seventy-five percent (75%) of the net revenues derived from the additional rental vehicle tax imposed by § 26-63-302.
The fund shall be used by the Arkansas Department of Transportation for:
1. The purpose of acquiring federal matching funds for the purchase of public transportation vehicles;
2. Public transit equipment or facilities; and
3. The operation of the United States Department of Transportation Federal Transit Administration assistance programs.

History. Acts 2003 (1st Ex. Sess.), No. 55, § 18; 2007, No. 182, § 16; 2007, No. 1032, § 29; 2007, No. 1201, § 29; 2017, No. 707, § 52.

Amendments. The 2007 amendment by No. 182 substituted “§ 26-63-302” for “§ 26-52-311(c)” in (b).

The 2007 amendment by identical acts Nos. 1032 and 1201 rewrote (b).

The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department” in the introductory language of (c).

19-5-1127. Military Family Relief Trust Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Military Family Relief Trust Fund”.
1. All moneys collected under § 26-51-2506 shall be deposited into the State Treasury to the credit of the fund.
2. The fund shall also consist of any other revenues authorized by law.
The fund shall be used exclusively by the Adjutant General or his or her designee to assist members and families of members of the Arkansas National Guard and reserve components of the armed forces.
The Treasurer of State shall credit to the fund the amount certified each quarter in accordance with § 26-51-2506.
1. The moneys credited to the fund shall be held as trust funds in interest-bearing accounts only.
2. All interest earned shall be credited to the fund and shall be used only for the purposes of the fund.
All moneys deposited into the fund, all interest earned on deposits, and the fund balance in the fund may be disbursed as appropriated in each fiscal year of the biennium for the Military Family Relief Check-off Program.

History. Acts 2005, No. 1028, § 2; 2015, No. 402, §§ 1-3.

Amendments. The 2015 amendment substituted “§ 26-51-2506” for “§§ 26-35-1302 and 26-35-1303” in (b)(1); in (c), substituted “members and families of members of the Arkansas National Guard” for “the families of members of the National Guard” and deleted “who serve on active duty for a minimum of thirty (30) days as a result of September 11, 2001” at the end; and substituted “§ 26-51-2506” for “§ 26-35-1303” in (d).

Cross References. Contributions to the Military Family Relief Check-off Program, § 26-51-2506.

19-5-1128. Arkansas Multi-Agency Insurance Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Arkansas Multi-Agency Insurance Trust Fund”.
The fund shall consist of all moneys received by the Administrator of the Risk Management Division of the State Insurance Department, including, but not limited to, the premiums collected and any insured loss or loss expenses paid by insurance or reinsurance companies and interest income as set out in § 25-35-103.
The fund shall be used for the purposes set out in § 25-35-103.

History. Acts 2005, No. 2282, § 8; 2005, No. 2316, § 8.

19-5-1129. Organ Donor Awareness Education Trust Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Organ Donor Awareness Education Trust Fund”.
The fund shall consist of:
1. All moneys donated or collected for the purpose of educating or informing the public of the need for organ donations;
2. All interest earned from the investment of fund balances;
3. Any remaining fund balances carried forward from year to year; and
4. Any gifts, grants, bequests, devises, and donations.
The fund shall be used for educational or informational materials and other related costs associated with informing or educating the public about organ donations and organ donation awareness as set out in § 20-17-502.

History. Acts 2005, No. 2282, § 8; 2005, No. 2316, § 8.

19-5-1130. Economic Development Superprojects Project Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Economic Development Superprojects Project Fund”.
The fund may consist of the proceeds from the sale of bonds, together with all revenues derived by the Arkansas Development Finance Authority from any superproject financed or refinanced under § 15-4-3012 or may consist of other funds authorized by law.
The fund may be used to provide for payment of all or a part of debt service on bonds and to directly fund superprojects on a pay-as-you-go basis as set out in § 15-4-3012 or to fund projects authorized under Arkansas Constitution, Amendment 82.

History. Acts 2005, No. 2282, § 8; 2005, No. 2316, § 8; 2007, No. 1055, § 5.

Amendments. The 2007 amendment substituted “may” for “shall” in (b) and (c); added “or may consist of other funds as authorized by law” in (b); and added “or to fund projects authorized under Arkansas Constitution, Amendment 82” in (c).

19-5-1131. Division of Workforce Services Training Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Division of Workforce Services Training Trust Fund”.
1. The fund shall consist of the proceeds of the stabilization tax specified in § 11-10-706(f), any interest accruing on these revenues, and any other funds made available by the General Assembly.
2. The fund shall be used for worker training under rules promulgated by the Director of the Division of Workforce Services.
The director shall report to the Legislative Council on a quarterly basis on all uses of the fund.

History. Acts 2007, No. 551, § 1; 2019, No. 315, § 1746; 2019, No. 910, § 490.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (b)(2).

The 2019 amendment by No. 910 substituted “Division of Workforce Services Training Trust Fund” for “Department of Workforce Services Training Trust Fund” in the section heading and (a); and substituted “Division of Workforce Services” for “Department of Workforce Services” in (b)(2).

19-5-1134. Public School Insurance Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Public School Insurance Trust Fund”.
The Public School Insurance Trust Fund shall consist of:
1. A Permanent Insurance Reserve Fund, insurance premiums, adjustments, earnings, interest income, and the like, as provided by the Public Elementary and Secondary School Insurance Act, § 6-20-1501 et seq., and the School Motor Vehicle Insurance Act, § 6-21-701 et seq.;
2. All funds transferred from the former Public Elementary and Secondary School Insurance Fund established under §§ 6-20-1510 [repealed] and 19-5-908 [repealed]; and
3. All funds transferred from the former School Vehicle Insurance Reserve Trust Fund established under §§ 6-21-710 and 19-5-981 [repealed].
1. The Public School Insurance Trust Fund shall be used for the operation, maintenance, and execution of the Public Elementary and Secondary School Insurance Program under the Public Elementary and Secondary School Insurance Act, § 6-20-1501 et seq., and the Public School Motor Vehicle Insurance Program under the School Motor Vehicle Insurance Act, § 6-21-701 et seq.
2. No money shall be appropriated from the Public School Insurance Trust Fund for any purpose except for the use and benefit of the Public Elementary and Secondary School Insurance Program and the Public School Motor Vehicle Insurance Program.
3. All funds received by the State Insurance Department in the administration of the Public Elementary and Secondary School Insurance Program and the Public School Motor Vehicle Insurance Program as premiums, adjustments, earnings, and the like:
  1. Shall be used for the following purposes, listed in a descending order of priority:
    1. To defray administrative costs;
    2. To pay claims; and
    3. To maintain the Public School Insurance Trust Fund; and
  2. May be invested and reinvested as the Insurance Commissioner may determine.
4. Moneys invested and interest earned thereon shall be administered as program funds.
5. All moneys deposited into the Public School Insurance Trust Fund shall not be subject to any deduction, tax, levy, or any other type of assessment.
The initial loan from the former Public Elementary and Secondary School Insurance Fund as established by the Public Elementary and Secondary School Insurance Act, § 6-20-1501 et seq., of one million five hundred thousand dollars ($1,500,000) to fund the former School Vehicle Insurance Reserve Trust Fund established under the School Motor Vehicle Insurance Act, § 6-21-701 et seq., is cancelled.

History. Acts 2007, No. 738, § 10.

19-5-1135. Arkansas Fair Housing Commission Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Fair Housing Commission Trust Fund”.
The fund shall consist of funds received by the Arkansas Fair Housing Commission, administrative or civil penalties levied and collected pursuant to § 16-123-301 et seq., and any other moneys provided by the General Assembly.
The fund shall be used for fair housing education of the public and the operational expenses of the commission, as set out in § 16-123-301 et seq.

History. Acts 2007, No. 1032, § 30; 2007, No. 1201, § 30.

19-5-1136. Animal Rescue and Shelter Trust Fund — Definition.

As used in this section, “registered governmentally owned animal rescue shelter” means an animal rescue or shelter owned by a county or municipality that has submitted notice to the Department of Finance and Administration as required under subsection (f) of this section and is on the official list of registered governmentally owned animal rescue shelters prepared by the Secretary of the Department of Finance and Administration under subsection (f) of this section.
There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Animal Rescue and Shelter Trust Fund”.
The fund shall consist of those special revenues as specified in § 27-24-1409(c)(1)(B) and any other revenues as may be authorized by law.
The fund shall be distributed as follows:
1. Thirty-five percent (35%) is distributed to and used by the counties as follows:
  1. Each county that has at least one (1) registered governmentally owned animal rescue shelter shall receive a proportional distribution based on the county's population as determined by the most recent federal decennial census;
  2. Funding received by a county under this subdivision (d)(1) shall be used exclusively for the construction, maintenance, or operation of registered governmentally owned animal rescue shelters; and
  3. A county may contract with or provide grants to a private nonprofit organization for the operation of the registered governmentally owned animal rescue shelter;
2. Thirty-five percent (35%) is distributed to and used by municipalities as follows:
  1. Each municipality that has at least one (1) registered governmentally owned animal rescue shelter shall receive a proportional distribution based on the municipality's population as determined by the most recent federal decennial census;
  2. Funding received by a municipality under this subdivision (d)(2) shall be used exclusively for the construction, maintenance, or operation of registered governmentally owned animal rescue shelters; and
  3. A municipality may contract with or provide grants to a private nonprofit organization for the operation of the registered governmentally owned animal rescue shelter; and
3. 1. Thirty percent (30%) is distributed to the Rural Services Division of the Arkansas Economic Development Commission to provide grants to a county or municipality based only on the infrastructure needs for animal rescues or animal shelters.
  2. Moneys distributed under this section shall not be limited to registered governmentally owned animal rescue shelters but shall be used exclusively for infrastructure needs for animal rescues or animal shelters.
Any funds received by a county or municipality under subsection (d) of this section that are not used within one (1) year from the date of receipt by the county or municipality must be returned to the fund.
1. 1. On or before October 1, 2009, a county or municipality that owns one (1) or more animal rescues or animal shelters on the date that notification is mailed shall notify the secretary in writing to qualify for funding under this section.
  2. The notification under subdivision (f)(1)(A) of this section shall include the physical address and telephone number of each animal rescue or animal shelter that the county or municipality owns.
2. 1. On or before October 15, 2009, the secretary shall provide the Treasurer of State with a list of each county and municipality that has registered as owning an animal rescue shelter.
  2. The list submitted by the department shall be known as the official list of registered governmentally owned animal rescue shelters that are eligible to receive funding under subdivisions (d)(1) and (2) of this section.
  3. The list submitted by the department shall include the physical address, telephone number, and the municipality, if applicable, and county in which the registered governmentally owned animal rescue shelter is located.
3. 1. A county or municipality that begins to own or operate an animal rescue or animal shelter after October 1, 2009, may notify the department in the same manner as provided under subdivision (f)(1) of this section and shall begin to receive funds under subdivisions (d)(1) and (2) of this section on the first distribution by the Treasurer of State following sixty (60) days after written notice to the department was received.
  2. As soon as practicable to ensure that a county or municipality that begins to own or operate a registered governmentally owned animal rescue shelter after October 1, 2009, the department shall revise the official list of registered governmentally owned animal rescue shelters to include the addition of the most recent registered governmentally owned animal rescue shelters and provide the list to the Treasurer of State.

History. Acts 2009, No. 692, § 1; 2015 (1st Ex. Sess.), No. 7, § 134; 2015 (1st Ex. Sess.), No. 8, § 134; 2019, No. 910, §§ 3461-3463.

A.C.R.C. Notes. Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 122, provided: “Transfer of the Department of Rural Services to the Arkansas Economic Development Commission.

“(a)(1) The Department of Rural Services is transferred to the Arkansas Economic Development Commission by a type 2 transfer under § 25-2-105.

“(2) As used in this act, the Arkansas Economic Development Commission is the principal department.

“(b) All authority, powers, duties, functions, records, personnel, property, unexpended balances of appropriations, allocations, and other funds, including the functions of budgeting or purchasing, are transferred to the Arkansas Economic Development Commission, except as specified by this act.

“(c) All powers, duties, and functions, including rulemaking, regulation, and licensing, promulgation of rules, rates, regulations, and standards, and the rendering of findings, orders, and adjudications are transferred to the Executive Director of the Arkansas Economic Development Commission.

“(d) The members of the Board of Directors of the Arkansas Rural Development Commission, and their successors, shall continue to be selected in the manner and serve for the terms provided by the statutes applicable to the commission except as specified in this act.

“(e) Except as specified in this act, the Arkansas Code Revision Commission shall replace ‘Department of Rural Services’ with ‘Rural Services Division of the Arkansas Economic Development Commission’.”

Amendments. The 2015 amendment by Acts 2015 (1st Ex. Sess.), Nos. 7 and 8 substituted “Rural Services Division of the Arkansas Economic Development Commission” for “Department of Rural Services” in (d)(3)(A).

The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a); and substituted “secretary” for “director” in (f)(1)(A) and (f)(2)(A).

19-5-1137. Division of Environmental Quality Fee Trust Fund.

The Division of Environmental Quality Fee Trust Fund shall consist of those special revenues as specified in § 19-6-301(104), there to be used to defray the costs of operating the Division of Environmental Quality as set out in §§ 8-1-101 — 8-1-107.

History. Acts 2009, No. 1440, § 4; 2009, No. 1441, § 4; 2019, No. 910, § 3198.

Amendments. The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in the section heading and twice in the section.

19-5-1138. Lottery Trust Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Lottery Trust Fund”.
The Lottery Trust Fund shall consist of funds transferred from the Budget Stabilization Trust Fund.
The Lottery Trust Fund shall also consist of other moneys as may be authorized by law.
The Lottery Trust Fund shall be used for personal services and operating expenses associated with the Office of the Arkansas Lottery.

History. Acts 2009, No. 1300, § 2; 2015, No. 218, § 19.

Amendments. The 2015 amendment deleted “Commission” preceding “Trust Fund” in the section heading and throughout; and substituted “Office of the Arkansas Lottery” for “Arkansas Lottery Commission” in (d).

19-5-1139. [Repealed.]

Publisher's Notes. This section, concerning the Best Practices Fund, was repealed by Acts 2019, No. 249, § 2, effective July 24, 2019. The section was derived from Acts 2011, No. 570, § 124; 2013, No. 1335, § 7.

19-5-1140. Water Performance Bond Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Water Performance Bond Fund”.
The fund shall consist of the following:
1. Funds appropriated by the General Assembly;
2. All forfeitures collected under § 8-4-201 et seq.;
3. Grants made by a person or the United States Government;
4. Gifts and donations; and
5. Interest earned on the moneys deposited into the fund.
The fund shall be used by the Division of Environmental Quality to hire a third-party contractor to:
1. Take remedial action, including without limitation corrective action, the closure of a nonmunicipal domestic sewage treatment works, and any other action the Director of the Division of Environmental Quality determines to be necessary; or
2. Maintain and operate a nonmunicipal domestic sewage treatment works.

History. Acts 2013, No. 402, § 3; 2017, No. 263, § 3; 2019, No. 910, § 3199.

Amendments. The 2017 amendment inserted “domestic” in (c)(2).

The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” twice in (c).

19-5-1141. [Repealed.]

Publisher's Notes. This section, concerning the Health Care Independence Program Trust Fund, was repealed by Acts 2019, No. 388, § 4, effective July 24, 2019. The section was derived from Acts 2013, No. 1496, § 22; 2013, No. 1497, § 2; 2013, No. 1498, § 2; 2016 (2nd Ex. Sess.), No. 1, § 7; 2016 (2nd Ex. Sess.), No. 2, § 7.

19-5-1142. Nonmunicipal Domestic Sewage Treatment Works Trust Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Nonmunicipal Domestic Sewage Treatment Works Trust Fund”.
The fund shall consist of:
1. Funds appropriated by the General Assembly;
2. Trust fund contribution fees under § 8-4-203(b);
3. Grants made by any person, state agency, or federal government agency;
4. Gifts and donations; and
5. Interest earned on the moneys deposited into the fund.
1. The fund shall be used by the Division of Environmental Quality to ensure adequate operation, maintenance, and completed closure of a nonmunicipal domestic sewage treatment works if the Director of the Division of Environmental Quality determines that an owner or operator has not adequately operated, maintained, or completed closure of the nonmunicipal domestic sewage treatment works.
2. If the director determines that an owner or operator has not adequately operated, maintained, or completed closure of the nonmunicipal domestic sewage treatment works, the division may use moneys in the fund to hire a third-party contractor to:
  1. Take remedial action, including without limitation corrective action;
  2. Initiate or complete the closure of a nonmunicipal domestic sewage treatment works;
  3. Maintain and operate a nonmunicipal domestic sewage treatment works; or
  4. Take any other action the director determines to be necessary to carry out the purposes of this section and § 8-4-203(b).
3. The fund may be used by the division to do the following:
  1. Provide reimbursement to a nonmunicipal domestic sewage treatment works under § 8-4-203(b);
  2. Provide technical support to nonmunicipal domestic sewage treatment works to promote adequate operation, maintenance, or completed closure of a facility; and
  3. Pay reasonable costs and expenses of the division for administering the fund.

History. Acts 2015, No. 575, § 4; 2017, No. 263, § 4; 2017, No. 987, § 4; 2019, No. 910, § 3200.

A.C.R.C. Notes. Acts 2015, No. 575, § 1, provided: “Legislative findings.

“The General Assembly finds that:

“(1) The existing financial assurance requirements for nonmunicipal domestic sewage treatment works that are in place to ensure that funding is available to properly operate these sewage treatment systems for the permitted term can create hardships for those facilities that cannot secure readily available and affordable financial assurance mechanisms;

“(2) In lieu of each permit applicant and each owner or operator of a nonmunicipal domestic sewage treatment works providing individual financial assurance to the Arkansas Department of Environmental Quality, the need for financial assurance for nonmunicipal domestic sewage treatment facilities may be met through the creation of a trust fund to be funded jointly by the nonmunicipal domestic wastewater treatment facilities permitted to operate in Arkansas; and

“(3) The total funding for the trust fund is anticipated to be approximately ten percent (10%) of the total amount currently required to be assured by individual permittees.”

Amendments. The 2017 amendment by No. 263 inserted “domestic” in (c)(2)(C).

The 2017 amendment by No. 987 added (c)(3).

The 2019 amendment by No. 910 substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” twice in (c)(1); substituted “division” for “department” in the introductory language of (c)(2) and in (c)(3)(C); and substituted “division” for “Arkansas Department of Environmental Quality” in the introductory language of (c)(3).

19-5-1143. Social Innovation Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Social Innovation Fund”.
The fund shall consist of:
1. Any loans, investments, or other amounts received by the Department of Community Correction under the Pay-for-Success Act, § 12-27-201 et seq.;
2. Grants made by any person or federal government agency; and
3. Any other funds authorized or provided by law.
The fund shall be used by the department to make any payments required under the Pay-for-Success Act, § 12-27-201 et seq.

History. Acts 2015, No. 895, § 42.

A.C.R.C. Notes. Acts 2015, No. 895, § 1, provided: “Legislative intent. It is the intent of the General Assembly to implement wide-ranging reforms to the criminal justice system in order to address prison overcrowding, promote seamless reentry into society, reduce medical costs incurred by the state and local governments, aid law enforcement agencies in fighting crime and keeping the peace, and to enhance public safety.”

19-5-1144. Accountability Court Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Accountability Court Fund”.
The fund shall consist of:
1. Grants made by any person or federal government agency; and
2. Any other funds authorized or provided by law.
The fund shall be used by the Department of Community Correction for adult and juvenile specialty court programs as defined under § 16-10-139, based upon a formula to be developed by the Arkansas Judicial Council, reviewed by the Specialty Court Program Advisory Committee, and approved by the Legislative Council.

History. Acts 2015, No. 895, § 43.

19-5-1145. Arkansas Healthcare Transparency Initiative Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Arkansas Healthcare Transparency Initiative Fund”.
1. The fund shall be an interest-bearing account and may be invested in the manner permitted by law, with the interest income a proper credit to the fund and which shall not revert to general revenue, unless otherwise designated in law.
2. The fund shall be overseen by the State Insurance Department and shall be used to pay all proper costs incurred in implementing the provisions of the Arkansas Healthcare Transparency Initiative Act of 2015, § 23-61-901 et seq.
The following moneys shall be paid into the fund:
1. Penalties imposed on submitting entities pursuant to the Arkansas Healthcare Transparency Initiative Act of 2015, § 23-61-901 et seq., and rules promulgated under the Arkansas Healthcare Transparency Initiative Act of 2015, § 23-61-901 et seq.;
2. Appropriations from the General Assembly; and
3. All other subscription fees or payments made by third parties to the department for data access.
Activities of the Arkansas Healthcare Transparency Initiative Board and the availability of data as authorized in § 23-61-905(c)(1) are contingent upon available funding.

History. Acts 2015, No. 1233, § 2; 2017, No. 979, § 1.

Amendments. The 2017 amendment deleted former (c)(2) and redesignated the remaining subdivisions accordingly; and substituted “subscription fees or payments made by third parties to the State Insurance Department for data access” for “payments, gifts, grants, bequests, or income from any source” in (c)(3).

19-5-1146. Arkansas Works Program Trust Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Arkansas Works Program Trust Fund”.
The fund shall consist of:
1. Moneys saved and accrued under the Arkansas Works Act of 2016, § 23-61-1001 et seq., including without limitation:
  1. Increases in premium tax collections; and
  2. Other spending reductions resulting from the Arkansas Works Act of 2016, § 23-61-1001 et seq.; and
2. Other revenues and funds authorized by law.
The Department of Human Services shall use the fund to pay for future obligations under the Arkansas Works Program created by the Arkansas Works Act of 2016, § 23-61-1001 et seq.

History. Acts 2016 (2nd Ex. Sess.), No. 1, § 6; 2016 (2nd Ex. Sess.), No. 2, § 6.

19-5-1147. Gold Star Family Memorial Monument Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Gold Star Family Memorial Monument Fund”.
The fund shall consist of gifts, grants, and donations from individuals and organizations as provided under the Gold Star Family Memorial Monument Act, § 22-3-222, and other funds as may be provided by law.
The fund shall be used exclusively for the purpose of erecting and maintaining a suitable monument on the State Capitol grounds in recognition and appreciation of Gold Star Families, as provided in the Gold Star Family Memorial Monument Act, § 22-3-222.

History. Acts 2017, No. 281, § 3.

A.C.R.C. Notes. Acts 2017, No. 281, § 1, provided: “Legislative findings. The General Assembly finds that:

“(1) The United States has numerous memorials and monuments giving honor to the patriots who have sacrificed and given their lives for our freedom and paying tribute to those who have faithfully served in the United States Armed Forces since the founding of our republic;

“(2) There is a group of our citizens especially to be honored, the families who have had a loved one who died while serving in the United States Armed Forces to protect our freedom and to give freedom to many who have never experienced it;

“(3) The Gold Star Family Memorial Monument honors those families who sacrificed more than most of us, and illustrates that the United States has citizens in every community willing to make such sacrifices;

“(4) The Gold Star Family Memorial Monument further illustrates that families suffer and grieve when a dear relative is lost, and without their sacrifices, freedom could not and would not have been preserved; and

“(5) The Gold Star Family Memorial Monument is appropriate for the placement on State Capitol grounds as a tribute to all the families who have had a loved one who died while serving in the United States Armed Forces.”

19-5-1148. Used Tire Recycling Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Used Tire Recycling Fund”.
1. The Department of Finance and Administration shall deposit into the State Treasury ninety-three percent (93%) of the moneys collected under § 8-9-404 to the credit of the Used Tire Recycling Fund.
2. The Used Tire Recycling Fund shall consist of:
  1. Penalties assessed and collected under the Used Tire Recycling and Accountability Act, § 8-9-401 et seq.;
  2. Interest, earnings, and any other revenues as may be authorized by law;
  3. Any United States Government moneys designated for deposit into the Used Tire Recycling Fund;
  4. Any gift or donation to the Used Tire Recycling Fund; and
  5. Those special revenues specified in §§ 8-9-404 and 19-6-301(165).
3. The Used Tire Recycling Fund shall not include:
  1. Five percent (5%) of the rim removal fee retained for administrative costs by tire retailers under § 8-9-404(a)(5)(B) and commercial generators under § 8-9-404(d)(5)(B);
  2. The percentage of net special revenue deducted and deposited to the credit of the Special Revenue Fund Account of the State Apportionment Fund under § 19-5-203; or
  3. Seven percent (7%) deducted from the proceeds of fees imposed under § 8-9-404 and deposited into the Division of Environmental Quality Fee Trust Fund under § 8-9-404(b)(1)(B), § 8-9-404(c)(3)(A)(ii), and § 8-9-404(d)(7)(B).
1. At least ninety percent (90%) of the moneys available in the Used Tire Recycling Fund each fiscal year shall be used by the Division of Environmental Quality to provide reimbursements to used tire programs, to administer the Used Tire Recycling and Accountability Program, and to perform other duties under the Used Tire Recycling and Accountability Act, § 8-9-401 et seq.
2. The Director of the Division of Environmental Quality may use not more than ten percent (10%) of the moneys available in the Used Tire Recycling Fund each fiscal year:
  1. For waste tire site abatement aid;
  2. For the development, implementation, and maintenance of the electronic uniform used tire manifest system; and
  3. To provide market and economic stimulus incentives.

History. Acts 2017, No. 317, § 3; 2019, No. 910, §§ 3201, 3202.

A.C.R.C. Notes. Acts 2017, No. 317, § 5, provided:

“(a) All moneys in the Waste Tire Grant Fund at 11:59 p.m. on the day before the effective date of this act [August 1, 2017] shall be transferred to the Used Tire Recycling Fund at 12:00 a.m. on the effective date of this act [August 1, 2017].

“(b)(1) After the effective date of this act [August 1, 2017] and until 11:59 p.m. on December 31, 2017, the following fees under § 8-9-404 as it existed on January 1, 2017, shall continue to be imposed and collected in the same manner, at the same rate, using the definitions under § 8-9-402, and as otherwise provided under Title 8, Chapter 9, Subchapter 4, as the law existed on January 1, 2017:

“(A) Fees imposed upon the sale of each new automobile tire and truck tire sold at retail; and

“(B) In addition to the fee imposed on new tires, the fee imposed on all waste automobile and truck tires imported into Arkansas.

“(2) The fees imposed and collected under subdivision (b)(1) of this section shall be deposited into the Used Tire Recycling Fund.

“(c) After the effective date of this act [August 1, 2017], the waste tire management grant distribution program under Title 8, Chapter 9, Subchapter 4, and Arkansas Pollution Control and Ecology Commission Regulation No. 14 that existed on January 1, 2017, and is administered by the Arkansas Department of Environmental Quality shall:

“(1) Continue until the final quarterly disbursements for the last calendar year quarter of 2017 are processed; and

“(2) Be funded based on the moneys allocated and available at the end of each calendar quarter from the Used Tire Recycling Fund under § 19-5-1147(c)(1) [§ 19-5-1148(c)(1)] using the distribution formula in effect on January 1, 2017, until the final quarterly distribution is made based on moneys allocated and available in the Used Tire Recycling Fund under § 19-5-1147(c)(1) [§ 19-5-1148(c)(1)] on December 31, 2017.

“(d) After the effective date of this act [August 1, 2017] and until June 30, 2018, the moneys allocated and available at the end of each calendar quarter from the Used Tire Recycling Fund under § 19-5-1147(c)(2) [§ 19-5-1148(c)(2)] may also be used at the discretion of the Arkansas Department of Environmental Quality:

“(1) To fund the waste tire support grant program that existed before the effective date of this act [August 1, 2017]; and

“(2) For used tire program transitional funding.

“(e)(1) The first reimbursements to used tire programs under the Used Tire Recycling and Accountability Act, § 8-9-401 et seq., shall be from the moneys allocated and available from the Used Tire Recycling Fund under § 19-5-1147(c)(1) [§ 19-5-1148(c)(1)] for reimbursement requests for processing used tires in compliance with this act from January 1, 2018, through March 31, 2018.

“(2) All subsequent reimbursements to used tire programs under the Used Tire Recycling and Accountability Act, § 8-9-401 et seq., shall be on a calendar quarterly basis for reimbursement for the processing of used tires in compliance with the Used Tire Recycling and Accountability Act.

“(f) Permits and licenses issued or renewed on and after January 1, 2018, to a person or entity that collects, stores, transports, processes, recycles, or disposes of used tires regulated under this subchapter shall be issued under the Used Tire Recycling and Accountability Act, § 8-9-401 et seq., and applicable regulations promulgated by the Arkansas Pollution Control and Ecology Commission.”

Amendments. The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (b)(3)(C), (c)(1), and the introductory language of (c)(2).

19-5-1149. National Statuary Hall Collection Trust Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “National Statuary Hall Collection Trust Fund”.
The fund shall consist of:
1. Gifts, grants, and donations from individuals and organizations to fund Arkansas's contribution to the National Statuary Hall Collection in the United States Capitol; and
2. Any other funds as may be provided by law, including appropriations made specifically to the fund.
The fund shall be used exclusively for the purpose of placement and replacement of Arkansas statues in the National Statuary Hall Collection in the United States Capitol as provided under § 1-4-134.

History. Acts 2019, No. 1068, § 3.

A.C.R.C. Notes. Acts 2019, No. 1068, § 4, provided: “Rules.

“(a) The Secretary of State may promulgate rules necessary to implement this act.

“(b)(1) If adopting necessary initial rules to implement this act, a final rule shall be filed with the Secretary of State for adoption under § 25-15-204(f):

“(A) On or before March 1, 2020; or

“(B) If approval under § 10-3-309 has not occurred by March 1, 2020, as soon as practicable after approval under § 10-3-309.

“(2) The Secretary of State shall file any necessary proposed rules with the Legislative Council under § 10-3-309 sufficiently in advance of March 1, 2020, so that the Legislative Council may consider the rule for approval before March 1, 2020”.

19-5-1150. Arkansas Major Historic Rehabilitation Trust Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Arkansas Major Historic Rehabilitation Trust Fund”.
The Arkansas Major Historic Rehabilitation Trust Fund shall consist of:
1. Grants, donations, or transfers made by any person or government agency or office;
2. Any remaining balances in the Arkansas Major Historic Rehabilitation Trust Fund carried forward from year to year; and
3. Any other funds authorized or provided by law.
The Arkansas Major Historic Rehabilitation Trust Fund shall be used to offset the costs of the income tax credits allowed under the Arkansas Major Historic Rehabilitation Income Tax Credit Act, § 26-51-2601 et seq., as follows:
1. By June 30 of each year, the Secretary of the Department of Finance and Administration shall certify:
  1. To the Division of Arkansas Heritage the amount in the Arkansas Major Historic Rehabilitation Trust Fund, which shall serve as the maximum amount of Arkansas major historic rehabilitation income tax credits that the division may approve for the next fiscal year; and
  2. To the Treasurer of State the amount of Arkansas major historic rehabilitation income tax credits claimed during the current fiscal year; and
2. On July 1 of each year, the Treasurer of State shall transfer the amount certified under subdivision (c)(1)(B) of this section to the General Revenue Fund Account of the State Apportionment Fund to be distributed as authorized under § 19-5-202(b)(2)(B)(vi).

History. Acts 2019, No. 855, § 1.

19-5-1151. University of Arkansas for Medical Sciences National Cancer Institute Designation Trust Fund — Report.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “University of Arkansas for Medical Sciences National Cancer Institute Designation Trust Fund”.
The fund shall consist of:
1. Moneys obtained from private grants or other sources that are designated to be credited to the fund; and
2. Any other funds authorized or provided by law.
The fund shall be used by the Winthrop P. Rockefeller Cancer Institute at the University of Arkansas for Medical Sciences solely to achieve and maintain status as a National Cancer Institute-Designated Cancer Center.
The Treasurer of State shall invest the moneys available in the fund.
1. The investment of funds under this section is exempt from § 19-3-518(a)(2)(B)(i)(b) and (c) .
2. Moneys in the fund may be invested in any instrument:
  1. Listed in § 19-3-518(b)(1)(B); and
  2. Approved by the guidelines established by the State Treasury investment policy approved by the State Board of Finance.
Moneys remaining in the fund at the end of each fiscal year shall carry forward and be made available for the purposes stated in this section in the next fiscal year.
1. The Winthrop P. Rockefeller Cancer Institute at the University of Arkansas for Medical Sciences shall submit a semiannual report containing the following information to the Governor; the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee; the Senate Committee on Public Health, Welfare, and Labor; and the House Committee on Public Health, Welfare, and Labor:
  1. The balance of the fund as of the reporting date;
  2. A list of the administrative costs paid for from the fund, including without limitation salaries, pensions, and packages;
  3. The total revenue received by the fund during the reporting period; and
  4. A detailed description of the steps taken and the progress made toward achieving status as a National Cancer Institute-Designated Cancer Center during the reporting period.
2. The semiannual report required under this subsection shall be submitted by January 1 and July 1 of each year.

History. Acts 2019, No. 181, § 2.

A.C.R.C. Notes. Acts 2019, No. 181, § 1, provided: “Legislative findings.

The General Assembly finds that:

“(1) In 2018, approximately sixteen thousand (16,000) Arkansans were diagnosed with cancer in 2018, which means that forty-four (44) Arkansans were diagnosed with cancer per day;

“(2) Of those sixteen thousand (16,000) Arkansans diagnosed with cancer, six thousand nine hundred ten (6,910) will die of the disease;

“(3) The four (4) types of cancer with significantly high annual diagnosis rates in Arkansas are:

“(A) Lung and bronchus cancer, with two thousand seven hundred twenty (2,720) diagnoses;

“(B) Breast cancer, with two thousand one hundred sixty (2,160) diagnoses;

“(C) Prostate cancer, with one thousand two hundred sixty (1,260) diagnoses; and

“(D) Colon and rectal cancer, with one thousand three hundred seventy diagnoses (1,370);

“(4) Over the past twenty-eight (28) years, nationwide cancer-related deaths have decreased by five percent (5%), but in Arkansas the rate of cancer-related deaths has increased by nine percent (9%);

“(5) Only Kentucky, Mississippi, and Oklahoma had higher cancer-related death rates in the past twenty-eight (28) years than Arkansas;

“(6) Cancer is the second-leading cause of death in Arkansas and may become the leading cause of death within the next decade, surpassing the current leading cause, cardiovascular disease, based on the diagnosis trends in the state;

“(7) There are currently seventy (70) National Cancer Institute-Designated Cancer Centers, located in thirty-six (36) states and the District of Columbia, including National Cancer Institute-Designated Cancer Centers in Texas, Missouri, Oklahoma, and Tennessee;

“(8) There are no National Cancer Institute-Designated Cancer Centers in Arkansas, Mississippi, or Louisiana;

“(9) In 2018, the State of Oklahoma received the seventieth National Cancer Institute-Designated Cancer Center;

“(10) Having a National Cancer Institute-Designated Cancer Center in Arkansas will improve and expand access to clinical trials, cancer treatment, cancer prevention, cancer screening, and education in Arkansas;

“(11) A National Cancer Institute-Designated Cancer Center in Arkansas would act as a hub of groundbreaking treatments and care for the communities around the state;

“(12) Arkansas cancer patients often times are required to leave the state to receive treatment at a National Cancer Institute-Designated Cancer Center;

“(13) National Cancer Institute-Designated Cancer Centers have expanded treatment options due to research grant funds and experimental trials, and hundreds of research studies are underway at these centers, ranging from basic laboratory research to clinical assessments of new treatments not currently available in Arkansas;

“(14) Having a National Cancer Institute-Designated Cancer Center in the state would save the lives of thousands of Arkansans through expanded treatment opportunities, including opportunities to participate in experimental cancer treatments;

“(15) Being a National Cancer Institute-Designated Cancer Center would allow the Winthrop P. Rockefeller Cancer Institute at the University of Arkansas for Medical Sciences to be awarded more research funds, which will provide additional experimental cancer treatments in the state;

“(16) A National Cancer Institute-Designated Cancer Center will provide support for cancer treatment providers, clinics, and hospitals in Arkansas;

“(17) In addition to the human suffering caused by cancer, there are economic costs that result from the disease, including medical costs and the impact on the productivity of the cancer patient and his or her family;

“(18) The Winthrop P. Rockefeller Cancer Institute at the University of Arkansas for Medical Sciences is pursuing designation as a National Cancer Institute-Designated Cancer Center for the benefit of the more than three million (3,000,000) citizens of Arkansas;

“(19) The National Cancer Institute recommends that a cancer center have at least twenty million dollars ($20,000,000) in National Cancer Institute-funded research;

“(20) The Winthrop P. Rockefeller Cancer Institute at the University of Arkansas for Medical Sciences currently has approximately ten million dollars ($10,000,000) in National Cancer Institute-funded research;

“(21) The Winthrop P. Rockefeller Cancer Institute at the University of Arkansas for Medical Sciences can apply for only a limited number of National Cancer Institute grant funds because over sixty percent (60%) of the National Cancer Institute's grant applications require that the cancer center be a National Cancer Institute-Designated Cancer Center in order to apply for the grant funds;

“(22) In order to achieve status as a National Cancer Institute-Designated Cancer Center, the Winthrop P. Rockefeller Cancer Institute at the University of Arkansas for Medical Sciences will need to recruit:

“(A) A renowned expert in cancer research to serve as the Director of the Winthrop P. Rockefeller Cancer Institute at the University of Arkansas for Medical Sciences; and

“(B) Nationally recognized National Cancer Institute-funded medical professionals;

“(23) To be successful in gaining status as a National Cancer Institute-Designated Cancer Center, ongoing, dedicated financial support from the State of Arkansas is critical;

“(24) The Winthrop P. Rockefeller Cancer Institute at the University of Arkansas for Medical Sciences will need a stream of funding between ten million dollars ($10,000,000) and twenty million dollars ($20,000,000) per year to establish and maintain a National Cancer Institute-Designated Cancer Center;

“(25) Like other states that have been successful in securing status as a National Cancer Institute-Designated Cancer Center for their cancer centers, it is incumbent that the State of Arkansas invest in this initiative;

“(26) It is a strategic goal of the Winthrop P. Rockefeller Cancer Institute at the University of Arkansas for Medical Sciences to becomes a National Cancer Institute-Designated Cancer Center;

“(27) State government funds will assist the Winthrop P. Rockefeller Cancer Institute at the University of Arkansas for Medical Sciences secure vital investments from other public and private sources;

“(28) The Winthrop P. Rockefeller Cancer Institute at the University of Arkansas for Medical Sciences is committed to raising at least thirty million dollars ($30,000,000) in private funds to support the pursuit of achieving status as a National Cancer Institute-Designated Cancer Center;

“(29) The private resources pursued by the Winthrop P. Rockefeller Cancer Institute at the University of Arkansas for Medical Sciences are a part of a cohesive and focused plan that will forever change the state;

“(30) It is estimated that having a National Cancer Institute-Designated Cancer Center will bring in an additional seventy million dollars ($70,000,000) annually to Arkansas’s economy and will create one thousand five hundred eighty-four (1,584) new jobs over five (5) years;

“(31) The state should establish a fund solely for the purpose of pursuing and maintaining status as a National Cancer Institute-Designated Cancer Center for the Winthrop P. Rockefeller Cancer Institute at the University of Arkansas for Medical Sciences;

“(32) If upon June 30, 2027, the Winthrop P. Rockefeller Cancer Institute at the University of Arkansas for Medical Sciences has not achieved status as a National Cancer Institute-Designated Cancer Center, then the fund created in this act should sunset; and

“(33) Future General Assemblies will have the authority and responsibility to evaluate the progress of the Winthrop P. Rockefeller Cancer Institute at the University of Arkansas for Medical Sciences toward achieving status as a National Cancer Institute-Designed Cancer Center and adjust this act accordingly”.

19-5-1152. Arkansas Public Safety Trust Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Arkansas Public Safety Trust Fund”.
1. The fund shall be an interest-bearing account and may be invested in the manner permitted by law, with the interest income a proper credit to the fund and which shall not revert to general revenue.
2. The fund shall be overseen by the Division of Emergency Management and shall be used to pay all authorized expenditures and proper costs as described in subsections (d) and (e) of this section.
The fund shall consist of:
1. Public safety charges assessed and collected under § 12-10-318(b) and § 12-10-326; and
2. Any other moneys as authorized by law.
On or before the fifteenth business day of December 2019 and on the fifteenth business day of each month thereafter, up to fourteen thousand dollars ($14,000) of the moneys in the fund shall be distributed to the division to provide administrative support for the fund.
On or before the fifteenth business day of July 2020 and on the fifteenth business day of each fiscal quarter thereafter, moneys in the fund shall be distributed as follows:
1. Up to sixty-two thousand five hundred dollars ($62,500) to the Arkansas Commission on Law Enforcement Standards and Training; and
2. Up to two million dollars ($2,000,000) to the division to support upgrades and maintenance for the Arkansas Wireless Information Network.
Between December 2019 and June 2020, the fund shall withhold moneys necessary to make the distributions under subsections (d) and (e) of this section.
Each month after the distributions under subsections (d)-(f) of this section are satisfied, all remaining funds in the fund shall be transferred to the Arkansas 911 Board.
Subsections (d)-(g) of this section shall be applied for fiscal year 2021 and each successive fiscal year.

History. Acts 2019, No. 660, § 10.

A.C.R.C. Notes. Acts 2019, No. 660, § 1, provided: “Title. This act shall be known and may be cited as the ‘Public Safety Act of 2019’”.

Acts 2019, No. 660, § 2, provided: “Legislative findings and intent.

“(a) The General Assembly finds that:

“(1) The State of Arkansas recognizes that maintaining the public's safety is a sacred trust of the government;

“(2) The citizens of Arkansas depend on state government to provide for public welfare and safety; and

“(3) To ensure public welfare and safety, it is important and worthy to achieve the following public safety priorities:

“(A) Developing a next generation 911 system;

“(B) Replacing the Arkansas Emergency Telephone Services Board with the Arkansas 911 Board; and

“(C) Providing upgrades and maintenance funding for the Arkansas Wireless Information Network.

“(b) It is the intent of the General Assembly to simplify and update charges paid by telecommunication subscribers to provide the best public safety communications and services possible to all Arkansas and first responders by:

“(1) Developing a next generation 911 system;

“(2) Replacing the Arkansas Emergency Telephone Services Board with the Arkansas 911 Board; and

“(3) Providing upgrades and maintenance funding for the Arkansas Wireless Information Network”.

19-5-1153. Arkansas Firefighter Cancer Relief Network Trust Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Arkansas Firefighter Cancer Relief Network Trust Fund”.
1. The State Insurance Department shall deposit into the State Treasury one hundred percent (100%) of the moneys collected under § 21-5-110 to the credit of the fund.
2. The fund shall consist of funds donated under § 21-5-110 and any other moneys as may be provided by law.
The fund shall be used for providing funds for relief for firefighters who are diagnosed with cancer and participating in a firefighter cancer relief network under § 21-5-110.

History. Acts 2019, No. 823, § 1.

19-5-1154. Rural Broadband I.D. Expenses Trust Fund — Creation — Purpose — Definitions.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State, a trust fund to be known as the “Rural Broadband I.D. Expenses Trust Fund”.
The Rural Broadband I.D. Expenses Trust Fund shall be used for one-time grants for the defrayment of expenses for broadband due-diligence business studies incurred by prospective federal broadband program applicants, in anticipation of and before application for funding from:
1. The Federal Communications Commission's Rural Digital Opportunity Fund program;
2. The United States Department of Agriculture's Rural eConnectivity Pilot Program, otherwise known as the “ReConnect Program”;
3. The United States Department of Agriculture's “Farm Bill”; or
4. Other federal grants or loans for broadband development programs.
The Rural Broadband I.D. Expenses Trust Fund shall consist of funds authorized or provided by law.
Broadband due-diligence business studies shall be conducted and concluded within one hundred eighty (180) days of the receipt of the Rural Broadband I.D. Expenses Trust Fund grant.
Upon receipt of a Rural Broadband I.D. Expenses Trust Fund grant, the local entity shall file a surety bond for the benefit of the State of Arkansas with the Treasurer of State in the amount of the Rural Broadband I.D. Expenses Trust Fund grant for assurance that the Rural Broadband I.D. Expenses Trust Fund grant is utilized for broadband due-diligence business studies.
As used in this section:
1. 1. “Broadband due-diligence business studies” means analytical research designed to acquire the data necessary to support applications for federal grants or loans for broadband development programs.
  2. “Broadband due-diligence business studies” includes without limitation:
    1. Full feasibility determinations, including economic business plans;
    2. Twenty-year financial break-even analysis;
    3. Competitive broadband analysis;
    4. Demographic analysis, with comparison to other projects;
    5. The ordering of construction plans to maximize return; and
    6. Analysis of federal funding opportunities; and
2. “Local entity” means a county, including without limitation an unincorporated community within a county, a city of the first class, a city of the second class, and an incorporated town.

History. Acts 2020, No. 139, § 27.

A.C.R.C. Notes. The United States Department of Agriculture’s “Farm Bill”, referred to in this section, is an apparent reference to the Agriculture Improvement Act of 2018, Pub. L. No. 115-334, otherwise known as the “2018 Farm Bill”, as implemented by the United States Department of Agriculture.

The definitions in subsection (f) of this section also are applicable to Acts 2020, No. 139, §§ 26, 28-34, which are noted under this section.

Acts 2020, No. 139, § 26, provided: “LEGISLATIVE FINDINGS AND INTENT.

“(a) The General Assembly finds that:

“(1) Generally, local entities do not budget for or have funds available for broadband due-diligence business studies in connection with making application for federal grants or loans for broadband development programs;

“(2) In order to spur further development of broadband in rural Arkansas, it is necessary for local entities to conduct due-diligence business studies before application for federal grants or loans for broadband development programs;

“(3) Expenses associated with broadband due-diligence business studies can be burdensome to rural Arkansas communities, and it is in the best interest of all Arkansans to make this investment;

“(4) Under current Arkansas law, only certain eligible telecommunications carriers have benefitted from the Arkansas High Cost Fund, which underwrites broadband deployment; and

“(5) It is necessary to provide funds to local entities to further wide-spread broadband deployment, particularly in unserved and underserved rural Arkansas, and to determine the feasibility of broadband deployment for local entities that currently do not have federally-defined broadband services and where these broadband due-diligence business studies have not been conducted before.

“(b) It is the intent of the General Assembly to provide funds to local entities to defray expenses for broadband due-diligence business studies in connection with preparation for federal grant and loan applications for broadband development programs administered by the Federal Communications Commission, the United States Department of Agriculture, or other federal agency to spur federally-defined broadband development in rural Arkansas.

“The provisions of this section shall be in effect only from July 1, 2020 through June 30, 2021”.

Acts 2020, No. 139, § 28, provided: “MANAGEMENT OF RURAL BROADBAND I.D. EXPENSES TRUST FUND GRANT APPLICATION PROCESS.

“(a) The Institute for Digital Health and Innovation of the University of Arkansas for Medical Sciences shall manage the Rural Broadband I.D. Expenses Trust Fund grant application process for local entities.

“(b) The Institute for Digital Health and Innovation shall:

“(1) Determine Rural Broadband I.D. Expenses Trust Fund grantees;

“(2) Promulgate rules necessary to implement this act;

“(3)(A) Determine the amount of the Rural Broadband I.D. Expenses Trust Fund grant funds disbursed to an applicant.

“(B) An applicant may be a prospective and qualified applicant for a federal grant or loan for a broadband development program under the federal regulations promulgated by the Federal Communications Commission, the United States Department of Agriculture, or other federal agency;

“(4) Make the determination if the grants shall be awarded; and

“(5) Inform the Treasurer of State when a determination is made for the awarding of Rural Broadband I.D. Expenses Trust Fund grants.

“(c) The Rural Broadband I.D. Expenses Trust Fund grants awarded under this act shall:

“(1) Not exceed seventy-five thousand dollars ($75,000) per grant;

“(2) Be limited to thirty (30) total one-time grant awards; and

“(3) Be made to a federally deposit-insured financial institution designated by the local entity that is a Rural Broadband I.D. Expenses Trust Fund grantee.

“(d)(1) A local entity that is a Rural Broadband I.D. Expenses Trust Fund grantee shall:

“(A) Manage the funds it receives for conducting the broadband due-diligence business studies; and

“(B) File with the Institute for Digital Health and Innovation of the University of Arkansas for Medical Sciences an audited accounting of disbursed funds for conducting the broadband due-diligence business studies, including information concerning the organizations conducting the broadband due-diligence business studies, the amount paid to those organizations, and the due date of the broadband due-diligence business studies.

“(2) The accounting described in subdivision (d)(1)(B) of this section shall be filed no later than:

“(A)(i) Four (4) months from the date of receipt of the funds.

“(ii) A local entity that files an accounting filed under subdivision (d)(2)(A)(i) of this section shall file an additional accounting at the conclusion of the broadband due-diligence business study; or

“(B) Nine (9) months after receipt of the funds.

“(3) Any funds not spent on the broadband due-diligence business study shall be paid back to the Treasurer of State within nine (9) months after receipt of the disbursement.

“The provisions of this section shall be in effect only from July 1, 2020 through June 30, 2021”.

Acts 2020, No. 139, § 29, provided: “LEGISLATIVE OVERSIGHT.

“(a) The General Assembly shall maintain oversight of the Rural Broadband I.D. Expenses Trust Fund grant program under this act by requiring prior approval of the Legislative Council or Joint Budget Committee as provided by law before Rural Broadband I.D. Expenses Trust Fund grants are awarded.

“(b) The Director of the Institute for Digital Health and Innovation of the University of Arkansas for Medical Sciences and the Treasurer of State, or their designees, shall:

“(1) Report to the General Assembly before Rural Broadband I.D. Expenses Trust Fund grants are awarded;

“(2)(A) File an semiannual report detailing:

“(i) The balance of the Rural Broadband I.D. Expenses Trust Fund as of the reporting date;

“(ii) A list of the administrative overhead costs paid for from the Rural Broadband I.D. Expenses Trust Fund; and

“(iii) A detailed description of the grant applications received and the amount of the Rural Broadband I.D. Expenses Trust Fund grant funds that were disbursed.

“(B) The semiannual reports required under subdivision (b)(2)(A) of this section shall be submitted by January 1 and July 1 of each year to the:

“(i) Governor;

“(ii) Legislative Council or, if the General Assembly is in session, the Joint Budget Committee; and

“(iii) Committee on Advanced Communications and Information Technology.

“The provisions of this section shall be in effect only from July 1, 2020 through June 30, 2021”.

Acts 2020, No. 139, § 30, provided: “INVESTMENT OF FUNDS.

“(a)(1) The Treasurer of State shall invest the moneys available in the Rural Broadband I.D. Expenses Trust Fund.

“(2) The investment of funds under this section is exempt from § 19-3-518(a)(2)(B)(i) (b) and (c)

“(b) Moneys in the Rural Broadband I.D. Expenses Trust Fund may be invested in any instrument that is:

“(1) Listed in § 19-3-518(b)(1)(B); and

“(2) Approved by the guidelines established by the State Treasury investment policy approved by the State Board of Finance.

“(c) Assuming reauthorization of the Rural Broadband I.D. Expenses Trust Fund by the General Assembly, moneys remaining in the Rural Broadband I.D. Expenses Trust Fund at the end of each fiscal year shall carry forward and be made available for the purposes stated in this section in the next fiscal year.

“The provisions of this section shall be in effect only from July 1, 2020 through June 30, 2021”.

Acts 2020, No. 139, § 31, provided: “ADDITIONAL REPORTING REQUIREMENT BY LOCAL ENTITY AS RURAL BROADBAND I.D. EXPENSES TRUST FUND GRANTEE.

A local entity that is a Rural Broadband I.D. Expenses Trust Fund grantee under this act shall:

“(1) Report to the Institute for Digital Health and Innovation of the University of Arkansas for Medical Sciences semiannually about the status of the local entity's broadband due-diligence business study; and

“(2) Cite reports and analyses finalized as a consequence of the Rural Broadband I.D. Expenses Trust Fund grant award.

“The provisions of this section shall be in effect only from July 1, 2020 through June 30, 2021”.

Acts 2020, No. 139, § 32, provided: “ADDITIONAL FUNDING AVAILABLE.

“(a) If an application by a local entity for a federal grant or loan for a broadband development program is made and successfully awarded by the United States Government, then the local entity as grantee shall report and disclose the award received from the federal government within thirty (30) days of the award notification to the:

“(1) Institute for Digital Health and Innovation of the University of Arkansas for Medical Sciences;

“(2) Governor;

“(3) Legislative Council or, if the General Assembly is in session, the Joint Budget Committee; and

“(4) Joint Committee on Advanced Communications and Information Technology.

“(b)(1) If an award is made by the United States Government, additional funds shall be disbursed to the local entity as a grantee or awardee, as designated by the grantee, to initiate the broadband project.

“(2) The additional awards shall be in the amount of two hundred thousand dollars ($200,000).

“(3) It is anticipated that these funds shall defray expenses related to conclusion of the federal grant or loan, including without limitation the expenses of obtaining a letter of credit, a bankruptcy opinion, or eligible telecommunications carrier application expenses, as required by the federal grant or loan awarded.

“The provisions of this section shall be in effect only from July 1, 2020 through June 30, 2021”.

Acts 2020, No. 139, § 33, provided: “REPORTING RELATED TO COMMENCEMENT OF BROADBAND DEVELOPMENT PROGRAM FUNDED BY FEDERAL GRANT OR LOAN.

A local entity that has been awarded a federal grant or loan for a broadband development program shall report the status of the broadband development program to the Institute for Digital Health and Innovation of the University of Arkansas for Medical Sciences within nine (9) months of the award of the federal grant or loan.

“The provisions of this section shall be in effect only from July 1, 2020 through June 30, 2021”.

Acts 2020, No. 139, § 34, provided: “SUBMISSION OF MAPPING INFORMATION TO ARKANSAS GEOGRAPHIC INFORMATION SYSTEMS OFFICE REQUIRED.

“(a) A local entity shall coordinate with the Arkansas Geographic Information Systems Office to provide mapping information to the Arkansas Spatial Data Infrastructure (ASDI) for preparation of legal descriptions and digital mapping for the relevant incorporated or unincorporated areas.

“(b) A local entity that has been awarded a state or federal grant or loan shall provide information concerning broadband mapping to the Arkansas Geographic Information Systems Office in compliance with the Arkansas Geographic Information Systems Office Policy Statement PS-01, Arkansas Spatial Data Infrastructure (ASDI) Data Loading and Retirement Procedures.

“The provisions of this section shall be in effect only from July 1, 2020 through June 30, 2021”.

Subchapter 12 — Miscellaneous Funds Continued

Effective Dates. Acts 1999, No. 589, § 7: Apr. 7, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that there is a pressing and immediate need for additional physicians in medically underserved rural areas in Arkansas; and this act has as its purpose the furnishing of financial assistance to physicians who have an interest and desire to engage in rural community practice in Arkansas and will so obligate themselves. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1999, No. 1567, § 28: July 1, 1999. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the United States Congress has amended the laws pertaining to certain federally funded public assistance programs; that these programs are crucial to the life and health of many needy citizens of the State of Arkansas who otherwise will be unable to obtain food, clothing, shelter, or medical care; that federal funds have already been appropriated for this program and any delays could work irreparable harm upon the proper administration of essential governmental programs and the State of Arkansas may risk forfeiture of the federal funding; that this act so provides. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety, shall be in full force and effect on July 1, 1999.”

Acts 2001, No. 307, § 2: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly of Arkansas, that changes in the state's fiscal laws must take effect at the beginning of the fiscal year and that if the current legislative session is so extended that the ninety-day period is later than July 1, 2001 such changes will not be timely. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective July 1, 2001.”

Acts 2001, No. 1384, § 7: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2001 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2001 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2001.”

Acts 2001, No. 1666, § 92: July 1, 2001, except §§ 56, 83, and 84, effective Apr. 16, 2001. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2001 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2001 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2001. Provided however, that the Section which amends Act 937 of 1999, the Section that provides $6,750,000 in supplemental appropriation for Disaster Assistance and the Section that provides $1,500,000 in supplemental appropriation for Disaster Assistance - Federal shall be effective on the date of its passage and approval.”

Acts 2003, No. 1123, § 22: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2003 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2003 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2003.”

Acts 2003, No. 1672, § 7. July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2003 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2003 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2003.”

Acts 2003 (2nd Ex. Sess.), No. 72, § 2: Feb. 3, 2004. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that monies received through the provisions of the Jobs and Growth Tax Relief Reconciliation Act of 2003, Public Law 108-27 should be transferred to a fund in the State Treasury created by law; that the provisions of this Act create a fund as determined by the General Assembly; and that this act is immediately necessary because these monies are vitally needed in order to fund various provisions of law enacted to meet requirements of the Supreme Court decision in Lake View School District No. 25 v. Huckabee, 351 Ark. 31 (2002). Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2003 (2nd Ex. Sess.), No. 94, § 6: Mar. 1, 2004. Emergency clause provided: “It is found and determined by the General Assembly, that the provision of an equal opportunity for an adequate education to all the citizens of the state is imperative; that additional funds are immediately needed to provide an equal opportunity for an adequate education; that this act is designed to provide the additional revenues needed to provide this equal opportunity to all citizens; and that a delay in the effective date of this act will cause irreparable harm upon the provision of essential education opportunities and the proper administration of educational programs. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after the date of March 1, 2004.”

Acts 2003 (2nd Ex. Sess.), No. 107, § 12: became law without Governor's signature, Mar. 1, 2004. Emergency clause provided: “It is found and determined by the General Assembly, that the provision of an equal opportunity for an adequate education to all the citizens of the state is imperative; that additional funds are immediately needed to provide an equal opportunity for an adequate education; that this act is designed to provide the additional revenues needed to provide this equal opportunity to all citizens; and that a delay in the effective date of this act will cause irreparable harm upon the provision of essential education opportunities and the proper administration of educational programs. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after the date of March 1, 2004.”

Acts 2003 (2nd Ex. Sess.), No. 108, § 5: Feb. 12, 2004. Emergency clause provided: “It is found and determined by the 84th General Assembly of the State of Arkansas, meeting in Second Extraordinary Session, that this act is necessary due to the November 2002 Arkansas Supreme Court decision declaring the Arkansas public school system financially inadequate. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2005, No. 2131, § 38: July 1, 2005. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2005 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2005 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2005.”

Acts 2006 (1st Ex. Sess.), No. 20, § 20: Apr. 11, 2006. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Arkansas Supreme Court found that the public school funding system continues to be inadequate and the public schools are operating under a constitutional infirmity that must be corrected immediately; that to correct the constitutional infirmity and to provide adequate funding for public education the amount of foundation funding for school districts shall be revised; that school districts require additional resources for the repair, improvement and replacement of academic facilities; that legislative correction is immediately necessary in order to allow school districts to provide an adequate opportunity for an adequate education to every public school student in the state. Therefore, an emergency is declared to exist and this act being necessary for the public peace, health and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2007, No. 427, § 2: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly that the effectiveness of this act on July 1, 2007, is essential because an appropriation will be made for the fund created by this act and the appropriation will become effective on July 1, 2007; and that a delay in the effective date of this act beyond July 1, 2007, could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 2007.”

Acts 2007, No. 510, § 2: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly that losing business to other states may result in distressed economic conditions to the State of Arkansas; that a contingency fund should be created and funded for the purpose of attracting new business and retain existing business within the State of Arkansas thereby maintaining and potentially increasing career and job opportunities for the citizens of this state; and that for the effective administration of this act, this act should become effective on July 1, 2007. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2007.”

Acts 2007, No. 684, § 10: Jan. 1, 2008.

Acts 2009, No. 9, § 11: Feb. 3, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the state has a severe shortage of nurses and nurse educators, that for financial and other reasons the state often has difficulty retaining state-educated nurses and nurse educators after graduation for the state's workforce, and that this act is immediately necessary to provide financial incentives to increase the number of nurses and nurse educators in the state for the protection of the public health, safety, and welfare. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, No. 754, § 12: July 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2009 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2009 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2009.”

Acts 2009, No. 777, § 6: July 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2009 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2009 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2009.”

Acts 2009, No. 806, § 6: July 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2009 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2009 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2009.”

Acts 2009, No. 1328, § 8: July 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2009 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2009 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2009.”

Acts 2009, No. 1428, § 17: July 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2009 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2009 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2009.”

Acts 2011, No. 923, § 38: July 1, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2011 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2011 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2011.”

Acts 2011, No. 1189, § 4: effective on and after Jan. 1, 2012.

Identical Acts 2012, Nos. 271 and 287, § 10: July 1, 2012.

Acts 2013, No. 1311, § 2: Apr. 18, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that specific laws applicable to the County Voting System Grant Fund need to be revised to bring them into conformance with sound public fiscal policy; that this revision is of great importance to citizens of Arkansas; and that this act is immediately necessary to maintain an orderly system of fund transfers between the Secretary of State and the Treasurer of State. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.

Acts 2013, No. 1411, § 7: July 1, 2014. Effective date provided: “This act is effective on and after July 1, 2014.”

Acts 2013, No. 1474, § 4: Apr. 22, 2013. Emergency clause provided: It is found and determined by the General Assembly of the State of Arkansas that the unemployment rate in Arkansas is high; that the high rate of unemployment in this state hinders Arkansas's economic recovery; that there is an urgent need to create jobs in this state; and that this act is immediately necessary to encourage the creation of additional jobs for Arkansans and to support Arkansas's continual economic recovery. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Identical Acts 2014, Nos. 290 and 299, § 15: July 1, 2014.

Acts 2015, No. 1020, § 31(a): Oct. 1, 2015. Effective date clause provided: “Sections 1-5, 7-17, and 19-30 of this act are effective on and after October 1, 2015.”

Acts 2015, Nos. 7 and 8, § 153: July 1, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Arkansas Building Authority, the Arkansas Science and Technology Authority, the Department of Rural Services, and the Division of Land Surveys of the Arkansas Agriculture Department are inefficiently structured; that this inefficient structuring causes an excessive and unnecessary cost to the taxpayers of the this state; and that this act is essential to alleviating that financial burden. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2015.”

Acts 2016 (3rd Ex. Sess.), No. 1, § 22: July 1, 2017. Effective date clause provided: “Sections 9-12, 14, 16 and 17 of this act are effective on and after July 1, 2017.”

Acts 2017, No. 512, § 51: July 1, 2017. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2017 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2017 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2017.”

Identical Acts 2017, Nos. 1084 and 1123, § 8: July 1, 2017. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that changes in the state’s fiscal laws must take effect at the beginning of the fiscal year, and that if the current legislative session is extended such that the ninety-day period is later than July 1, 2017, the changes required by this act will not be timely. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2017.”

Identical Acts 2018, Nos. 259 and 260, § 10: July 1, 2018.

Acts 2019, No. 899, § 19: July 1, 2019, except § 16, effective Apr. 11, 2019. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2019 is essential to the operation of the agency for which the appropriations in this Act are provided; with the exception that Section 16 in this Act shall be in full force and effect from and after the date of its passage and approval, and that in the event of an extension of the Legislative Session, the delay in the effective date of this Act beyond July 1, 2019, with the exception that Section 16 in this Act shall be in full force and effect from and after the date of its passage and approval, could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2019; with the exception that Section 16 in this Act shall be in full force and effect from and after the date of its passage and approval”.

Identical Acts 2020 (1st Ex. Sess.), Nos. 1 and 2, § 3: Mar. 28, 2020. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the creation of the Covid-19 Rainy Day Fund and a transfer of funds to the COVID-19 Rainy Day Fund is necessary to continue essential services. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto”.

Identical Acts 2020, Nos. 186 and 187, § 7: July 1, 2020.

19-5-1201. [Repealed.]

Publisher's Notes. This section, concerning the Institutional and Community Development Fund, was repealed by identical Acts 2017, Nos. 1083 and 1127, § 18. The section was derived from Acts 1999, No. 1463, § 27.

19-5-1202. Reward Pool Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Reward Pool Fund”.
1. The fund shall consist of all monetary donations or gifts made by private citizens and corporations.
2. The fund shall be used for the payment of rewards or enhancing state-funded rewards for information leading to the arrest of persons committing arson, as administered by the Governor and as set out in § 5-38-301.

History. Acts 1999, No. 1463, § 27.

19-5-1203. [Repealed.]

Publisher's Notes. This section, concerning the establishment of the Motorcoach Carrier Incentive Program Fund, was repealed by Acts 2010, No. 262, § 10, and Acts 2010, No. 296, § 10. The section was derived from Acts 1999, No. 1463, § 27.

19-5-1204. [Repealed.]

Publisher's Notes. This section, concerning the Balanced Budget Reserve Fund, was repealed by identical Acts 2017, Nos. 1083 and 1127, § 19. The section was derived from Acts 1999, No. 1463, § 27.

19-5-1205. Youth Services Facilities Needs Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Youth Services Facilities Needs Fund”.
1. The Youth Services Facilities Needs Fund shall consist of funds transferred to it from the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund, and other funds authorized by law.
2. The Youth Services Facilities Needs Fund shall be used for contracts, repairs, acquisition, construction, equipment, and operational expenses to improve the facilities of the Division of Youth Services.

History. Acts 1999, No. 1463, § 27; 2019, No. 82, § 14.

A.C.R.C. Notes. Acts 2019, No. 82, § 1, provided: “Legislative intent.

It is the intent of the General Assembly that the creation of the Development and Enhancement Fund is necessary to provide a mechanism to disburse funds for:

“(1) Various construction and improvement projects;

“(2) Unforeseen needs;

“(3) Funding deficiencies; and

“(4) The completion of projects previously funded by the General Assembly”.

Amendments. The 2019 amendment, in (b)(1), inserted “or its successor fund or fund accounts, including the Development and Enhancement Fund” and made a stylistic change.

19-5-1206. Building Authority Division Real Estate Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Building Authority Division Real Estate Fund”.
1. The Building Authority Division Real Estate Fund shall consist of funds transferred to it from the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund, or other funds, gifts, bequests, foundation grants and gifts, Governor's Emergency Fund or other emergency funds, federal grants and matching funds, short-term loans and advances, proceeds from bond issues, leases, service charges or fees, interagency transfers of funds, partnerships and debentures, and other funds as may be appropriated by the General Assembly.
2. The Building Authority Division Real Estate Fund shall be used to acquire either by deed or by lease, to own or operate, to maintain, to repair, to renovate, to develop, or to construct real properties, including any necessary demolition and site improvements, for use by state agencies, as defined in § 22-2-102, for capital improvement needs under the jurisdiction of the Building Authority Division.

History. Acts 1999, No. 1463, § 27; 2001, No. 307, § 1; 2009, No. 251, § 21; 2015 (1st Ex. Sess.), No. 7, § 19; 2015 (1st Ex. Sess.), No. 8, § 19; 2019, No. 82, § 15; 2019, No. 910, § 6101.

A.C.R.C. Notes. Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 1, provided: “Transfer of the Arkansas Building Authority to the Department of Finance and Administration.

“(a)(1) The Arkansas Building Authority is transferred to the Department of Finance and Administration by a type 2 transfer under § 25-2-105.

“(2) For the purposes of this act, the Department of Finance and Administration shall be considered a principal department established by Acts 1971, No. 38.

“(e) The Arkansas Code Revision Commission shall make appropriate name changes in the Arkansas Code to implement this act.”

Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 152, provided:

“(a) Any funds authorized by the Ninetieth General Assembly from the Arkansas Building Authority Maintenance Fund may be deemed payable from the Building Authority Division Maintenance Fund.

“(b) Any funds authorized by the Ninetieth General Assembly from the Arkansas Building Authority Real Estate Fund may be deemed payable from the Building Authority Division Real Estate Fund.”

Acts 2019, No. 82, § 1, provided: “Legislative intent.

It is the intent of the General Assembly that the creation of the Development and Enhancement Fund is necessary to provide a mechanism to disburse funds for:

“(1) Various construction and improvement projects;

“(2) Unforeseen needs;

“(3) Funding deficiencies; and

“(4) The completion of projects previously funded by the General Assembly”.

Amendments. The 2009 amendment made stylistic changes.

The 2015 amendment by Acts 2015 (1st Ex. Sess.), Nos. 7 and 8 substituted “Building Authority Division Real Estate Fund” for “Arkansas Building Authority Real Estate Fund” in the section heading and in (a); substituted “The Building Authority Division Real Estate Fund” for “This fund” in (b)(1) and for “The fund” in (b)(2); and substituted “Building Authority Division of the Department of Finance and Administration” for “Arkansas Building Authority” in (b)(2).

The 2019 amendment by No. 82 inserted “or its successor fund or fund accounts, including the Development and Enhancement Fund” in (b)(1).

The 2019 amendment by No. 910 deleted “of the Department of Finance and Administration” at the end of (b)(2).

19-5-1207. [Repealed.]

Publisher's Notes. This section, concerning the Arkansas Real Property Reappraisal Fund, was repealed by Acts 2019, No. 388, § 5, effective July 24, 2019. The section was derived from Acts 1999, No. 1444, § 2.

19-5-1208. [Repealed.]

Publisher's Notes. This section, concerning the Arkansas Research Matching Fund, was repealed by identical Acts 2017, Nos. 1083 and 1127, § 20. The section was derived from Acts 1999, No. 1545, § 2; 2001, No. 1646, § 16; 2015 (1st Ex. Sess.), No. 7, § 107; 2015 (1st Ex. Sess.), No. 8, § 107.

19-5-1209. Rural Physician Incentive Revolving Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Rural Physician Incentive Revolving Fund”.
Any unexpended balance in the fund at the end of each state fiscal year shall be carried forward to the next fiscal year to be used for the same intent and purpose set forth in § 20-12-501 et seq.

History. Acts 1999, No. 589, § 2.

19-5-1210. [Repealed.]

A.C.R.C. Notes. The amendment of this section by Acts 2019, No. 388, is superseded by the repeal of this section by Acts 2019, No. 1024. Acts 2019, No. 388, amended subsection (b) to read as follows: “The fund shall be used exclusively by the Arkansas Workforce Development Board to fund the programs, operations, and activities of the board.”

Publisher's Notes. This section, concerning the Arkansas Transitional Employment Fund, was repealed by Acts 2019, No. 998 § 4, and by Acts 2019, No. 1024, § 4, effective July 1, 2019. The section was derived from Acts 1999, No. 1567, § 24; 2015, No. 1144, § 8; 2015, No. 1145, § 8; 2019, No. 388, § 6.

19-5-1211. Department of Labor and Licensing Special Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special fund to be known as the “Department of Labor and Licensing Special Fund”.
The Department of Labor and Licensing Special Fund shall consist of:
1. Those special revenues set out in § 19-6-301(25), (36), (72), (112), (158), (180), and (251); and
2. The fee, penalty, and assessment income and all other income, the disposition of which is not otherwise provided by law, of the Department of Labor and Licensing.
The Department of Labor and Licensing Special Fund shall be used for the maintenance, operation, and improvements required by the department in carrying out the special revenue programs enumerated in subsection (b) of this section, and to defray the costs of the maintenance, operation, and improvements required by the department or the Secretary of the Department of Labor and Licensing in carrying out the functions, powers, and duties imposed by law on the department or the secretary.
The secretary, with the approval of the Chief Fiscal Officer of the State, is authorized to transfer funds from the Department of Labor and Licensing Special Fund to the Department of Labor and Licensing Fund Account.

History. Acts 2001, No. 577, § 1; 2014, No. 290, § 5; 2014, No. 299, § 5; 2019, No. 910, § 5447.

A.C.R.C. Notes. Identical Acts 2014, Nos. 290 and 299, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Amendments. The 2014 amendment by identical acts Nos. 290 and 299 inserted “and (251)” in (b)(1).

The 2019 amendment inserted “and Licensing” in the section heading and throughout the section; substituted “Secretary of the Department of Labor and Licensing” for “Director of the Department of Labor” in (c); and substituted “secretary” for “director” in (c) and (d).

19-5-1212. [Repealed.]

Publisher's Notes. This section, concerning the Capitol Grounds Monument and Memorial Preservation Fund, was repealed by Acts 2003 (1st Ex. Sess.), No. 55, § 23. The section was derived from Acts 2001, No. 1652, §§ 1-4.

19-5-1213. Arkansas Athletic Commission Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Athletic Commission Fund”.
1. The fund shall consist of those fees set out in § 17-22-101 et seq.
2. The fund shall be used for those purposes set out in § 17-22-101 et seq.

History. Acts 2001, No. 1646, § 17.

19-5-1214. [Repealed.]

Publisher's Notes. This section, concerning the Military Support Revolving Fund, was repealed by Acts 2009, No. 251, § 22. The section was derived from Acts 2001, No. 1646, § 17.

19-5-1215. [Repealed.]

Publisher's Notes. This section, concerning the Massage Therapy Board Fund, was repealed by Acts 2015, No. 1020, § 29. This section was derived from Acts 2001, No. 1646, § 17.

19-5-1216. [Repealed.]

Publisher's Notes. This section, concerning the Arkansas Purchasing Card Services Program Fund, was repealed by Acts 2019, No. 998, § 5, and by Acts 2019, No. 1024, § 5, effective July 1, 2019. The section was derived from Acts 2001, No. 1666, § 39.

19-5-1217. Computer and Electronic Recycling Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Computer and Electronic Recycling Fund”.
The fund shall be administered by the Division of Environmental Quality and may be used to:
1. Promote market research and development grants to determine the most efficient means of collecting, transporting, and processing scrap electronic equipment;
2. Work with the Department of Finance and Administration and the Marketing and Redistribution Section to establish statewide contracts for computer and electronics recycling and demanufacturing businesses; and
3. Support and fund other measures necessary to implement and promote the recycling, donation, demanufacturing, or disposal options for computers and electronic equipment.

History. Acts 2001, No. 1410, § 9; 2019, No. 910, § 3203.

A.C.R.C. Notes. The Marketing and Redistribution Section, referred to in this section, is part of the Office of State Procurement of the Department of Finance and Administration. See § 25-8-106.

Publisher's Notes. Acts 2001, No. 1410, § 9, is also codified as § 25-34-109.

Amendments. The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in the introductory language of (b).

19-5-1218. [Repealed.]

Publisher's Notes. This section, concerning the Energy Management Paying Fund, was repealed by Acts 2019, No. 998, § 6, and by Acts 2019, No. 1024, § 6, effective July 1, 2019. The section was derived from Acts 2001, No. 1384, § 3.

19-5-1219. Department of Economic Development Super Projects Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State the “Department of Economic Development Super Projects Fund”.
The fund shall consist of such funds as may be provided by law, there to be used for economic development super projects of the Arkansas Economic Development Commission.

History. Acts 2003, No. 1123, § 7.

19-5-1220. Drug Prevention and Intervention Program Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Drug Prevention and Intervention Program Fund”.
The fund shall consist of such revenues authorized by law.
The fund shall be used by the Department of Health to fund drug prevention and intervention activities.

History. Acts 2003, No. 1672, § 4.

19-5-1221. Port Priority Improvement Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Port Priority Improvement Fund”.
1. The fund shall consist of the funds or other moneys that may be deposited into the fund as provided by the General Assembly.
2. The fund shall be used for the purpose of providing financial assistance to public port authorities as set out in the Arkansas Port Priority Improvement Program Act, § 15-23-901 et seq., and for development of port infrastructure, including engineering and construction costs.

History. Acts 2003 (1st Ex. Sess.), No. 55, § 22.

19-5-1222. [Repealed.]

Publisher's Notes. This section, concerning the Nursing Student Loan Revolving Fund, was repealed by Acts 2009, No. 9, § 10. The section was derived from Acts 2003 (1st Ex. Sess.), No. 55, § 22; 2005, No. 1962, § 84.

19-5-1223. [Repealed.]

Publisher's Notes. This section, concerning the Committed to Education Fund, was repealed by Acts 2007, No. 1201, § 31 and No. 1032, § 31. The section was derived from Acts 2003 (1st Ex. Sess.), No. 55, § 22.

19-5-1224. [Repealed.]

Publisher's Notes. This section, concerning the Title Insurance Agents' Licensing Board Fund, was repealed by Acts 2007, No. 684, § 7. The section was derived from Acts 2003 (1st Ex. Sess.), No. 55, § 22.

19-5-1225. Nonpartisan Filing Fee Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Nonpartisan Filing Fee Fund”.
1. The fund shall consist of nonpartisan office filing fees under § 7-10-103.
2. The fund shall be used to cover the cost of election expenses of the State Board of Election Commissioners as set out in § 7-10-101 et seq.

History. Acts 2003 (1st Ex. Sess.), No. 55, § 22; 2013, No. 1110, § 14.

Amendments. The 2013 amendment substituted “Nonpartisan” for “Judicial” in the section heading and in (a); in (b)(1), deleted “judicial” following “nonpartisan” and substituted “under” for “as set out in”; and substituted “to cover” for “for covering” in (b)(2).

Cross References. Filing as a candidate — Judicial Filing Fee Fund, § 7-10-103.

19-5-1226. [Repealed.]

Publisher's Notes. This section, concerning the Federal Fiscal Relief Fund, was repealed by identical Acts 2017, Nos. 1083 and 1127, § 21. The section was derived from Acts 2003 (2nd Ex. Sess.), No. 72, § 1; 2005, No. 1962, § 85.

19-5-1227. Educational Adequacy Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Educational Adequacy Fund”.
After the Treasurer of State has made deductions from the revenues under § 19-5-203(b)(2)(A), the Educational Adequacy Fund shall consist of:
1. All net revenues collected due to enactments of the Eighty-Fourth General Assembly meeting in Second Extraordinary Session, unless a different distribution of those additional net revenues is otherwise provided in the act creating those additional net revenues;
2. The revenues credited to the Educational Adequacy Fund under § 26-54-113(b)(2);
3. The revenues generated by § 26-52-302(d), § 26-52-316, § 26-52-317(c)(1)(C), § 26-52-319(a)(2)(C), § 26-53-107(d), § 26-53-145(c)(1)(C), § 26-53-148(a)(2)(C), § 26-56-224(c)(3), and § 26-57-1002(d)(1)(A)(ii); and
4. Other revenues as provided by law.
1. The Chief Fiscal Officer of the State will determine, from time to time, the amount of funds required from the Educational Adequacy Fund which, when added to other resources available to the Division of Elementary and Secondary Education Public School Fund Account of the Public School Fund and the Division of Elementary and Secondary Education Fund Account of the Education Fund, is needed to fulfill the financial obligation of the state to provide an adequate educational system as authorized by law and shall certify the amounts to the Treasurer of State.
2. At the end of each month, the Treasurer of State shall transfer all moneys available from the Educational Adequacy Fund to the Division of Elementary and Secondary Education Public School Fund Account of the Public School Fund and to the Division of Elementary and Secondary Education Fund Account of the Education Fund until the sum of all transfers from the Educational Adequacy Fund equals the amounts determined in subdivision (c)(1) of this section, there to be used as determined by law.
In the event the Chief Fiscal Officer of the State determines that the transfers from the Educational Adequacy Fund, when added to the other resources available to the Division of Elementary and Secondary Education Public School Fund Account of the Public School Fund, are not sufficient to meet the state's financial obligation to provide an adequate educational system as authorized by law, the additional amount required shall be transferred from the other funds and fund accounts, except the Educational Facilities Partnership Fund Account, within § 19-5-402 and § 19-5-404(a) [repealed] based upon the proportion that each of the remaining funds and fund accounts, excluding the Educational Facilities Partnership Fund Account, bears to the total of the remaining funds and fund accounts in § 19-5-402 and § 19-5-404(a) [repealed].

History. Acts 2003 (2nd Ex. Sess.), No. 94, § 5; 2003 (2nd Ex. Sess.), No. 107, § 11; 2003 (2nd Ex. Sess.), No. 108, § 1; 2005, No. 2131, § 35; 2006 (1st Ex. Sess.), No. 20, § 10; 2007, No. 110, § 8; 2009, No. 1440, § 5; 2009, No. 1441, § 5; 2012, No. 271, § 4; 2012, No. 287, § 4; 2013, No. 1411, § 4; 2016 (3rd Ex. Sess.), No. 1, § 10; 2019, No. 910, § 2273.

A.C.R.C. Notes. Acts 2016 (3rd Ex. Sess.), No. 1, § 1, provided: “This act shall be known and may be cited as the ‘Arkansas Highway Improvement Plan of 2016’.”

Publisher's Notes. For text of section effective until July 1, 2017, see the preceding version.

Amendments. The 2016 (3rd Ex. Sess.) amendment deleted “26-56-201(g)(1)(B)” following “26-53-148(a)(2)(C)” in (b)(3).

The 2019 amendment substituted “Division of Elementary and Secondary Education” for “Department of Education” twice in (c)(1), twice in (c)(2), and in (d).

Effective Dates. Acts 2016 (3rd Ex. Sess.), No. 1, § 22: July 1, 2017.

19-5-1228. Area Agencies on Aging Fund.

1. There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Area Agencies on Aging Fund”.
2. The Treasurer of State shall credit to the fund the amount certified each quarter under § 26-51-2507.
1. The Treasurer of State shall distribute moneys in the fund to the Division of Aging, Adult, and Behavioral Health Services of the Department of Human Services to be distributed to the eight (8) area agencies on aging based on the division's funding formula.
2. The division's funding formula shall take into consideration the following factors without limitation:
  1. The geographical distribution of the older individuals in the state; and
  2. The distribution of the older individuals in the state who have the greatest economic need and social need, with particular consideration of the low-income minority older individuals.

History. Acts 2005, No. 1821, § 2; 2013, No. 1477, § 1; 2017, No. 913, § 50.

Amendments. The 2013 amendment redesignated former (b) as (b)(1) and added (b)(2).

The 2017 amendment substituted “Division of Aging, Adult, and Behavioral Health Services” for “Division of Aging and Adult Services” in (b)(1).

19-5-1229. Purchase and Corporate Travel Card Program Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous revolving fund to be known as the “Purchase and Corporate Travel Card Program Fund”.
The fund shall be used for rebates from vendor banks, distribution to participating agencies, and operating expenses connected with the administration of the Purchase and Corporate Travel Card Program.

History. Acts 2005, No. 2034, § 32.

19-5-1230. UAMS Cancer Research Center Matching Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “UAMS Cancer Research Center Matching Fund”.
The fund shall consist of such revenue as may be authorized by law.
The fund shall be used as matching funds for the construction of and endowments for the Arkansas Cancer Research Center of the University of Arkansas for Medical Sciences.
1. The Chief Fiscal Officer of the State shall release funds to the University of Arkansas for Medical Sciences on a matching basis in an amount equal to the amount of grants and donations received as cash, cash equivalent, or an in-kind property pledge enforced by a binding written agreement. The period for which grants and donations shall be counted for matching purposes shall be January 1, 2007 — June 30, 2009.
2. The release of the funds shall be upon documentation demonstrating that the matching requirement has been met. The documentation shall be signed by the Chancellor of the University of Arkansas for Medical Sciences.
3. Requests for the release of funds may be made on a quarterly basis, and pending a favorable review of the documentation by the Chief Fiscal Officer of the State, payments shall be made in the first month following the request.

History. Acts 2007, No. 427, § 1.

19-5-1231. Economic Development Incentive Quick Action Closing Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Economic Development Incentive Quick Action Closing Fund”.
The Economic Development Incentive Quick Action Closing Fund shall consist of money transferred from the General Revenue Allotment Reserve Fund and any other money provided by law.
The Economic Development Incentive Quick Action Closing Fund shall be used by the Arkansas Economic Development Commission for investment incentives to compete with other states to attract new business and economic development to the state or to retain existing business in the state.
Money from the Economic Development Incentive Quick Action Closing Fund may be used in conjunction with other incentives offered by the state to attract new business or retain existing business.
1. Any proposed use of the Economic Development Incentive Quick Action Closing Fund by the Arkansas Economic Development Commission shall first be approved by the Governor.
2. Upon approval by the Governor, the Governor shall submit the proposed use of the Economic Development Incentive Quick Action Closing Fund for the review of the Legislative Council.
The Arkansas Economic Development Commission shall submit an annual written report to the Legislative Council concerning the Economic Development Incentive Quick Action Closing Fund, which will contain the following:
1. The name and address of the businesses receiving money from the Economic Development Incentive Quick Action Closing Fund;
2. The date, amount, and reason of the disbursements of money from the Economic Development Incentive Quick Action Closing Fund;
3. An evaluation of the effectiveness of the disbursements made from the Economic Development Incentive Quick Action Closing Fund; and
4. Any suggestions for improving the use of the Economic Development Incentive Quick Action Closing Fund.

History. Acts 2007, No. 510, § 1.

19-5-1232. Division of Workforce Services Unemployment Insurance Administration Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Division of Workforce Services Unemployment Insurance Administration Fund”.
1. The fund shall consist of the proceeds of the stabilization tax as specified in § 11-10-706(f), any interest accruing on these revenues, and any other funds made available by the General Assembly.
2. The fund shall be used for personal services and operating expenses of the unemployment insurance program necessary to the proper administration of the Division of Workforce Services Law, § 11-10-101 et seq., as determined by the Director of the Division of Workforce Services.
The director shall report to the Legislative Council on a quarterly basis on all uses of the fund.

History. Acts 2007, No. 551, § 2; 2017, No. 1038, § 2; 2019, No. 910, § 491.

Amendments. The 2017 amendment inserted “personal services and” in (b)(2).

The 2019 amendment substituted “Division of Workforce Services Unemployment Insurance Administration Fund” for “Department of Workforce Services Unemployment Insurance Administration Fund” in the section heading and (a); in (b)(2), substituted “Division of Workforce Services Law” for “Department of Workforce Services Law” and “Division of Workforce Services” for “Department of Workforce Services”; and substituted “director” for “Director of the Department of Workforce Services” in (c).

19-5-1233. [Repealed.]

Publisher's Notes. This section, concerning the Arkansas Technology Infrastructure Fund, was repealed by Acts 2019, No. 998, § 7, and by Acts 2019, No. 1024, § 7, effective July 1, 2019. The section was derived from Acts 2007, No. 1032, § 32; 2007, No. 1201, § 32.

19-5-1234. Division of Workforce Services Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Division of Workforce Services Fund”.
The fund shall consist of those general revenues as may be authorized by law and any other nonfederal funds as may be provided by law.
The fund shall be used for the maintenance, operation, and improvement required by the Division of Workforce Services in carrying out those powers, functions, and duties imposed by law upon the Director of the Division of Workforce Services as set out in the Division of Workforce Services Law, § 11-10-101 et seq., and § 20-76-101 et seq., or any other duties that may be imposed by law upon the division, including those duties transferred to the division under the provisions of § 20-76-111 [repealed].

History. Acts 2007, No. 1032, § 32; 2007, No. 1201, § 32; 2019, No. 910, § 492.

Amendments. The 2019 amendment substituted “Division of Workforce Services Fund” for “Department of Workforce Services Fund” in the section heading and (a); and, in (c), substituted “Division of Workforce Services” for “Department of Workforce Services” twice, “Division of Workforce Services Law” for “Department of Workforce Services Law”, and “division” for “department” twice.

19-5-1235. Science, Technology, Engineering, and Math Fund.

There is created the Science, Technology, Engineering, and Math Fund.
The fund is established for the purpose of retaining, recruiting, and attracting competent science, technology, engineering, and math teachers by providing industry-competitive income to certified, qualified teachers who teach science, technology, engineering, and math subjects.
The fund shall be a miscellaneous fund whose balance shall not be reclaimed at the end of the biennium but shall be carried forward for the same use in subsequent years.

History. Acts 2007, No. 564, § 2.

Cross References. Science, Technology, Engineering, and Math Fund, § 6-17-2701 et seq.

19-5-1236. Technology Acceleration Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Technology Acceleration Fund”.
1. The Technology Acceleration Fund shall consist of funds transferred to it from the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund, or other funds, gifts, bequests, foundation grants and gifts, Governor's Emergency Fund or other emergency funds, federal grants and matching funds, proceeds from bond issues, service charges or fees, interagency transfers of funds, and other funds as may be appropriated by the General Assembly.
2. The Technology Acceleration Fund shall consist of money transferred from the General Revenue Allotment Reserve Fund and any other money provided by law.
The Technology Acceleration Fund shall be used by the Arkansas Economic Development Commission and the Arkansas Development Finance Authority for investment incentives to enhance the economy of the state through technology development.
Money from the Technology Acceleration Fund may be used in conjunction with other incentives offered by the state to create, attract, or retain business.
1. Any proposed use of the Technology Acceleration Fund by the commission or the authority shall first be approved by the Governor.
2. The commission and the authority shall make a joint recommendation to the Governor for any proposed use of the Technology Acceleration Fund.

History. Acts 2009, No. 806, § 1; 2009, No. 967, § 1; 2015 (1st Ex. Sess), No. 7, §§ 108, 109; 2015 (1st Ex. Sess), No. 8, §§ 108, 109; 2019, No. 82, § 16.

A.C.R.C. Notes. Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 62, provided: “Transfer of the Arkansas Science and Technology Authority.

“(a)(1) The Arkansas Science and Technology Authority is transferred to the Arkansas Economic Development Commission by a type 2 transfer under § 25-2-105.

“(2) For the purposes of this act, the commission is the principal department under Acts 1971, No. 38.

“(b) The statutory authority, powers, duties, functions, records, personnel, property, unexpended balances of appropriations, allocations, and other funds, including the functions of budgeting or purchasing, of the authority are transferred to the commission, except as specified in this act.

“(c) The prescribed powers, duties, and functions, including rulemaking, regulation, and licensing; promulgation of rules, rates, regulations, and standards; and the rendering of findings, orders, and adjudication of the authority are transferred to the executive director of the commission, except as specified in this act.

“(d) The members of the Board of Directors of the Arkansas Science and Technology Authority, and their successors, shall continue to be selected in the manner and serve for the terms provided by the statutes applicable to the board except as specified in this act.”

Acts 2019, No. 82, § 1, provided: “Legislative intent.

It is the intent of the General Assembly that the creation of the Development and Enhancement Fund is necessary to provide a mechanism to disburse funds for:

“(1) Various construction and improvement projects;

“(2) Unforeseen needs;

“(3) Funding deficiencies; and

“(4) The completion of projects previously funded by the General Assembly”.

Amendments. The 2015 amendment by 2015 (1st Ex. Sess.), Nos. 7 and 8 deleted “the Arkansas Science and Technology Authority” following “Economic Development Commission” in (c) and twice in (e).

The 2019 amendment inserted “or its successor fund or fund accounts, including the Development and Enhancement Fund” in (b)(1).

19-5-1237. Innovate Arkansas Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Innovate Arkansas Fund”.
The fund shall consist of funds as may be provided for by law.
The fund shall be used by the Arkansas Economic Development Commission for the sole support of a contract between the commission and the entity selected to provide support and assistance for development and growth of knowledge-based and technology-based companies in the State of Arkansas.

History. Acts 2009, No. 1440, § 6; 2009, No. 1441, § 6.

19-5-1238. Sustainable Building Design Revolving Loan Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Sustainable Building Design Revolving Loan Fund”.
1. The Sustainable Building Design Revolving Loan Fund shall consist of funds transferred to it from the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund, or other funds, gifts, bequests, foundation grants and gifts, Governor's Emergency Fund or other emergency funds, federal grants and matching funds, proceeds from bond issues, service charges or fees, interagency transfers of funds, and other funds as may be appropriated by the General Assembly.
2. The Sustainable Building Design Revolving Loan Fund shall consist of funds received from agencies, boards, or commissions to repay loans for the Sustainable Building Design Program for State Agencies, funds made available by the General Assembly from time to time, and such revenues as may be authorized by law.
The Sustainable Building Design Revolving Loan Fund shall be used to provide loans to agencies for the program as authorized by law and approved by the Chief Fiscal Officer of the State.

History. Acts 2009, No. 754, § 7; 2019, No. 82, § 17.

A.C.R.C. Notes. Acts 2019, No. 82, § 1, provided: “Legislative intent.

It is the intent of the General Assembly that the creation of the Development and Enhancement Fund is necessary to provide a mechanism to disburse funds for:

“(1) Various construction and improvement projects;

“(2) Unforeseen needs;

“(3) Funding deficiencies; and

“(4) The completion of projects previously funded by the General Assembly”.

Amendments. The 2019 amendment inserted “or its successor fund or fund accounts, including the Development and Enhancement Fund” in (b)(1).

19-5-1239. Newborn Umbilical Cord Blood Initiative Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Newborn Umbilical Cord Blood Initiative Fund”.
The fund shall consist of those funds provided by the income tax check-off program pursuant to § 26-51-2508, federal and private grants and donations, and any other funds authorized by law.
The fund shall be used for the purposes set forth in the Newborn Umbilical Cord Blood Initiative Act, § 20-8-501 et seq.

History. Acts 2009, No. 777, § 2.

19-5-1240. Minority and Women-Owned Business Loan Mobilization Revolving Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Minority and Women-Owned Business Loan Mobilization Revolving Fund”.
The Minority and Women-Owned Business Loan Mobilization Revolving Fund shall consist of the unexpended fund balances remaining in the Small Business Loan Fund Account of the 82nd Session General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund, as of the close of business on June 30, 2009, and such other funds as may be authorized by law.
All reimbursements, repayments of loans, and interest earned and deposited into the Minority and Women-Owned Business Loan Mobilization Revolving Fund from any source shall be treated as a refund to expenditure.
The Minority and Women-Owned Business Loan Mobilization Revolving Fund shall be used to promote the development of minority and women-owned business enterprises in the state, increase the ability of minority and women-owned business enterprises to compete for state contracts, and sustain the economic growth of minority and women-owned business enterprises in the state.

History. Acts 2009, No. 1428, § 14; 2018, No. 259, § 2; 2018, No. 260, § 2; 2019, No. 82, § 18.

Acts 2019, No. 82, § 1, provided: “Legislative intent.

It is the intent of the General Assembly that the creation of the Development and Enhancement Fund is necessary to provide a mechanism to disburse funds for:

“(1) Various construction and improvement projects;

“(2) Unforeseen needs;

“(3) Funding deficiencies; and

“(4) The completion of projects previously funded by the General Assembly”.

Amendments. The 2018 amendment by identical acts Nos. 259 and 260 inserted “and Women-Owned” and “and women-owned” throughout the section.

The 2019 amendment inserted “or its successor fund or fund accounts, including the Development and Enhancement Fund” in (b).

19-5-1241. Trial Court Administrator Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous revenue fund to be known as the “Trial Court Administrator Fund”.
The Trial Court Administrator Fund shall consist of those moneys transferred from the State Administration of Justice Fund, the first one hundred thousand dollars ($100,000) collected annually from filing fees for the office of the prosecuting attorney, and other moneys as authorized by law.
The Trial Court Administrator Fund shall be used for paying and reimbursing:
1. Trial court administrators under § 16-13-3301 et seq.; and
2. Substitute trial court administrators under § 16-10-801 et seq.

History. Acts 2009, No. 1328, § 4; 2014, No. 290, § 6; 2014, No. 299, § 6; 2015, No. 268, § 12.

A.C.R.C. Notes. Identical Acts 2014, Nos. 290 and 299, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Amendments. The 2014 amendment by identical acts Nos. 290 and 299 inserted “the first one hundred thousand dollars ($100,000) collected annually from filing fees for the office of the prosecuting attorney” in (b).

The 2015 amendment substituted “Administrator Fund” for “Administrative Assistant Fund” in the section heading and throughout; deleted “hereby” preceding “created” in (a); substituted “and reimbursing” for “personal services, trial court assistant expenses, and trial court staff substitutes” in the introductory language of (c); and added (c)(1) and (c)(2).

19-5-1242. Fire Protection Licensing Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Fire Protection Licensing Fund”.
The fund shall consist of:
1. All funds provided by law for the fund; and
2. Examination and renewal fees charged pursuant to § 20-22-610.
The fund shall be used for the maintenance, operation, and improvement as required by the Arkansas Fire Protection Licensing Board in carrying out the powers, functions, and duties as set out in § 20-22-601 et seq.

History. Acts 2010, No. 262, § 11; 2010, No. 296, § 11.

19-5-1243. Arkansas Acceleration Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Arkansas Acceleration Fund”.
The fund shall consist of:
1. Funds provided by law; and
2. Grants made by any person or federal government agency.
The fund shall be used by the Division of Science and Technology of the Arkansas Economic Development Commission to provide support and assistance for the accelerated growth of knowledge-based and high-technology jobs in the State of Arkansas through focused funding of the state initiatives and programs as defined under the Arkansas Acceleration Fund Act, § 15-3-501 et seq.

History. Acts 2011, No. 706, § 2; 2015 (1st Ex. Sess.), No. 7, § 110; 2015 (1st Ex. Sess.), No. 8, § 110.

A.C.R.C. Notes. Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 62, provided: “Transfer of the Arkansas Science and Technology Authority.

“(a)(1) The Arkansas Science and Technology Authority is transferred to the Arkansas Economic Development Commission by a type 2 transfer under § 25-2-105.

“(2) For the purposes of this act, the commission is the principal department under Acts 1971, No. 38.

Amendments. The 2015 amendment by Acts 2015 (1st Ex. Sess.), Nos. 7 and 8 substituted “Division of Science and Technology of the Arkansas Economic Development Commission” for “Arkansas Science and Technology Authority” in (c).

19-5-1244. Health Information Technology Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Health Information Technology Fund”.
1. All moneys collected under § 25-42-101 et seq. shall be deposited into the State Treasury to the credit of the Health Information Technology Fund as special revenues.
2. The Health Information Technology Fund shall also consist of funds transferred to it from the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund, or other funds, gifts, bequests, foundation grants and gifts, Governor's Emergency Fund or other emergency funds, federal grants and matching funds, proceeds from bond issues, service charges or fees, interagency transfer of funds, and other funds that may be appropriated by the General Assembly.
The Health Information Technology Fund shall be used by the Office of Health Information Technology for the operating expenses of the office and the State Health Alliance for Records Exchange.

History. Acts 2011, No. 891, § 2; 2019, No. 82, § 19.

A.C.R.C. Notes. Acts 2019, No. 82, § 1, provided: “Legislative intent.

It is the intent of the General Assembly that the creation of the Development and Enhancement Fund is necessary to provide a mechanism to disburse funds for:

“(1) Various construction and improvement projects;

“(2) Unforeseen needs;

“(3) Funding deficiencies; and

“(4) The completion of projects previously funded by the General Assembly”.

Amendments. The 2019 amendment inserted “or its successor fund or fund accounts, including the Development and Enhancement Fund” in (b)(2).

19-5-1245. Arkansas Great Places Program Fund.

The Division of Arkansas Heritage may establish in a bank authorized to do business in this state and selected by the division a revolving cash fund entitled “Arkansas Great Places Program Fund” into which the division shall deposit all funds received as matching funds from eligible organizations participating in the Arkansas Great Places Program under § 15-11-801 et seq.
The division may receive gifts, grants, bequests, devises, and donations made to the division, amounts received as matching funds from eligible organizations participating in the Arkansas Great Places Program under § 15-11-801 et seq., and any other funds authorized by law to be used in the furtherance of the purposes of the Arkansas Great Places Program under § 15-11-801 et seq.
In addition, the division may accept gifts, grants, or donations from the United States Government or agencies thereof, and private individuals, foundations, or concerns to be used for the purposes of the Arkansas Great Places Program under § 15-11-801 et seq.

History. Acts 2011, No. 896, § 2; 2019, No. 910, § 5673.

Amendments. The 2019 amendment substituted “division” for “department” throughout the section; and substituted “Division of Arkansas Heritage” for “Department of Arkansas Heritage” in (a).

19-5-1246. County Juror Reimbursement Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous revenue fund to be known as the “County Juror Reimbursement Fund”.
The County Juror Reimbursement Fund shall consist of those moneys transferred from the State Administration of Justice Fund and other moneys as authorized by law.
The County Juror Reimbursement Fund shall be used for reimbursements to counties for a portion of the cost of per diem compensation for jurors and prospective jurors pursuant to § 16-34-106.

History. Acts 2011, No. 923, § 35.

19-5-1247. County Voting System Grant Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “County Voting System Grant Fund”.
The Secretary of State shall periodically remit to the Treasurer of State the fees the Secretary of State collects associated with the Uniform Commercial Code activity under §§ 4-9-525(a)(1), 4-9-525(a)(3), and 4-9-525(b)-(d), and the Treasurer of State shall deposit those funds into the County Voting System Grant Fund.
The County Voting System Grant Fund shall be used by the Secretary of State to provide grants to counties to purchase voting system equipment, programming, and maintenance.
A county that receives a grant from the County Voting System Grant Fund shall establish on the books of the county treasurer a fund to be known as the “voting system grant fund” into which grants from the Secretary of State shall be paid under this section.
The County Voting System Grant Fund may be used by the Secretary of State to issue refunds and reimbursements of fees collected for the grant program described in § 7-5-301(d)(2).

History. Acts 2011, No. 1189, § 3; 2013, No. 1311, § 1; 2015, No. 1028, § 2.

Amendments. The 2013 amendment substituted “the fees the Secretary of State collects associated with Uniform Commercial Code activity under §§ 4-9-525(a)(1), 4-9-525(a)(3), and 4-9-525(b)-(d)” for “twelve dollars ($12.00) of each fee for filling and indexing the initial financing statement and termination statements collected under § 4-9-525(a)(1)” in (b).

The 2015 amendment added (e).

19-5-1248. Electrical Energy Advancement Program Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Electrical Energy Advancement Program Fund”.
The fund shall consist of:
1. Funds provided by law;
2. Grants made by any person or federal government agency; and
3. Other funds that become available through energy programs.
The fund shall be used by the Arkansas Statewide Energy Consortium under the Electrical Energy Advancement Program, § 6-61-1501 et seq., to provide opportunities for Arkansas citizens to legitimately pursue high-technology and knowledge-based jobs in the electrical energy sector of Arkansas by providing a statewide, collaborative educational system focused on this sector.

History. Acts 2011, No. 1232, § 3.

A.C.R.C. Notes. Acts 2011, No. 1232, § 1, provided:

“(a) The purpose of this subchapter is to provide state support for the Electrical Energy Advancement Program for institutions of higher education.

“(b) The General Assembly finds that the Electrical Energy Advancement Program:

“(1) Is identified as a key competency for Arkansas in the Battelle study commissioned by the Arkansas Research Alliance;

“(2) Will focus on education, research, and economic development in the electrical energy sector to capitalize on one (1) of Arkansas's core technology competencies;

“(3) Is vital to the economic development of Arkansas; and

“(4) Is expected to be a source of tremendous job growth within Arkansas over the next decade.”

Acts 2011, No. 1232, § 4, provided: “The provisions of this act shall expire six (6) years from the effective date of the act unless extended by the General Assembly.”

19-5-1249. Alternative Motor Fuel Development Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Alternative Motor Fuel Development Fund”.
The fund shall consist of:
1. Grants made by a person, entity, or federal government agency;
2. Other funds that become available through energy programs;
3. Any remaining fund balances carried forward from year to year; and
4. Any other funds authorized or provided by law.
The fund shall be used by the Division of Environmental Quality to provide rebates and incentives under the Arkansas Alternative Motor Fuel Development Act, § 15-10-901 et seq.
Moneys remaining in the fund at the end of each fiscal year shall carry forward and be made available for the purposes stated in this section in the next fiscal year.

History. Acts 2013, No. 532, § 2; 2017, No. 271, § 13; 2017, No. 851, § 11; 2019, No. 910, § 3204.

Amendments. The 2017 amendment by No. 271 substituted “Arkansas Department of Environmental Quality” for “Arkansas Energy Office of the Arkansas Economic Development Commission” in (c).

The 2017 amendment by No. 851 substituted “Alternative” for “Clean-burning” in the section heading, (a), and (c); and substituted “Arkansas Department of Environmental Quality” for “Arkansas Energy Office of the Arkansas Economic Development Commission” in (c).

The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (c).

19-5-1250. Open Enrollment Public Charter School Capital Grant Program Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Open Enrollment Public Charter School Capital Grant Program Fund”.
The fund shall consist of those general revenues as may be authorized by law and other nonfederal funds as may be provided by law.
The fund shall be used for distributing grants for programs providing assistance to open enrollment public charter schools concerning academic facilities and equipment and the repayment of debt incurred relating to academic facilities and equipment under the Open Enrollment Public Charter School Capital Grant Program established in § 6-23-801 et seq., and as may otherwise be provided by law.

History. Acts 2013, No. 1064, § 2; 2019, No. 388, § 7.

Amendments. The 2019 amendment substituted “§ 6-23-801 et seq.” for “§ 6-23-701 et seq.” in (c).

19-5-1251. Open-Enrollment Public Charter School Facilities Loan Fund.

There is created on the books of the Treasurer of State, the Auditor of the State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Open-Enrollment Public Charter School Facilities Loan Fund”.
The fund shall consist of:
1. General revenues as may be authorized by law;
2. Grants received by the Division of Public School Academic Facilities and Transportation for the purpose of providing open-enrollment public charter school facilities assistance, including grants from the United States Department of Education;
3. Donations or bequests received by the division for the purpose of starting, augmenting, or replenishing the fund;
4. Revenues received from open-enrollment public charter schools for the repayment of a loan granted under the Open-Enrollment Public Charter School Facilities Loan Fund program; and
5. Other revenues as may be provided by law.
The fund shall be used for distributing loans to open-enrollment public charter schools for the purposes of the construction, lease, or purchase of an academic facility, the repair, improvement, or addition to an academic facility, and enhancing credit for financing purposes under § 6-23-701 et seq., and as may be otherwise provided by law.

History. Acts 2013, No. 1255, § 3.

19-5-1252. Safe Harbor Fund for Sexually Exploited Children — Definition.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Safe Harbor Fund for Sexually Exploited Children”.
The fund shall consist of fines collected under §§ 5-18-103(d), 5-70-102(d), and 5-70-103(d) and any other revenues authorized by law.
1. The fund shall be administered by the Department of Human Services.
2. The department shall use the fund to provide:
  1. Services and treatment, such as securing residential housing, health services, and social services for sexually exploited children;
  2. Grants to service providers working with sexually exploited children; and
  3. For the management and operation of the fund.
As used in this section, “sexually exploited child” means a person less than eighteen (18) years of age who has been subject to sexual exploitation because the person:
1. Is a victim of trafficking of persons under § 5-18-103;
2. Is a victim of child sex trafficking under 18 U.S.C. § 1591, as it existed on January 1, 2013; or
3. Engages in an act of prostitution under § 5-70-102 or sexual solicitation under § 5-70-103.

History. Acts 2013, No. 1257, § 9.

A.C.R.C. Notes. Acts 2013, No. 1257, § 1, provided: “Legislative findings.

“The General Assembly finds that:

“(1) The criminal justice system is not the appropriate place for sexually exploited children because it serves to retraumatize them and to increase their feelings of low self-esteem;

“(2) Both federal and international law recognize that sexually exploited children are the victims of crime and should be treated as such;

“(3) Sexually exploited children should, when possible, be diverted into services that address the needs of these children outside of the justice system; and

“(4) Sexually exploited children deserve the protection of child welfare services, including diversion, crisis intervention, counseling, and emergency housing services.”

Acts 2013, No. 1257, § 2, provided: “Legislative intent.

“(1) The intent of this act is to protect a child from further victimization after the child is discovered to be a sexually exploited child by ensuring that a child protective response is in place in the state.

“(2) This is to be accomplished by presuming that any child engaged in prostitution or solicitation is a victim of sex trafficking and providing these children with the appropriate care and services when possible.

“(3) In determining the need for and capacity of services that may be provided, the Department of Human Services shall recognize that sexually exploited children have separate and distinct service needs according to gender, and every effort should be made to ensure that these children are not prosecuted or treated as juvenile delinquents, but instead are given the appropriate social services.”

Research References

U. Ark. Little Rock L. Rev.

Mary Ward, Note: Arkansas’s Human Trafficking Laws: Steps in the Right Direction or a False Sense of Accomplishment?, 37 U. Ark. Little Rock L. Rev. 133 (2014).

19-5-1253. Arkansas Port, Intermodal, and Waterway Development Grant Program Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Arkansas Port, Intermodal, and Waterway Development Grant Program Fund”.
The fund shall consist of:
1. The funds specified under § 26-26-1616(d);
2. Grants made by any person or federal government agency; and
3. Any other funds authorized by law.
The fund shall be used by the Arkansas Waterways Commission to provide grants to port authorities and intermodal authorities under the Arkansas Port, Intermodal, and Waterway Development Grant Program established under § 15-23-205.
Any unexpended balance in the fund at the end of each state fiscal year shall be carried forward to the next fiscal year to be used for the same intent and purpose stated in this section.

History. Acts 2013, No. 1427, § 1.

19-5-1254. New Markets Performance Guarantee Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “New Markets Performance Guarantee Fund”.
The fund shall consist of:
1. Fees paid under § 15-4-3609;
2. Grants made by a person, organization, or federal or state government agency; and
3. Any other funds provided by law.
The fund shall be used by the Arkansas Economic Development Commission to guarantee qualified community development entities' performance under the New Markets Jobs Act of 2013, § 15-4-3601 et seq.

History. Acts 2013, No. 1474, § 2.

A.C.R.C. Notes. Acts 2013, No. 1474, § 3, provided: “Applicability. This act applies only to a return or report originally due on or after the effective date of this act.”

19-5-1255. Arkansas Unpaved Roads Program Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Arkansas Unpaved Roads Program Fund”.
The fund shall consist of:
1. Grants made by any person, state agency, or federal government agency;
2. Donations made by private persons or entities;
3. Any remaining fund balances carried forward from year to year; and
4. Any other funds authorized or provided by law.
The fund shall be used by the Department of Agriculture to award grants to counties under the Arkansas Unpaved Roads Program Act, § 14-305-101 et seq.
Moneys remaining in the fund at the end of each fiscal year shall carry forward and be made available for the purposes stated in this section in the next fiscal year.

History. Acts 2015, No. 898, § 2; 2019, No. 910, § 115.

Amendments. The 2019 amendment substituted “Department of Agriculture” for “Rural Services Division of the Arkansas Economic Development Commission” in (c).

19-5-1256. Arkansas Wireless Information Network Financing Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Arkansas Wireless Information Network Financing Fund”.
The fund shall consist of bond revenues, driver's license fees, general revenues, and other moneys as authorized by law.
The fund shall be used for maintenance, repair, upkeep, replacement, contracting expenses, and tower repair and replacement for the Arkansas Wireless Information Network.

History. Acts 2015, No. 1012, § 1.

19-5-1257. Workforce Initiative Act of 2015 Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Workforce Initiative Act of 2015 Fund”.
The fund shall consist of those general revenues as may be authorized by law and other nonfederal funds as may be provided by law.
The fund shall be used by the Division of Higher Education for distributing grants to programs identified under § 6-60-107.

History. Acts 2015, No. 1131, § 3; 2019, No. 910, § 2274.

A.C.R.C. Notes. Acts 2015, No. 1131, § 1, provided: “Legislative intent — Findings.

“(a) The General Assembly finds that is it necessary for Arkansas to properly evaluate and address the workforce training needs of our state in order to compete with an aggressive and effective economic development strategy for the twenty-first century.

“(b) Consideration of secondary and postsecondary education, including career and technical programs, is essential for creating a successful economic climate in the state.

“(c) Encouraging Arkansans to pursue high-demand jobs, including without limitation industry-recognized credentials, career and technical certificates, associate degree programs, and bachelor's degree programs is essential to building a skilled and work-ready workforce.

“(d) A program that offers short-term career and technical training and those programs that produce certificates of proficiency, technical certificates, Associate of Applied Science degrees, and Bachelor of Applied Science degrees or similarly designed bachelor degrees are critical to the success of economic development in Arkansas.

“(e)(1) Institutions and organizations will unite around shared regional sector strategies that support an employer demand-driven workforce system.

“(2) This system should support:

“(A) Creation of state and regional industry-sector driven partnerships that employers lead and to which education institutions respond;

“(B) Data-driven decisions on development and deployment of workforce training and education programs;

“(C) Development of articulated education pathways, from grades K-12 to baccalaureate, that are aligned with employment career pathways that include industry-recognized credential and employment step-out points; and

“(D) Increased diversity and representation from all regions of the state.”

Acts 2016, No. 236, § 41, provided: “DHE WORKFORCE INITIATIVE ACT FUNDING. The Chief Fiscal Officer of the State may transfer, on his or her books and those of the State Treasurer and the Auditor of the State, funding up to the amount authorized in Section 17 of this Act, from the Department of Higher Education Fund Account to the Workforce Initiative Act of 2015 Fund in order to finance the distribution of grants identified under § 6-60-107.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Amendments. The 2019 amendment substituted “Division of Higher Education” for “Department of Higher Education” in (c).

19-5-1258. Future Transportation Research Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Future Transportation Research Fund”.
The Future Transportation Research Fund shall consist of:
1. If available after the deposit of the funds required under § 14-143-130, interest income received under § 27-70-204 up to a maximum amount of five hundred thousand dollars ($500,000) each year from the State Highway and Transportation Department Fund; and
2. Any other revenues authorized by law.
The Future Transportation Research Fund shall be used by the Arkansas Department of Transportation for distributing grants under the Transportation-Related Research Grant Program, § 27-65-145.

History. Acts 2017, No. 705, § 2.

19-5-1259. Mandatory Publication Reimbursement Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Mandatory Publication Reimbursement Fund”.
The fund shall consist of reimbursements to the Secretary of State for mandatory publication of petitions and measures under § 7-9-113.

History. Acts 2017, No. 982, § 2.

19-5-1260. Arkansas Children's Advocacy Center Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Arkansas Children's Advocacy Center Fund”.
The fund shall consist of:
1. The fines specified under §§ 5-4-703, 27-50-306, and 27-51-217;
2. Grants or donations made by a person, state agency, or federal government agency; and
3. Any other funds authorized or provided by law.
The fund shall be used by the Arkansas Child Abuse/Rape/Domestic Violence Commission as provided in § 9-5-106 and as provided by any other provisions of law.

History. Acts 2017, No. 512, § 24; 2017, No. 714, § 4.

A.C.R.C. Notes. Acts 2017, No. 512, § 25, and Acts 2017, No. 714, § 5, provided: “Temporary legislation. All moneys to be credited to the Arkansas Children's Advocacy Center Fund as provided by Acts 2015, No. 1220, and collected before the effective date of this act [August 1, 2017] shall be immediately transferred to the Arkansas Children's Advocacy Center Fund upon the effective date of this act [August 1, 2017].”

19-5-1261. Human Trafficking Victim Support Fund — Definition.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Human Trafficking Victim Support Fund”.
The fund shall consist of fees collected under § 5-5-501(d) and any other revenues authorized by law.
1. The fund shall be administered by the Attorney General.
2. The Attorney General shall use the fund to provide:
  1. Grants to nonprofit, religious, and other third-party organizations that provide services and treatment, such as securing residential housing, health services, and social services for victims of human trafficking; and
  2. For the management and operation of the fund.
As used in this section, “victim of human trafficking” means a person who has been subject to sexual exploitation because the person:
1. Is a victim of trafficking of persons under § 5-18-103;
2. Is a victim of child sex trafficking under 18 U.S.C. § 1591, as it existed on January 1, 2017; or
3. Engages in an act of prostitution under § 5-70-102 or sexual solicitation under § 5-70-103.

History. Acts 2017, No. 765, § 4.

19-5-1262. Rainy Day Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Rainy Day Fund”.
The Rainy Day Fund shall consist of:
1. Funds transferred to the Rainy Day Fund from the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund;
2. Attorney General settlement funds;
3. Interagency transfers of funds to the Rainy Day Fund;
4. Any revenues provided by law; and
5. Any other funds and fund transfers provided for by law.
The Chief Fiscal Officer of the State shall use the Rainy Day Fund for transfers to:
1. 1. Provide funding for one (1) or more appropriations or reappropriations enacted by the General Assembly from the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund.
  2. At the time of a transfer under subdivision (c)(1)(A) of this section, the Chief Fiscal Officer of the State shall notify the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, of the transfer of funds, the amount of funds transferred, and the purpose of the transfer; and
2. One (1) or more funds or fund accounts authorized by the General Assembly, other than the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund, upon prior approval by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.

History. Acts 2017, No. 1084, § 1; 2017, No. 1123, § 1; 2019, No. 82, § 20.

A.C.R.C. Notes. Identical Acts 2017, Nos. 1084 and 1123, § 2, provided: “Legislative findings — Nonseverability.

“(a) The General Assembly finds that:

“(1) Determining the maximum amount of appropriation and funding for a state agency or institution each fiscal year is the prerogative of the General Assembly;

“(2) Determining the maximum amount of appropriation and funding for a state agency or institution is usually accomplished by delineating the maximum amounts in the appropriation acts for the state agency or institution and in the general revenue allocations authorized for each relevant fund and fund account by amendment to the Revenue Stabilization Law, § 19-5-101 et seq.;

“(3) Creating the Rainy Day Fund and establishing the procedures for the transfer of funds to various funds and fund accounts provides for the efficient and effective operation of state government; and

“(4) It is necessary and appropriate that the General Assembly maintain oversight by requiring prior approval of the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, as provided in § 19-5-1258(c)(2) [§ 19-5-1262(c)(2)].

“(b) The requirement of approval by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, is not a severable part of § 19-5-1258 [§ 19-5-1262]. If the requirement of approval by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, is ruled unconstitutional by a court of competent jurisdiction, § 19-5-1258 [§ 19-5-1262] is void in its entirety.”

Identical Acts 2017, Nos. 1084 and 1123, § 3, provided: “Rainy Day Funding. Immediately upon the effective date of this Act [July 1, 2017], or as soon thereafter as is practical, the State Treasurer shall transfer and credit to the ‘Rainy Day Fund’, upon certification of the amounts thereof by the Chief Fiscal Officer of the State, the following:

“(a) all unobligated and unallocated monies remaining in the ‘General Improvement Fund’ on June 30, 2017 which are not required to finance projects to be financed therefrom pursuant to appropriations enacted by the 90th General Assembly, or which have not been reappropriated or reallocated for financing from the ‘General Improvement Fund’ by the 91st General Assembly;

“(b)(1) any unobligated or unallocated funds remaining on July 2, 2017, including all General Revenue Funds recovered from remaining fund balances in the ‘General Revenue Allotment Reserve Fund’ from monies accruing thereto during the 2015-2017 fiscal biennium which are not required to finance enactments of the 91st General Assembly that do not expire on June 30, 2017,

“(2) All General Revenue Funds recovered from remaining fund balances in the ‘General Revenue Allotment Reserve Fund’ from monies accruing thereto during the 2017-2018 fiscal year which are not required to finance enactments of the 91st General Assembly that do not expire on June 30, 2018.

“(c) Those special revenues credited to the General Improvement Fund from estate taxes as set out in Arkansas Code § 19-6-301(171); and

“(d) Any available balance remaining in the 90th Session Projects Account of the General Improvement Fund from funds set aside and any funds made available for a Rainy Day Set-Aside; and

“(e) Any funds provided by the Arkansas Attorney General from the Attorney General Consumer Education and Enforcement Account, received by the State of Arkansas through Settlement agreements or as designated by court order.”

Identical Acts 2017, Nos. 1084 and 1123, § 4, provided: “Rainy Day Set-Asides.

“(a)(1) Of those funds transferred and credited to the ‘Rainy Day Fund’ as authorized in Section 3 of this Act, the State Treasurer shall first set-aside one hundred sixty million five hundred thousand dollars ($160,500,000) for the Priority / Debt Obligations Set-Asides enumerated in subsection (e)(2) through (e)(4) of this Section.

“(A) The Priority / Debt Obligations Set-Asides enumerated in Section 4 subsections (e)(2) through (e)(4) shall be distributed from time to time in amounts as determined by the Chief Fiscal Officer of the State.

“(2) The Treasurer of State shall then set-aside the next fifty two million dollars ($52,000,000) for the Executive / Legislative Shared Projects Set-Asides enumerated in subsection (f)(2) through (f)(4) of this Section.

“(A) The Executive / Legislative Shared Projects Set-Asides enumerated in Section 4 subsection (f)(2) through (f)(4) shall be distributed from time to time in amounts as determined by the Chief Fiscal Officer of the State.

“(b) If it is determined by the Chief Fiscal Officer of the State that funding made available and set-aside in subsections (a) herein are not required at the amount authorized, then all or any portion of those funds may be transferred from time to time from the Rainy Day Priority / Debt Obligations Set-Asides or the Executive / Legislative Shared Projects Set-Asides to the Rainy Day Fund.

“(c)(1) The Treasurer of State shall then transfer and credit an amount not to exceed twenty million dollars ($20,000,000) to the ‘Rainy Day Fund’.

“(2) Once the twenty million enumerated in subsection (c)(1) of this Section is fully funded no additional funds shall be transferred or credited to the ‘Rainy Day Fund’ as authorized in Section 3 of this Act with the exception of those funds made available and allocated in the Revenue Stabilization Allocations enacted by the General Assembly.

“(d) Any unobligated funds remaining in the Rainy Day Fund Priority / Debt Obligations Set-Asides or the Executive / Legislative Shared Projects Set-Asides established in Section (4) of this Act as of July 1, 2019 shall be transferred from the Set-Asides to the Rainy Day Fund.

“(e) Priority / Debt Obligations Set-Asides:

“(1) To establish the ‘Priority / Debt Obligations Set-Asides’ within the Rainy Day Fund to be distributed as authorized and enumerated in subsections (e)(2) through (e)(4).

“(2) Act 224 of 2017 and any reappropriation authorized by the General Assembly for Act 224 of 2017 for the Department of Correction, for lease payments associated with debt service on a 948-bed institution at Malvern, a 400-bed addition at the Grimes Unit at Newport, and 862-bed Special Needs Unit and addition to the Ouachita River Unit at Malvern, in a sum not to exceed $10,500,000;

“(3) Act 230 of 2017 and any reappropriation authorized by the General Assembly for Act 230 of 2017 for the Department of Human Services, for grant payments of the Arkansas Medicaid Program of the Department of Human Services — Division of Medical Services — Grants, in a sum not to exceed $90,000,000;

“(4) Act 268 of 2017 and any reappropriation authorized by the General Assembly for Act 268 of 2017 for the Department of Education — Division of Public School Academic Facilities and Transportation for transfer to the Educational Facilities Partnership Fund Account, for grants and aid and special programs providing academic school facility and transportation assistance to the public school districts by the Division of Public School Academic Facilities and Transportation, in a sum not to exceed $60,000,000.

“(f) Executive / Legislative Shared Projects Set-Asides:

“(1) To establish the ‘Executive / Legislative Shared Projects Set-Asides’ within the Rainy Day Fund to be distributed as authorized and as enumerated in subsections (f)(2) through (f)(4).

“(2) Act 468 of 2017 and any reappropriation authorized by the General Assembly for Act 468 of 2017 for the Arkansas Economic Development Commission for a transfer to the Economic Development Incentive Quick Action Closing Fund, for incentives to attract new business and economic development to the state, in a sum not to exceed $30,000,000;

“(3) Act 468 of 2017 and any reappropriation authorized by the General Assembly for Act 468 of 2017 for the Arkansas Economic Development Commission, for a transfer to the Arkansas Acceleration Fund for the Arkansas business technology accelerator program, in a sum not to exceed $2,000,000;

“(4) For a transfer to the Arkansas Highway Transfer Fund, in a sum not to exceed, $20,000,000.”

Identical Acts 2017, Nos. 1084 and 1123, § 5, provided:

“(a) Transfer of funds from the ‘Rainy Day Fund’ shall be made only after the Chief Fiscal Officer of the State has determined that all criteria or pre-conditions established in the appropriation act to receive the transfer have been met and that a Method of Finance has been filed with the Office of Accounting in the Department of Finance and Administration, if required.

“(b) Any matching funds as may be provided in law shall be certified to the Chief Fiscal Officer of the State prior to the commencement of the project.

“(c) Any recipient of the funds appropriated herein is also subject to an audit by the Arkansas Legislative Audit in order to determine that the use of the funds was in compliance with the intent and appropriated purposes of the General Assembly.”

Identical Acts 2017, Nos. 1084 and 1123, § 6, provided: “Funding authority.

“(a) Any enactment of the 91st General Assembly in either regular, fiscal or extraordinary session appropriating, transferring or allocating funds to the ‘Rainy Day Fund’ shall be deemed to be payable from the ‘Rainy Day Fund’.

“(b) Appropriations which are not enumerated in this Act may be financed from monies accruing to the ‘Rainy Day Fund’ to fund appropriations as authorized by the General Assembly.”

Identical Acts 2017, Nos. 1084 and 1123, § 7, provided: “Duplicate bills enacted. If the House and the Senate bills of the 2017 Regular Session of the 91st General Assembly creating a Rainy Day Fund, are both enacted and adopted by the 91st General Assembly in identical form, then the last Act passed or latest expression shall supersede the other.”

Acts 2019, No. 82, § 1, provided: “Legislative intent.

It is the intent of the General Assembly that the creation of the Development and Enhancement Fund is necessary to provide a mechanism to disburse funds for:

“(1) Various construction and improvement projects;

“(2) Unforeseen needs;

“(3) Funding deficiencies; and

“(4) The completion of projects previously funded by the General Assembly”.

Identical Acts 2019, Nos. 997 and 1023, § 1, provided: “Legislative findings — Nonseverability.

“(a) The General Assembly finds that:

“(1) Determining the maximum amount of appropriation and funding for a state agency or institution each fiscal year is the prerogative of the General Assembly;

“(3) The Rainy Day Fund has established procedures for the transfer of funds to various funds and fund accounts for the efficient and effective operation of state government; and

“(b) The requirement of approval by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, is not a severable part of § 19-5-1262. If the requirement of approval by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, is ruled unconstitutional by a court of competent jurisdiction, § 19-5-1262 (c)(2) is void in its entirety”.

Identical Acts 2019, Nos. 997 and 1023, § 2, provided: “Rainy Day Funding.

Immediately upon the effective date of this Act [July 1, 2019], as soon thereafter as is practical or as authorized in this Section the State Treasurer shall transfer and credit to the ‘Rainy Day Fund’, upon certification of the amounts thereof by the Chief Fiscal Officer of the State, the following:

“(a)(1) Any funds remaining in the Rainy Day Fund at the end of a Fiscal Year shall carried forward to the next Fiscal Year unless specifically stated otherwise by law;

“(2) Any balance remaining in the Rainy Day Fund from funds made available for a Rainy Day Fund Set-Aside by the 91st General Assembly shall be carried forward in the Rainy Day Fund;

“(b) All unobligated and unallocated monies remaining in the ‘General Improvement Fund’ or the ‘Development and Enhancement Fund’ on June 30, 2019 which are not required to finance projects to be financed therefrom pursuant to appropriations enacted by the General Assembly, or which have not been reappropriated or reallocated for financing from the ‘Development and Enhancement Fund’ by the 92nd General Assembly;

“(c)(1) Any unobligated or unallocated funds remaining on July 2, 2019 in the ‘General Revenue Allotment Reserve Fund’ from monies accruing thereto during the 2017-2019 fiscal biennium which are not required to finance enactments of the 92st General Assembly that do not expire on June 30, 2019, including all General Revenue Funds recovered from remaining fund balances;

“(2) All General Revenue Funds recovered from remaining fund balances in the ‘General Revenue Allotment Reserve Fund’ from monies accruing thereto during the 2019-2020 fiscal year which are not required to finance enactments of the 92st General Assembly that do not expire on June 30, 2020;

“(d) Those special revenues credited to the General Improvement Fund or the Development and Enhancement Fund from estate taxes as set out in Arkansas Code § 19-6-301(171);

“(e) Other revenues as may be transferred or authorized by law; and

“(f) Any funds provided by the Arkansas Attorney General from the Attorney General Consumer Education and Enforcement Account, received by the State of Arkansas through Settlement agreements or as designated by court order”.

Identical Acts 2019, Nos. 997 and 1023, § 3, provided: “Rainy Day Funding.

Immediately upon the effective date of this Act, as soon thereafter as is practical or as authorized in this Section the State Treasurer shall transfer and credit to the ‘Rainy Day Fund’, upon certification of the amounts thereof by the Chief Fiscal Officer of the State, the following:

“(a)(1) Any funds remaining in the Rainy Day Fund at the end of a Fiscal Year shall carried forward to the next Fiscal Year unless specifically stated otherwise by law;

“(2) Any balance remaining in the Rainy Day Fund from funds made available for a Rainy Day Fund Set-Aside by the 91st General Assembly shall be carried forward in the Rainy Day Fund;

“(d) Those special revenues credited to the General Improvement Fund or the Development and Enhancement Fund from estate taxes as set out in Arkansas Code § 19-6-301(171);

“(e) Other revenues as may be transferred or authorized by law; and

Identical Acts 2019, Nos. 997 and 1023, § 4, provided: “Conditions and Audit.

“(b) Any matching funds as may be provided in law shall be certified to the Chief Fiscal Officer of the State prior to the commencement of the project.

“(c) Any recipient of the funds appropriated herein are also subject to an audit by the Arkansas Legislative Audit of the Legislative Joint Auditing Committee in order to determine that the use of the funds was in compliance with the intent and appropriated purposes of the General Assembly”.

Identical Acts 2019, Nos. 997 and 1023, § 5, provided: “Funding Authority.

“(a) Any enactment of the 92nd General Assembly in either regular, fiscal or extraordinary session appropriating, transferring or allocating funds to the ‘Rainy Day Fund’ shall be deemed to be payable from the ‘Rainy Day Fund’.

“(b) Appropriations which are not enumerated in this Act may be financed from monies accruing to the ‘Rainy Day Fund’ to fund appropriations authorized by the General Assembly and as set out in law”.

Identical Acts 2019, Nos. 997 and 1023, § 6, provided: “Duplicate Bills Enacted. If the House and the Senate bills of the 2019 Regular Session of the 92nd General Assembly to define monies to be available and distributed in the Rainy Day Fund, as authorized in Sections 1 through 5 of this Act, are both enacted and adopted by the 92nd General Assembly in identical form, then the last Act passed or latest expression shall supersede the other”.

Amendments. The 2019 amendment inserted “or its successor fund or fund accounts, including the Development and Enhancement Fund” in (b)(1) and (c)(2), and rewrote (c)(1)(A).

19-5-1263. Restricted Reserve Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Restricted Reserve Fund”.
The Restricted Reserve Fund shall consist of:
1. Funds transferred from the Rainy Day Fund;
2. Interagency transfers of funds or fund accounts to the Restricted Reserve Fund;
3. Any revenues provided by law; and
4. Any other funds and fund transfers provided for by law.
For the purpose of and after meeting the requirements of subsection (d) of this section, the Chief Fiscal Officer of the State may from time to time transfer on his or her books and those of the Treasurer of State and the Auditor of State funds from the Restricted Reserve Fund to one (1) or more general revenue operating funds or fund accounts, the Miscellaneous Agencies Fund Account, the Arkansas Department of Transportation for state matching funds, and the State Central Services Fund upon prior approval of the greater of three-fifths (3/5) of the quorum present or a majority of the membership of the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.
1. If at any time during the fiscal year a state agency, board, commission, state institution of higher education, or constitutional officer determines that it is necessary to perform its duties or is in the best interest of the citizens of the State of Arkansas to request a transfer from the Restricted Reserve Fund, that entity shall submit a detailed request in writing to the Chief Fiscal Officer of the State stating:
  1. The need and purpose of the transfer;
  2. Efforts to find efficiencies and savings prior to making the request;
  3. Current year-to-date budget and expenditures by line item; and
  4. A detailed line item budget reflecting proposed expenditures in the amount requested.
2. The Chief Fiscal Officer of the State may request additional information to make a determination and may then approve, modify, or deny the request.
3. Upon the determination by the Chief Fiscal Officer of the State that a transfer is necessary, the Chief Fiscal Officer of the State shall submit the entity's request and his or her recommendation for approval as required in subsection (c) of this section.
The funds available in the Restricted Reserve Fund may be transferred as provided in § 19-5-202(b)(2)(B)(iii).

History. Acts 2018, No. 259, § 6; 2018, No. 260, § 6; 2019, No. 416, § 3.

Acts 2019, No. 416, § 1, provided: “Legislative findings and intent.

Amendments. The 2019 amendment added (e).

19-5-1264. Arkansas River Navigation System Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Arkansas River Navigation System Fund”.
The fund shall consist of:
1. The taxes and penalties described in § 26-26-1616(d)(2);
2. Grants made by any person or federal government agency;
3. Any remaining fund balances carried forward from year to year; and
4. Any other funds authorized or provided by law.
The fund shall be used by the Arkansas Waterways Commission to develop, improve, and expand river transportation resources within the portion of the McClellan-Kerr Arkansas River Navigation System located in the State of Arkansas.

History. Acts 2019, No. 561, § 1.

19-5-1265. Graduate Medical Education Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Graduate Medical Education Fund”.
The fund shall consist of:
1. Gifts, grants, and donations;
2. Any revenues provided by law; and
3. Any other funds and fund transfers authorized or provided for by law.
1. The fund shall be administered by the Division of Higher Education as provided in § 6-82-2001 et seq., and as provided by any other relevant provisions of law.
2. The moneys in the fund shall be disbursed at the direction of the Graduate Medical Education Residency Expansion Board as provided under § 6-82-2001 et seq.

History. Acts 2019, No. 854, § 2.

19-5-1266. Immediate Disaster Response Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous revolving fund to be known as the “Immediate Disaster Response Fund”.
Reimbursements received from any federal, state, or local government agency or other states shall be deposited into the State Treasury to the fund as a refund to expenditure.
The fund shall consist of such revenue as may be authorized by law.
The fund shall be used by the Division of Emergency Management for immediate costs of disasters within the state and to assist other states in disaster response requests.

History. Acts 2019, No. 899, § 16.

19-5-1267. COVID-19 Rainy Day Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “COVID-19 Rainy Day Fund”.
The COVID-19 Rainy Day Fund shall consist of:
1. Funds transferred from the General Revenue Allotment Reserve Fund to the COVID-19 Rainy Day Fund;
2. Any revenues provided by law; and
3. Any fund or fund account transfers provided for by law.
The Chief Fiscal Officer of the State shall use the COVID-19 Rainy Day Fund for transfers to provide funding for one (1) or more appropriations authorized by the General Assembly and to offset general revenue reductions, funding needs, and unanticipated needs created by the COVID-19 crisis.
1. Notwithstanding any other provisions of law, the release of any funds from the COVID-19 Rainy Day Fund shall require prior approval, as defined in this subsection, of the:
  1. Speaker of the House of Representatives or his or her designee;
  2. Majority party leader of the House of Representatives or his or her designee;
  3. Minority party leader of the House of Representatives or his or her designee;
  4. President Pro Tempore of the Senate or his or her designee;
  5. Majority party leader of the Senate or his or her designee; and
  6. Minority party leader of the Senate or his or her designee.
2. 1. The Secretary of the Department of Finance and Administration shall notify the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and all other members of the General Assembly of a request for the release of funds from the COVID-19 Rainy Day Fund.
  2. 1. The Speaker of the House of Representatives and the President Pro Tempore of the Senate shall communicate the request to the respective majority party leader and respective minority party leader.
    2. If a majority party leader or a minority party leader is unavailable or recuses from the vote, the Speaker of the House of Representatives and the President Pro Tempore of the Senate shall contact the non-responding majority party leader’s designee or non-responding minority party leader’s designee.
3. 1. As used in this section “prior approval” means:
    1. At least two (2) members listed in subdivision (d)(1) of this section from the House of Representatives and two (2) members listed in subdivision (d)(1) of this section from the Senate approve the release of funds from the COVID-19 Rainy Day Fund; and
    2. The written or electronic approval by the two (2) members listed in subdivision (d)(1) of this section from the House of Representatives and by the two (2) members listed in subdivision (d)(1) of this section from the Senate occurs within two (2) hours after the members received written or electronic notification of the request by the Speaker of the House of Representatives or the President Pro Tempore of the Senate.
  2. In the event the majority party leader or the minority party leader is not available within two (2) hours after the notification has been given or has recused, the Speaker of the House of Representatives or the President Pro Tempore of the Senate shall contact the non-responding majority party leader’s designee or non-responding minority party leader’s designee and the designee shall either be immediately available or is deemed to vote for approval of the release of funds from the COVID-19 Rainy Day Fund.
4. 1. The action taken under this subsection shall be reported to the members of the General Assembly.
  2. The report shall include:
    1. Remaining balances in the COVID-19 Rainy Day Fund;
    2. Total amount released to date; and
    3. The amount of each prior release and the purpose of the release.
Determining the general revenue funding for a state agency each fiscal year is the prerogative of the General Assembly. This is usually accomplished by delineating such maximums for a state agency with general revenue allocations authorized for each fund and fund account by amendment to the Revenue Stabilization Law, § 19-5-101 et seq. Further, the General Assembly has determined that the various state agencies may operate more efficiently if some flexibility is provided authorizing broad powers under this section. Therefore, it is both necessary and appropriate that the General Assembly maintain oversight by requiring prior approval as set out in subsection (d) herein, by this section. The requirement of approval as set out in subsection (d) of this section is not a severable part of this section. If the requirement of approval as set out in subsection (d) of this section is ruled unconstitutional by a court of competent jurisdiction, this entire section is void.

History. Acts 2020 (1st Ex. Sess.), No. 1, § 1; 2020 (1st Ex. Sess.), No. 2, § 1.

A.C.R.C. Notes. Identical Acts 2020 (1st Ex. Sess.), Nos. 1 and 2, § 2, provided: “FUND TRANSFER TO THE COVID-19 RAINY DAY FUND.

“(a) Immediately upon the effective date of this act, the Chief Fiscal Officer of the State shall transfer on his or her books and those of the State Treasurer and the Auditor of the State the sum of one hundred seventy three million six hundred ten thousand six hundred and thirty-two dollars ($173,610,632) from the General Revenue Allotment Reserve Fund to the COVID-19 Rainy Day Fund to provide funding for one (1) or more appropriations authorized by the General Assembly to offset general revenue reductions due to the reduction of the Official General Revenue Forecast and to address needs created by the COVID-19 crises, to be released as set out in the COVID-19 Rainy Day Fund.

“(b) On June 30, 2020 the Chief Fiscal Officer of the State shall transfer on his or her books and those of the State Treasurer and the Auditor of the State any funds remaining in the COVID-19 Rainy Day Fund to the General Revenue Allotment Reserve Fund”.

19-5-1268. Skills Development Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Skills Development Fund”.
The fund shall consist of:
1. General revenues authorized by law;
2. Moneys obtained from private grants or other sources that are designated to be credited to the fund; and
3. Any other revenues authorized by law.
The fund shall be used by the Office of Skills Development as provided in § 25-30-109.

History. Acts 2020, No. 186, § 3; 2020, No. 187, § 3.

A.C.R.C. Notes. Identical Acts 2020, Nos. 186 and 187, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law and to create funds, to repeal funds, and to make transfers to and from funds and fund accounts”.

Chapter 6 Revenue Classification Law

Subchapter 1 — General Provisions

Effective Dates. Acts 1973, No. 808, § 17: Apr. 16, 1973. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that in order to properly define, describe and classify all revenues and other income which are required to be deposited in the State Treasury, it is necessary that the provisions of this Act become effective immediately. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1985, No. 65, § 8: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 1985, have been made by the Seventy-Fifth General Assembly. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

19-6-101. Title.

This chapter shall be referred to and may be cited as the “Revenue Classification Law” of Arkansas.

History. Acts 1973, No. 808, § 1; A.S.A. 1947, § 13-503.

19-6-102. Purpose.

Because of the many revenue laws of the state providing for the levying and collecting of taxes, licenses, fees, permits, assessments, royalties, leases, rents, fines, interest, and penalties for the support of the state government and its agencies, institutions, boards, and commissions that have been enacted by various General Assemblies, it is the policy of the General Assembly with respect to all such revenues and other income, which are required by law to be deposited into the State Treasury, to describe, define, and classify all such revenues and other income and to provide for the purposes, individually and collectively, that all such revenues and other income may be used. It is the intent and purpose of this chapter to comply with the provisions of the Arkansas Constitution, including Arkansas Constitution, Article 16, § 11.

History. Acts 1973, No. 808, § 2; A.S.A. 1947, § 13-503.1.

19-6-103. Cash funds.

All taxes, licenses, fees, permits, or other income collected by any board, agency, or commission by virtue of the authority of the State of Arkansas which are designated by law to be deposited into a depository other than the State Treasury are classified as “cash funds” and are declared to be revenues of the state to be used as required and to be expended only for such purposes and in such manner as determined by law.

History. Acts 1973, No. 808, § 2; A.S.A. 1947, § 13-503.1.

19-6-104. Income required to be deposited into State Treasury.

All taxes, licenses, fees, permits, assessments, royalties, leases, rents, fines, interest, penalties, and other income provided for by law for the support of state government and its agencies, institutions, boards, and commissions which are required by law to be deposited into the State Treasury shall be handled and used in the manner and for the purposes provided for by this chapter.

History. Acts 1973, No. 808, § 3; A.S.A. 1947, § 13-503.2.

19-6-105. Handling of collections.

All fines, fees, penalties, court costs, taxes, and other collections which, by the laws of this state, are to be remitted directly to the Treasurer of State for credit in the State Treasury to an account of an agency of this state shall be remitted directly to the agency to whose account the same is to be credited. Upon receipt, the agency shall transmit all collections to the Treasurer of State, to be credited by him or her to the account of the agency depositing them.

History. Acts 1973, No. 808, § 3; A.S.A. 1947, § 13-503.2.

19-6-106. Effect on general revenue statutes.

As to the taxes, licenses, fees, and other revenues classified as general revenues, as set out in this chapter, it is not the purpose of this chapter to levy or change the amount or rate of such taxes, licenses, fees, and other revenues but to state the purpose for which general revenues are to be used. This chapter shall not be construed as amending any of the provisions of the law with respect to such taxes defined to be general revenues except for the purpose of defining the purposes for which these revenues are raised and collected.

History. Acts 1973, No. 808, § 4; A.S.A. 1947, § 13-503.3.

19-6-107. Effect on special revenue statutes.

As to the special taxes, licenses, fees, and other revenues classified as special revenues, as set out in this chapter, it is not the purpose of this chapter to levy or change the amount or rate of such taxes, licenses, fees, and other revenues, nor to change the purposes for which such special revenues are to be used as provided for by law. This chapter shall not be construed as amending any of the provisions of law with respect to such taxes defined to be special revenues except for the purpose of defining the purposes for which these revenues are raised and collected, which also shall include the services rendered by the constitutional and fiscal agencies in the manner provided by law.

History. Acts 1973, No. 808, § 5; A.S.A. 1947, § 13-503.4.

19-6-108. Classifications of revenue.

All taxes, licenses, fees, permits, assessments, royalties, leases, rents, fines, interest, penalties, or other governmental income available to the State of Arkansas, which are required by law to be deposited into the State Treasury, shall be classified under one (1) or more of the following:

General revenues;
Special revenues;
Trust fund income;
Federal grants, aids, and reimbursements; and
Nonrevenue receipts.

History. Acts 1973, No. 808, § 6; A.S.A. 1947, § 13-503.5.

19-6-109. Miscellaneous revenue.

All fines, penalties, interest, or court costs received in connection with the collection of any revenue shall be classified the same as the revenue for which the fines, penalties, interest, or court costs are levied.
Proceeds from rental of any real or personal property owned by the State of Arkansas are to be classified as special revenues belonging to the fund or fund account from which the state agency to which the property belongs receives its support unless otherwise specified by law.
All nonrevenue receipts as defined in § 19-6-701 derived from proceeds from the sale of property, income received on account of services being provided by an agency of the state, or any other miscellaneous earnings of any state agency shall be credited to the fund or fund account from which the agency draws its support unless specified otherwise by law.

History. Acts 1973, No. 808, § 12; A.S.A. 1947, § 13-503.11.

Cross References. Uniforms, § 12-9-111.

19-6-110. Mixed funds.

If, at the close of any fiscal year, a balance remains in any State Treasury fund, fund account, or account which is subject to transfer at the close of a fiscal year, and into which both general revenues and either special revenues, nonrevenue receipts, or federal reimbursements are deposited and expended, the special revenue portion of the balance shall be the proportion that the amount of special revenues credited to such fund or fund account is to total funds credited to the fund or fund account in each fiscal year. The special revenue portion of the balance shall be carried forward to the next fiscal year and shall be used solely for the purposes for which it was collected as provided by law.

History. Acts 1973, No. 808, § 13; 1985, No. 65, § 5; A.S.A. 1947, § 13-503.12.

Subchapter 2 — General Revenues

Cross References. Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq.

Arkansas Highway Revenue Distribution Law, § 27-70-201 et seq.

Direct deposits by the State into local government cash management trust account, § 19-8-311.

Municipal Aid Fund, § 19-5-601 et seq.

Acts 1975, No. 863, § 9: July 1, 1975. Emergency clause provided: “It is hereby found and determined by the Seventieth General Assembly that the provisions of this Act are necessary for the proper administration of vital state programs, and that to delay the provisions of this Act beyond July 1, 1975 would work irreparable harm on the Securities Division. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1975.”

Acts 1979, No. 1027, § 11: July 1, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that it is necessary that the aforementioned amendments will provide for a more efficient administration of state revenue. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force from and after July 1, 1979.”

Acts 1983, No. 222, § 7: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 1983 have been made by the Seventy-Fourth General Assembly. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1983.”

Acts 1985, No. 479, § 16: Mar. 21, 1985. Emergency clause provided: “It has been found, and is declared by the General Assembly of Arkansas, that a great need exists to provide funding for state government response to release of hazardous substances into the environment of the state that threaten the public health and welfare. Therefore, an emergency is declared to exist, and this Act being necessary for the preservation of the public peace, health, and safety shall take effect be in force from the date of its approval.”

Acts 1987, No. 792, § 7: July 1, 1987. Emergency clause provided: “It is hereby found and determined by the Seventy-Sixth General Assembly that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 1987, have been made by the Seventy-Sixth General Assembly. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1987.”

Acts 1989, No. 551, § 8: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly, that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 1989, have been made by the Seventy-Seventh General Assembly. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1989.”

Acts 1993, No. 1072, § 17: July 1, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly, that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 1993 have been made by the Seventy-Ninth General Assembly. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1993.”

Acts 1995, No. 270, § 19: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly, that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 1995 have been made by the Eightieth General Assembly. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1995.”

Acts 1997, No. 298, § 18: July 1, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly, that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 1997 have been made by the Eighty-First General Assembly. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1997.”

Acts 1999, No. 282, § 18: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 1999 have been made by the Eighty-second General Assembly. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 1999.”

Acts 1999, No. 1152, § 7: Apr. 6, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that the revenues generated by taxing bingo are dwindling; that many bingo parlors have been enjoined by court order as illegal gambling operations; that bingo operators are currently required to register on July 1 of each year and pay a registration fee; that the repeal of the bingo tax provisions will also repeal the need to pay a registration fee; that taxpayers and the Department of Finance and Administration will be relieved of performing unnecessary administrative tasks related to the registration fees if the tax provisions and annual registration requirements are repealed prior to July 1, 1999. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 229, § 16: July 1, 2001. Emergency clause provided: “It is hereby found and determined by the Eighty-third General Assembly that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect that various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 2001 have been made by the Eighty-third General Assembly. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2003, No. 28, § 23: July 1, 2003. Emergency clause provided: “It is hereby found and determined by the Eighty-fourth General Assembly that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 2003 have been made by the Eighty-fourth General Assembly. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2003.”

Acts 2005, No. 20, § 18: July 1, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 2005 have been made by the Eighty-Fifth General Assembly. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2005.”

Acts 2007, No. 182, § 32: Jan. 1, 2008.

Acts 2007, No. 407, § 18: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 2007 have been made by the Eighty-Sixth General Assembly. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2007.”

Acts 2008 (1st Ex. Sess.), No. 4, §§ 2 and 3: Jan. 1, 2009, by their own terms.

Acts 2008 (1st Ex. Sess.), No. 5, §§ 2 and 3: Jan. 1, 2009, by their own terms.

Identical Acts 2008 (1st Ex. Sess.), Nos. 4 and 5, § 12: Jan. 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly that state and local roads and highways are in need of substantial expansion, maintenance and repair, and that additional funding is necessary to address this need. It is also found and determined that increasing development and exploitation of natural gas resources in the Fayetteville Shale Play and in other areas of this state has significantly increased the burden and wear and tear on state and local roads and highway, further exacerbating the need for maintenance and repair. It is also found and determined that previous surpluses in state revenue have been largely spent to improve public education and educational facilities in this state, as was required by the Constitution as interpreted by the Arkansas Supreme Court in the Lake View case and additional revenues must be generated from other sources to address the needs of our roads and highways. It is further found and determined that due to recent and dramatic increases in the price of gasoline, and the fact that funds for highways are generated from a flat per-gallon tax, the increasing use of more fuel-efficient vehicles has caused a condition in which revenue for roads and highways has not kept pace with the wear and tear caused by vehicular use. It is further found and determined that immediate enactment of this bill is necessary to provide adequate time for various administrative agencies of state government to prepare the necessary reporting forms and instructions, to educate taxpayers responsible for paying the additional taxes levied herein, and take other steps necessary for the proper implementation and administration of this act. Therefore, the General Assembly hereby finds and declares that an emergency exists, pursuant to Article V, § 38 of the Arkansas Constitution, and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after January 1, 2009.”

Acts 2009, No. 484, § 8: July 1, 2010.

Acts 2009, No. 1464, § 11: July 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 2009 have been made by the Eighty-Seventh General Assembly. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2009.”

Acts 2011, No. 1008, § 10: July 1, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 2011 have been made by the Eighty-Eighth General Assembly. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2011.”

Acts 2011, No. 1058, § 6: July 1, 2012.

Acts 2013, No. 747, § 3: Apr. 4, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act is necessary to ensure that motor vehicles on the road are properly tagged after purchase; and that this act should become effective as soon as possible to promote the safety of the public when operating motor vehicles. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2013, No. 1411, § 7: July 1, 2014.

Acts 2015, No. 536, § 5: July 1, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that Arkansas bridges and roads are in need of repair and proper maintenance; that the repair and proper maintenance of Arkansas bridges and roads are necessary for the preservation of the public peace, health, and safety; that increased funding is essential to the repair and proper maintenance of Arkansas bridges and roads; and that this act is necessary because without this increased funding, the repair and proper maintenance of Arkansas bridges and roads may not be performed. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2015.”

Acts 2015, No. 705, § 5: Oct. 1, 2015. Effective date clause provided: “Sections 1 through 4 of this act are effective on the first day of the calendar quarter following the effective date of this act.”

Acts 2015, No. 1046, § 5: July 1, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the activities funded by general revenue are necessary for the preservation of the public peace, health, and safety; that increased general revenue funding is essential to the performance of these activities; and that without that increased funding, these activities may be compromised. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2015.”

Acts 2015, No. 1207, § 5: July 1, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 2015 have been made by the Ninetieth General Assembly. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2015.”

Acts 2016 (3rd Ex. Sess.), No. 1, § 22: July 1, 2017. Effective date clause provided: “Sections 9-12, 14, 16 and 17 of this act are effective on and after July 1, 2017.”

Acts 2017, No. 508, § 13(a): Oct. 1, 2017. Effective date clause provided: “Sections 1, 2, 3, 6, 7, 8, 9, 10, 11, and 12 of this act become effective on October 1, 2017.”

Acts 2017, No. 977, § 5: Apr. 7, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the activities funded by general revenue are necessary for the preservation of the public peace, health, and safety; that increased general revenue funding is essential to the performance of these activities; and that this act is immediately necessary because without that increased funding, these activities may be compromised. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 1051, § 8: July 1, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that various laws have been enacted since the passage of the Revenue Classification Law in 1973 that have changed or created various revenues collected by the state, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees, and other revenues levied and collected for the support of and use by state government as they currently exist and from which appropriations that become effective July 1, 2017, have been made by the Ninety-First General Assembly. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2017.”

Acts 2017, No. 1119, § 4: Nov. 13, 2017.

Acts 2019, No. 705, § 5: Apr. 4, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the activities funded by general revenue are necessary for the preservation of the public peace, health, and safety; that increased general revenue funding is essential to the performance of these activities; and that this act is immediately necessary because without that increased funding, these activities may be compromised. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto”.

19-6-201. General revenues enumerated.

The general revenues of the state, as provided by law, shall consist of the following, as described by their commonly known titles:

Sales taxes, as enacted by Acts 1941, No. 386, known as the “Arkansas Gross Receipts Act of 1941”, and all laws supplemental or amendatory thereto, § 26-52-101 et seq.;
Use taxes as enacted by Acts 1949, No. 487, known as the “Arkansas Compensating Tax Act of 1949”, Acts 1971, No. 222, and all laws supplemental or amendatory thereto, § 26-53-101 et seq.;
Corporation franchise taxes, as enacted by Acts 1979, No. 889, known as the “Arkansas Corporate Franchise Tax Act of 1979”, and all laws amendatory thereto, § 26-54-101 et seq.;
Corporation income taxes, as enacted by Acts 1929, No. 118, known as the “Income Tax Act of 1929”, Acts 1941, No. 129, and all laws amendatory thereto, § 26-51-101 et seq., with the exception of those additional corporate income taxes set aside as special revenue by § 26-51-205(c)(2);
Individual income taxes, as enacted by Acts 1929, No. 118, known as the “Income Tax Act of 1929”, and all laws amendatory thereto, § 26-51-101 et seq.;
Cigarette taxes and permits and other tobacco products taxes and permits, as enacted by Acts 1977, No. 546, known as the “Arkansas Tobacco Products Tax Act of 1977”, and all laws amendatory thereto, § 26-57-201 et seq.;
Escheat of unclaimed property, as enacted by Acts 1999, No. 850, known as the “Unclaimed Property Act”, and all laws amendatory thereto, § 18-28-201 et seq.;
[Repealed.]
Seventy-five percent (75%) of all severance taxes, with the exception of the taxes paid to sever timber and timber products, the severance tax collected on natural gas, and those portions of severance taxes designated as special revenues in § 19-6-301, as enacted by Acts 1947, No. 136, and all laws amendatory thereto, §§ 26-58-101 — 26-58-103, 26-58-106 — 26-58-111, 26-58-114 — 26-58-116, 26-58-118 — 26-58-120, 26-58-123, and 26-58-124;
Sand, gravel, oil, coal, and other mineral royalties, as enacted by Acts 1975, No. 524, and all laws amendatory thereto, §§ 22-5-801 — 22-5-813;
Oil and gas leases, as enacted by Acts 1975, No. 524, and all laws amendatory thereto, §§ 22-5-801 — 22-5-813;
Petroleum trade practices civil penalties, as enacted by Acts 1993, No. 380;
Estate taxes, as enacted by Acts 1941, No. 136, known as the “Estate Tax Law of Arkansas”, and all laws amendatory thereto, §§ 26-59-101 — 26-59-107, 26-59-109 — 26-59-114, 26-59-116 — 26-59-119, 26-59-121, and 26-59-122;
Those portions of real estate transfer taxes, as enacted by Acts 1971, No. 275, and all laws amendatory thereto, §§ 26-60-101 — 26-60-103 and 26-60-105 — 26-60-112;
State Insurance Department Trust Fund moneys in excess of an amount equal to one (1) fiscal year budget for the State Insurance Department, § 23-61-710(c);
Large truck speeding fines, § 27-50-311;
Employment agency licenses, as enacted by Acts 1975, No. 493, known as the “Arkansas Private Employment Agency Act of 1975”, and all laws amendatory thereto, § 11-11-201 et seq.;
[Repealed.]
Insurance premium taxes, as enacted by Acts 1959, No. 148, known as the “Arkansas Insurance Code”, §§ 23-60-101 — 23-60-108, 23-60-110, 23-61-101 — 23-61-112, 23-61-201 — 23-61-206, 23-61-301 — 23-61-307, 23-61-401, 23-61-402, 23-62-101 — 23-62-108, 23-62-201, 23-62-202, former 23-62-203, 23-62-204, 23-62-205, 23-63-101 [repealed], 23-63-102 — 23-63-104, 23-63-201 — 23-63-216, 23-63-301, 23-63-302, 23-63-401 — 23-63-404 [repealed], 23-63-601 — 23-63-604, 23-63-605 — 23-63-609 [repealed], 23-63-610 — 23-63-613, 23-63-701, 23-63-801 — 23-63-833, 23-63-835, 23-63-836 [as added by Acts 1983, No. 522], 23-63-837 [as added by Acts 1983, No. 522], 23-63-838 [repealed], 23-63-901 — 23-63-912, 23-63-1001 — 23-63-1004, 23-64-101 — 23-64-103, 23-64-201 — 23-64-205, 23-64-206 [repealed], 23-64-207, 23-64-208 [repealed], 23-64-209, 23-64-210, 23-64-211 — 23-64-213 [repealed], 23-64-214 — 23-64-221, 23-64-222 [repealed], 23-64-223 — 23-64-227, 23-65-101 — 23-65-104, 23-65-201 — 23-65-205, 23-65-301 — 23-65-319, 23-66-201 — 23-66-213, 23-66-214 [repealed], 23-66-301 — 23-66-306, 23-66-308 — 23-66-311, 23-66-313, 23-66-314, 23-68-101 — 23-68-113, 23-68-115 — 23-68-132, 23-69-101 — 23-69-103, 23-69-105 — 23-69-141, 23-69-143, 23-69-149 — 23-69-156, 23-70-101 — 23-70-124, 23-71-101 — 23-71-116, 23-72-101 — 23-72-122, 23-73-101 — 23-73-107, 23-73-108 [repealed], 23-73-109 [repealed], 23-73-110 — 23-73-116, former 23-74-101 — 23-74-105, 23-74-106 — 23-74-141 [repealed], 23-75-101 — 23-75-116, 23-75-117 [repealed], 23-75-118 — 23-75-120, 23-79-101 — 23-79-106, 23-79-109 — 23-79-128, 23-79-131 — 23-79-134, 23-79-202 — 23-79-210, 23-81-101 — 23-81-117, 23-81-120 — 23-81-136, 23-81-201 — 23-81-213, 23-82-101 — 23-82-118, 23-84-101 — 23-84-111, 23-85-101 — 23-85-131, 23-86-101 — 23-86-104, 23-86-106 — 23-86-109, 23-86-112, 23-87-101 — 23-87-119, 23-88-101, 23-89-101, 23-89-102, 26-57-601 — 26-57-605, 26-57-607, 26-57-608, and 26-57-610 and all laws amendatory thereto, with the exception of those premium taxes set aside for the various municipal firemen's pension and relief funds, for the various police officers' pension and relief funds, and for the Workers' Compensation Commission and, with the exception of those additional premium taxes set aside for the Fire Protection Premium Tax Fund, § 26-57-614, and insurance premium taxes from domestic insurers not maintaining a home office in this state as enacted by Acts 1979, No. 908, and all laws amendatory thereto, §§ 23-60-102, 26-57-601 — 26-57-605, and 26-57-607;
Horse racing taxes and fees, including the portion of all moneys wagered, as set out in Acts 1957, No. 46, § 23, as amended, §§ 23-110-406, 23-110-407, 23-110-408 [repealed], 23-110-409, and 23-110-410, the annual license fee, ten percent (10%) of admissions or ten cents (10¢) per admission, whichever sum is greater, one-third (1/3) of the unredeemed pari-mutuel tickets, and the license fees of owners, trainers, jockeys, and jockeys' agents, all as enacted by Acts 1957, No. 46, known as the “Arkansas Horse Racing Law”, and all laws amendatory thereto, §§ 23-110-101 — 23-110-104, 23-110-201 — 23-110-205, 23-110-301 — 23-110-307, 23-110-401 — 23-110-403, 23-110-404 [repealed], 23-110-405 — 23-110-407, 23-110-408 [repealed], and 23-110-409 — 23-110-415;
Dog racing taxes and fees, including three percent (3%) of all moneys wagered up to and including one hundred twenty-five million dollars ($125,000,000) and seven percent (7%) of all moneys wagered in excess of one hundred twenty-five million dollars ($125,000,000) per calendar year at two hundred forty-four (244) days of racing, one-third (1/3) of the odd cents or breaks, the daily operating license fee and fees paid by each greyhound owner and trainer, simulcast taxes of two percent (2%) of all moneys wagered up to and including three hundred fifty thousand dollars ($350,000), three percent (3%) in excess of three hundred fifty thousand dollars ($350,000) but less than or equal to five hundred thousand dollars ($500,000), and six percent (6%) in excess of five hundred thousand dollars ($500,000), per racing performance and ten percent (10%) of admissions or ten cents (10¢) per admission, whichever sum is greater, as enacted by Acts 1957, No. 191, known as the “Arkansas Greyhound Racing Law”, §§ 23-111-101 — 23-111-104, 23-111-201 — 23-111-205, 23-111-301 — 23-111-308, 23-111-501, 23-111-506, 23-111-507 [repealed], and 23-111-508 — 23-111-514, and all laws amendatory thereto, and the additional four (4) of six (6) days of racing authorized in § 23-111-504;
Alcoholic beverages taxes, permits, licenses, and fees, including the following:
1. Liquor gallonage taxes and imported wine taxes, as enacted by Acts 1935, No. 109, and all laws amendatory thereto, §§ 3-7-101 — 3-7-110;
2. Permits and fees for manufacturer and dispensary privileges, as enacted by Acts 1935, No. 108, known as the “Arkansas Alcoholic Control Act”, and all laws amendatory thereto, §§ 3-1-101 — 3-1-103, 3-2-101, 3-2-205, 3-3-101 — 3-3-103, 3-3-212, 3-3-401, 3-3-404, 3-3-405, 3-4-101 — 3-4-103, 3-4-201, 3-4-202, 3-4-207 — 3-4-211, 3-4-213, 3-4-214, 3-4-217, 3-4-219, 3-4-220, 3-4-301 — 3-4-303, 3-4-501, 3-4-503, 3-4-601 — 3-4-605, 3-8-301, 3-8-303, 3-8-305 — 3-8-310, 3-8-313 — 3-8-317, 3-9-237, and 23-12-708, but not including fees for grocery store wine permits authorized under § 3-5-1802;
3. Nonintoxicating beer and wine taxes, as enacted by Acts 1933 (1st Ex. Sess.), No. 7, and all laws amendatory thereto, §§ 3-5-201 — 3-5-207, 3-5-209 — 3-5-221, 3-5-223 — 3-5-225, and 3-8-401;
4. Brandy taxes and fees, as enacted by Acts 1953, No. 163, known as the “Native Brandy Law”, and all laws amendatory thereto, § 3-6-101 et seq.;
5. The additional taxes on native wine and beer and the additional permits fees for retail liquor and beer permits and wholesale liquor and beer permits, as enacted by Acts 1969, No. 271, and all laws amendatory thereto, §§ 3-7-111 and 3-7-506;
6. The additional taxes on liquor and native wine, as enacted by Acts 1949, No. 282, and all laws amendatory thereto, §§ 3-3-314 and 3-7-111;
7. The special alcoholic beverage excise taxes, as enacted by Acts 1951, No. 252, and all laws amendatory thereto, §§ 3-7-201 and 3-7-205;
8. Wholesale and retail permits and fees for the sale of liquor and beer, as enacted by Acts 1933 (1st Ex. Sess.), No. 7, and all laws amendatory thereto, §§ 3-5-201 — 3-5-207, 3-5-209 — 3-5-221, 3-5-223 — 3-5-225, and 3-8-401;
9. Restaurant wine permits, as enacted by Acts 1965, No. 120, and all laws amendatory thereto, §§ 3-9-301 — 3-9-303 and 3-9-305 — 3-9-307;
10. Permits and taxes on alcoholic beverages sold for on-premises consumption, as enacted by Acts 1969, No. 132, and all laws amendatory thereto, §§ 3-9-201 — 3-9-214, 3-9-221 — 3-9-225, and 3-9-232 — 3-9-237;
11. Seventy cents (70¢) per gallon of the tax levied upon native wine, permits and fees, as enacted by §§ 3-5-401 — 3-5-412 [repealed]; and
12. Wine sales on-premise licenses, §§ 3-9-601 — 3-9-606;
Sale of confiscated alcoholic beverages, as enacted by Acts 1947, No. 423, and all laws amendatory thereto, §§ 3-3-301 — 3-3-303, 3-3-304 [repealed], 3-3-308 [repealed], and 3-3-311 — 3-3-314;
Fees collected by the Alcoholic Beverage Control Division for transcripts and fines for violations, as enacted by Acts 1981, No. 790, and all laws amendatory thereto, §§ 3-2-201, 3-2-217, 3-4-213, 3-4-401 — 3-4-406, 3-4-502, 3-5-305, and 3-5-306;
Any fines, penalties, or court costs received in connection with the collection of any of the revenues enumerated in this section;
Any other taxes, fees, license fees, and permits required to be deposited into the State Treasury as provided by law and not otherwise classified;
Savings and loan associations' application fees, annual fees, amendment fees, examination fees, broker's license fees, and other miscellaneous fees, as enacted by Acts 1963, No. 227, §§ 23-37-101 — 23-37-107, 23-37-201, 23-37-202, 23-37-203 [repealed], 23-37-204, 23-37-205 [repealed], 23-37-206 — 23-37-212, 23-37-213 [repealed], 23-37-214, 23-37-301 — 23-37-315, 23-37-401, 23-37-403, 23-37-405, 23-37-406, 23-37-501 — 23-37-510, 23-37-511 [repealed], 23-37-512, 23-37-601 — 23-37-603, and 23-37-701 — 23-37-705;
Credit union charter fees, annual supervision fees, and examination fees, as enacted by Acts 1971, No. 132, § 23-35-101 et seq.;
Sale of checks, investigation fees, annual license fees, semiannual reports filing fees, and examination fees, as enacted by Acts 1965, No. 124, known as the “Sale of Checks Act”, § 23-41-101 et seq. [repealed];
Securities division fees, including loan broker's licenses, mortgage loan company licenses, broker-dealer licenses, agent licenses, investment advisor licenses, agent examination fees, broker-dealer examination fees, statement filing fees, quarterly reports, and proof of exemption filing fees, all as enacted by Acts 1959, No. 254, known as the “Arkansas Securities Act”, and all laws amendatory thereto, §§ 23-42-101 — 23-42-110, 23-42-201 — 23-42-212, 23-42-301 — 23-42-308, 23-42-401 — 23-42-405, and 23-42-501 — 23-42-507;
Professional fundraiser and solicitor fees, as enacted by §§ 4-28-401 — 4-28-416;
Unclaimed security deposits, as enacted by Acts 1969, No. 296, as amended by Acts 1975, No. 1007, §§ 27-19-306, 27-19-408, 27-19-501, 27-19-503, 27-19-603, 27-19-609, 27-19-610, 27-19-612, 27-19-619 — 27-19-621, and 27-19-706 — 27-19-708;
Vending devices sales taxes, as enacted in § 26-57-1001 et seq. and that portion of vending device decal fees and penalties provided in the Vending Devices Decal Act of 1997, § 26-57-1201 et seq.;
Anonymous campaign contributions of fifty dollars ($50.00) or more, as enacted by Acts 1975, No. 788, and all laws amendatory thereto, §§ 7-6-201 — 7-6-210, 7-6-211 [repealed], 7-6-212 [repealed], 7-6-213, and 7-6-214;
Telephonic sellers registration fees, § 4-99-104;
Long-term rental vehicle tax, § 26-63-304;
Arkansas Department of Transportation miscellaneous fees, permits, penalties, and fines, as enacted by Acts 1955, No. 397, known as the “Arkansas Motor Carrier Act, 1955”, and all laws amendatory thereto, § 23-13-201 et seq.;
Radiation protection civil penalties, as enacted by Acts 1980 (1st Ex. Sess.), No. 67, and all laws amendatory thereto, § 20-21-401 et seq.;
That portion of the reinstatement fees under § 5-65-119(a)(2)(C), and that portion of the reinstatement fees under §§ 5-65-304(d) and 5-65-310(f);
Short-term rental of tangible personal property tax, § 26-63-301;
Excess campaign contributions, as enacted by § 7-6-203;
Retail pet store registration fees, as enacted by § 4-97-104;
Rental vehicle tax, § 26-63-302;
Residential moving tax, § 26-63-303;
Arkansas Quarry Operation, Reclamation, and Safe Closure Act fees, fines, and bond forfeiture amounts, § 15-57-401 et seq.;
[Repealed.]
[Repealed.]
Arkansas Feed Law of 1997 penalties, § 2-37-113;
Election, voter registration law, and State Board of Election Commissioners fines, § 7-4-118 [repealed];
Remaining funds on dissolution of ballot question committees or legislative question committees, § 7-9-404;
Uniform Athlete Agents Act registration and renewal fees, § 17-16-109;
Until July 1, 2011, moneys in excess of one million dollars ($1,000,000) in the Securities Department Fund from collections of securities agents initial or renewal registration filing fees and securities registration statement filing fees, § 23-42-211(a)(4);
Human cloning fines, § 20-16-1002;
The first three dollars ($3.00) of each unregistered vehicle temporary preprinted paper buyer's tag fee, § 27-14-1705;
Electronic games of skill privilege fees and all permit or license fees, penalties, and fines received by the Arkansas Racing Commission, § 23-113-604;
Prohibited employment of relatives civil penalties, § 25-16-1001 et seq.;
The first six hundred seventy-five thousand dollars ($675,000) of the five percent (5%) of the severance tax collected on natural gas at the rates enacted by § 26-58-111(5);
Seventy-six and six-tenths percent (76.6%) of all taxes, interest, penalties, and costs on taxes levied on the gross receipts or gross proceeds derived from the sale of food and food ingredients, § 26-52-317(c)(1)(A);
Seventy-six and six-tenths percent (76.6%) of the tax, interest, penalties, and costs received on excise taxes levied on the gross receipts or gross proceeds derived from the sale of natural gas and electricity to a manufacturer for use directly in the actual manufacturing process, § 26-52-319(a)(1)(A);
Seventy-six and six-tenths percent (76.6%) of the taxes, interest, penalties, and costs received on taxes levied on the privilege of storing, using, distributing, or using food and food ingredients, § 26-53-145(c)(1)(A);
Seventy-six and six-tenths percent (76.6%) of the tax, interest, penalties, and costs received on excise taxes levied on the sales price of natural gas and electricity purchased by a manufacturer for use directly in the actual manufacturing process, § 26-53-148(a)(1)(A);
Seventy-six and six-tenths percent (76.6%) of the excise taxes levied on all dyed distillate special fuel sold, used, or utilized in the state, § 26-56-224(c)(1);
That portion of Unified Carrier Registration Act of 2005, Pub. L. No. 109-59, § 4301 et seq. — fines and penalties, § 23-13-605;
Charitable bingo and raffle license fees and excise taxes levied as enacted by §§ 23-114-302, 23-114-307, and 23-114-601;
Additional tax on cigarettes and tobacco products other than cigarettes, as enacted by Acts 2009, No. 180, and all laws amendatory thereto, § 26-57-801 et seq.;
Partial-birth abortion civil fines and penalties, as enacted by Acts 2009, No. 196, and all laws amendatory thereto, the Partial-Birth Abortion Ban Act, § 20-16-1201 et seq.;
International student exchange visitor placement organization registration fees, as enacted by Acts 2009, No. 966, and all laws amendatory thereto, the International Student Exchange Visitor Placement Organization Registration Act, § 6-18-1701 et seq.;
[Repealed.]
Certification of tobacco product manufacturers civil penalties, § 26-57-1303(a)(10)(B);
Sale, distribution, and stamping of tobacco products civil penalties, § 26-57-1306(f)(1);
Permit fees or taxes, label fees, penalties, fines, proceeds of all forfeitures, special inspection fees and costs as enacted by Acts 2013, No. 483, and all laws amendatory thereto, the Direct Shipment of Vinous Liquor Act, § 3-5-1701 et seq.;
The first four and one-half (4½) mills on gas assessments levied each fiscal year until July 1, 2021, under § 15-71-107(b)(2)(A)(i);
Fines received by the State Board of Election Commissioners, § 7-4-120(h)(4); and
Paid fantasy sports games tax, § 23-116-104.

History. Acts 1973, No. 808, § 7; 1975, No. 863, § 6; 1979, No. 1027, §§ 1, 10; 1983, No. 222, §§ 1, 2; 1985, No. 65, §§ 1, 2; 1985, No. 479, § 14; 1985, No. 888, § 16; A.S.A. 1947, § 13-503.6; Acts 1987, No. 792, §§ 1, 6; 1989, No. 551, § 1; 1993, No. 1072, §§ 1, 2, 16; 1993, No. 1073, § 28; 1995, No. 270, §§ 1, 12; 1997, No. 298, §§ 1, 12; 1999, No. 282, §§ 1, 2; 1999, No. 1152, § 3; 2001, No. 229, §§ 1-4; 2003, No. 28, §§ 1-6; 2005, No. 20, § 1; 2007, No. 182, §§ 17-19; 2007, No. 407, § 1; 2008 (1st Ex. Sess.), No. 4, §§ 2, 3; 2008 (1st Ex. Sess.), No. 5, §§ 2, 3; 2009, No. 484, § 1; 2009, No. 1464, § 1; 2011, No. 1008, § 1; 2011, No. 1058, § 1; 2013, No. 747, § 1; 2013, No. 1393, § 2; 2013, No. 1411, §§ 5, 6; 2015, No. 299, § 26; 2015, No. 536, § 1; 2015, No. 705, § 1; 2015, No. 1046, § 3; 2015, No. 1207, § 1; 2016 (3rd Ex. Sess.), No. 1, § 11; 2017, No. 508, § 8; 2017, No. 707, § 53; 2017, No. 977, § 3; 2017, No. 1051, §§ 1, 2; 2017, No. 1075, § 1; 2017, No. 1119, § 1; 2019, No. 705, § 3.

A.C.R.C. Notes. Identical Acts 2008 (1st Ex. Sess.), Nos. 4 and 5, § 1, provided: “Legislative findings and intent.

“(a) The General Assembly has determined that the severance tax rate on natural gas should be increased and that there should be different rates of tax for different categories of natural gas.

“(b) Amendment 19 of the Arkansas Constitution required this act to be passed by at least three-fourths of the members of the Senate and at least three-fourths of the members of the House of Representatives.

“(c) In order to implement the increase in the severance tax rate, the General Assembly has identified the following four categories of natural gas, each as defined in Arkansas Code § 26-58-101:

“(1) High-cost gas;

“(2) Marginal gas;

“(3) New discovery gas; and

“(4) All natural gas that is not defined as high-cost gas, marginal gas, or new discovery gas.

“(d) To increase the severance tax rate, the General Assembly used the method of levying a specific tax rate on each category so that any future legislative enactment that would have the effect of increasing the rate of severance tax on any of those categories of natural gas as defined by § 26-58-101 will also be subject to the three-fourths vote requirement of Amendment 19 of the Arkansas Constitution.”

Acts 2016 (3rd Ex. Sess.), No. 1, § 1, provided: “This act shall be known and may be cited as the ‘Arkansas Highway Improvement Plan of 2016’.”

Amendments. The 2011 amendment by No. 1008 added (65) through (67).

The 2011 amendment by No. 1058 added (68).

The 2013 amendment by No. 747 added “The first three dollars ($3.00) of each unregistered” to the beginning of former (54) and substituted “fee” for “fees”.

The 2013 amendment by No. 1393 added (69) and (70).

The 2013 amendment by No. 1411 substituted “26-52-319(a)(1)(A)” for “26-52-319(a)(3)(A)” in (59); and substituted “26-53-148(a)(1)(A)” for “26-53-148(a)(3)(A)” in (61).

The 2015 amendment by No. 299 substituted “That portion of the reinstatement fees under § 5-65-119(a)(2)(C), and that portion of the reinstatement fees under” for “That portion of DWI operator's license reinstatement fees, § 5-65-119(a)(3) and that portion of ‘Underage DUI Law’ driver's license reinstatement fees” in (39).

The 2015 amendment by No. 536 substituted “The first six hundred seventy-five thousand dollars ($675,000) of the five” for “Five” at the beginning of (57).

The 2015 amendment by No. 705 substituted “two dollars and fifty cents ($2.50)” for “three dollars ($3.00)” in (54).

The 2015 amendment by No. 1046 added (71) (now (72)).

The 2015 amendment by No. 1207 added (71).

The 2016 (3rd Ex. Sess.) amendment repealed (68).

The 2017 amendment by No. 508, in (22)(B), deleted “3-4-215 [repealed]”, “3-8-302 [repealed]”, “3-8-304 [repealed]”, and “3-8-311 [repealed]”, and added “but not including fees for grocery store wine permits authorized under § 3-5-1802”.

The 2017 amendment by No. 707 substituted “Department of Transportation” for “State Highway and Transportation Department” in (37).

The 2017 amendment by No. 977 substituted “2019” for “2017” in (72).

The 2017 amendment by No. 1051 substituted “one (1) fiscal year budget” for “three (3) fiscal year budgets” in (15); and added (73).

The 2017 amendment by No. 1075 added (74).

The 2017 amendment by No. 1119 substituted “three dollars ($3.00)” for “two dollars and fifty cents ($2.50)” in (54).

The 2019 amendment substituted “July 1, 2021” for “July 1, 2019” in (72).

Effective Dates. Acts 2016 (3rd Ex. Sess.), No. 1, § 22: July 1, 2017.

Acts 2017, No. 508, § 13(a): Oct. 1, 2017. Effective date clause provided: “Sections 1, 2, 3, 6, 7, 8, 9, 10, 11, and 12 of this act become effective on October 1, 2017.”

Acts 2017, No. 1119, § 4: Nov. 13, 2017.

Subchapter 3 — Special Revenues

Acts 1983, No. 801, § 18: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly that the amendments to the Revenue Stabilization law are essential to the continued operation of State government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1983.”

Acts 1991, No. 76, § 8: July 1, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly, that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 1991, have been made by the Seventy-Eighth General Assembly. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1991.”

Acts 1991, No. 765, § 22: Mar. 26, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that cities and counties are faced with financial crises with reference to having sufficient tax resources to fund capital improvements of a public nature and to provide services to their inhabitants; that under current law the counties are restricted to a one percent (1%) levy and the cities are restricted to a one-half of one percent (0.05%) or one percent (1%) levy; that the ability to levy a sales and use tax computed on one-fourth of one percent, one-half of one percent, three-fourths of one percent, or one percent (1%) would be a feasible alternative for some cities and counties in financial crisis; and that such financial crises constitute such an emergency that the immediate passage of this act is necessary in order to provide financial relief to the cities and counties. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1995, No. 369, § 7: Feb. 20, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that Amendment Number 35 to the Arkansas Constitution requires the General Assembly to establish the maximum annual resident hunting and fishing license fees that may be charged by the Arkansas Game and Fish Commission; that Amendment 35 to the Arkansas Constitution requires all fees, monies, or funds arising from all sources by the operation and transaction of the Arkansas Game and Fish Commission to be deposited in the Game Protection Fund in the State Treasury; and that the immediate passage of this Act is necessary to enable the Arkansas Game and Fish Commission to efficiently operate the game and fish program. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 974: Jan. 1, 1998.

Acts 1997, No. 1071, § 7: Apr. 3, 1997. Emergency clause provided: “It is found and determined by the General Assembly that the current funding provisions of the State Police Retirement System are inadequate and that the benefit provisions of the system must be modified to restore the financial security of the system; that this act accomplishes those purposes; that this act should go into effect as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 229, § 16: July 1, 2001. Emergency clause provided: “It is hereby found and determined by the Eighty-third General Assembly that various laws have been enacted since the pasage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect that various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 2001 have been made by the Eighty-third General Assembly. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2007, No. 182, § 32: Jan. 1, 2008.

Acts 2008 (1st Ex. Sess.), No. 4, §§ 4 and 5: Jan. 1, 2009, by their own terms.

Acts 2008 (1st Ex. Sess.), No. 5, §§ 4 and 5: Jan. 1, 2009, by their own terms.

Acts 2009, No. 610, § 11: July 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2009 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2009 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2009.”

Acts 2011, No. 173, § 3: July 1, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act provides for the creation of a surcharge upon commercial mobile radio service providers per subject telephone number per month to support the Telecommunications Equipment Fund, and that the optimal time to implement this surcharge is at the beginning of the state's fiscal year. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2011.”

Acts 2011, No. 1058, § 6: July 1, 2012.

Identical Acts 2014, Nos. 290 and 299, § 15: July 1, 2014.

Acts 2015, No. 393, § 96: Sept. 1, 2015.

Acts 2015, No. 856, § 10: Mar. 31, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that certain driver license fees are needed to provide vital services to the Department of Arkansas State Police; that this act will allow the use of those fees; and that this act is immediately necessary to provide a source of revenues to the department. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 862, § 4: Mar. 31, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that certain provisions of the tax credit allocations for waste reduction, reuse, or recycling equipment should be modified to ensure that the expansion of major projects utilizing the tax credit does not endanger the ability of the state to provide essential services or to provide the full value of the tax credits earned by the applicable businesses; that further investment for the tax credit allocations for waste reduction, reuse, or recycling equipment will increase the number of applicable tax credits in existence; and that the state must maintain a balanced budget necessary to deliver essential services to its citizens. Without this change, the ability of the State of Arkansas to ensure the delivery of essential services to citizens will be imperiled and could endanger the economic health of the state. Therefore, an emergency is declared to exist and this act being necessary for the reservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 1185, § 9: Jan. 1, 2016.

Acts 2015, No. 1235, § 34: Emergency clause failed to pass. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the state must be able to plan and give effective notice for the new comprehensive permits created by this act; that it is essential to the operation of Arkansas Tobacco Control and the tobacco, vapor product, and alternative nicotine product industry that this act be effective on the renewal date for permits issued by Arkansas Tobacco Control to ensure proper funding for the enforcement of the new regulations and requirements of this act; that a delay in the effectiveness of this act after the renewal date of permits and regulations issued by Arkansas Tobacco Control may cause irreparable harm upon the proper administration and provision of essential governmental programs; and that this act is necessary to ensure that the industry and the citizens of Arkansas are provided guidance regarding permits for vapor products and alternative nicotine products. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on May 1, 2015.”

Acts 2016 (3rd Ex. Sess.), No. 1, § 22: July 1, 2017. Effective date clause provided: “Sections 9-12, 14, 16 and 17 of this act are effective on and after July 1, 2017.”

Acts 2017, No. 508, § 13(a): Oct. 1, 2017. Effective date clause provided: “Sections 1, 2, 3, 6, 7, 8, 9, 10, 11, and 12 of this act become effective on October 1, 2017.”

Acts 2017, No. 532, § 10: Mar. 20, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the present system for registering commercial motor vehicles is inconvenient, expensive, unduly time-consuming, and lacks the software capabilities offered by comparable systems in other states to facilitate the registration process electronically. In order to make the Arkansas Motor Carrier System operational on or before January 1, 2018 as required by this act, the Department of Finance and Administration must be authorized to immediately commence planning, programming, and promulgating the necessary rules, regulations, and procedures pertaining to the necessary system enhancements, These enhancements are estimated to take more than six (6) months to complete. Moreover, due to the lack of clarity in current law, commercial motor carriers currently face potential unwarranted liability for acts or omissions involving license plates and registrations. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 1046, § 5: Apr. 6, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that certain provisions of the tax credit allocations for waste reduction, reuse, or recycling equipment should be modified to ensure that the expansion of major projects utilizing the tax credit does not endanger the ability of the state to provide essential services or to provide the full value of the tax credits earned by the applicable businesses; that further investment for the tax credit allocations for waste reduction, reuse, or recycling equipment will increase the number of applicable tax credits in existence; and that the state must maintain a balanced budget necessary to deliver essential services to its citizens; and that this act is immediately necessary because, without this change, the ability of the State of Arkansas to ensure the delivery of essential services to citizens will be imperiled and could endanger the economic health of the state. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 416, § 8: Oct. 1, 2019. Effective date clause provided: “Sections 4-7 of this act are effective on the first day of the calendar quarter following the effective date of this act”.

19-6-301. Special revenues enumerated.

The special revenues of the state, its agencies, departments, institutions, commissions, and boards, as provided by law and as required by law to be deposited into the State Treasury, shall consist of the following, as described by their commonly known titles:

The remainder of motor vehicle operator and chauffeur licenses and penalties, as confirmed and enacted by § 12-8-301 et seq., known as the “Division of Arkansas State Police Communications Equipment Leasing Act”, which are not required for debt service requirements that are authorized to be deposited into the State Treasury under §§ 12-8-307 — 12-8-310;
Motor vehicle registration and license fees, as enacted by Acts 1929, No. 65, §§ 26-55-101, 27-14-305, 27-14-601, 27-15-1501 [repealed], 27-64-104, 27-65-101, 27-65-107, 27-65-110, 27-65-112, 27-65-131 — 27-65-133, 27-67-101, 27-67-102, 27-67-201, 27-67-206 — 27-67-208, 27-67-211, 27-67-214, and 27-67-218, and all laws amendatory thereto, Acts 1965, No. 87, § 27-15-4001, Acts 1959, No. 122, § 27-15-2101 [repealed], Acts 1959, No. 189, § 27-15-2003 [repealed], and Acts 1969, No. 36, §§ 27-15-401 — 27-15-406 [repealed];
Distillate special motor fuels taxes and liquefied gas special motor fuels taxes and license and permit fees, as enacted by § 26-56-101 et seq., known as the “Special Motor Fuels Tax Law”, and all laws amendatory thereto, including the:
1. Eight and one-half cent (8.5¢) tax on distillate special motor fuels levied by § 26-56-201(a)(1)(A)(i) and the one cent (1¢) tax on distillate special motor fuels levied by § 26-56-201(a)(1)(A)(ii);
2. Seven and one-half cent (7.5¢) tax on liquefied gas special motor fuels levied by § 26-56-301(a);
3. Additional one cent (1¢) tax on distillate special motor fuels levied by § 26-56-201(a)(2);
4. Additional four cent (4¢) tax on liquefied gas special motor fuels and the additional two cent (2¢) tax on distillate special motor fuels levied by § 26-56-502(a);
5. Additional four cent (4¢) tax on distillate special motor fuels levied by § 26-56-201(d)(1);
6. Additional five cent (5¢) tax on liquefied gas special motor fuels and the additional two cent (2¢) tax on distillate special motor fuels levied by § 26-55-1201(a) and § 26-56-601; and
7. Additional liquefied gas special motor fuels user permit fees levied in § 26-55-1002;
Gasoline taxes, as enacted by the Motor Fuel Tax Law, § 26-55-201 et seq., including the:
1. Eight and one-half cent (8.5¢) tax on motor fuels levied by § 26-55-205(a);
2. Additional one cent (1¢) tax on motor fuels levied by § 26-55-205(b);
3. Additional four cent (4¢) tax on motor fuels levied by § 26-55-1002(a);
4. Additional five cent (5¢) tax on motor fuels levied by § 26-55-1201(a) and § 26-56-601; and
5. Additional total of three cents (3¢) tax on motor fuels levied by § 26-55-1006;
Fireworks licenses, as enacted by Acts 1961, No. 224, and all laws amendatory thereto, §§ 20-22-701 — 20-22-715;
Timberlands taxes, as enacted by Acts 1969, No. 354, known as the “Forest Fire Protection Tax Act of 1969”, and all laws amendatory thereto, § 26-61-101 et seq., state forests and nurseries management income not deposited into the State Forestry Trust Fund, §§ 15-31-115 and 19-5-927; law enforcement fine collections, §§ 15-31-113 and 15-31-114; and timber management plan fees, § 15-31-111;
Motor vehicle in-transit fees, as enacted by Acts 1935, No. 183, and all laws amendatory thereto, §§ 27-14-1801 — 27-14-1808;
Motor vehicle drive-out licenses, as enacted by Acts 1955, No. 111, §§ 27-14-2101 — 27-14-2105;
Motor vehicle certificates of title and duplicates, noting liens, transfer of registration and duplicate or substitute registration certificates and license plates, § 27-14-602, in excess of and after the amounts required to pay the principal and interest on loans and bonds have been made under the 1995 New Revenue Division Building Act, Acts 1995, No. 725;
Overweight and special permits for vehicles and overlength crane permits, as enacted by Acts 1955, No. 98, and all laws amendatory thereto, §§ 27-35-201 — 27-35-203, 27-35-206 — 27-35-208, and 27-35-210; and, overwidth or overlength mobile home permits, as enacted by Acts 1971, No. 264, and all laws amendatory thereto, § 27-35-211 and § 27-35-301 et seq.;
Motor vehicle title registration fees and the noting of liens fees, as enacted by Acts 1949, No. 142, known as the “Uniform Motor Vehicle Administration, Certificate of Title, and Antitheft Act”, and all laws amendatory thereto, § 27-14-101 et seq., § 27-14-201 et seq. [repealed], §§ 27-14-301 — 27-14-304, 27-14-306 — 27-14-308, 27-14-310, 27-14-312, 27-14-313, § 27-14-401 et seq., §§ 27-14-602, 27-14-604, 27-14-606, 27-14-701, 27-14-703, 27-14-705, 27-14-707, 27-14-708, 27-14-710 — 27-14-716, 27-14-718 — 27-14-722, 27-14-801 — 27-14-804, 27-14-901 — 27-14-904, 27-14-905 [repealed], 27-14-906 — 27-14-913, § 27-14-1701 et seq., § 27-14-2001 et seq., §§ 27-14-2203 [repealed], 27-14-2204, 27-14-2205, 27-14-2207, 27-14-2210, and 27-14-2211, which are in excess of the amount required by Acts 1961 (1st Ex. Sess.), No. 38, known as the “Arkansas Revenue Department Building Act”, to be cash funds pledged for the principal and interest payments of the Arkansas Revenue Department Building Commission revenue bonds;
Soybean assessments, as enacted by Acts 1971, No. 259, §§ 2-20-401, 2-20-403, 2-20-404, and 2-20-406 — 2-20-409;
Paying patients' fees, excluding those received from Medicare or Medicaid and the Social Security Administration, or from other sources which cause a decrease in the monthly vendor payment, for services provided by the appropriate Division of Aging, Adult, and Behavioral Health Services of the Department of Human Services and Division of Developmental Disabilities Services divisions and programs of the Department of Human Services;
Fees received by the Arkansas Crime Information Center for driver's records and other informational services, as enacted by Acts 1971, No. 286, and all laws amendatory thereto, §§ 12-12-201 — 12-12-203, 12-12-206, 12-12-207, 12-12-209, and 12-12-211 — 12-12-213;
Dog racing taxes derived from all revenues from the pari-mutuel tax of fifteen (15) additional days of dog races authorized by §§ 23-111-502 — 23-111-505, and all laws amendatory thereto;
Dog racing taxes derived from two-thirds (2/3) of the net proceeds of three (3) additional days of dog races at each meet, as authorized by § 23-111-503(a)(2), and all laws amendatory thereto;
Aviation sales and use taxes, as enacted by Acts 1967, No. 449, and all laws amendatory thereto, § 27-115-110;
Revenue received from saw timber and timber products severance taxes and twenty-five percent (25%) of all other severance taxes, with the exception of the severance tax collected on natural gas, as enacted by Acts 1947, No. 136, and all laws amendatory thereto, §§ 26-58-101 — 26-58-103, 26-58-106 — 26-58-111, 26-58-114 — 26-58-116, 26-58-118 — 26-58-120, 26-58-123, and 26-58-124;
Motor fuel tax forms, including books and decals, as enacted by Acts 1967, No. 376, § 26-55-713;
Motor boat registration fees, as enacted by Acts 1959, No. 453, and all laws amendatory thereto, §§ 27-101-101 — 27-101-109, § 27-101-201 et seq., §§ 27-101-301 — 27-101-306, and 27-101-308 — 27-101-312;
Three percent (3%) municipal taxes, which are further identified as the three percent (3%) collection cost of the one percent (1%) gross receipts tax levied by a city having a population of not more than thirty thousand (30,000) persons that has been designated as a model city, as authorized by Acts 1968 (1st Ex. Sess.), No. 4, and all laws amendatory thereto, §§ 26-75-501 — 26-75-507;
Drivers' search fees, as enacted by Acts 1977, No. 465, and all laws amendatory thereto, §§ 27-50-901 — 27-50-903, and 27-50-905 — 27-50-909, 27-50-910 [repealed], 27-50-911, Acts 1989, No. 241, §§ 27-23-118(b)(2) and 27-23-118(c)(2);
[Repealed.]
Private career education school licenses and fees, as enacted by Acts 1989, No. 906, and all laws amendatory thereto, §§ 6-51-601 — 6-51-617;
Elevator safety board fees, as enacted by Acts 1963, No. 189, and all laws amendatory thereto, §§ 20-24-101 — 20-24-117, and 20-24-119;
Net proceeds derived from the sale of pine grown on state highway rights-of-way or other highway-related areas, as enacted by Acts 1983, No. 696, § 22-5-101;
Those insurance premium taxes set aside for firemen's and police officers' pension and relief and related purposes, §§ 24-11-301 and 24-11-809, with the exception of those premium taxes set aside for transfer to the State Police Retirement Fund under § 24-6-209(b);
Bank department charter fees, assessments, and examination fees, as enacted by Acts 1913, No. 113, and all laws amendatory thereto, §§ 16-110-406, 23-30-101 [repealed], 23-31-201 — 23-31-205 [repealed], 23-31-212 — 23-31-215 [repealed], 23-32-102 [repealed], former 23-32-201 — 23-32-204, former 23-32-208, former 23-32-210, 23-32-216 [repealed], 23-32-222 [repealed], 23-32-224 [repealed], 23-32-225 [repealed], 23-32-227 [repealed], 23-32-228 [repealed], 23-32-701 [repealed], 23-32-703 — 23-32-705 [repealed], 23-32-710 [repealed], 23-32-713 [repealed], 23-32-716 [repealed], 23-32-803 [repealed], 23-32-905 [repealed], 23-32-1001 [repealed], 23-32-1002 [repealed], 23-32-1006 [repealed], 23-32-1008 [repealed], 23-32-1101 — 23-32-1103 [repealed], 23-32-1106 [repealed], 23-32-1108 — 23-32-1111 [repealed], 23-33-101 — 23-33-103 [repealed], 23-33-105 [repealed], 23-33-106 [repealed], 23-33-201 — 23-33-207 [repealed], 23-33-212 [repealed], 23-33-213 [repealed], 23-33-301 — 23-33-308 [repealed], 23-33-310 [repealed], 23-34-101 [repealed], 23-34-103 [repealed], 23-34-105 [repealed], 23-34-106 [repealed], 23-34-108 [repealed], 23-34-110 [repealed], and 23-34-111 [repealed];
Industrial loan institutions assessments and examination fees, as enacted by Acts 1941, No. 111, §§ 23-36-101 — 23-36-117;
Various asset forfeiture proceeds, § 5-64-505(f)(5)(B), § 5-64-505(h)(1)(A), and § 5-64-505(i);
Fees recovered from ex-offenders on probation or parole from a facility of the Division of Community Correction, as enacted by Acts 1981, No. 70, and all laws amendatory thereto, § 16-93-104;
Liquefied petroleum gas board filing fees, inspection fees, registration fees, permits, and certificates of competency, as enacted by Acts 1965, No. 31, known as the “Liquefied Petroleum Gas Board Act”, and all laws amendatory thereto, §§ 15-75-101 — 15-75-108, 15-75-110, 15-75-201 — 15-75-204, 15-75-205 [repealed], 15-75-206 — 15-75-209, 15-75-301 — 15-75-321, and 15-75-401 — 15-75-405;
Brand registration, sales of state brand books, and fees for transfer of brand titles, as enacted by Acts 1959, No. 179, §§ 2-34-201, 2-34-202 [repealed], 2-34-203, 2-34-204 [repealed], 2-34-205 — 2-34-212;
Arkansas Livestock and Poultry Commission fees and revenues as enacted by Acts 1981, No. 867, and all laws amendatory thereto, § 2-33-113(a), consisting of:
1. Income from the livestock spraying program, as enacted by Acts 1969, No. 360, and all laws amendatory thereto, §§ 2-33-207 [repealed] and 2-33-208 [repealed];
2. Poultry and egg grading fees as enacted by Acts 1969, No. 220, known as the “Arkansas Egg Marketing Act of 1969”, and all laws amendatory thereto, § 20-58-201 et seq.;
3. Acts 1965, No. 49, and all laws amendatory thereto, §§ 2-33-301 — 2-33-305, and 2-33-307;
4. Acts 1975 (Extended Sess., 1976), No. 1216, and all laws amendatory thereto, §§ 2-33-306 and 2-33-307;
5. Carcass data information and feeder pig and feeder calf grading fees, as enacted by Acts 1973, No. 454, and all laws amendatory thereto, §§ 2-33-201 — 2-33-206 [repealed];
6. Livestock and poultry diagnostic service fees, § 2-33-111;
7. State, county, and district paid admission surcharges, § 2-33-115(a)(3); and
8. Small animal testing fees, as enacted by Acts 1981, No. 770, and all laws amendatory thereto, § 2-33-112 [repealed];
Arkansas Rice Research and Promotion Board assessments, § 2-20-507;
Boiler inspection fees, certificates of competency, permits, examination fees, and licenses, as enacted by Acts 1961, No. 494, and all laws amendatory thereto, §§ 20-23-101 — 20-23-105, 20-23-201 [repealed], 20-23-202, 20-23-203, 20-23-301 — 20-23-313, and 20-23-401 — 20-23-405;
Motor vehicle registration reinstatement fees, § 27-22-104, and motor vehicle insurance reporting penalties, § 27-22-107;
Special motor-driven cycle and bicycle operators' licenses and certificates, as enacted by §§ 27-20-101 — 27-20-116;
Polygraph examiner's examination and license fees, as enacted by Acts 1967, No. 413, known as the “Polygraph Examiners Licensing Act”, §§ 17-39-101 — 17-39-107, 17-39-108 [repealed], 17-39-109, and 17-39-201 — 17-39-214;
Private investigator's application fees, agency fees, and license fees and security guard fines and fees, as enacted by Acts 1977, No. 429, known as the “Private Security Agency, Private Investigator, and School Security Licensing and Credentialing Act”, and all laws amendatory thereto, §§ 17-40-101 — 17-40-104, 17-40-204, 17-40-207 — 17-40-209, 17-40-301, 17-40-302, 17-40-306 — 17-40-317, 17-40-329 — 17-40-332, 17-40-337, 17-40-339, 17-40-340, 17-40-342 — 17-40-344, and 17-40-349 — 17-40-355;
Cosmetology board examination, registration, license, duplicate license, reinstatements, reciprocity, renewal and delinquent licenses and fees, as enacted by Acts 1955, No. 358, known as the “Cosmetology Act”, and all laws amendatory thereto, §§ 17-26-101 — 17-26-105, 17-26-201, 17-26-202 [repealed], 17-26-203 [repealed], 17-26-204 — 17-26-210, 17-26-301 [repealed], 17-26-302 — 17-26-304, 17-26-305 [repealed], 17-26-306, 17-26-307, 17-26-308 [repealed], 17-26-309 — 17-26-312, 17-26-313 [repealed], 17-26-314 — 17-26-319, 17-26-320 [repealed], 17-26-321, and 17-26-401 — 17-26-415, 17-26-416 [repealed], 17-26-417, and 17-26-418;
That portion not declared to be “pledged revenues” for debt service on any certificates of indebtedness issued under Acts 1983, No. 458, §§ 22-3-1201 — 22-3-1214, 22-3-1215 [repealed], and 22-3-1216 — 22-3-1219, and that portion not declared cash funds paid to the Arkansas Development Finance Authority for deposit into the Correction Facilities Privatization Account of the Correction Facilities Construction Fund, § 22-3-1210(c)(1)(A), of the Division of Correction's income from its farm operations, including sale of farm products and livestock, rental of farm properties, and payments from agencies of the state or federal government in connection with the farm operations, as enacted by Acts 1968 (1st Ex. Sess.), No. 50, and all laws amendatory thereto, §§ 12-27-101 — 12-27-105, 12-27-107 — 12-27-109, 12-27-112, 12-27-113, 12-27-115, 12-27-118, 12-27-120, 12-28-102, 12-29-101, former 12-29-102, 12-29-103, 12-29-104, 12-29-107, 12-29-112, 12-29-401, 12-30-301, 12-30-306, 12-30-401, 12-30-403, 12-30-405 — 12-30-407, 12-30-408 [repealed], 16-93-101, 16-93-102, former 16-93-201, 16-93-202 — 16-93-204, 16-93-601, 16-93-610, 16-93-701, 16-93-705, and 25-8-106;
That portion not declared to be “pledged revenues” for debt service on any certificates of indebtedness issued under Acts 1983, No. 458, §§ 22-3-1201 — 22-3-1214, 22-3-1215 [repealed], 22-3-1216 — 22-3-1219, of the Division of Correction's sales, or dispositions of articles and products manufactured or produced by prison labor, as enacted by Acts 1967, No. 473, known as the “Prison-Made Goods Act of 1967”, § 12-30-201 et seq.;
[Repealed.]
Interest on investments held in the University of Arkansas Endowment Fund, as enacted by Acts 1945, No. 249 [repealed], and all laws amendatory thereto;
Pest control service work examination fees, operators' licenses, and agents' and solicitors' registration fees, as enacted by Acts 1975, No. 488, known as the “Arkansas Pest Control Law”, and all laws amendatory thereto, §§ 17-37-101 — 17-37-105, 17-37-106 [repealed], 17-37-107, 17-37-201, and 17-37-203 — 17-37-221;
Liming material registration fees, and vendor's licenses and inspection fees, as enacted by Acts 1969, No. 353, known as the “Arkansas Agricultural Liming Materials Act”, §§ 2-19-301 — 2-19-308;
Fertilizer registration fees for manufacturers, jobbers, and manipulators of commercial fertilizers and fertilizer inspection fees, as enacted by Acts 1951, No. 106, and all laws amendatory thereto, §§ 2-19-201 — 2-19-210;
Nursery dealers, agents, and salesperson’s license fees, as enacted by Acts 1919, No. 683, known as the “Arkansas Nursery Fraud Act of 1919”, and all laws amendatory thereto, § 2-21-101 et seq.;
Arkansas Feed Law of 1997 inspection fees, and registration and license fees, § 2-37-101 et seq.;
Pesticide registration fees, as enacted by Acts 1975, No. 410, known as the “Arkansas Pesticide Control Act”, and all laws amendatory thereto, § 2-16-401 et seq.;
Pesticide commercial, noncommercial, private and pilot applicators' license fees, pesticide dealers' license fees, and inspection and permit fees, as enacted by Acts 1975, No. 389, known as the “Arkansas Pesticide Use and Application Act”, and all laws amendatory thereto, § 20-20-201 et seq.;
Fees for seed inspection and certificate of inspection tags, as enacted by Acts 1931, No. 73, and all laws amendatory thereto, §§ 2-16-206 and 2-18-101 — 2-18-108;
Agricultural products inspection fees and inspectors' licenses, as enacted by Acts 1925, No. 218, known as the “Agricultural Products Grading Act of 1925”, § 2-20-101 et seq.;
Inspection, treatment, and certification fees for insect pests and diseases, plants, planting seeds, noxious weeds, or other substance, as enacted by Acts 1917, No. 414, known as the “Arkansas Plant Act of 1917”, § 2-16-201 et seq., and Acts 1921, No. 519, known as the “Arkansas Emergency Plant Act of 1921”, § 2-16-301 et seq.;
Annual license fees, application investigation fees, and fines from precious stones and precious metals buyers, as enacted by Acts 1981, No. 87, and all laws amendatory thereto, §§ 17-23-101 — 17-23-104, 17-23-201 — 17-23-207, and 17-23-208 [repealed];
[Repealed.]
Individual sewage disposal systems fees, as enacted by Acts 1977, No. 402, known as the “Arkansas Sewage Disposal Systems Act”, and all laws amendatory thereto, § 14-236-101 et seq.;
Hazardous waste transporter, generator, and management facility fees, as enacted by Acts 1980 (1st Ex. Sess.), No. 5 [superseded], and all laws amendatory thereto, and § 8-7-226;
Nuclear planning and response fees collected from each utility in the state which operates one (1) or more nuclear generating facilities, as enacted by Acts 1980 (1st Ex. Sess.), No. 67, and all laws amendatory thereto, §§ 20-21-401 — 20-21-405;
Brine taxes imposed upon all brine produced in the state for the purpose of bromine extraction, as enacted by Acts 1979, No. 759, and all laws amendatory thereto, § 26-58-301;
Oil and Gas Commission fees, including oil assessments, gas assessments in excess of four and one-half (4½) mills each fiscal year until July 1, 2021, under § 15-71-107(b)(2)(A)(i), drilling permits, permits for plugging wells, and permits for each salt water well, all as enacted by Acts 1939, No. 105, and all laws amendatory thereto, §§ 15-71-101 — 15-71-112, 15-72-101 — 15-72-110, 15-72-205, 15-72-212, 15-72-216, 15-72-301 — 15-72-324, and 15-72-401 — 15-72-407, and the portion of taxes levied on salt water used in bromine production, as enacted by Acts 1947, No. 136, and all laws amendatory thereto, § 26-58-111(9);
Arkansas State Game and Fish Commission licenses, fees, tags, permits, and fines, all as authorized by Arkansas Constitution, Amendment 35, annual resident hunting and fishing licenses, §§ 15-42-104 and 15-42-110; all interest earned on Arkansas State Game and Fish Commission funds, § 15-41-110; all fees, compensation, or royalties for mineral leases or permits for lands held in the name of the Arkansas State Game and Fish Commission, § 22-5-809(c)(3); all assessed fines as set out in § 15-41-209; and forty-five percent (45%) of the additional one-eighth of one percent (1/8 of 1%) sales and use tax authorized by Arkansas Constitution, Amendment 75;
Plumbers' licenses, examination fees, permits, and registration fees, as enacted by Acts 1951, No. 200, and all laws amendatory thereto, §§ 17-38-101 — 17-38-103, 17-38-201 — 17-38-205, and 17-38-301 — 17-38-310;
Fees for medical identification tags and bracelets, as enacted by Acts 1965, No. 433, § 20-7-119;
[Repealed.]
Seventy-five percent (75%) of child passenger protection act fines, as enacted by Acts 1983, No. 749, known as the “Child Passenger Protection Act”, § 27-34-101 et seq.;
Dairy products licenses, permits, and fees, as enacted by Acts 1941, No. 114, and all laws amendatory thereto, §§ 20-59-201 — 20-59-247;
Department of Health vital statistics fees and other specified fees, as set out in § 20-7-123;
Arkansas Public Service Commission annual assessment fees, as enacted by Acts 1945, No. 40, §§ 23-2-101, 23-2-103 — 23-2-105, 23-2-108, 23-2-109, 23-2-403, 23-2-406, 23-2-407, 23-2-409, 23-2-413, 23-2-418, 23-3-109, and 23-3-110, and Acts 1935, No. 324, §§ 14-200-101, 14-200-103 — 14-200-108, 14-200-111, 23-1-101 — 23-1-112, 23-2-301, 23-2-303 — 23-2-308, 23-2-310, 23-2-312, 23-2-314 — 23-2-316, 23-2-402, 23-2-404 [repealed], 23-2-405, 23-2-408, 23-2-410 — 23-2-412, 23-2-414 — 23-2-421, 23-2-426, 23-2-428, 23-2-429, 23-3-101 — 23-3-107, 23-3-112 — 23-3-115, 23-3-118, 23-3-119, 23-3-201 — 23-3-206, 23-4-102, 23-4-103, 23-4-105 — 23-4-109, 23-4-205, 23-4-402 — 23-4-405, 23-4-407 — 23-4-418, 23-4-620 — 23-4-634, and 23-18-101, and all laws amendatory thereto;
Arkansas Public Service Commission miscellaneous fees, as enacted by Acts 1935, No. 324, §§ 14-200-101, 14-200-103 — 14-200-108, 14-200-111, 23-1-101 — 23-1-112, 23-2-301, 23-2-303 — 23-2-308, 23-2-310, 23-2-312, 23-2-314 — 23-2-316, 23-2-402, 23-2-404 [repealed], 23-2-405, 23-2-408, 23-2-410 — 23-2-412, 23-2-414 — 23-2-421, 23-2-426, 23-2-428, 23-2-429, 23-3-101 — 23-3-107, 23-3-112 — 23-3-115, 23-3-118, 23-3-119, 23-3-201 — 23-3-206, 23-4-102, 23-4-103, 23-4-105 — 23-4-109, 23-4-205, 23-4-402 — 23-4-405, 23-4-407 — 23-4-418, 23-4-620 — 23-4-634, and 23-18-101, and Acts 1949, No. 262, §§ 23-3-109 and 23-16-101 — 23-16-106, and all laws amendatory thereto;
Board of electrical examiners examination, license, and penalty fees, as enacted by Acts 1979, No. 870, § 17-28-101 et seq., § 17-28-201 et seq., and § 17-28-301 et seq., and Acts 1981, No. 132, and all laws amendatory thereto;
Milk inspection fees, as enacted by Acts 1981, No. 587, and all laws amendatory thereto, §§ 20-59-401 — 20-59-406, 20-59-407 [repealed];
Proceeds from sales of tax-forfeited lands, as enacted by Acts 1929, No. 129, and all laws amendatory thereto, § 26-37-210;
Redemption of tax-forfeited lands and quitclaim deed fees, as enacted by Acts 1891, No. 151, and all laws amendatory thereto, § 26-37-310 et seq.;
1. Commissioner of State Lands fees, including patent fees, as enacted by Acts 1883, No. 117, § 21-6-203;
2. Deed fees, as enacted by Acts 1931, No. 245, § 22-5-408;
3. Donation deed fees, as enacted by Acts 1883, No. 117, § 21-6-203;
4. Field notes and plats fees, as enacted by Acts 1881, No. 12, §§ 22-5-701 and 22-5-702;
5. Certificate of donation to forfeited land fees, as enacted by Acts 1883, No. 117, § 21-6-203; and
6. Those fees as specified in Acts 1983, No. 886, § 21-6-203;
Proceeds from sales of islands, as enacted by Acts 1971, No. 148, §§ 22-6-201 and 22-6-203;
Insurance filing fees, renewal fees, amendment fees, reinstatement fees, agents' licenses, brokers' licenses, solicitors' licenses, examination fees, adjusters' licenses, copies of documents and certificates of the commissioner, all as enacted by Acts 1959, No. 148, known as the “Arkansas Insurance Code”, and all laws amendatory thereto, §§ 23-60-101 — 23-60-108, 23-60-110, 23-61-101 — 23-61-112, 23-61-201 — 23-61-206, 23-61-301 — 23-61-307, 23-61-401, 23-61-402, 23-62-101 — 23-62-108, 23-62-201, 23-62-202, former 23-62-203, 23-62-204, 23-62-205, 23-63-101 [repealed], 23-63-102 — 23-63-104, 23-63-201 — 23-63-216, 23-63-301, 23-63-302, 23-63-401 — 23-63-404 [repealed], 23-63-601 — 23-63-604, 23-63-605 — 23-63-609 [repealed], 23-63-610 — 23-63-613, 23-63-701, 23-63-801 — 23-63-833, 23-63-835, 23-63-836 [as added by Acts 1983, No. 522], 23-63-837 [as added by Acts 1983, No. 522], 23-63-838 [repealed], 23-63-901 — 23-63-912, 23-63-1001 — 23-63-1004, 23-64-101 — 23-64-103, 23-64-201 — 23-64-205, 23-64-206 [repealed], 23-64-207, 23-64-208 [repealed], 23-64-209, 23-64-210, 23-64-211 — 23-64-213 [repealed], 23-64-214 — 23-64-221, 23-64-222 [repealed], 23-64-223 — 23-64-227, 23-65-101 — 23-65-104, 23-65-201 — 23-65-205, 23-65-301 — 23-65-319, 23-66-201 — 23-66-213, 23-66-214 [repealed], 23-66-301 — 23-66-306, 23-66-308 — 23-66-311, 23-66-313, 23-66-314, 23-68-101 — 23-68-113, 23-68-115 — 23-68-132, 23-69-101 — 23-69-103, 23-69-105 — 23-69-141, 23-69-143, 23-69-149 — 23-69-156, 23-70-101 — 23-70-124, 23-71-101 — 23-71-116, 23-72-101 — 23-72-122, 23-73-101 — 23-73-107, 23-73-108 [repealed], 23-73-109 [repealed], 23-73-110 — 23-73-116, former 23-74-101 — 23-74-105, 23-74-106 — 23-74-141 [repealed], 23-75-101 — 23-75-116, 23-75-117 [repealed], 23-75-118 — 23-75-120, 23-79-101 — 23-79-106, 23-79-109 — 23-79-128, 23-79-131 — 23-79-134, 23-79-202 — 23-79-210, 23-81-101 — 23-81-117, 23-81-120 — 23-81-136, 23-81-201 — 23-81-213, 23-82-101 — 23-82-118, 23-84-101 — 23-84-111, 23-85-101 — 23-85-131, 23-86-101 — 23-86-104, 23-86-106 — 23-86-109, 23-86-112, 23-87-101 — 23-87-119, 23-88-101, 23-89-101, 23-89-102, 26-57-601 — 26-57-605, 26-57-607, 26-57-608, and 26-57-610;
Trademark and service-mark registration and assignment fees, as enacted by Acts 1967, No. 81, §§ 4-71-101 — 4-71-114 [repealed];
Milk laboratory antibiotic drug testing program fees and fines, § 20-59-701 et seq.;
Commercial vehicle temporary registration tag fees, as enacted by Acts 1975, (Extended Sess., 1976), No. 1179, and all laws amendatory thereto, § 27-14-1306;
Incorporation fees of railroads, street interurban, or other transportation companies, express companies, sleeping car companies, and private car companies, as enacted by Acts 1911, No. 87, § 23-11-102;
Filing and recording fees for a charter of educational institutions and for filing and recording a certificate for a change of name or provisions of a charter, as enacted by Acts 1911, No. 375, §§ 6-2-101 — 6-2-105, 6-2-106 [repealed], 6-2-107 — 6-2-109, 6-2-111, and 6-2-112;
Fees for filing articles of incorporation and issuing a certificate of incorporation of nonprofit corporations, filing an application of a foreign corporation for a certificate of authority to conduct affairs in this state and issuing a certificate of authority, and for other administrative functions, as enacted by Acts 1963, No. 176, known as the “Arkansas Nonprofit Corporation Act”, §§ 4-28-201 — 4-28-206 and 4-28-209 — 4-28-223;
Articles of incorporation filing fees, articles of amendment filing fees, fees for certified copies, other miscellaneous filing fees and certificates, and for receiving service of process on behalf of a corporation, both foreign and domestic, and all other fees, as enacted by Acts 1965, No. 576, known as the “Arkansas Business Corporation Act”, § 4-26-101 et seq.;
Fees collected as authorized under Acts 1961, No. 185, as amended, known as the “Uniform Commercial Code”, § 4-1-101 et seq.;
Fees collected for filing articles of incorporation for cooperative marketing associations, as enacted by Acts 1921, No. 116, as amended, known as the “Cooperative Marketing Act”, § 2-2-401 et seq.;
Fees collected from rural telephone cooperatives, as enacted by Acts 1951, No. 51, as amended, known as the “Rural Telecommunications Cooperative Act”, § 23-17-201 et seq.;
Annual license fees collected from rural electrification corporations, as enacted by Acts 1937, No. 342, as amended, known as the “Electric Cooperative Corporation Act”, § 23-18-301 et seq.;
Annual license fees collected from agricultural cooperative associations, as enacted by Acts 1939, No. 153, as amended, §§ 2-2-101 — 2-2-124;
That portion of driver's license special fees for duplicate and identification licenses, as enacted by Acts 1977, No. 311, and all laws amendatory thereto, § 27-16-801, § 27-16-805, and § 27-16-806(a) and (b);
Fees collected from mutual corporations, excepting insurance companies, having no capital stock for the filing of articles of incorporation, as enacted by Acts 1911, No. 87, § 4-26-1204;
Abstracter's examining licenses and fees, as enacted by Acts 1969, No. 109, as amended, known as the “Abstracters' Licensing Law of 1969”, § 17-11-101 et seq.;
Driver education fees, as enacted by Acts 1965, No. 531, §§ 27-18-101, 27-18-102, and 27-18-104 — 27-18-106;
Fees charged by the Veterinary Medical Examining Board for the various examinations, permits, licenses, and certificates issued by the board, as enacted by Acts 1975, No. 650, as amended, the Arkansas Veterinary Medical Practice Act, § 17-101-101 et seq.;
Receipts from timber severed from state-owned lands and rentals from trespassers on state lands, as enacted by Acts 1931, No. 125, §§ 22-5-602 and 22-5-603;
Annual license fees received from septic tank cleaning businesses, as enacted by Acts 1973, No. 71, §§ 17-45-101 — 17-45-105;
Environmental compatibility and public need certificate initial filing fee, as enacted by Acts 1973, No. 164, and all laws amendatory thereto, §§ 23-18-501 — 23-18-529;
Arkansas Motor Vehicle Commission license fees, as enacted by Acts 1975, No. 388, known as the “Arkansas Motor Vehicle Commission Act”, §§ 23-112-101 — 23-112-103, 23-112-105, 23-112-201 — 23-112-205, 23-112-301 — 23-112-311, 23-112-401 [repealed], 23-112-402 — 23-112-404, 23-112-405 [repealed], 23-112-406, and 23-112-501 — 23-112-509;
Arkansas Public Service Commission inspection fees as authorized by Acts 1971, No. 285, § 8, as amended, §§ 23-15-211, 23-15-214, and 23-15-216, for operating the Pipeline Safety Division;
The additional severance tax levied on oil produced in this state, as enacted by Acts 1977, No. 310, § 4, and all laws amendatory thereto, § 26-58-301;
Arkansas Manufactured Home Commission registration fees and salesperson's licenses, as enacted by Acts 1977, No. 419, known as the “Arkansas Manufactured Homes Standards Act”, and all laws amendatory thereto, § 20-25-101 et seq.;
[Repealed.]
All Division of Environmental Quality fees, unless otherwise provided by law, § 8-1-105, landfill operator license fees, § 8-6-909, and that portion of new tire waste tire fees, § 8-9-404;
Interstate fuel user marking fees, fines, and penalties, as enacted by Acts 1979, No. 434, §§ 26-55-708 and 26-55-709, and all laws amendatory thereto;
Motor vehicle title application fees, fines, and penalties, as enacted by Acts 1949, No. 142, § 33, as amended by Acts 1979, No. 439, and Acts 1981, No. 40, and all laws amendatory thereto, § 27-14-705;
Transfers from the Securities Reserve Fund of interest earned on the balance of the State Highway and Transportation Department Fund, including all internal accounts and funds thereof, as enacted by Acts 1979, No. 438, § 27-70-204, and all laws amendatory thereto;
Arkansas Board of Dispensing Opticians examination, license, and registration fees, as enacted by Acts 1981, No. 589, known as the “Ophthalmic Dispensing Act”, and all laws amendatory thereto, § 17-89-101 et seq.;
Arkansas State Board of Nursing examination and license fees, as enacted by Acts 1971, No. 432, and all laws amendatory thereto, §§ 17-87-101 — 17-87-105, 17-87-201 — 17-87-204, 17-87-301 — 17-87-309, and 17-87-401;
Social work examination and license fees, as enacted by Acts 1999, No. 1122, known as the “Social Work Licensing Act”, § 17-103-101 et seq., and all laws amendatory thereto;
Brine production assessments as enacted by Acts 1979, No. 937, § 3(d), as amended, § 15-76-306(d);
Amusement attraction permits, as enacted by Acts 1983, No. 837, known as the “Amusement Ride and Amusement Attraction Safety Insurance Act”, § 23-89-501 et seq.;
Arkansas Beef Council cattle assessments, § 2-35-401 et seq.;
[Repealed.]
Hazardous and toxic materials facility fees, § 12-84-106;
The additional severance tax levied on coal, as enacted by Acts 1983, No. 560, § 26-58-112;
The additional severance tax levied on stone and crushed stone, as enacted by Acts 1983, No. 761, § 26-58-113, and those portions of real estate transfer taxes, as enacted by Acts 1971, No. 275, and all laws amendatory thereto, §§ 26-60-105 and 26-60-112;
Five percent (5%) of the gross proceeds collected through set-off procedures from debtors who owe money to the State of Arkansas, as enacted by Acts 1983, No. 372, §§ 26-36-301 — 26-36-320;
The first designated portion of real estate transfer taxes for the continuing education of county and circuit clerks, as enacted by Acts 1971, No. 275, and all laws amendatory thereto, §§ 26-60-105 and 26-60-112;
That portion of driver's license reinstatement fees for the Office of Driver Services, § 5-65-119(a)(2)(B);
[Repealed.]
Agricultural consultant license fees, the Agricultural Consultants Licensing Act of 1987, § 17-13-101 et seq.;
[Repealed.]
Three percent (3%) of local sales and use taxes, which are further identified as the three percent (3%) collection cost of the local sales and use taxes, imposed by a city under § 26-75-217, a county under § 26-74-214, and a city or county under § 26-82-111;
[Repealed.]
Those portions of vaccination fees imposed at livestock markets, as enacted by Acts 1985, No. 150, and Acts 1985, No. 151, § 2-40-206, and that portion of all fines and penalties resulting from arrests made or citations issued by Arkansas Livestock and Poultry Commission enforcement officers, § 2-33-113(b) [repealed];
Arkansas Wheat Promotion Board assessments, as enacted by Acts 1985, No. 283, §§ 2-20-601 — 2-20-609;
[Repealed.]
Local exchange carriers access line surcharges and commercial mobile radio service provider telephone number surcharges, § 23-17-119;
Asbestos removal license fees, §§ 20-27-1001 — 20-27-1007;
Mammography accreditation fees, § 20-15-1005;
Abortion clinic license fees, § 20-9-302;
Child care facility license fees, § 20-78-223;
[Repealed.]
Dog racing taxes derived from the net proceeds of two (2) of the additional six (6) days of dog races, as authorized by § 23-111-504;
Emergency medical services fees, § 20-13-211;
Food service establishment and food salvager permits and fees, §§ 20-57-102, 20-57-201, 20-57-202 [repealed], 20-57-203, and 20-57-204;
Nursing home administrator license application and renewal fees, §§ 20-10-404 and 20-10-405;
[Repealed.]
Health maintenance organizations licenses and fees, § 23-76-127;
Ionizing radiation license and registration fees, § 20-21-217;
Public Water System Service Act fees, fines, and penalties, § 20-28-101 et seq.;
Swimming pools regulation fees and fines, §§ 20-30-102 and 20-30-106;
Department of Health public health laboratory fees, § 20-7-114;
Additional real estate transfer tax, § 26-60-105(b);
Two percent (2%) of gross receipts derived from the sale or rental on certain items related to tourism, § 26-63-402;
Breath testing instrument maintenance fees, § 20-7-128;
That portion of commercial driver license application fees, § 27-23-118(a)(1); driver search fees, §§ 27-23-118(b)(1) and 27-23-118(c)(1); and all fines, forfeitures, and penalties collected under § 27-23-118(d) of the Arkansas Uniform Commercial Driver License Act, § 27-23-101 et seq.;
That portion of commercial driver license application fees, § 27-23-118(a)(2);
Commercial driver license examination fees, § 27-23-110(d);
Arkansas Catfish Promotion Board assessments, § 2-9-107;
Turnpike project tolls, §§ 27-90-203 and 27-90-204;
Regulated substance storage tank license fees and that portion of annual registration fees, § 8-7-802(b); civil penalties collected under § 8-7-806; and that portion of costs collected under § 8-7-807;
Landfill disposal and transportation fees, § 8-6-606;
That portion of driver's license reinstatement fees for the Office of Alcohol Testing, § 5-65-119(a)(2)(A), § 5-65-304(d), and § 5-65-310(f);
Medicaid Fraud False Claims Act penalties, § 20-77-903;
Child care facility fines and penalties, § 20-78-219;
Fees for certifying blasters, § 20-27-1102;
Pseudorabies control and eradication program fees, § 2-40-1201;
HVACR Licensing Board fees, § 17-33-204;
[Repealed.]
That portion of landfill disposal fees collected when a private industry bears the expense of operating and maintaining the landfill solely for the disposal of wastes generated by the industry, § 8-6-607(b)(2);
Those additional corporate income taxes as specified in § 26-51-205(c)(2);
Those additional insurance premium taxes as specified in § 26-57-614 and the amount of insurance premium taxes transferred due to the provisions of §§ 24-11-301 and 24-11-809;
That portion of rim removal fees and import fees, § 8-9-404;
Commercial medical waste fees and fines, § 20-32-104;
Additional landfill disposal and transportation fees, § 8-6-1003 et seq.;
That portion of annual registration fees for above-ground storage tanks, § 8-7-802(b);
Fees received by the State Plant Board for licensing and regulation of public grain warehouses;
Elder or disabled persons enhanced civil penalties, § 4-88-202;
That portion of estate taxes collected in a calendar year that exceeds ten percent (10%) of the average annual estate taxes collected for a five-year period immediately preceding the calendar year or fifteen million dollars ($15,000,000), whichever is greater, § 26-59-122(a);
1. The additional fees assessed or imposed upon insurers, insurance agents, brokers, professional bail bond companies, and other licensees or registrants, § 23-61-711;
2. The additional professional bail bond company fees, § 17-19-111;
3. Health maintenance organization fees, § 23-76-127;
4. Professional employer organization biennial license fees, § 23-92-407; and
5. Employer service assurance organization affidavit fees, § 23-92-414;
That portion of securities agents initial or renewal registration filing fees, § 23-42-304(a)(2) and 23-42-304(a)(4);
That portion of securities registration statement filing fees, § 23-42-404(b)(1);
Background investigation fees, § 12-8-120;
Criminal history information record search fees for noncriminal justice purposes, § 12-12-1012;
Alcohol and drug abuse treatment program application fees and accreditation costs, § 20-64-906;
Marine Sanitation Program fees, § 27-101-408;
[Repealed.]
Arkansas Conservation Corps fee-for-service project fees, § 11-13-105(c) [repealed];
Arkansas Economic Development Incentive Act of 1993 transfers from general revenues for financial incentive plans, § 15-4-1607, § 26-51-506(c)(2)(B)(vii), and § 26-51-506(c)(3)(D)(vi);
Alternative fuels taxes, fees, penalties, and interest, as enacted in § 26-62-101 et seq., known as the “Alternative Fuels Tax Law”, and all laws amendatory thereto;
Dog racing taxes derived from seventy-five percent (75%) of the net proceeds of six (6) additional days of dog races during each twelve-month period, § 23-111-515;
Transporters of commercial medical waste vehicle inspection fees, § 20-32-105;
Motor vehicle accident report and records of traffic violations photostatic or written copies fees, § 27-53-210;
Motor vehicle liability insurance fines, § 27-22-103;
Rail and other carriers fees, § 23-16-105;
Life care provider application filing fees, § 23-93-206;
Additional marriage license fees, § 9-30-109;
Used motor vehicle dealer license fees, § 23-112-608, and that portion of used motor vehicle dealer fines, § 23-112-603(c)(1);
Criminal Investigation Division antifraud assessments and penalties, §§ 23-100-104 and 23-100-105;
Seventy-one percent (71%) of the additional cigarette and tobacco products tax, § 26-57-1101 et seq., as determined by § 26-57-1106;
One-eighth of one cent (1/8¢) gross receipts and compensating taxes, Arkansas Constitution, Amendment 75;
Waterworks operators fees, § 17-51-106;
Equine Infectious Anemia Control and Eradication Program fees, § 2-40-826;
Arkansas Corn and Grain Sorghum Promotion Board assessments, § 2-20-805;
State Convicted Offender DNA Data Base Act fines, § 12-12-1118;
Sex Offender Registration Act of 1997 fines, § 12-12-910;
[Repealed.]
Thirty percent (30%) of parking fines and fees, § 27-15-305(c);
Twenty-nine percent (29%) of the additional cigarette and tobacco products tax, § 26-57-1103;
[Repealed.]
Littering fines, § 8-6-404;
Fees from investigations and inspections of various boards' licensees, § 17-80-106;
Body piercing, branding, and tattooing license fees and penalties, § 20-27-1503;
[Repealed.]
[Repealed.]
[Repealed.]
[Repealed.]
Various Department of Health vital statistic fees, § 19-6-485(b); (211) [Repealed.]

(212) Revenue-generating technology system contract taxes and fees, § 19-11-1101(d);

(213) The first one hundred fifty thousand dollars ($150,000) of fines collected under § 23-42-209, § 23-42-213(b), and § 23-42-308;

(214) The transfer of up to thirty-one and six-tenths percent (31.6%) of amounts received in the Tobacco Settlement Program Fund, Acts 2002 (1st Ex. Sess.), No. 2, § 19-12-108;

(215) Arkansas Biological Agent Registry Act civil penalties, §§ 19-6-487 [repealed] and 20-36-104;

(216) Drug court program user fees, § 16-98-304, and specialty court program user fees, § 16-10-701;

(217) Additional marriage license fees, § 16-20-407(b)(2);

(218) That portion of an operator's driver's license reinstatement fees, § 5-65-119(a)(2)(D);

(219) That portion of suspended, revoked, or cancelled driver's license reinstatement fees, § 27-16-508(c) and § 27-16-808(b)(2);

(220) That portion of driver license special fees for duplicate and identification licenses, § 27-16-805 and § 27-16-806(c);

(221) Civil penalties and fines collected under the Arkansas Catfish Marketing Act of 1975, § 20-61-201 et seq., and § 20-61-101;

(222) That portion of penalties collected for failure to pay fees for registration and licensing of motor vehicles, § 27-14-601(e);

(223) Design-use contribution fees, § 27-15-4904;

(224) Mixed drink supplemental taxes on sales of alcoholic beverages, §§ 3-9-213(c)(2)(A) and 3-9-223(c)(2)(A);

(225) Arkansas Bureau of Standards lab tests or inspection fees, § 4-18-329(c);

(226) Auto auction fees for salvage-titled or parts-only titled vehicles, § 23-112-614;

(227) Vehicle identification number verification fees, § 27-14-725(d);

(228) Spyware monitoring fines and penalties, § 4-111-104;

(229) That portion of uniform filing fees collected in circuit court under § 16-10-314 and § 21-6-403(b)(1);

(230) Forfeited bonds; fee assessments; reimbursements for well-site plugging, repair, and restoration costs from well operators; and proceeds from the sale of hydrocarbons and production equipment located at the site of abandoned and orphaned wells, § 15-71-110(e) and § 15-71-116;

(231) County quorum court special license plate application fees, § 27-24-303(b)(2);

(232) Fees for diagnostic laboratory services of the Division of Agriculture of the University of Arkansas, § 6-64-1013;

(233) That portion of uniform filing fees collected in circuit court under § 16-10-313 and § 21-6-403(b)(1);

(234) Commercial motor vehicle driving offenses fines and penalties, § 27-23-114(h)(2);

(235) Criminal History for Volunteers Act fees, § 12-12-1609;

(236) Adult and Long-Term Care Facility Resident Maltreatment Act civil penalties, § 12-12-1706;

(237) Phase I Environmental Site Assessment Consultant Act fees, §§ 8-7-1301 — 8-7-1304, 8-7-1305 — 8-7-1310 [repealed], 8-7-1311;

(238) Ninety-five percent (95%) of the severance tax collected on natural gas at the rates enacted by § 26-58-111(5) and five percent (5%) of the severance tax collected on natural gas under § 26-58-124(c)(2);

(239) Unified Carrier Registration Act of 2005, Pub. L. No. 109-59, § 4301 et seq., registration fees, § 23-13-604;

(240) Landfill disposal fees to support a computer and electronic recycling program, §§ 8-6-612 [repealed] and 8-6-614 [repealed];

(241) Commercial Driver Alcohol and Drug Testing Database penalties, § 27-23-209;

(242) School-Age Children Eye and Vision Care Fund donations, grants of money, gifts and appropriations from private sources, from municipal and county governments, from the state, and from the federal government, as created in uncodified § 1 of Acts 2007, No. 138;

(243) Arkansas retirement community eligibility application fees, § 15-14-104;

(244) Annual fleet management fees, § 27-14-610(e)(2);

(245) Securities agents branch office registration filing fees, § 23-42-304(a)(5);

(246) The first designated portion of real estate transfer taxes for the continuing education of county coroners under §§ 26-60-105 and 26-60-112;

(247) Registration for nonprofit motor vehicle fleets management fees, § 27-14-611(d)(1);

(248) Suspended registration reinstatement fees, § 27-22-103(b)(4)(B)(i);

(249) Certificate of franchise authority fees, § 23-19-204;

(250) That portion of fees and fines collected under §§ 20-27-1502, 20-27-1508, 20-27-1509, and 20-27-1511;

(251) That portion of license fees, renewal fees, and civil penalties collected under § 17-55-101 et seq.;

(252) Voice stress analysis examiner's license fees, § 17-39-305;

(253) Fees collected under § 12-12-1510(c);

(254) All permit and license fees received by Arkansas Tobacco Control under the Arkansas Tobacco Products Tax Act of 1977, § 26-57-201 et seq.;

(255) Fees collected under § 27-14-602(c);

(256) Driving monitoring program fees, § 27-50-912(f)(2);

(257) Permit fees paid under the Arkansas Industrial Hemp Act, § 2-15-401 et seq.;

(258) All sales tax revenues collected by the Department of Finance and Administration from the sale of usable marijuana under the Arkansas Medical Marijuana Amendment of 2016, Arkansas Constitution, Amendment 98;

(259) That portion of notice filing fees and penalties, § 23-42-509(a);

(260) Revenues collected under § 9-15-202(d);

(261) Revenues collected under § 16-10-305(h);

(262) Grocery store wine permit fees, § 3-5-1802;

(263) The wholesale sales tax on motor fuel levied under § 26-64-101;

(264) The wholesale sales tax on distillate special fuel levied under § 26-64-102;

(265) Additional registration fees for electric vehicles and hybrid vehicles under § 27-14-614;

(266) Motorboat duplicate title, lien filing, lien notation, and certificate of title fees set forth in the Arkansas Motorboat Registration and Titling Act, § 27-101-1001 et seq.;

(267) Motorboat certificate of title with beneficiary processing fees and certificate of title application fees set forth in the Arkansas Motorboat Registration and Titling Act, § 27-101-1001 et seq.;

(268) Ten percent (10%) of each booking and administration fee collected under § 12-41-505;

(269) Expedited title processing fees collected under § 27-14-705(e)(2);

(270) Driving record information fees collected under § 27-23-117;

(271) Civil penalties collected under § 25-38-203; and

(272) Fines collected under § 2-38-504.

History. Acts 1973, No. 808, § 8; 1975, No. 863, § 5; 1979, No. 1027, §§ 2, 10; 1983, No. 222, §§ 3, 4; 1983, No. 801, § 1; 1985, No. 65, §§ 3, 4; 1985, No. 613, § 1; 1985, No. 888, § 13; A.S.A. 1947, § 13-503.7; Acts 1987, No. 792, §§ 2, 3; 1989, No. 551, §§ 2, 3; 1989, No. 821, § 6; 1991, No. 76, §§ 1, 2; 1991, No. 765, § 5; 1993, No. 324, § 2; 1993, No. 1072, §§ 3, 4; 1993, No. 1073, § 29; 1995, No. 270, §§ 2, 3; 1995, No. 369, § 2; 1997, No. 156, § 2; 1997, No. 298, §§ 2, 13; 1997, No. 974, § 18; 1997, No. 1071, § 2; 1999, No. 15, § 4; 1999, No. 282, §§ 3, 4, 14; 1999, No. 1122, § 3; 1999, No. 1164, § 168; 2001, No. 229, §§ 5-7; 2003, No. 28, §§ 7-16; 2003, No. 1750, § 6; 2005, No. 20, §§ 2-7; 2007, No. 182, § 20; 2007, No. 407, §§ 2-6; 2007, No. 873, §§ 5, 6; 2008 (1st Ex. Sess.), No. 4, §§ 4, 5; 2008 (1st Ex. Sess.), No. 5, §§ 4, 5; 2009, No. 610, § 6; 2009, No. 1464, §§ 2-4; 2011, No. 173, § 1; 2011, No. 265, § 4; 2011, No. 828, § 8; 2011, No. 1008, §§ 2-5; 2011, No. 1058, § 2; 2013, No. 551, § 6; 2013, No. 1393, § 3; 2013, No. 1433, § 12; 2014, No. 290, § 7; 2014, No. 299, § 7; 2015, No. 299, §§ 27-29; 2015, No. 393, § 95; 2015, No. 536, § 2; 2015, No. 856, §§ 3-6; 2015, No. 862, § 3; 2015, No. 895, § 44; 2015, No. 1046, § 4; 2015, No. 1185, § 8; 2015, No. 1235, § 28; 2015, No. 1264, § 9; 2016 (3rd Ex. Sess.), No. 1, § 12; 2017, No. 317, § 4; 2017, No. 508, § 9; 2017, No. 532, § 2; 2017, No. 555, § 6; 2017, No. 583, § 5; 2017, No. 668, §§ 1, 2; 2017, No. 670, § 2; 2017, No. 720, § 6; 2017, No. 913, § 51; 2017, No. 977, § 4; 2017, No. 981, § 2; 2017, No. 1019, § 1; 2017, No. 1046, § 4; 2017, No. 1051, § 3; 2019, No. 372, § 3; 2019, No. 416, § 4; 2019, No. 524, § 1; 2019, No. 586, § 1; 2019, No. 705, § 4; 2019, No. 733, § 4; 2019, No. 741, § 3; 2019, No. 910, §§ 988-990; 2019, No. 991, § 5.

A.C.R.C. Notes. Identical Acts 2008 (1st Ex. Sess.), Nos. 4 and 5, § 1, provided: “Legislative findings and intent.

“(a) The General Assembly has determined that the severance tax rate on natural gas should be increased and that there should be different rates of tax for different categories of natural gas.

“(c) In order to implement the increase in the severance tax rate, the General Assembly has identified the following four categories of natural gas, each as defined in Arkansas Code § 26-58-101:

“(1) High-cost gas;

“(2) Marginal gas;

“(3) New discovery gas; and

“(4) All natural gas that is not defined as high-cost gas, marginal gas, or new discovery gas.

Identical Acts 2014, Nos. 290 and 299, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Acts 2015, No. 862, § 1, provided: “Legislative findings.

The General Assembly finds that:

“(1) Arkansas is one (1) of the leading producers of steel in the United States, and Mississippi County, Arkansas, is ranked as one (1) of the top (2) highest steel-producing counties in the United States;

“(2) The steel industry in the United States is highly competitive, and there are presently rising prices and a high level of demand for raw materials in the domestic market;

“(3) The five-year global recession that began in 2008 and current economic conditions in the steel industry are continuing to substantially affect the profitability of many Arkansas companies and to reduce the ability of Arkansas steel producers to utilize existing incentive programs that are intended to encourage capital investment in this state;

“(4) In order to protect and preserve Arkansas jobs and encourage continuing capital investment by steel producers in this state, adjustments in the Arkansas recycling tax credit are appropriate to allow the tax credit to be utilized more fully to accomplish the purposes for which the tax credit is intended;

“(5) The recycling tax credit is of significant importance to qualified manufacturers of steel and the State of Arkansas, and adjustments to the recycling tax credit will ensure its longevity to benefit the state and economic development within the state when a public retirement system is an investor;

“(6) In order to protect and preserve Arkansas jobs and encourage continuing capital investment by steel producers in this state, adjustments in the retention tax credit under the Consolidated Incentive Act of 2003, § 15-4-2701 et seq., are appropriate to allow the credit to be utilized more fully to accomplish the purposes for which the credit is intended; and

“(7) The standards for the gross receipts tax exemption for repair and replacement of machinery and equipment require clarification for qualified manufacturers of steel to ensure continuing capital investment by steel producers and to protect and preserve Arkansas jobs.”

Acts 2015, No. 895, § 1, provided: “Legislative intent. It is the intent of the General Assembly to implement wide-ranging reforms to the criminal justice system in order to address prison overcrowding, promote seamless reentry into society, reduce medical costs incurred by the state and local governments, aid law enforcement agencies in fighting crime and keeping the peace, and to enhance public safety.”

Acts 2016 (3rd Ex. Sess.), No. 1, § 1, provided: “This act shall be known and may be cited as the ‘Arkansas Highway Improvement Plan of 2016’.”

Acts 2017, No. 317, § 5, provided:

“(a) All moneys in the Waste Tire Grant Fund at 11:59 p.m. on the day before the effective date of this act shall be transferred to the Used Tire Recycling Fund at 12:00 a.m. on the effective date of this act [August 1, 2017].

“(A) Fees imposed upon the sale of each new automobile tire and truck tire sold at retail; and

“(B) In addition to the fee imposed on new tires, the fee imposed on all waste automobile and truck tires imported into Arkansas.

“(2) The fees imposed and collected under subdivision (b)(1) of this section shall be deposited into the Used Tire Recycling Fund.

“(1) Continue until the final quarterly disbursements for the last calendar year quarter of 2017 are processed; and

“(1) To fund the waste tire support grant program that existed before the effective date of this act [August 1, 2017]; and

“(2) For used tire program transitional funding.

Acts 2017, No. 532, § 1, provided: “Legislative findings.

The General Assembly finds that:

“(1) The Department of Finance and Administration currently lacks clear authority and specific funding sources to adequately upgrade and modernize the registration process for commercial motor vehicles;

“(2) Due to current inefficiencies or technological limitations, commercial motor carriers that would otherwise register their commercial vehicles in the State of Arkansas are deterred from doing so;

“(3) The department should develop and implement rules, regulations, and procedures to facilitate an online system for administrative transactions and the registration of commercial motor vehicles that are registered with the International Registration Plan;

“(4) The law needs to be clarified to verify that license plates for commercial motor vehicles registered with the International Registration Plan should not be required to display an annual decal or tab;

“(5) An enhancement creating an online system for administrative transactions and registration of commercial motor vehicles will facilitate and improve the services available to the commercial motor carrier industry;

“(6) Enhancements to the Arkansas Motor Carrier System will make available to the state additional revenues through a user-fee based system to finance the enhancements without requiring a general tax increase; and

“(7) Directing the department to develop rules, regulations, and procedures to implement the necessary enhancements and providing a funding mechanism to help offset the costs associated with the system enhancements will accomplish the state's goal of improving services and modernizing the Arkansas Motor Carrier System.”

Acts 2017, No. 1046, § 1, provided: “Legislative findings.

The General Assembly finds that:

“(1) Arkansas is one (1) of the leading producers of steel in the United States, and Mississippi County, Arkansas, is ranked as one (1) of the top two (2) highest steel-producing counties in the United States;

“(2) The steel industry in the United States is highly competitive, and there are presently rising prices and a high level of demand for raw materials in the domestic market;

“(3) The current national political and economic climate lends itself to an influx in the reshoring of well-paying manufacturing jobs, and Arkansas has an unprecedented opportunity to utilize existing incentive programs that are intended to encourage investment in this state to capitalize on this trend;

“(4) When considering where to place new American manufacturing jobs, companies will consider the availability of incentives and credits; and

“(5) In order to continue to attract well-paying manufacturing jobs to the State of Arkansas and encourage continuing capital investment by steel producers in this state, adjustments in the recycling tax credit are appropriate to allow the tax credit to be utilized more fully to accomplish the purposes for which the tax credit is intended.”

Acts 2019, No. 416, § 1, provided: “Legislative findings and intent.

Acts 2019 No. 741, § 1, provided: “Legislative intent. It is the intent of the General Assembly to protect consumers from misleading and false labeling of agricultural products that are edible by humans by initiating this act”.

Amendments. The 2009 amendment by No. 610 deleted (103).

The 2009 amendment by No. 1464 deleted “17-11-201 — 17-11-204” following “17-11-101 — 17-11-103” in (93); deleted (114); and added (239) through (243).

The 2011 amendment by No. 173 added “and commercial mobile radio service provider telephone number surcharges” in (129).

The 2011 amendment by No. 265 rewrote (226).

The 2011 amendment by No. 828 rewrote (124).

The 2011 amendment by No. 1008 deleted “and temporary permit fees, § 27-16-803(c)(4)” following “§ 27-23-110(d)” in (150); deleted (161); deleted “Unregistered motor vehicle fines, § 27-14-314, and motor” from the beginning of (186); and added (244) and (245).

The 2011 amendment by No. 1058 rewrote (3)(A).

The 2013 amendment by No. 551 added (246).

The 2013 amendment by No. 1393 added (247) and (248).

The 2013 amendment by No. 1433 deleted “(c)” following “23-76-127” in (172)(C).

The 2014 amendment by identical acts Nos. 290 and 299 added (249) through (252).

The 2015 amendment by No. 299 substituted “§ 5-65-119(a)(2)(B)” for “§ 5-65-119(a)(2)” in (120); substituted “§ 5-65-119(a)(2)(A)” for “§ 5-65-119(a)(1)” in (155); in (218), deleted “driving while intoxicated” following “operator’s” and substituted “§ 5-65-119(a)(2)(D)” for “§ 5-65-119(a)(4)”.

The 2015 amendment by No. 393 updated statutory references in (40).

The 2015 amendment by No. 536 inserted “and the remainder of the five percent (5%) of the severance tax collected on natural gas under § 26-58-124(c)(1)(B)” in (238).

The 2015 amendment by No. 856 deleted (128); deleted “and that portion of commercial driver license application fees, § 27-23-118(a)(3)” at the end of (150); deleted (202); in (220), substituted “driver” for “driver's” and deleted “as enacted by Acts 1977, No. 311, and all laws amendatory thereto, § 27-16-801” following “licenses”.

The 2015 amendment by No. 862 added “and § 26-51-506(c)(2)(B)(vii)” in (181).

The 2015 amendment by No. 895 substituted “specialty court program user fees, § 16-10-701” for “19-6-489” in (216).

The 2015 amendment by No. 1046, in (62), inserted “assessments” following “oil” and inserted “in excess of four and one-half (4 ½) mills each fiscal year until July 1, 2017, under § 15-71-107(b)(2)(A)(i)”.

The 2015 amendment by No. 1185 added (253).

The 2015 amendment by No. 1235 added (253) (now (254)).

The 2015 amendment by 1264 substituted “§ 8-6-404” for “§ 8-6-404(d)(2)(B)” in (203).

The 2016 (3rd Ex. Sess.) amendment deleted “after the deduction of the first four million dollars ($4,000,000) each fiscal year under § 26-56-201(g)(1)” following “§ 26-56-201(a)(1)(A)(i)” in the introductory language of (3)(A); and made a stylistic change.

The 2017 amendment by No. 317 substituted “That portion of rim removal fees and import fees” for “Imported waste tire fees and that portion of new tire waste tire fees” in (165).

The 2017 amendment by No. 508 added (262).

The 2017 amendment by No. 532 added (255).

The 2017 amendment by No. 555 deleted “average daily” preceding “balance” in (107).

The 2017 amendment by No. 583 added (260) and (261).

The 2017 amendment by No. 668 repealed (211) and added (259).

The 2017 amendment by No. 670 added (258).

The 2017 amendment by No. 720 repealed (123).

The 2017 amendment by No. 913, in (13), substituted “Division of Aging, Adult, and Behavioral Health Services of the Department of Human Services” for “Division of Behavioral Health Services” and inserted “of the Department of Human Services” following “Division of Developmental Disabilities Services”.

The 2017 amendment by No. 977 substituted “2019” for “2017” in (62).

The 2017 amendment by No. 981 added (257).

The 2017 amendment by No. 1019, in (238), deleted “the remainder of the” preceding “five percent (5%)” and substituted “§ 26-58-124(c)(2)” for “§ 26-58-124(c)(1)(B)”.

The 2017 amendment by No. 1046 added “and § 26-51-506(c)(3)(D)(vi)” in (181).

The 2017 amendment by No. 1051 added (256).

The 2019 amendment by No. 372 added (268).

The 2019 amendment by No. 416 added (263) through (265).

The 2019 amendment by No. 524 added (269).

The 2019 amendment by No. 586 added (270).

The 2019 amendment by No. 705 substituted “July 1, 2021” for “July 1, 2019” in (62).

The 2019 amendment by No. 733 added (266) and (267).

The 2019 amendment by No. 741 added (271).

The 2019 amendment by No. 910 substituted “Division of Community Correction” for “Department of Community Correction” in (31); substituted “Division of Correction” for “Department of Correction” in (42) and (43); and substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (104).

The 2019 amendment by No. 991 added (272).

Effective Dates. Acts 2016 (3rd Ex. Sess.), No. 1, § 22: July 1, 2017.

Acts 2017, No. 508, § 13(a): Oct. 1, 2017. Effective date clause provided: “Sections 1, 2, 3, 6, 7, 8, 9, 10, 11, and 12 of this act become effective on October 1, 2017.”

Acts 2019, No. 416, § 8: Oct. 1, 2019. Effective date clause provided: “Sections 4-7 of this act are effective on the first day of the calendar quarter following the effective date of this act”.

Subchapter 4 — Special Revenue Funds

Acts 1981, No. 938, § 22: July 1, 1981. Emergency clause provided: “It is hereby found and determined by the Seventy-third General Assembly that certain amendments to Act 750 of 1973, the Revenue Stabilization Law are essential to the continued financial operation of state government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1981.”

Acts 1983, No. 801, § 18: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly that the amendments to the Revenue Stabilization law are essential to the continued operation of State government; therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1983.”

Acts 1985, No. 732, § 5: July 1, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1985 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1985 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1985.”

Acts 1989 (3rd Ex. Sess.), No. 85, § 4: Nov. 17, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly, meeting in Third Extraordinary Session, that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Identical Acts 1991, Nos. 1040 and 1239, § 11: Apr. 8, 1991 and Apr. 10, 1991 respectively. Emergency clauses provided: “It has been found and it is hereby declared by the General Assembly that there is an immediate need for the construction and repair of the State Highway System. For these reasons, it is declared necessary for the preservation of the public peace, health, and safety that this Act become effective without delay. It is, therefore, declared that an emergency exists, and this Act shall take effect from the date of its passage and approval.”

Acts 1991, No. 1052, § 9: Apr. 9, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that additional funds are necessary to provide higher quality educational program which are accessible by all segments of the population in this state; that recent studies have shown that in the year 2000, workers must have a minimum of fourteen (14) years of education to function in the work force; that the state is in desperate need of training, retraining and upgrading the work force; that this act will provide the funding necessary to provide every citizen with an opportunity to participate in vocational-technical training or college transfer programs; and that it is necessary for this act to become effective immediately to provide the funding needed for these programs as soon as possible. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 766, § 12: July 1, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1993 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1993 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1993.”

Acts 1995, No. 236, § 34: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the Eightieth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1995 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1995 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1995.”

Acts 1997, No. 1040, § 11: Apr. 2, 1997. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that some local school districts had previously failed to levy the Base Millage for the maintenance and operational costs, thereby placing those schools in jeopardy of not having sufficient funds available. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1999, No. 1315, § 8: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that the changes required by this act must take effect at the beginning of the state fiscal year and not to do so will disrupt the flow of funds for vocational education. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 1999.”

Acts 2001, No. 1642, § 7: Apr. 16, 2001. Emergency clause provided: “It is hereby found and determined by the Eighty-third General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that due to the extraordinary increase in the number of illicit drug laboratory and criminal drug related cases filed throughout the state additional state resources are needed to examine and identify evidence turned over to the State Crime Laboratory; that constructing and equipping regional crime laboratories will provide the most efficient and effective method of meeting these demands; and that the effectiveness of this Act on the date of its passage and approval is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond the date of its passage and approval could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 1681, § 1: Jan. 1, 2002.

Acts 2001, No. 1681, § 5: Apr. 16, 2001, except § 4, effective July 1, 2001. Emergency clause provided: “It is hereby found and determined by the General Assembly that this act transfers to the General Improvement Fund those revenues that formerly went to the Economic Development of Arkansas Fund; that those monies transferred to the General Improvement Fund have been appropriated effective July 1, 2001, and that Section 4 of this act must go into effect on July 1, 2001, in order to fund those appropriations. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety, Section 4 of this act shall become effective on July 1, 2001, and the remaining sections of this act shall become effective on the date of approval by the Governor. If the bill is neither approved nor vetoed by the Governor, Sections 1, 2, and 3 shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, Sections 1, 2, and 3 shall become effective on the date the last house overrides the veto.”

Acts 2002 (1st Ex. Sess.), No. 2, § 12: June 12, 2002. Emergency clause provided: “It is found and determined by the General Assembly that the budgetary crisis facing this state may require large reductions in the state Medicaid program, which reductions will cut three federal matching dollars for each state dollar, resulting in a serious threat to the ability of the state Medicaid program to provide adequate care to the state's neediest citizens. Setting aside funds for an Arkansas Rainy Day Fund by shifting the Prevention and Cessation Program Account to a current year budget will make moneys available to assist the state Medicaid program in maintaining its established levels of service in the event that the current revenue forecast is not collected. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2003, No. 69, § 13: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2003 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2003 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2003.”

Acts 2003, No 1266, § 5: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there is serious overcrowding in Department of Correction facilities; that the overcrowding is likely to worsen if alternative sentencing measures are not enacted; and that this act is immediately necessary because it is designed to establish a procedure to help alleviate the overcrowding by offering sentencing alternates to person charged with certain drug offenses and should be given immediate effect. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2003.”

Acts 2003, No. 1723, § 15: Apr. 22, 2003. Emergency clause provided: “It is found and determined by the Eighty-fourth General Assembly that there is a pressing and immediate need for the construction of a modern public health laboratory; that this act will provide adequate funding for the construction of the laboratory; and that this act must become effective immediately. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2003, No. 1774, § 17: Apr. 22, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the discharge of untreated sewage from vessels into waters of the State of Arkansas poses a serious threat to the public health and the environment; that such a serious threat needs to be rectified immediately; and that this act improves the state's ability to enforce laws relative to marine sanitation. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2003, No. 1816, § 3: became law without Governor's signature, May 6, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Joint Committee on Educational Adequacy must report its findings by September 1, 2003; that health care adequacy among school age children in Arkansas is an essential component of any definition of educational adequacy; that the initial reports of the Health Adequacy Committee created by this act must be available to the Joint Committee on Educational Adequacy before the formulation of the final report. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2003 (2nd Ex. Sess.), No. 70, § 7: Feb. 2, 2004. Emergency clause provided: “It is found and determined by the General Assembly that the State of Arkansas is in great need of additional revenues for improvements, construction, or repair of public school facilities and that providing a tax penalty and interest amnesty program will result in substantial additional revenues. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 2007, No. 530, § 10: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2007 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2007 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2007.”

Acts 2009, No. 762, § 12: Sept. 1, 2009.

Acts 2011, No. 294, § 11: July 1, 2011. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2011 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2011 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2011.”

Acts 2013, No. 438, § 3: July 1, 2013. Emergency clause provided: “It is hereby found and determined by the General Assembly that the effectiveness of this Act on July 1, 2013 is essential to the operation of programs supported by funds deposited into and contained in the Securities Department Fund, and that in the event of the extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2013 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2013.”

Acts 2013, No. 489, § 6: Emergency clause failed to pass. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 2013 have been made by the Eighty-Ninth General Assembly. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2013.”

Acts 2013, No. 545, § 3: Jan. 1, 2014.

Identical Acts 2014, Nos. 290 and 299, § 15: July 1, 2014.

Acts 2015, No. 1185, § 9: Jan. 1, 2016.

Acts 2016 (3rd Ex. Sess.), No. 1, § 22: July 1, 2017. Effective date clause provided: “Sections 9-12, 14, 16 and 17 of this act are effective on and after July 1, 2017.”

Acts 2017 (1st Ex. Sess.), No. 7, § 5: May 4, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the State of Arkansas does not have a dedicated source of budget reserves; that providing funding for the Long Term Reserve Fund could improve the credit rating of the State of Arkansas and increase the fiscal strength and stability of the state; and that this act is immediately necessary because the transfer of the balance of the Arkansas Healthy Century Trust Fund to other state purposes would improve the state's credit rating and save the state a significant amount of money that could then be used for other important state purposes. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2019, No. 416, § 8: Oct. 1, 2019. Effective date clause provided: “Sections 4-7 of this act are effective on the first day of the calendar quarter following the effective date of this act”.

19-6-401. Funds generally.

There are created and established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State the following funds which shall consist of those special revenues enumerated in this subchapter for the purpose of each fund.

History. Acts 1973, No. 808, § 14; A.S.A. 1947, § 13-503.13.

19-6-402. Division of Aeronautics Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Division of Aeronautics Fund”.
The fund shall consist of those special revenues as specified in § 19-6-301(17).
The fund shall be used by the Division of Aeronautics for:
1. Distributing grants-in-aid to qualifying airports of the state as authorized by law;
2. Distributing grants to qualifying applicants as determined by the Director of the Division of Aeronautics and the Aeronautics Commission for any purpose related to:
  1. The development of aeronautics;
  2. The promotion of aeronautics; or
  3. Aviation education;
3. The maintenance, operation, and improvement required in carrying out the functions, powers, and duties set out in § 27-114-101 et seq.; or
4. Carrying out other duties imposed by law upon the division, including without limitation the duties set out in § 27-115-110.

History. Acts 1973, No. 808, § 14; 1979, No. 1027, § 6; 1981, No. 938, § 15; 1983, No. 222, § 5; A.S.A. 1947, § 13-503.13; Acts 2019, No. 152, § 1; 2019, No. 910, § 493.

Amendments. The 2019 amendment by No. 152 rewrote the section.

The 2019 amendment by No. 910 substituted “Division of Aeronautics” for “Arkansas Department of Aeronautics” throughout the section; and substituted “division” for “department”.

19-6-403. Division of Correction Farm Fund.

The Division of Correction Farm Fund shall consist of those revenues as specified in § 19-6-301(42), there to be used for the maintenance, operation, and improvement of the Division of Correction's farming operations. Any surplus accruing in the fund, upon determination of that surplus, shall be transferred to the Division of Correction Inmate Care and Custody Fund Account.

History. Acts 1973, No. 808, § 14; A.S.A. 1947, § 13-503.13; Acts 2019, No. 910, § 991.

Amendments. The 2019 amendment substituted “Division of Correction Farm Fund” for “Department of Correction Farm Fund” in the section heading and in the first sentence; substituted “Division of Correction’s” for “Department of Correction’s” in the first sentence; and substituted “Division of Correction Inmate Care and Custody Fund Account” for “Department of Correction Inmate Care and Custody Fund Account” in the second sentence.

19-6-404. Division of Arkansas State Police Fund.

The Division of Arkansas State Police Fund shall consist of:

Those special revenues as specified in § 19-6-301(1), (5), (7), (8), (38)-(40), (94), (150), (168), (175), (184)-(186), (190), (218)-(220), (222), (226), (227), (234), (252), and (270);
Moneys transferred or deposited from the State Administration of Justice Fund;
Those general revenues as may be provided by law, there to be used for the maintenance, operation, and improvement of the Division of Arkansas State Police in carrying out the functions, powers, and duties as stated in § 12-8-106 or other duties imposed by law upon the division;
Any revenues credited to the Division of Arkansas State Police Fund under the Division of Arkansas State Police Headquarters Facilities and Equipment Financing Act, § 12-8-601 et seq.; and
Federal reimbursements received for eligible expenditures by the various programs of the division made payable from the Division of Arkansas State Police Fund.

History. Acts 1973, No. 808, § 14; 1981, No. 938, § 17; 1983, No. 222, § 5; 1985, No. 65, § 6; A.S.A. 1947, § 13-503.13; Acts 1987, No. 792, § 4; 1991, No. 76, § 3; 1993, No. 1072, § 5; 1995, No. 270, § 4; 1997, No. 298, § 3; 1999, No. 282, § 5; 2003, No. 28, § 17; 2005, No. 20, § 8; 2007, No. 407, § 7; 2014, No. 290, § 8; 2014, No. 299, § 8; 2015, No. 856, § 7; 2015, No. 1207, § 2; 2019, No. 586, § 2; 2019, No. 910, § 6003.

A.C.R.C. Notes. Identical Acts 2014, Nos. 290 and 299, § 1, provided: “The purpose of this act is to amend the Revenue Stabilization Law.”

Amendments. The 2003 amendment inserted “and (202)” and made stylistic changes.

The 2005 amendment substituted “(202), (218), (219), (220) and (222)” for “and (202)” in (1).

The 2007 amendment added “(226), (227) and (234)” and made minor stylistic and punctuation changes in (1).

The 2014 amendment by identical acts Nos. 290 and 299, in (1), deleted “(56)” preceding “(94)” and added “and (252)”.

The 2015 amendment by No. 856, in (1), deleted (128) and (202); substituted “stated in” for “set out by” in (3); and added (4).

The 2015 amendment by No. 1207 added (4) [now (5)].

The 2019 amendment by No. 586 substituted “(234), (252), and (270)” for “(234), and (252)” in (1).

The 2019 amendment by No. 910 substituted “Division of Arkansas State Police” for “Department of Arkansas State Police” in the section heading and throughout the section; and substituted “division” for “department” in (5).

19-6-405. State Highway and Transportation Department Fund.

The State Highway and Transportation Department Fund shall consist of:

That part of the special revenues as specified in § 19-6-301(2)-(4), (22), (81), (105)-(107), (182), and (256), known as “highway revenue”, as distributed under the Arkansas Highway Revenue Distribution Law, § 27-70-201 et seq., and § 27-70-103 and § 27-72-301 et seq.;
Those special revenues specified in § 19-6-301(10), (152), (187), (239), and (241);
Fifty percent (50%) of § 19-6-301(26);
That portion of § 19-6-301(2) as set out in § 27-14-601(a)(3)(H)(ii)(f) ;
That portion of § 19-6-301(222);
Those designated revenues as set out in § 26-56-201(e)(1), which consist of the additional total of four cents (4¢) distillate special fuel taxes to be distributed as provided in the Arkansas Highway Financing Act of 1999, § 27-64-201 et seq.;
Federal revenue sharing funds as set out in § 19-5-1005;
The special revenues specified in § 26-64-103, which consist of the wholesale sales taxes on motor fuel and distillate special fuel;
The special revenues specified in § 27-14-614, which consist of the additional registration fees on electric vehicles and hybrid vehicles; and
Any federal funds that may become available,

there to be used for the maintenance, operation, and improvement required by the Arkansas Department of Transportation in carrying out the functions, powers, and duties as set out in Arkansas Constitution, Amendment 42, and §§ 27-65-102 — 27-65-107, 27-65-110, 27-65-122, and 27-65-124, and the other laws of this state prescribing the powers and duties of the department and the State Highway Commission.

History. Acts 1973, No. 808, § 14; 1979, No. 1027, § 8; 1985, No. 65, § 6; A.S.A. 1947, § 13-503.13; Acts 1987, No. 792, § 4; 1991, No. 1040, § 2; 1991, No. 1239, § 2; 1993, No. 1072, § 6; 1995, No. 270, § 5; 1997, No. 298, § 4; 2001, No. 229, § 8; 2005, No. 20, § 9; 2009, No. 1464, § 5; 2017, No. 707, § 54; 2017, No. 1051, § 4; 2019, No. 416, § 5.

A.C.R.C. Notes. Acts 1991, No. 1040, § 3, in part, provided: “Any case involving the validity of this Act or involving the Bonds issued hereunder, shall be deemed of public interest and shall be advanced by all courts and heard as a preferred cause, and all appeals from judgments or decrees rendered in such cases must be taken within thirty (30) days after rendition of such judgment or decree.”

Acts 1991, No. 1040, § 4, provided:

“(a) This Act shall be liberally construed to accomplish the purposes thereof. This Act shall constitute the sole authority necessary to accomplish the purposes hereof, and to this end it shall not be necessary that the provisions of other laws pertaining to the development of public facilities and properties and the financing thereof be complied with.

“(b) This Act shall be interpreted to supplement existing laws conferring rights and powers upon the Authority and the Commission, and the rights and powers set forth herein shall be regarded as alternative methods for the accomplishment of the purposes of this Act.”

Acts 1991, No. 1239, § 3, provided: “If, for any reason any Section or provision of this Act shall be held to be unconstitutional or invalid for any reason, such holding shall not affect the remainder of this Act, but this Act, insofar as it is not in conflict with the Constitution of this State or the Constitution of the United States, shall be permitted to stand, and the various provisions of this Act are hereby declared to be severable for that purpose. Any case involving the validity of this Act or involving the Bonds issued hereunder, shall be deemed of public interest and shall be advanced by all courts and heard as a preferred cause, and all appeals from judgments or decrees rendered in such cases must be taken within thirty (30) days after rendition of such judgment or decree.”

Acts 1991, No. 1239, § 4, provided:

Acts 2019, No. 416, § 1, provided: “Legislative findings and intent.

Amendments. The 2005 amendment inserted present (5) and made related changes.

The 2009 amendment added “(239), and (241)” and made a related change in (2).

The 2017 amendment by No. 707 substituted “Department of Transportation” for “State Highway and Transportation Department” in the last undesignated paragraph; and made a stylistic change.

The 2017 amendment by No. 1051 substituted “(182), and (256)” for “and (182)” in (1).

The 2019 amendment inserted (8) and (9); and redesignated former (8) as (10).

Effective Dates. Acts 2019, No. 416, § 8: Oct. 1, 2019. Effective date clause provided: “Sections 4-7 of this act are effective on the first day of the calendar quarter following the effective date of this act”.

Case Notes

Cited: Ark. Motor Carriers Ass'n v. Pritchett, 303 Ark. 620, 798 S.W.2d 918 (1990).

19-6-406. Public Service Commission Fund.

The Public Service Commission Fund shall consist of those special revenues as specified in § 19-6-301(70), (71), and (98), there to be used for the maintenance, operation, and improvement required by the Arkansas Public Service Commission in carrying out the functions, powers, and duties as set out in § 23-2-101 et seq., or other duties imposed by law upon the commission.

History. Acts 1973, No. 808, § 14; 1983, No. 222, § 5; A.S.A. 1947, § 13-503.13; Acts 2001, No. 229, § 9; 2005, No. 20, § 10.

Amendments. The 2005 amendment substituted “and (98)” for “(98), and (199).”

19-6-407. Liquefied Petroleum Gas Fund.

The Liquefied Petroleum Gas Fund shall consist of those special revenues as specified in § 19-6-301(32), there to be used for the maintenance, operation, and improvement required by the Liquefied Petroleum Gas Board in carrying out the functions, powers, and duties as set out in the Liquefied Petroleum Gas Board Act, § 15-75-101 et seq., or other duties imposed by law upon the board.

History. Acts 1973, No. 808, § 14; 1983, No. 222, § 5; 1985, No. 65, § 6; A.S.A. 1947, § 13-503.13.

19-6-408. Plant Board Fund.

The Plant Board Fund shall consist of:

Those special revenues as specified in § 19-6-301(46), (49)-(55), (122), (169), (221), and (225);
Thirty-one cents (31¢) of the fertilizer inspection fees as set out in § 19-6-301(48);
All of those special revenues in § 19-6-301(47) with the exception of ten cents (10¢) of the thirty cents (30¢) for tonnage reports;
Nonrevenue receipts from the Fire Ant Poison Cost Sharing Program, § 2-16-105, fees and civil penalties collected under the Arkansas Rice Certification Act, § 2-15-201 et seq., civil penalties collected under the Uniform Weights and Measures Law, § 4-18-301 et seq.; and
Those general revenues as may be provided by law, there to be used for the maintenance, operation, and improvement required by the State Plant Board in carrying out the functions, powers, and duties as set out in § 2-16-201 et seq.

History. Acts 1973, No. 808, § 14; 1983, No. 222, § 5; 1985, No. 65, § 6; A.S.A. 1947, § 13-503.13; Acts 1989, No. 551, § 4; 1993, No. 1073, § 26; 1995, No. 270, § 6; 2005, No. 20, § 11; 2007, No. 407, § 8.

A.C.R.C. Notes. Acts 1993, No. 1073, § 27, provided:

“Any enactment of the Seventy-Ninth General Assembly redesignating the payment of appropriations for the Bureau of Standards from the Bureau of Standards Fund is instead redesignated payable from the Plant Board Fund.”

Amendments. The 2005 amendment substituted “(169), and (221)” for “and (169)” in (1).

The 2007 amendment added “and (225)” and made minor stylistic changes in (1); added “fees and civil penalties collected under the Arkansas Rice Certification Act of 2005; § 2-15-201 et seq., civil penalties collected under the Uniform Weights and Measures Law § 4-18-301 et seq., and” and made minor stylistic changes in (4); and deleted “or other duties imposed by law upon the State Plant Board, and those functions, powers, and duties as set out in § 4-18-201 et seq.” in (5).

Cross References. Civil penalties, § 4-18-323.

19-6-409. Poultry and Egg Grading Fund.

The Poultry and Egg Grading Fund shall consist of that portion of those special revenues derived from the poultry and egg industry as specified in § 19-6-301(34), there to be used for the maintenance, operation, and improvement required by the Arkansas Livestock and Poultry Commission poultry and egg grading programs, in carrying out the functions, powers, and duties as set out in § 2-33-101 et seq., or other duties imposed by law upon the commission.

History. Acts 1973, No. 808, § 14; 1983, No. 222, § 5; A.S.A. 1947, § 13-503.13.

19-6-410. Oil and Gas Commission Fund.

The Oil and Gas Commission Fund shall consist of those special revenues as specified in § 19-6-301(62) and (111), there to be used for the maintenance, operation, and improvement required by the Oil and Gas Commission in carrying out the functions, powers, and duties as set out in § 15-72-101 et seq., or other duties imposed by law upon the commission.

History. Acts 1973, No. 808, § 14; 1983, No. 222, § 5; 1983, No. 801, § 2; A.S.A. 1947, § 13-503.13.

A.C.R.C. Notes. Acts 2016, No. 181, § 6, provided:

“FUND TRANSFER. The Oil and Gas Commission, after receiving review from the Chief Fiscal Officer of the State and the Legislative Council, may request the Chief Fiscal Officer to transfer up to $2,000,000 per year on his or her books and the books of the State Treasurer and the Auditor of the State from the Oil and Gas Commission Fund to the Abandoned and Orphaned Well Plugging Fund.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

19-6-411. State Forestry Fund.

The State Forestry Fund shall consist of those special revenues as specified in § 19-6-301(6) and (18) excluding twenty-five percent (25%) of all other severance taxes as set out in § 19-6-301(18), fifty percent (50%) of § 19-6-301(26), and such general revenues as may be provided by law, there to be used for the maintenance, operation, and improvement required by the Arkansas Forestry Commission in carrying out the functions, powers, and duties as set out in § 15-31-101 et seq., or other duties imposed by law upon the commission.

History. Acts 1973, No. 808, § 14; 1979, No. 1027, § 7; 1983, No. 222, § 5; 1985, No. 65, § 6; A.S.A. 1947, § 13-503.13.

A.C.R.C. Notes. Acts 2015, No. 890, § 45, provided:

“REFUND TO EXPENDITURE. The Arkansas Forestry Commission is authorized to charge fees to federal agencies and other states to reimburse the Commission for expenditures made on behalf of these governmental units. These fees shall be deposited into the State Forestry Fund in the State Treasury as a refund to expenditure.

“The provisions of this section shall be in effect only from July 1, 2015 through June 30, 2016.”

19-6-412. Bank Department Fund.

The Bank Department Fund shall consist of those special revenues as set out in § 19-6-301(28)-(30), there to be used for the maintenance, operation, and improvement required by the State Bank Department in carrying out the functions, powers, and duties as set out in §§ 23-46-201 — 23-46-207, or other duties imposed by law upon the department.

History. Acts 1973, No. 808, § 14; 1983, No. 222, § 5; A.S.A. 1947, § 13-503.13; Acts 2003, No. 28, § 18.

Amendments. The 2003 amendment substituted “§ 19-6-301(28)-(30)” for “subdivisions (28), (29), and (30) of § 19-6-301” and “§§ 23-46-201 — 23-46-207” for “23-31-201 et seq.”

19-6-413. [Repealed.]

Publisher's Notes. This section, concerning the Cosmetology Operating Fund, was repealed by Acts 2011, No. 1008, § 6. The section was derived from Acts 1973, No. 808, § 14; 1983, No. 222, § 5; A.S.A. 1947, § 13-503.13; Acts 2003, No. 69, § 4.

19-6-414. [Repealed.]

Publisher's Notes. This section, concerning the Cosmetology Board Construction Fund, was repealed by Acts 2003, No. 69, § 9. The section was derived from Acts 1973, No. 808, § 14; A.S.A. 1947, § 13-503.13; Acts 1997, No. 298, § 5. For present law, see § 19-6-413.

19-6-415. Arkansas Abstracters' Board Fund.

The Arkansas Abstracters' Board Fund shall consist of those special revenues as specified in § 19-6-301(93), there to be used for the maintenance, operation, and improvement of the Arkansas Abstracters' Board.

History. Acts 1973, No. 808, § 14; A.S.A. 1947, § 13-503.13; Acts 2009, No. 1464, § 6.

Amendments. The 2009 amendment deleted “Examining” preceding “Board” in the section heading; and rewrote the section.

19-6-416. [Repealed.]

Publisher's Notes. This section, concerning the Department of Labor Boiler Inspection Fund, was repealed by Acts 2001, No. 577, § 3. The section was derived from Acts 1973, No. 808, § 14; A.S.A. 1947, § 13-503.13.

For present law, see § 19-5-1211.

19-6-417. Department of Health Plumbers Licensing Fund.

The Department of Health Plumbers Licensing Fund shall consist of those special revenues as specified in § 19-6-301(64), there to be used for the maintenance, operation, and improvement required by the Plumbing Section of the Environmental Health Services Division of the Department of Health in carrying out the powers, functions, and duties as set out in § 17-38-101 et seq., and for paying the expenses of administering such funds as may be authorized by law.

History. Acts 1973, No. 808, § 14; A.S.A. 1947, § 13-503.13.

19-6-418. Office of Hazardous Materials Emergency Management Revolving Fund.

The Office of Hazardous Materials Emergency Management Revolving Fund shall consist of those special revenues as specified in § 19-6-301(115), there to be used for the operations of the Office of Hazardous Materials Emergency Management and the enforcement of the Arkansas HAZMAT Emergency Management Act, § 12-84-101 et seq.

History. Acts 1973, No. 808, § 14; 1985, No. 65, § 6; A.S.A. 1947, § 13-503.13; Acts 1997, No. 298, § 6.

19-6-419. Soybean Promotion Fund.

The Soybean Promotion Fund shall consist of those special revenues as specified in § 19-6-301(12), there to be used for the maintenance, operation, and improvement as required by the Arkansas Soybean Promotion Board in carrying out the powers, functions, and duties as set out in § 2-20-401 et seq.

History. Acts 1973, No. 808, § 14; A.S.A. 1947, § 13-503.13.

19-6-420. Game Protection Fund.

The Game Protection Fund shall consist of those special revenues as specified in § 19-6-301(63), thirty-four percent (34%) of those special revenues as specified in § 19-6-301(20), and license plate design-use contribution fees collected under § 27-24-905(b)(2), there to be used for the maintenance, operation, and improvement required by the Arkansas State Game and Fish Commission in carrying out the functions, powers, and duties as set out in Arkansas Constitution, Amendment 35, and other laws enacted by the General Assembly.

History. Acts 1973, No. 808, § 14; A.S.A. 1947, § 13-503.13; Acts 1989, No. 551, § 5; 2005, No. 20, § 12; 2007, No. 407, § 9.

Amendments. The 2005 amendment substituted “thirty-four percent (34%)” for “forty-five percent (45%).”

The 2007 amendment inserted “and license plate design-use contribution fees collected under § 27-24-905(b)(2),” added “and other laws enacted by the General Assembly,” and made minor stylistic changes.

19-6-421. Indigent Patient's Fund.

The Indigent Patient's Fund shall consist of those special revenues as specified in § 19-6-301(15), there to be used to defray the cost of hospitalization and medical services provided to indigent Arkansas patients and for such other purposes as may be authorized or appropriated by law.

History. Acts 1973, No. 808, § 14; A.S.A. 1947, § 13-503.13; Acts 2001, No. 1646, § 26.

19-6-422. [Repealed.]

Publisher's Notes. This section, concerning the Firemen's Relief and Pension Fund, was repealed by Acts 2001, No. 229, § 14. The section was derived from Acts 1973, No. 808, § 14; A.S.A. 1947, § 13-503.13.

For present law, see § 19-6-454.

19-6-423. Division of Correction Prison Industry Fund.

The Division of Correction Prison Industry Fund shall consist of those special revenues as specified in § 19-6-301(43), there to be used for the maintenance, operation, and improvement of the Division of Correction's prison industries activities.

History. Acts 1973, No. 808, § 14; A.S.A. 1947, § 13-503.13; Acts 2019, No. 910, § 992.

Amendments. The 2019 amendment substituted “Division of Correction Prison Industry Fund” for “Department of Correction Prison Industry Fund” in the section heading and the text, and substituted “Division of Correction's” for “Department of Correction's”.

19-6-424. Motor Vehicle Commission Fund.

The Motor Vehicle Commission Fund shall consist of those special revenues as specified in § 19-6-301(99), there to be used for the operation, maintenance, improvement, and motor vehicle education and training required by the Arkansas Motor Vehicle Commission in exercising the powers, functions, and duties as set out in the Arkansas Motor Vehicle Commission Act, § 23-112-101 et seq.

History. Acts 1973, No. 808, § 14; 1979, No. 1027, § 9; A.S.A. 1947, § 13-503.13; Acts 2007, No. 530, § 7.

Amendments. The 2007 amendment inserted “and motor vehicle education and training” and made a related change.

19-6-425. Public Service Commission Utility Safety Fund.

The Public Service Commission Utility Safety Fund shall consist of those special revenues as specified in § 19-6-301(100), there to be used for the maintenance, operation, and improvement of the Office of Pipeline Safety of the Arkansas Public Service Commission in exercising the powers, functions, and duties as set out in the Arkansas Natural Gas Pipeline Safety Act of 1971, § 23-15-201 et seq.

History. Acts 1973, No. 808, § 14; 1979, No. 1027, § 9; A.S.A. 1947, § 13-503.13.

19-6-426. Arkansas Museum of Natural Resources Fund.

The Arkansas Museum of Natural Resources Fund shall consist of those special revenues as specified in § 19-6-301(61) and (101), there to be used for the construction, maintenance, operation, and improvement of the Arkansas Museum of Natural Resources in exercising the powers, functions, and duties as set out in § 13-5-401 et seq., and for paying the expenses of administering such funds by the Department of Parks, Heritage, and Tourism as may be authorized by law.

History. Acts 1973, No. 808, § 14; 1979, No. 1027, § 9; 1983, No. 222, § 5; A.S.A. 1947, § 13-503.13; Acts 2009, No. 251, § 23; 2019, No. 910, § 5674.

Amendments. The 2009 amendment substituted “Arkansas Museum of Natural Resources” for “Oil Museum” and for “Arkansas Oil and Brine Museum,” substituted “State Parks Division of the Department of Parks and Tourism” for “State Parks, Recreation, and Travel Commission,” substituted “the department” for “the Department of Parks and Tourism,” and made related changes.

The 2019 amendment substituted “Department of Parks, Heritage, and Tourism” for “department of Parks and Tourism”.

19-6-427. Manufactured Home Standards Fund.

The Manufactured Home Standards Fund shall consist of those special revenues as specified in § 19-6-301(102), there to be used for the maintenance, operation, and improvement of the Arkansas Manufactured Home Commission in exercising the powers, functions, and duties as set out in the Arkansas Manufactured Homes Standards Act, § 20-25-101 et seq.

History. Acts 1973, No. 808, § 14; 1979, No. 1027, § 9; 1983, No. 222, § 5; A.S.A. 1947, § 13-503.13.

19-6-428. [Repealed.]

Publisher's Notes. This section, concerning the Severed Resources Fund, was repealed by Acts 2009, No. 610, § 7. The section was derived from Acts 1973, No. 808, § 8; 1975, No. 863, § 5; 1979, No. 1027, §§ 2, 10; 1983, No. 222, §§ 3, 4; 1983, No. 801, § 1; 1985, No. 65, §§ 3, 4; 1985, No. 613, § 1; 1985, No. 888, § 13; A.S.A. 1947, § 13-503.7; Acts 1987, No. 792, §§ 2, 3; 1989, No. 551, §§ 2, 3; 1989, No. 821, § 6; 1991, No. 76, §§ 1, 2; 1991, No. 765, § 5; 1993, No. 324, § 2; 1993, No. 1072, §§ 3, 4; 1993, No. 1073, § 29; 1995, No. 270, §§ 2, 3; 1995, No. 369, § 2; 1997, No. 156, § 2; 1997, No. 298, §§ 2, 13; 1997, No. 974, § 18; 1997, No. 1071, § 2; 1999, No. 15, § 4; 1999, No. 282, §§ 3, 4, 14; 1999, No. 1122, § 3; 1999, No. 1164, § 168; 2001, No. 229, §§ 5-7; 2003, No. 28, §§ 7-16; 2003, No. 1750, § 6; 2005, No. 20, §§ 2-7; 2007, No. 182, § 20; 2007, No. 407, §§ 2-6; 2007, No. 873, §§ 5, 6; 2008 (1st Ex. Sess.), No. 4, §§ 4, 5; 2008 (1st Ex. Sess.), No. 5, §§ 4, 5.

19-6-429. Veterinary Examiners Board Fund.

The Veterinary Examiners Board Fund shall consist of those special revenues as specified in § 19-6-301(95), there to be used for the operation, maintenance, and improvement of the Veterinary Medical Examining Board in exercising the powers, functions, and duties as set out in the Arkansas Veterinary Medical Practice Act, § 17-101-101 et seq.

History. Acts 1973, No. 808, § 14; 1979, No. 1027, § 9; A.S.A. 1947, § 13-503.13.

19-6-430. [Repealed.]

Publisher's Notes. This section, concerning the Tuberculosis Sanatorium Lease Fund, was repealed by Acts 2007, No. 407, § 10. The section was derived from Acts 1973, No. 808, § 14; 1979, No. 1027, § 9; 1985, No. 65, § 6; A.S.A. 1947 § 13-503.13.

19-6-431. [Repealed.]

Publisher's Notes. This section, concerning the Policemen's Pension and Relief Fund, was repealed by Acts 2001, No. 229, § 15. The section was derived from Acts 1973, No. 808, § 14; 1983, No. 222, § 6; A.S.A. 1947, § 13-503.13.

For present law, see § 19-6-454.

19-6-432. Community Correction Revolving Fund.

There is created and established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Community Correction Revolving Fund”.
The fund shall consist of those special revenues as specified in § 19-6-301(31) and fees and sanctions levied by the courts or authorized by the Board of Corrections for participation in specified programs to be paid by offenders on community correction, there to be used for continuation and expansion of community correction programs as established and approved by the board and as may be provided by law.

History. Acts 1993, No. 953, § 5.

A.C.R.C. Notes. Acts 2001, No. 323, § 4 provided:

“The ‘Community Punishment Revolving Fund’, as established in Arkansas Code 12-27-133 and 19-6-432, shall hereafter be known as the ‘Community Correction Revolving Fund’.”

Publisher's Notes. Former § 19-6-432, concerning the Community Service Revolving Fund, was repealed by Acts 1993, No. 953, § 17. The former section was derived from Acts 1973, No. 808, § 14; 1983, No. 222, § 6; A.S.A. 1947, § 13-503.13.

Acts 1993, No. 953, § 5, is also codified as § 12-27-133.

Acts 1993, No. 953, § 5, provided, in part:

“Any fund balances of the Arkansas Adult Probation Commission Fund and the Community Services Revolving Fund on June 30, 1993 shall be transferred to the Community Punishment Revolving Fund.”

19-6-433. Livestock and Poultry Equine Infectious Anemia Control Fund.

The Livestock and Poultry Equine Infectious Anemia Control Fund shall consist of those special revenues as specified in § 19-6-301(195), there to be used for the purpose of defraying the costs of services performed in the Equine Infectious Anemia Control and Eradication Program as set out in § 2-40-801 et seq.

History. Acts 1999, No. 282, § 8.

Publisher's Notes. Former § 19-6-433, concerning the Court Reporters' Fund, was repealed by Acts 1997, No. 298, § 14. The section was derived from Acts 1973, No. 808, § 14; 1983, No. 222, § 6; A.S.A. 1947, § 13-503.13.

For present law concerning the Court Reporters' Fund, see § 19-5-1082.

19-6-434. Hazardous Waste Permit Fund.

The Hazardous Waste Permit Fund shall consist of those special revenues as specified in § 19-6-301(59) and (237) there to be used by the Division of Environmental Quality to ensure the proper administration and enforcement of §§ 8-7-201 — 8-7-226 and the Phase I Environmental Site Assessment Consultant Act, § 8-7-1301 et seq.

History. Acts 1973, No. 808, § 14; 1983, No. 222, § 6; A.S.A. 1947, § 13-503.13; Acts 1999, No. 1164, § 169; 2007, No. 407, § 11; 2019, No. 910, § 3205.

Amendments. The 2007 amendment inserted “and subdivision (237)” and “and § 8-7-1301 et seq.”

The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality”.

19-6-435. Arkansas Nuclear Planning and Response Fund.

The Arkansas Nuclear Planning and Response Fund shall consist of those special revenues as specified in § 19-6-301(60), there to be used for the operation and maintenance of the Arkansas Nuclear Planning and Response Program, as set out in § 20-21-401 et seq.

History. Acts 1973, No. 808, § 14; 1983, No. 222, § 6; A.S.A. 1947, § 13-503.13.

19-6-436. [Repealed.]

Publisher's Notes. This section, concerning the Board of Electrical Examiners Fund, was repealed by Acts 2001, No. 577, § 4. The section was derived from Acts 1973, No. 808, § 14; 1983, No. 222, § 6; A.S.A. 1947, § 13-503.13.

For present law, see § 19-5-1211.

19-6-437. Milk Inspection Fees Fund.

The Milk Inspection Fees Fund shall consist of those special revenues as specified in § 19-6-301(73), there to be used exclusively for the purpose of defraying the cost of maintenance, operation, and improvement of the Grade “A” milk and milk products inspection program, and any other revenues as may be provided by law.

History. Acts 1973, No. 808, § 14; 1983, No. 222, § 6; A.S.A. 1947, § 13-503.13.

Publisher's Notes. Part of this section also provided for disposition of any unexpended balance of milk inspection fees received prior to March 18, 1981.

19-6-438. Board of Dispensing Opticians' Fund.

The Board of Dispensing Opticians' Fund shall consist of those special revenues as specified in § 19-6-301(108), there to be used for the administration, coordination, and enforcement of the Ophthalmic Dispensing Act, § 17-89-101 et seq.

History. Acts 1973, No. 808, § 14; 1983, No. 222, § 6; A.S.A. 1947, § 13-503.13.

19-6-439. Arkansas State Board of Nursing Fund.

The Arkansas State Board of Nursing Fund shall consist of those special revenues as specified in § 19-6-301(109), there to be used by the Arkansas State Board of Nursing in exercising the powers, functions, and duties as set out in § 17-87-101 et seq.

History. Acts 1973, No. 808, § 14; 1983, No. 222, § 6; A.S.A. 1947, § 13-503.13.

19-6-440. Social Work Licensing Fund.

The Social Work Licensing Fund shall consist of those special revenues as specified in § 19-6-301(110), there to be used by the Arkansas Social Work Licensing Board in exercising the powers, functions, and duties as set out in the Social Work Licensing Act, § 17-103-101 et seq.

History. Acts 1973, No. 808, § 14; 1983, No. 222, § 6; A.S.A. 1947, § 13-503.13; Acts 1999, No. 1122, § 4.

19-6-441. Arkansas Beef Council Fund.

The Arkansas Beef Council Fund shall consist of those special revenues as specified in § 19-6-301(113), there to be used in such manner as the Arkansas Beef Council deems appropriate for Arkansas beef promotion and research and for the operation and maintenance of the council office and payment of expenses of the council members as set out in § 2-35-301 et seq.

History. Acts 1973, No. 808, § 14; 1985, No. 65, § 6; A.S.A. 1947, § 13-503.13.

19-6-442. County Clerks Continuing Education Fund and the Circuit Clerks Continuing Education Fund.

The County Clerks Continuing Education Fund and the Circuit Clerks Continuing Education Fund shall consist of those special revenues as specified in § 19-6-301(119), there to be used for defraying the expenses of training seminars and other educational projects benefiting county and circuit clerks in this state as set out in §§ 16-20-105 and 16-20-110 and § 26-60-101 et seq.

History. Acts 1973, No. 808, § 14; 1985, No. 65, § 6; A.S.A. 1947, § 13-503.13; Acts 2009, No. 480, § 3.

Amendments. The 2009 amendment inserted “and the Circuit Clerks Continuing Education Fund,” and substituted “§§ 16-20-105 and 16-20-110 and § 26-60-101 et seq.” for § 26-60-101 et seq. and § 16-20-105.”

Cross References. Disposition of funds collected, § 26-60-112.

19-6-443. Arkansas Child Passenger Protection Fund.

The Arkansas Child Passenger Protection Fund shall consist of those special revenues as specified in § 19-6-301(67) and other moneys that may be appropriated, allocated, or donated to the fund, there to be used by the Arkansas Highway Safety Program for the purchase of child passenger safety seats as set out in the Child Passenger Protection Act, § 27-34-101 et seq.

History. Acts 1973, No. 808, § 14; 1985, No. 65, § 7; A.S.A. 1947, § 13-503.13.

19-6-444. [Repealed.]

Publisher's Notes. This section, concerning the Arkansas Department of Environmental Quality Fee Fund, was repealed by Acts 2009, No. 1464, § 7. The section was derived from Acts 1973, No. 808, § 14; 1985, No. 65, § 7; A.S.A. 1947, § 13-503.13; Acts 1995, No. 270, § 7; 1999, No. 1164, § 170.

19-6-445. Arkansas Wine Producers Council Fund.

The Arkansas Wine Producers Council Fund shall consist of all funds as may be authorized by law, there to be used for promoting the Arkansas native wine industry, as directed by the Arkansas Wine Producers Council and as set out in § 3-5-701 et seq.

History. Acts 1973, No. 808, § 14; 1985, No. 65, § 7; A.S.A. 1947, § 13-503.13.

19-6-446. Arkansas Corn and Grain Sorghum Promotion Board Fund.

The Arkansas Corn and Grain Sorghum Promotion Board Fund shall consist of those special revenues as specified in § 19-6-301(196), there to be used for administration, research, and extension to promote the corn and grain sorghum industry, as set out in § 2-20-801 et seq.

History. Acts 1999, No. 282, § 9.

Publisher's Notes. Former § 19-6-446, concerning the Highway Safety Special Fund, was repealed by Acts 1997, No. 298, § 14. The section was derived from Acts 1973, No. 808, § 14; 1985, No. 65, § 7; A.S.A. 1947, § 13-503.13; Acts 1987, No. 792, § 4; 1995, No. 270, § 15.

For present law concerning the Highway Safety Special Fund, see § 19-5-1080.

19-6-447. DNA Detection Fund.

The DNA Detection Fund shall consist of those special revenues as specified in § 19-6-301(197), there to be used for the administration of the State Convicted Offender DNA Data Base Act, § 12-12-1101 et seq.

History. Acts 1999, No. 282, § 10.

Publisher's Notes. Former § 19-6-447, concerning the Alcohol and Drug Safety Fund, was repealed by Acts 1995, No. 1032, § 9. The section was derived from Acts 1973, No. 808, § 14; 1985, No. 65, § 7; A.S.A. 1947, § 13-503.13; Acts 1987, No. 792, § 4.

For present law, see §§ 19-5-307 and 19-5-1083.

19-6-448. Livestock and Poultry Commission Disease and Pest Control Fund.

The Livestock and Poultry Commission Disease and Pest Control Fund shall consist of any funds authorized by law and those special revenues as specified in § 19-6-301(126), there to be used in order to fund or partially fund the bovine disease control and eradication program as provided in § 2-40-206.

History. Acts 1973, No. 808, § 14; 1985, No. 888, § 14; A.S.A. 1947, § 13-503.13; Acts 2015, No. 342, § 2.

Amendments. The 2015 amendment inserted “any funds authorized by law and”, substituted “bovine disease” for “brucellosis”, and “provided in § 2-40-206” for “set out in Act 150 of 1985 and Act 151 of 1985”.

19-6-449. Arkansas Wheat Promotion Fund.

The Arkansas Wheat Promotion Fund shall consist of those special revenues as specified in § 19-6-301(127), there to be used for the operation of the Arkansas Wheat Promotion Board as set out in §§ 2-20-601 — 2-20-609.

History. Acts 1973, No. 808, § 14; 1985, No. 888, § 14; A.S.A. 1947, § 13-503.13.

19-6-450. Individual Sewage Disposal Systems Improvement Fund.

The Individual Sewage Disposal Systems Improvement Fund shall consist of that portion of those special revenues as specified in § 19-6-301(58), there to be used by the Division of Environmental Health Protection of the Department of Health for, and in the manner recommended by, the Individual Sewage Disposal Systems Advisory Committee for implementation of the utilization and application of alternate and experimental individual sewage disposal systems as set out in the Arkansas Sewage Disposal Systems Act, § 14-236-101 et seq.

History. Acts 1973, No. 808, § 14; 1985, No. 65, § 7; A.S.A. 1947, § 13-503.13; Acts 1989, No. 551, § 6; 1993, No. 1072, § 7.

19-6-451. Arkansas Rice Research and Promotion Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Rice Research and Promotion Fund”.
The fund shall consist of those special revenues as specified in § 19-6-301(35) there to be used for the operation of the Arkansas Rice Research and Promotion Board as set out in the Arkansas Rice Research and Promotion Act of 1999, § 2-20-501 et seq.
The fund shall be used for the operation of the board in carrying out the powers, functions, and duties as may be provided by law and shall consist of those revenues as may be provided by law.

History. Acts 1985, No. 732, § 2; A.S.A. 1947, § 13-563; Acts 1987, No. 792, § 4.

19-6-452. Asbestos Control Fund.

The Asbestos Control Fund shall consist of the special revenues specified in § 19-6-301(130) and any other revenues authorized by law, there to be used to administer and enforce a program for licensing contractors engaged in the removal of friable asbestos materials from facilities by the Division of Environmental Quality under §§ 20-27-1001 — 20-27-1007.

History. Acts 1987, No. 792, § 5; 1999, No. 1164, § 171; 2013, No. 489, § 1; 2019, No. 910, § 3206.

Amendments. The 2013 amendment inserted “and any other revenues authorized by law”, and substituted “under § 20-27-1001 — 20-27-1007” for “as set out in § 20-27-1001 et seq.” and made stylistic changes.

The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality”.

19-6-453. Boating Safety Account Fund.

The Boating Safety Account Fund shall consist of those special revenues as specified in § 19-6-301(20) there to be distributed in the manner and to the various funds as provided in § 27-101-111.

History. Acts 1989, No. 551, § 7.

19-6-454. Firemen's and Police Officers' Pension and Relief Fund.

The Firemen's and Police Officers' Pension and Relief Fund shall consist of those special revenues as specified in § 19-6-301(27), there to be used for distribution to the various qualified city, town, or fire protection district police officers' pension and relief funds and firemen's pension funds as set out in § 24-11-301.

History. Acts 2001, No. 229, § 10.

A.C.R.C. Notes. Acts 2013, No. 1443, § 78, provided: “On July 1, 2013, the Chief Fiscal Officer of the State shall transfer on his or her books and those of the State Treasurer and the Auditor of State the balances of the Arkansas Fire and Police Pension Guarantee Fund to the Firemen's and Police Officers' Pension and Relief Fund.”

Publisher's Notes. Former § 19-6-454, concerning the Child Care Providers' Fund, was repealed by Acts 1999, No. 282, § 12. The section was derived from Acts 1989, No. 551, § 7; 1997, No. 298, § 7.

19-6-455. Sex and Child Offenders Registration Fund.

The Sex and Child Offenders Registration Fund shall consist of those special revenues as specified in § 19-6-301(198), there to be used for the administration of the Sex and Child Offender Registration Act of 1997, § 12-12-901 et seq.

History. Acts 1999, No. 282, § 11; 2015, No. 1207, § 3.

Publisher's Notes. Former § 19-6-455, concerning the Arkansas Counties Alcohol and Drug Abuse and Crime Prevention Program Fund, was repealed by Acts 1997, No. 298, § 14. The section was derived from Acts 1989, No. 551, § 7.

For present law concerning the Arkansas Counties Alcohol and Drug Abuse and Crime Prevention Program Fund, see § 19-5-1083.

Amendments. The 2015 amendment substituted “Offenders” for “Offender” in the section heading and the section.

19-6-456. Nursing Home Personnel Training Fund.

The Nursing Home Personnel Training Fund shall consist of those special revenues as specified in § 19-6-301(138), there to be utilized by the Office of Long-Term Care of the Division of Medical Services of the Department of Human Services for development and implementation of training programs as set out in § 20-10-401 et seq.

History. Acts 1989, No. 551, § 7.

19-6-457. [Repealed.]

Publisher's Notes. This section, concerning the Aging and Adult Services Special Revenue Fund, was repealed by Acts 2003, No. 28, § 21. The section was derived from Acts 1989 (3rd Ex. Sess.), No. 85, § 1; 1995, No. 1032, § 6.

19-6-458. Developmental Disabilities Services — Dog Track Special Revenue Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Developmental Disabilities Services — Dog Track Special Revenue Fund” that shall consist of those special revenues as specified in § 19-6-301(16), there to be used for the sole benefit of community programs of the Division of Developmental Disabilities Services of the Department of Human Services licensed by the division.

History. Acts 1989 (3rd Ex. Sess.), No. 85, § 2; 2003, No. 28, § 19; 2009, No. 251, § 24.

Amendments. The 2003 amendment substituted “special revenues as specified in § 19-6-301(16)” for “special revenues designated in § 23-111-503(a)(2)” and substituted “community programs of the Division of Developmental Disabilities Services of the Department of Human Services licensed by the division” for “the Department of Human Services, Division of Developmental Disabilities Services community programs licensed by the Division of Developmental Disabilities Services.”

The 2009 amendment inserted “the Auditor of State” and made minor punctuation and stylistic changes.

19-6-459. Commercial Driver License Fund.

The Commercial Driver License Fund shall consist of those special revenues as specified in:

Section 19-6-301(148), to be used to establish and maintain the Arkansas Commercial Driver License Program and for other related purposes as required by the Secretary of the Department of Finance and Administration in carrying out the functions, powers, and duties of the Revenue Division, as set out in the Arkansas Uniform Commercial Driver License Act, § 27-23-101 et seq.;
Section 19-6-301(255), to be used for system enhancements to the Arkansas Motor Carrier System under § 27-14-613; and
Section 19-6-301(266) and (267).

History. Acts 1991, No. 76, § 4; 2017, No. 532, § 3; 2019, No. 524, § 2; 2019, No. 733, § 5; 2019, No. 910, § 3464.

A.C.R.C. Notes. Acts 2016, No. 117, § 16, provided: “COMMERCIAL DRIVER LICENSE FUND TRANSFER. The Chief Fiscal Officer of the State shall at each end of the fiscal year cause to be transferred into the State Central Services Fund the excess of the Commercial Driver License Fund funds over an amount equal to the three (3) most recent fiscal year budgets of the Commercial Driver License Fund to defray state support for related purposes, including but not limited to personal services and operating expenses, as required to carry out the functions, powers and duties of the Revenue Division of the Department of Finance and Administration pursuant to A.C.A. 19-6-459 and 27-23-124.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2017, No. 532, § 1, provided: “Legislative findings.

The General Assembly finds that:

Amendments. The 2017 amendment redesignated the former section as the introductory language and (1), and added (2); in (1), deleted “there” preceding “to be used” and substituted “Director of the Department of Finance and Administration” for “Commissioner of Motor Vehicles”; and made stylistic changes.

The 2019 amendment by No. 524 inserted “system” in (2).

The 2019 amendment by No. 733 added (3).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (1).

19-6-460. Crime Lab Equipment Fund.

The Crime Lab Equipment Fund shall consist of those special revenues as specified in § 19-6-301(30) and other moneys as authorized by law, there to be used only for the purchase of equipment, constructing and equipping regional crime laboratories, and for the personal services and operating expenses of regional crime laboratories as set out in § 12-12-323.

History. Acts 2001, No. 229, § 11; 2001, No. 1642, § 4.

Publisher's Notes. Former § 19-6-460, concerning the Department of Human Services Uninsured Children's Fund, was repealed by Acts 1999, No. 282, § 13. The section was derived from Acts 1991, No. 76, § 4.

19-6-461. [Repealed.]

Publisher's Notes. This section, concerning the Arkansas Public Art Program Fund, was repealed by Acts 2017, No. 720, § 7. The section was derived from Acts 1993, No. 1072, § 8.

19-6-462. Private Career Education Fund.

The Private Career Education Fund shall consist of those special revenues as specified in § 19-6-301(24), there to be used for the maintenance and operations of the Division of Higher Education concerning the State Board of Private Career Education in carrying out the functions, powers, and duties as set out in § 6-51-601 et seq.

History. Acts 1991, No. 76, § 4; 2017, No. 565, § 25; 2019, No. 910, § 2275.

Amendments. The 2017 amendment inserted “Department of Higher Education concerning the”.

The 2019 amendment substituted “Division of Higher Education” for “Department of Higher Education”.

19-6-463. Regulated Substance Storage Tank Program Fund.

The Regulated Substance Storage Tank Program Fund shall consist of those special revenues as specified in § 19-6-301(153) federal funds, and any state matching funds as may be provided by the General Assembly, there to be used for the administration of the Regulated Substance Storage Tank program as set out in § 8-7-801 et seq.

History. Acts 1991, No. 76, § 4.

19-6-464. Arkansas Catfish Promotion Fund.

The Arkansas Catfish Promotion Fund shall consist of those special revenues as specified in § 19-6-301(151), there to be used for Arkansas catfish promotion and research and for the operation and maintenance of the Arkansas Catfish Promotion Board office and payment of board member expenses, as set out in § 2-9-112.

History. Acts 2001, No. 229, § 12.

Publisher's Notes. A parallel section concerning the Arkansas Catfish Promotion Fund, § 19-5-1091, was repealed by Acts 2001, No. 1646, § 15.

19-6-465. Child Care Fund.

The Child Care Fund shall consist of those special revenues as specified in § 19-6-301(133) and (157) and moneys received from the Department of Human Services, there to be used by the Division of Child Care and Early Childhood Education of the Department of Human Services exclusively to provide grants to child care facilities for enhancement of the facility or for training of personnel in child care facilities and to meet the costs of conducting the statewide criminal records checks required under § 20-78-606, all as set out in the Child Care Facility Licensing Act, § 20-78-201 et seq.

History. Acts 1991, No. 76, § 4; 1999, No. 282, § 7; 2009, No. 762, § 3.

Amendments. The 2009 amendment substituted “§ 20-78-606” for “§ 20-78-602.”

19-6-466. Livestock and Poultry Commission Swine Testing Fund.

The Livestock and Poultry Commission Swine Testing Fund shall consist of those special revenues as specified in § 19-6-301(159), there to be used for the Pseudorabies Control and Eradication Program as set out in § 2-40-1201.

History. Acts 1993, No. 1072, § 9.

A.C.R.C. Notes. Former § 19-6-466, concerning the Environmental Education Fund, is deemed to be superseded by this section. The former section was derived from Acts 1991, No. 746, § 1.

19-6-467. Work Force 2000 Development Fund.

The Work Force 2000 Development Fund shall consist of those special revenues as specified in § 19-6-301(163) and all other revenues as may be authorized by law, there to be used exclusively for the authorized educational activities of those entities as set out in § 26-51-205(d)(1)(A) and (B) and as distributed under § 26-51-205(d)(2).

History. Acts 1991, No. 1052, § 2; 1993, No. 1072, § 10; 1999, No. 1315, § 4.

Publisher's Notes. Acts 1991, No. 1052, § 2, is also codified as § 26-51-205(c)(1).

19-6-468. Fire Protection Premium Tax Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Fire Protection Premium Tax Fund”, which shall consist of those special revenues as specified in § 19-6-301(164), there to be used for fire protection services as set out in § 26-57-614 and § 14-284-401 et seq.
The Insurance Commissioner shall immediately deposit all moneys collected under § 26-57-614 and § 14-284-401 et seq. into the Revenue Holding Fund Account as provided in § 19-5-204. On the last business day of each quarter, the Chief Fiscal Officer of the State shall determine the amount of net special revenues to be transferred to the Fire Protection Premium Tax Fund by the Treasurer of State. The Chief Fiscal Officer of the State shall be the disbursing officer for the Fire Protection Premium Tax Fund, and shall distribute the moneys as provided in § 26-57-614 and § 14-284-401 et seq.
The Insurance Commissioner shall disburse any refunds which may be due insurance carriers from the Miscellaneous Revolving Fund after certifying to the Chief Fiscal Officer of the State the amount to be refunded. The Chief Fiscal Officer of the State shall direct that the certified amount be transferred from the Revenue Holding Fund Account to the Miscellaneous Revolving Fund as provided in § 19-5-106(a)(3).

History. Acts 1993, No. 1072, § 11.

19-6-469. HVACR Licensing Fund.

The HVACR Licensing Fund shall consist of those special revenues as specified in § 19-6-301(160), there to be used for the maintenance, operation, and improvement of the Heating, Ventilation, Air Conditioning, and Refrigeration (HVACR) Licensing and Inspection program of the Department of Health as set out in § 17-33-201 et seq.

History. Acts 1993, No. 1072, § 12.

19-6-470. [Repealed.]

Publisher's Notes. This section, concerning the Apprentice Plumbers Training Fund, was repealed by Acts 2011, No. 1008, § 7. The section was derived from Acts 1993, No. 1072, § 12.

19-6-471. Marketing Recyclables Program Fund.

The Marketing Recyclables Program Fund shall consist of those special revenues as specified in § 19-6-301(162), there to be used by the Compliance Advisory Panel for the Marketing Recyclables Program for the administration and performance of its duties, as administered by the Division of Environmental Quality under § 8-9-201 et seq.

History. Acts 1993, No. 1072, § 12; 1999, No. 1164, § 172; 2017, No. 1067, § 9; 2019, No. 910, § 3207.

Amendments. The 2017 amendment substituted “Marketing Recyclables Program Fund” for “Marketing Board Fund” in the section heading and section; and substituted “Compliance Advisory Panel for the Marketing Recyclables Program” for “State Marketing Board for Recyclables” and “under” for “as set out in”.

The 2019 amendment substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality”.

19-6-472. [Repealed.]

Publisher's Notes. This section, concerning the Economic Development of Arkansas Fund, was repealed by Acts 2001, No. 1681, § 2. The section was derived from Acts 1993, No. 590, § 1; 1995, No. 270, § 8.

19-6-473. Elder and Disabled Victims Fund.

The Elder and Disabled Victims Fund shall consist of those special revenues as specified in § 19-6-301(170), there to be used for the investigation and prosecution of deceptive acts against elder persons and individuals with disabilities and for consumer education initiatives directed toward elder persons and individuals with disabilities, law enforcement officers, the judicial system, social services professionals, and the general public on the provisions of the Arkansas Deceptive Trade Practices Act, § 4-88-101 et seq., and related statutes.

History. Acts 1993, No. 138, § 2; 1995, No. 270, § 9.

Publisher's Notes. Acts 1993, No. 138, § 2, is also codified as § 4-88-207.

19-6-474. State Police Equipment Fund.

The State Police Equipment Fund shall consist of fifty percent (50%) of those special revenues as specified in § 19-6-301(176) and (235), and thirty-eight percent (38%) of the fees collected under § 12-12-1510(c), there to be used for:
1. The acquisition, operation, and expansion of an automated fingerprint identification system;
2. Personal services and operating expenses for conducting criminal background checks for noncriminal justice purposes;
3. Those purposes as set out in § 12-12-1012(b) and § 12-12-1609; and
4. Personal services and operating expenses as provided by law.
Moneys remaining in the fund at the end of each fiscal year shall carry forward and be made available for the purposes stated in this section in the next fiscal year.

History. Acts 1993, No. 766, § 5; 1995, No. 270, § 10; 1999, No. 282, § 6; 2007, No. 407, § 12; 2015, No. 1185, § 6.

Amendments. The 2007 amendment inserted “and subdivision (235)” and added “and § 12-12-1609.”

The 2015 amendment added designation (a) and inserted “and thirty-eight percent (38%) of the fees collected under § 12-12-1510(c)”; deleted “Effective July 1, 1997” at the beginning of (a)(3); and added (a)(4) and (b).

19-6-475. Securities Department Fund.

The Securities Department Fund shall consist of the first two million five hundred thousand dollars ($2,500,000) of those special revenues as specified in § 19-6-301(173), (174), (245), and (259) and such other funds as may be provided by law or regulatory action, there to be used for maintenance, operation, support, and improvement of the State Securities Department in carrying out its functions, powers, and duties as set out by law and by rules not inconsistent with law, as set out in § 23-42-211.

History. Acts 1995, No. 270, § 11; 2005, No. 20, § 13; 2011, No. 294, § 7; 2011, No. 1008, § 8; 2013, No. 438, § 1; 2017, No. 668, § 3; 2019, No. 315, § 1747.

Amendments. The 2005 amendment substituted “§ 19-6-301(211) and until July 1, 2011, the first one million dollars ($1,000,000) of those special revenues as specified in § 19-6-301(173) and (174)” for “subdivisions (173) and (174) of § 19-6-301.”

The 2011 amendment by No. 294 substituted “July 1, 2013” for July 1, 2011” and “two million dollars ($2,000,000)” for “one million dollars ($1,000,000)”.

The 2011 amendment by No. 1008 inserted “(245)”.

The 2013 amendment substituted “the first four million dollars ($4,000,000)” for “and until July 1, 2013, the first two million dollars ($2,000,000)”.

The 2017 amendment substituted “the first two million five hundred thousand dollars ($2,500,000)” for “those special revenues as specified in § 19-6-301(211), the first four million dollars ($4,000,000)”; and inserted “and (259)”.

The 2019 amendment substituted “rules” for “rule and regulation”.

19-6-476. [Repealed.]

Publisher's Notes. This section, concerning the Computerized Voter Registration Fund, was repealed by Acts 2007, No. 320, § 7. The section was derived from Acts 1995, No. 270, § 11; 1997, No. 298, § 8.

Cross References. Computerized voter registration lists, § 7-5-109.

19-6-477. Governor's Commission on People with Disabilities Fund.

The Governor's Commission on People with Disabilities Fund shall consist of those special revenues as specified in § 19-6-301(200), there to be used for the purpose of funding activities of the Arkansas Governor's Commission on People with Disabilities, as set out in § 27-15-305.

History. Acts 2001, No. 229, § 13.

Publisher's Notes. Former § 19-6-477, concerning the Crater of Diamonds State Park Improvement Fund, was repealed by Acts 1999, No. 15, § 5. The section was derived from Acts 1995, No. 270, § 11.

19-6-478. [Repealed.]

Publisher's Notes. This section, concerning the Voter Registration Signature Imaging System Fund, was repealed by Acts 2005, No. 20, § 14. The section was derived from Acts 1995, No. 270, § 11; 1997, No. 1104, § 2.

19-6-479. Economic Development Incentive Fund.

The Economic Development Incentive Fund shall consist of those special revenues as specified in § 19-6-301(181), there to be used for financial incentive plans to provide businesses with an incentive to locate a new facility or expand an existing facility in Arkansas and for the other purposes as set out in the Arkansas Economic Development Incentive Act of 1993, § 15-4-1601 et seq.

History. Acts 1995, No. 270, § 11.

19-6-480. Livestock and Poultry Special Revenue Fund.

The Livestock and Poultry Special Revenue Fund shall consist of those special revenues as specified in § 19-6-301(33) and (34) which are not required for support of the Arkansas Livestock and Poultry Commission Poultry and Egg Grading Program, there to be used for those purposes as set out by law. The Director of the Arkansas Livestock and Poultry Commission, with the approval of the Chief Fiscal Officer of the State, shall have the authority to transfer funds from the Livestock and Poultry Special Revenue Fund to the Livestock and Poultry Fund Account.

History. Acts 1995, No. 236, § 24; 1997, No. 298, § 9; 2019, No. 910, § 116.

Amendments. The 2019 amendment substituted “Director of the Arkansas Livestock and Poultry Commission” for “Executive Director of the Arkansas Livestock and Poultry Commission” in the second sentence.

19-6-481. [Repealed.]

Publisher's Notes. This section, concerning the Public School Support Fund, was repealed by Acts 1997, No. 1173, § 3. The section was derived from Acts 1995, No. 916, §§ 1, 3, 4; 1997, No. 298, § 10; 1997, No. 1040, § 4.

Pursuant to § 1-2-207, the amendments to this section by Acts 1997, Nos. 298 and 1040 are superseded by its repeal by Acts 1997, No. 1173.

Cross References. Public School Fund, § 19-5-305.

19-6-482. Telecommunications Equipment Fund.

The Telecommunications Equipment Fund shall consist of those special revenues as specified in § 19-6-301(129). The fund shall be used exclusively by the Arkansas Rehabilitation Services to fund an equipment distribution program for persons certified as deaf, hard of hearing, deaf and blind, or speech-impaired as provided otherwise in § 20-79-401 et seq.

History. Acts 1995, No. 501, § 4; 1997, No. 298, § 11; 2001, No. 530, § 1.

A.C.R.C. Notes. Acts 1997, No. 1080, § 14, provided, in part, that “to the extent any provisions of this act conflict with any provisions of Act 501 of 1995 the provisions of Act 501 shall prevail.”

19-6-483. [Repealed.]

Publisher's Notes. This section, concerning the Parks and Tourism — Retirement and Relocation Division Fund, was repealed by Acts 2003, No. 28, § 22. The section was derived from Acts 1995, No. 1255, § 7.

19-6-484. Conservation Tax Fund.

The Conservation Tax Fund shall consist of those special revenues as specified in § 19-6-301(193), there to be distributed to the fund accounts as set out below, which are created by this section unless specifically created in other provisions of the Arkansas Code, and under the following procedures:

The Revenue Division shall deposit the funds collected under the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., for gross receipts taxes and the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., for compensating taxes into the State Treasury, there to be credited to the Revenue Holding Fund Account of the State Apportionment Fund;
1. On the last day of each month, the Chief Fiscal Officer of the State shall certify to the Treasurer of State the estimated amount of gross receipts and compensating tax collections in the Revenue Holding Fund Account that are a result of the changes by the passage of Arkansas Constitution, Amendment 75.
2. The Treasurer of State shall then transfer the amount so certified to the Special Revenue Fund Account of the State Apportionment Fund as part of the gross special revenues.
3. After the deductions as set out in § 19-5-203 have been made, the remaining amount shall be credited to the Conservation Tax Fund.
4. The remaining gross receipts and compensating tax collections remaining in the Revenue Holding Fund Account shall be credited to the General Revenue Fund Account of the State Apportionment Fund, there to be distributed with the other gross general revenue collections for that month in accordance with the provisions of § 19-5-201 et seq.; and
The Treasurer of State shall then make the following transfers from the Conservation Tax Fund to the fund accounts set out below at the end of each month:
1. Forty-five percent (45%) to the Game Protection Fund to be used exclusively by the Arkansas State Game and Fish Commission as appropriated by the General Assembly;
2. Forty-five percent (45%) to the Department of Parks, Heritage, and Tourism Fund Account to be used by the Department of Parks, Heritage, and Tourism for state park purposes as appropriated by the General Assembly;
3. Nine percent (9%) to the Arkansas Division of Heritage Special Fund Account to be used exclusively by the Division of Arkansas Heritage as appropriated by the General Assembly; and
4. 1. One percent (1%) to the Keep Arkansas Beautiful Fund Account to be used exclusively by the Keep Arkansas Beautiful Commission as appropriated by the General Assembly.
  2. The Keep Arkansas Beautiful Fund Account also shall consist of the special revenues as specified in § 19-6-301(203).

History. Acts 1997, No. 156, § 1; 2003, No. 28, § 20; 2013, No. 1393, § 4; 2016 (3rd Ex. Sess.), No. 1, § 14; 2017, No. 1051, § 5; 2019, No. 910, § 5675.

A.C.R.C. Notes. Acts 2016 (3rd Ex. Sess.), No. 1, § 1, provided: “This act shall be known and may be cited as the ‘Arkansas Highway Improvement Plan of 2016’.”

Amendments. The 2003 amendment added (3)(D)(ii); and corrected a typographical error in present (3)(D)(i).

The 2013 amendment inserted “general revenues as specified in § 26-56-201(g)(1)(D) and those” in the introductory language; in (1), inserted “the Arkansas Gross Receipts Act of 1941” and “the Arkansas Compensating Tax Act of 1949”; substituted “Treasurer of State” for “State Treasurer” in (2)(A), (2)(B), and (3); and, in (3)(D)(i), inserted “the” preceding “Keep Arkansas” and “Commission” following “Arkansas Beautiful”.

The 2016 (3rd Ex. Sess.) amendment deleted “general revenues as specified in § 26-56-201(g)(1)(D) and those” preceding “special revenues” in the introductory language.

The 2017 amendment inserted “Department of” preceding the first occurrence of “Parks and Tourism” in (3)(B).

The 2019 amendment substituted “Department of Parks, Heritage, and Tourism” for “Department of Parks and Tourism” twice in (3)(B); and, in (3)(C), substituted “Arkansas Division of Heritage Special Fund Account” for “Arkansas Department of Heritage Fund Account”, and “Division of Arkansas Heritage” for “Department of Arkansas Heritage”.

Effective Dates. Acts 2016 (3rd Ex. Sess.), No. 1, § 22: July 1, 2017.

19-6-485. Health Department Technology Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Health Department Technology Fund”.
The fund shall consist of:
1. Three dollars ($3.00) of the five-dollar fee levied by § 20-7-123(b)(1)(F);
2. The four-dollar fee levied by § 20-7-123(b)(1)(G)(i);
3. The one-dollar fee levied by § 20-7-123(b)(1)(G)(ii); and
4. Three dollars ($3.00) of the five-dollar fee levied by § 20-7-123(b)(1)(H)(i)(a) .
The fund shall be used exclusively by the Department of Health for the purchase of computer hardware and software, the conversion cost of scanning data into its computer system, and related activities.

History. Acts 2001, No. 957, § 5; 2003, No. 1723, § 13; 2017, No. 1051, § 6.

Amendments. The 2003 amendment substituted “After June 30, 2003” for “When one million eight hundred thousand dollars ($1,800,000) has been deposited into the fund” in the introductory language of (d).

The 2017 amendment substituted “five-dollar fee levied by § 20-7-123(b)(1)(F)” for “eight dollar fee levied by § 20-7-123(b)(1)(H)(i)” in (b)(1); substituted “The four-dollar fee levied by § 20-7-123(b)(1)(G)(i)” for “Four dollars ($4.00) of the eight dollar fee levied by § 20-7-123(b)(1)(I)(i)” in (b)(2); substituted “The one-dollar fee levied by § 20-7-123(b)(1)(G)(ii)” for “Two dollars ($2.00) of the three dollar fee levied by § 20-7-123(b)(1)(I)(ii)” in (b)(3); substituted “five-dollar fee levied by § 20-7-123(b)(1)(H)(i)( a )” for “eight dollar fee levied by § 20-7-123(b)(1)(J)(i)” in (b)(4); and deleted (d).

Cross References. Allowable fees prescribed in the Vital Statistics Act, § 20-7-123.

19-6-486. Long Term Reserve Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Long Term Reserve Fund”.
The Long Term Reserve Fund shall consist of such funds as may be provided by the General Assembly.
The Long Term Reserve Fund shall be used to distribute moneys to one (1) or more funds or fund accounts in the Revenue Stabilization Law, § 19-5-101 et seq.
1. After determining the estimated amount of general revenue that will be available for allocation to the state agencies under the Revenue Stabilization Law, § 19-5-101 et seq., and after making the determination required by § 19-5-1227(c) and prior to making any transfers deemed necessary by the Chief Fiscal Officer of the State in § 19-5-1227(d), the Chief Fiscal Officer of the State may transfer funds from the Long Term Reserve Fund in the event a “revenue shortfall” exists to meet the state's financial obligation to provide an adequate educational system for the state and to provide for the effective operation of state government. In the event the Chief Fiscal Officer of the State determines that a “revenue shortfall” exists as defined as a circumstance when the official forecast of gross general revenue certified by the Chief Fiscal Officer of the State is projected to increase less than three percent (3%) over and above the gross general revenue collections of the previous fiscal year due to changes in economic conditions, he or she may then transfer funds from the Long Term Reserve Fund, as approved by a vote of at least two-thirds (2/3) of the members of the Legislative Council or at least two-thirds (2/3) of the members of the Joint Budget Committee, to various funds and fund accounts, as deemed necessary, in the Revenue Stabilization Law, § 19-5-101 et seq., for the purpose of meeting unanticipated shortfalls in state general revenue.
2. Or the Chief Fiscal Officer of the State may transfer funds from the Long Term Reserve Fund to the Economic Development Superprojects Project Fund for projects authorized under Arkansas Constitution, Amendment 82, as approved by the Governor and at least two-thirds (2/3) of the members of the Legislative Council or at least two-thirds (2/3) of the members of the Joint Budget Committee.
1. Upon recommendation by the Chief Fiscal Officer of the State, the Governor may determine that circumstances exist that meet the requirements for the utilization of the Long Term Reserve Fund as set out in this section, and the procedures set out herein shall apply.
2. When the Governor determines there is a need requiring transfer from the Long Term Reserve Fund, he or she shall instruct the Chief Fiscal Officer of the State to prepare and submit written documentation to the Legislative Council or the Joint Budget Committee. Such documentation shall include:
  1. Sufficient financial data that will enable the verification of the existence of an emergency and the amount necessary to address the need for long term reserve funds;
  2. A proposed distribution of moneys from the Long Term Reserve Fund to one (1) or more funds or fund accounts in the Revenue Stabilization Law, § 19-5-101 et seq., or to the Economic Development Superprojects Project Fund, or both; and
  3. A statement certifying that no other funds are available that could be transferred in lieu of the funds in the Long Term Reserve Fund.
3. Such documentation shall be submitted to the Legislative Council or Joint Budget Committee for approval prior to the implementation of the proposed distribution. The Chief Fiscal Officer of the State, after having sought and received prior approval of at least two-thirds (2/3) of the members of the Legislative Council or at least two-thirds (2/3) of the members of the Joint Budget Committee, shall cause the required transfers to be made on his or her books and on the books of the Treasurer of State and the Auditor of State from the Long Term Reserve Fund to the appropriate funds and fund accounts in the Revenue Stabilization Law, § 19-5-101 et seq., or to the Economic Development Superprojects Project Fund, or both. In no event shall the amounts transferred in any fiscal year to the funds and fund accounts in the Revenue Stabilization Law, § 19-5-101 et seq., by this section cause the general revenues to exceed the maximum allocations authorized in the Revenue Stabilization Law, § 19-5-101 et seq.
Determining the maximum amount of appropriation and general revenue funding for a state agency each fiscal year is the prerogative of the General Assembly. This is usually accomplished by delineating such maximums in the appropriation acts for a state agency and the general revenue allocations authorized for each fund and fund account by amendment to the Revenue Stabilization Law, § 19-5-101 et seq. Further, the General Assembly has determined that creating the Long Term Reserve Fund and establishing the procedures for the transfer of funds to various funds and fund accounts in the Revenue Stabilization Law, § 19-5-101 et seq., or to the Economic Development Superprojects Project Fund, or both, provides for the efficient and effective operation of state government if a revenue shortfall is determined to exist. Therefore, it is both necessary and appropriate that the General Assembly maintain oversight by requiring prior approval of the Legislative Council or Joint Budget Committee as provided by this section. The requirement of approval by the Legislative Council or Joint Budget Committee is not a severable part of this section. If the requirement of approval by the Legislative Council or Joint Budget Committee is ruled unconstitutional by a court of competent jurisdiction, this entire section is void.
During each fiscal year, after the provisions of § 19-5-1004(b)(2) are complied with, the Chief Fiscal Officer of the State shall replenish the Long Term Reserve Fund by transferring no more than fifty percent (50%) of the balance in the General Revenue Allotment Reserve Fund or an amount equal to all transfers made under this section during the fiscal year immediately preceding the fiscal year in which such replenishment is made under this section, whichever is less, to the Long Term Reserve Fund.

History. Acts 2002 (1st Ex. Sess.), No. 2, § 1; 2007, No. 1055, §§ 1-4; 2016 (3rd Ex. Sess.), No. 1, § 15; 2017 (1st Ex. Sess.), No. 7, § 2.

A.C.R.C. Notes. Acts 2016 (3rd Ex. Sess.), No. 1, § 1, provided: “This act shall be known and may be cited as the ‘Arkansas Highway Improvement Plan of 2016’.”

Former (d)(3), as enacted by Acts 2007, No. 1055, § 2, was deleted as it was identical to (e)(4) [now (f)] as enacted by Acts 2007, No. 1055, § 3. Subdivision (d)(3) read: “(3) Determining the maximum amount of appropriation and general revenue funding for a state agency each fiscal year is the prerogative of the General Assembly. This is usually accomplished by delineating such maximums in the appropriation acts for a state agency and the general revenue allocations authorized for each fund and fund account by amendment to the Revenue Stabilization Law, § 19-5-101 et seq. Further, the General Assembly has determined that creating the Long Term Reserve Fund and establishing the procedures for the transfer of funds to various funds and fund accounts in the Revenue Stabilization Law, § 19-5-101 et seq., or to the Economic Development Superprojects Project Fund, or both, provides for the efficient and effective operation of state government if a revenue shortfall is determined to exist. Therefore, it is both necessary and appropriate that the General Assembly maintain oversight by requiring prior approval of the Legislative Council or Joint Budget Committee as provided by this section. The requirement of approval by the Legislative Council or Joint Budget Committee is not a severable part of this section. If the requirement of approval by the Legislative Council or Joint Budget Committee is ruled unconstitutional by a court of competent jurisdiction, this entire section is void.”

Acts 2017 (1st Ex. Sess.), No. 7, § 1, provided: “Legislative findings. The General Assembly finds that:

“(1) The level of state financial reserves affects the state’s credit rating, as a higher level of reserves will result in a better credit rating;

“(2) Arkansas scores low on financial reserves analyses, with the lack of adequate reserves negatively affecting the state’s credit rating;

“(3) S&P Global Ratings gives the highest possible score, consistent with a AAA-rating, for states in which ‘[t]here is a formal budget-based reserve relative to revenue or spending that is above 8%’;

“(4) S&P affirmed its ‘AA’ long-term rating to Arkansas's series 2016 taxable refunding higher education general obligation bonds and noted, ‘The state lacks a formal reserve and liquidity policy . . .’ but also noted that the State of Arkansas has formed a funding strategy for the state's Long Term Reserve Fund;

“(5) A funded reserve fund and a higher credit rating will save the state money;

“(6) Arkansas currently has approximately one billion five hundred million dollars ($1,500,000,000) in outstanding general obligation debt;

“(7) An improvement in the state’s credit rating from AA to AAA would allow the state to borrow money at twelve (12) to fifteen (15) basis points below the current AA-rate, potentially saving the state one million eight hundred thousand dollars ($1,800,000) per year in interest costs; and

“(8) In addition to financial benefits from a higher credit rating, there are numerous qualitative benefits, including the increased appeal of a higher credit rating to potential new industries, which will assist the state in pursuing the important goal of recruiting industry to our state.”

Acts 2017 (1st Ex. Sess.), No. 7, § 4, provided: “Transfer from the Arkansas Healthy Century Trust Fund. Immediately upon the effective date of this act [May 4, 2017], or as soon as is practicable after the effective date of this act, the Chief Fiscal Officer of the State shall transfer on his or her books and the books of the Treasurer of State and the Auditor of State the balance of the Arkansas Healthy Century Trust Fund to the Long Term Reserve Fund.”

Amendments. The 2007 amendment, substituted “may be provided by the General Assembly” for “appropriated by the General Assembly and tobacco proceeds as set out by law” in (b); and added (c), (d), (e), and (f).

The 2016 (3rd Ex. Sess.) amendment substituted “Long Term Reserve Fund” for “Arkansas Rainy Day Fund” throughout the section; and substituted “long term reserve funds” for “rainy day funds” at the end of (e)(2)(A).

The 2017 (1st Ex. Sess.) amendment in the second sentence of (d)(1), inserted “a vote of at least two-thirds (2/3) of the members of” and “at least two-thirds (2/3) of the members of the”; in (d)(2) and the second sentence of (e)(3), inserted “at least two-thirds (2/3) of the members of” and “at least two-thirds (2/3) of the members of the”; and, in (g), substituted “shall” for “may” and deleted the second sentence.

19-6-487. [Repealed.]

Publisher's Notes. This section, concerning the Health Adequacy Committee Fund, was repealed by Acts 2017, No. 263, § 5. The section was derived from Acts 2003, No. 1816, § 2.

19-6-488. One Percent to Prevent Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “One Percent to Prevent Fund”.
1. The fund shall consist of any other revenues as may be authorized by law.
2. The fund also shall consist of any federal funds or private foundation grants.
The fund shall be exclusively used by the Department of Human Services to prevent the children of prisoners from becoming future prisoners.

History. Acts 2003, No. 1224, § 3; 2017, No. 897, § 13.

Amendments. The 2017 amendment, in (c), substituted “Department of Human Services” for “State Child Abuse and Neglect Prevention Board”, and deleted “as provided under §§ 9-30-105(c) and 9-30-107(c)” from the end.

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2003 Arkansas General Assembly, Family Law, Child Abuse and Neglect Prevention, 26 U. Ark. Little Rock L. Rev. 418.

19-6-489. Specialty Court Program Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Specialty Court Program Fund”.
The fund shall consist of the specialty court program user fees under § 16-10-701 and any other moneys provided by law.
The fund shall be used exclusively for:
1. Treatment services provided by the Department of Community Correction as defined by and distributed under § 16-98-305(1)(E);
2. Treatment services provided by the Department of Human Services as defined by and distributed under § 16-98-305(2)(C);
3. The cost of the evaluation of specialty court programs by the Specialty Court Program Advisory Committee as required under § 16-10-139; and
4. Drug and mental health crisis intervention centers.

History. Acts 2003, No. 1266, § 4; 2015, No. 895, § 45.

A.C.R.C. Notes. Acts 2005, No. 2115, § 29, provided:

“DRUG COURT RULES AND REGULATIONS. The Department of Human Services — Division of Behavioral Health Services shall develop administrative rules and regulations regarding the distribution of monies from the MAGNUM Drug Court Fund and shall submit such rules and regulations to the Arkansas Legislative Council or Joint Budget Committee for review.”

Acts 2015, No. 895, § 1, provided: “Legislative intent.

“It is the intent of the General Assembly to implement wide-ranging reforms to the criminal justice system in order to address prison overcrowding, promote seamless reentry into society, reduce medical costs incurred by the state and local governments, aid law enforcement agencies in fighting crime and keeping the peace, and to enhance public safety.”

Prior to the 2015 amendment, this section constituted the MAGNUM Drug Court Fund.

Amendments. The 2015 amendment rewrote the section heading and the section.

Cross References. Court order for costs and fees, § 16-98-304.

19-6-490. Marine Sanitation Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Marine Sanitation Fund”.
1. The Marine Sanitation Fund shall consist of those special revenues as specified in § 19-6-301(178) and twenty-four percent (24%) of those special revenues as specified in § 19-6-301(20).
2. The Marine Sanitation Fund also shall consist of any unexpended balances of fees and fines for the use of the Marine Sanitation Program remaining in the Public Health Fund on June 30, 2003.
3. The Marine Sanitation Fund also shall consist of any other revenues as may be authorized by law.
The Marine Sanitation Fund shall be used by the Department of Health for the purposes set out in § 27-101-401 et seq.

History. Acts 2003, No. 1774, § 16; 2005, No. 20, § 15.

Amendments. The 2005 amendment rewrote (b)(1), which formerly read: “All monies collected under § 27-101-110 shall be deposited into the State Treasury to the credit of the Marine Sanitation Fund as special revenues.”

Cross References. Deposit of funds in State Treasury, § 27-101-110.

19-6-491. Domestic Peace Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Domestic Peace Fund”.
1. The moneys collected under § 16-20-407, as designated under § 16-20-407(b)(2), and § 16-10-305(g) shall be deposited into the State Treasury to the credit of the fund as special revenue.
2. The fund also shall consist of:
  1. That portion of special revenues specified in § 19-6-301(172)(B);
  2. Moneys obtained from private grants or other sources that are designated to be credited to the fund;
  3. Moneys collected under § 17-19-301(d)(1)(F)(ii); and
  4. Other revenues as may be authorized by law.
The fund shall be used by the Arkansas Child Abuse/Rape/Domestic Violence Commission as provided under the Arkansas Domestic Peace Act, § 9-4-101 et seq.

History. Acts 2003, No. 1029, § 2; 2005, No. 20, § 16; 2005, No. 1962, § 86; 2009, No. 1464, § 8; 2013, No. 1357, § 2; 2015, No. 1207, § 4.

Amendments. The 2005 amendment by No. 20, in former (b)(1)(A), substituted “§ 16-20-407” for “§ 16-14-110” and “§ 16-20-407(b)(2)” for “§ 16-14-110(b)(2)”; and deleted former (b)(1)(B).

The 2005 amendment by No. 1962 inserted the present subdivision designations in (b); in present (b)(1), substituted “§ 16-20-407” for “§ 16-14-110” and “§ 16-20-407(b)(2)” for “§ 16-14-110(b)(2)”; added present (b)(2)(A); and made stylistic and related changes.

The 2009 amendment deleted “any” at the end of the introductory language of (b)(2); and inserted present (b)(2)(A) and redesignated the remaining subdivisions accordingly.

The 2013 amendment inserted “and § 16-10-305(g)” in (b)(1).

The 2015 amendment inserted present (b)(2)(C) and redesignated former (b)(2)(C) as (b)(2)(D).

Cross References. Additional marriage license fees for the Domestic Peace Fund, § 16-20-407.

19-6-492. [Repealed.]

Publisher's Notes. This section, concerning the Domestic Peace Fund and moneys collected for additional marriage license fees, was repealed by Acts 2005, No. 1962, § 87. The section was derived from Acts 2003, No. 1276, § 2.

19-6-493. Public School Facilities Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Public School Facilities Fund”.
1. All moneys collected under Acts 2003 (2nd Ex. Sess.), No. 70, shall be deposited as follows:
  1. If designated in § 19-6-201 as general revenues, the moneys shall be deposited into the State Treasury to the credit of the fund as special revenues; and
  2. If designated in § 19-6-301 as special revenues, the moneys shall be deposited into the State Treasury as special revenues to be distributed as provided by law.
2. The distribution of municipal and county taxes collected under the tax amnesty program created by Acts 2003 (2nd Ex. Sess.), No. 70, is not affected by this section.
3. The fund also shall consist of any other revenues as may be authorized by law.
The fund shall be used for improvements, construction, or repair of public school facilities.

History. Acts 2003 (2nd Ex. Sess.), No. 70, § 6.

A.C.R.C. Notes. Acts 2003 (2nd Ex. Sess.), No. 70, §§ 1-5 created a temporary state tax penalty and interest amnesty program.

19-6-494 — 19-6-496. [Repealed.]

Publisher's Notes. These sections, concerning the Alternative Fuels Fund, the Arkansas Weatherization Assistance Fund, and the Choose Life Adoption Assistance Program Fund, were repealed by Acts 2007, No. 407, §§ 13-15 and Acts 2007, No. 873, § 7. The sections were derived from the following sources:

19-6-494. Acts 2005, No. 20, § 17.

19-6-495. Acts 2005, No. 20, § 17.

19-6-496. Acts 2005, No. 20, § 17.

19-6-497. Shared Benefit Payment Fund.

The Shared Benefit Payment Fund shall consist of those special revenues as specified in § 19-6-301(212) and any other revenues authorized by law, there to be used by the state agencies to pay vendors for contracts entered into, as set out in § 19-11-1101.

History. Acts 2005, No. 20, § 17.

19-6-498. Investor Education Fund.

The Investor Education Fund shall consist of those special revenues as specified in § 19-6-301(213) and an initial transfer of one hundred thousand dollars ($100,000) from the Securities Department Fund, there to be used to inform and educate the public regarding investments in securities and to pay for costs and expenses associated with conducting a stock market game for educational purposes in the state's public school system, as set out in § 23-42-213.

History. Acts 2005, No. 20, § 17.

19-6-499. Fallen Firefighters' Memorial Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Fallen Firefighters' Memorial Fund”.
1. All moneys collected under § 27-24-1303(c)(2)(C) shall be deposited into the State Treasury to the credit of the fund as special revenues.
2. The fund also shall consist of any other revenues as may be authorized by law.
1. The moneys deposited into the fund shall be used by the Secretary of State to satisfy the fee requirements for placement, improvements to, or replacement of the monument or memorial area under § 19-5-1125(c).
2. All maintenance and costs shall be approved by the Arkansas Fallen Firefighters' Memorial Board and the Capitol Arts and Grounds Commission.

History. Acts 2005, No. 28, § 4; 2009, No. 251, § 25; 2011, No. 860, § 2.

Amendments. The 2009 amendment substituted “27-24-1303(c)(2)(C)” for “27-15-2702(a)(2) [repealed]” in (b)(1).

The 2011 amendment rewrote (c)(1).

Subchapter 5 — Trust Fund Income

19-6-501. Trust fund income.

Trust fund income shall consist of any amounts deposited into the State Treasury, with the exception of the proceeds of the sale or redemption of securities. The amounts shall be deposited to the credit of any of the trust funds which are dedicated by law for specific purposes, the sources of which are not derived from general or special revenues. Trust fund income shall include ad valorem taxes collected by the state for the sole benefit of local governmental units.

History. Acts 1973, No. 808, § 9; A.S.A. 1947, § 13-503.8.

Subchapter 6 — Federal Grants, Aids, and Reimbursements

19-6-601. Federal grants, aids, and reimbursements.

Federal grants, aids, and reimbursements shall consist of all funds granted to this state or any of its agencies under acts of the United States Congress or by any agency of the federal government. Such funds so received shall be considered as revenue of the fiscal year in which they are received. However, those moneys received during the month of July may be classified as revenues of the preceding fiscal year on the books of the Chief Fiscal Officer of the State upon investigation and subsequent determination by the Chief Fiscal Officer of the State that failure to do such would cause undue harm to the state or any of its agencies.

History. Acts 1973, No. 808, § 10; 1979, No. 1027, § 3; A.S.A. 1947, § 13-503.9.

Subchapter 7 — Nonrevenue Receipts

Acts 1977, No. 437, § 4: July 1, 1977. Emergency clause provided: “It being determined by the General Assembly that the proper and effective management of state finances requires that the provisions of this Act be implemented at the commencement of the next biennium and this Act is necessary for the proper management of the financial affairs of the State, therefore an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1977.”

19-6-701. Nonrevenue receipts.

Nonrevenue receipts shall consist of:
1. The repayment of the principal amount of loans;
2. The proceeds of the sale and redemption of securities, including premiums received thereon;
3. The transfer of funds, by warrants, between funds or fund accounts on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State;
4. Federal reimbursement received by state agencies on account of eligible expenditures for specific programs and deposited into funds or fund accounts in the State Treasury classified other than federal;
5. Refunds to the state or state agencies, departments, or institutions; and
6. Funds collected from drug manufacturers as rebates according to promulgated regulations of Title XIX of the Social Security Act, as amended, and deposited into the Arkansas Medicaid Rebate Program Revolving Fund. These funds shall be transferrable to the Department of Human Services Medicaid Paying Accounts Account for disbursement in the Arkansas Medicaid Program.
Refunds to expenditures shall consist of:
1. Proceeds received from insurance policies for casualty losses by state agencies, departments, or institutions;
2. Proceeds received from vendors on account of overpayment of obligations remitted by state agencies, departments, or institutions;
3. Refunds to state agencies for cash advances or over allocations made to other state and local agencies for subgrants;
4. Refunds to state agencies for the erroneous payment or overpayment of salaries to state employees;
5. Proceeds derived from the maturity or redemption of investments;
6. Reimbursements to institutions of higher education for cash fund expenditures for salaries that are properly chargeable to funds in the State Treasury;
7. Deposits by the counties in the State Aid Road Fund and in the County Supplement Fund Account in the State Treasury for matching funds available in the state aid road construction program;
8. Reimbursements to state agencies for cost-sharing purposes;
9. Federal reimbursements of expenses paid in advance by the state on behalf of the federal government; and
10. Reimbursements by vendors or their agents for warranties, product rebates, and service adjustments.
The first eighteen million dollars ($18,000,000) received each fiscal year by the State of Arkansas under the State and Local Fiscal Assistance Act of 1972, 31 U.S.C. § 6701, commonly referred to as the “Revenue Sharing Act”, shall be transferred by the Treasurer of State to the Federal Revenue Sharing State Highway Trust Fund Account in the State Highway and Transportation Department Fund.
Income derived from the sale of miscellaneous and junk inventories whose ownership is questionable or where excessive administrative accounting is required shall be deposited into the State Treasury as a nonrevenue receipt, there to be credited to the Miscellaneous Agencies Fund Account.

History. Acts 1973, No. 808, § 11; 1975, No. 230, § 4; 1975, No. 868, § 13; 1977, No. 437, § 1; 1979, No. 1027, §§ 4, 5; A.S.A. 1947, §§ 13-503.10, 13-503.10a; Acts 1991, No. 1023, § 5; 1997, No. 795, § 2; 2007, No. 716, § 1.

Amendments. The 2007 amendment added (b)(9) and (10) and made related changes.

U.S. Code. Title XIX of the Social Security Act, referred to in this section, is codified as 42 U.S.C. § 1396 et seq.

Subchapter 8 — Special Revenue Funds Continued

Effective Dates. Acts 2007, No. 407, § 18: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that various laws have been enacted since the passage of the Revenue Classification Law which have changed or created various revenues collected by the State, and that this amendment to the Revenue Classification Law is necessary in order to reflect the various taxes, licenses, fees and other revenues levied and collected for the support of and use by State Government as they currently exist and from which appropriations which become effective July 1, 2007 have been made by the Eighty-Sixth General Assembly. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2007.”

Acts 2009, No. 697, § 3: Jan. 1, 2010.

Acts 2009, No. 816, § 4: Apr. 3, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas the incentives afforded by this Act to the digital content industry can serve to stimulate the economy of the area in which production and postproduction is performed; and that the incentives have a multiplier effect, in terms of economic development, in the locality of the production and statewide; and that tax revenues generated by the activities of digital content production and postproduction more than offset the revenue lost through the incentives provided by this act. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2013, No. 276, § 3: Mar. 6, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that perhaps the lack of uniformity in the laws governing video service providers is inequitable to certain citizens and government entities; that this act establishes uniform regulation of video service providers and a simplified process for the issuance of a state franchise that will encourage entry of new video service providers to the state marketplace; and that this act is immediately necessary because it ensures uniform regulation of video service providers, assures equality of treatment of video service providers, and encourages new video service providers to enter the state. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2013, No. 545, § 3: Jan. 1, 2014.

Acts 2013, No. 586, § 5: Jan. 1, 2014.

Acts 2013, No. 1105, § 4: Emergency clause failed to pass. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that a supplier of an alcoholic beverage is not required to file an application with the Alcoholic Beverage Control Division each calendar year; that suppliers should be required to register with the division each calendar year; and that the division's yearly registration period begins on April 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1)The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2013, No. 1176, § 5: Oct. 1, 2013.

Acts 2015, No. 892, § 8: Apr. 1, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that Arkansas workforce education operates within a variety of agencies without coordination, often with significant inefficiencies arising from overlapping and repeated programming; that this act will bring workforce education programs together under a single umbrella agency; and that this act is immediately necessary because the effectiveness of this act is essential to the operation of the programs for which appropriations will be provided, and that in the event of an extension of the legislative session, the delay in the effective date of this act could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 508, § 13(a): Oct. 1, 2017. Effective date clause provided: “Sections 1, 2, 3, 6, 7, 8, 9, 10, 11, and 12 of this act become effective on October 1, 2017.”

Acts 2019, No. 721, § 31: July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2019 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2019 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2019”.

Acts 2019, No. 869, § 24. Contingent effective date clause provided: “Section 2 and Section 5 of this act are effective on and after the date the Director of the Department of Finance and Administration and the advisory group established under § 27-22-203: (1) Determine that the online insurance verification system established under the Arkansas Online Insurance Verification System Act, § 27-22-201 et seq. is fully operational; and (2) Notify the Legislative Council and the Director of the Bureau of Legislative Research that the first fifteen dollars ($15.00) of a fine assessed under § 27-22-103(a) or § 27-22-103(b) may be paid to the Treasurer of State for the benefit of the Arkansas Citizens First Responder Safety Enhancement Fund”.

Identical Acts 2020, Nos. 186 and 187, § 7: July 1, 2020.

19-6-801. Commercial Bait and Ornamental Fish Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Commercial Bait and Ornamental Fish Fund”.
The fund is to be used by the State Plant Board to administer the Commercial Bait and Ornamental Fish Act, § 2-5-201 et seq.

History. Acts 2005, No. 1449, § 2.

19-6-802. Arkansas Citizens First Responder Safety Enhancement Fund. [Effective until contingency in Acts 2019, No. 869, § 24, is met.]

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Citizens First Responder Safety Enhancement Fund”.
The fund shall consist of eighty percent (80%) of the fines collected under § 27-22-111(a).
The fund is to be used as appropriated by the General Assembly as follows:
1. Fifty percent (50%) of the fund shall be used for emergency medical services; and
2. Fifty percent (50%) of the fund shall be used for local law enforcement.

History. Acts 2005, No. 2246, § 2; 2013, No. 1393, § 5.

Publisher's Notes. For text of section effective when the contingency is met, see the following version.

Amendments. The 2013 amendment inserted (b) and redesignated former (b) as present (c).

19-6-802. Arkansas Citizens First Responder Safety Enhancement Fund. [Effective when contingency in Acts 2019, No. 869, § 24, is met.]

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Arkansas Citizens First Responder Safety Enhancement Fund”.
The fund shall consist of:
1. Eighty percent (80%) of the fines collected under § 27-22-111(a); and
2. The fines collected under § 27-22-103(c)(1).
The fund is to be used as appropriated by the General Assembly as follows:
1. Fifty percent (50%) of the fund shall be used for emergency medical services; and
2. Fifty percent (50%) of the fund shall be used for local law enforcement.

History. Acts 2005, No. 2246, § 2; 2013, No. 1393, § 5; 2019, No. 869, § 2.

Publisher's Notes. For text of section effective until the contingency is met, see the preceding version.

Amendments. The 2013 amendment inserted (b) and redesignated former (b) as present (c).

The 2019 amendment added (b)(2) and redesignated part of former (b) as (b)(1).

Effective Dates. Acts 2019, No. 869, § 24. Contingent effective date clause provided: “Section 2 and Section 5 of this act are effective on and after the date the Director of the Department of Finance and Administration and the advisory group established under § 27-22-203: (1) Determine that the online insurance verification system established under the Arkansas Online Insurance Verification System Act, § 27-22-201 et seq. is fully operational; and (2) Notify the Legislative Council and the Director of the Bureau of Legislative Research that the first fifteen dollars ($15.00) of a fine assessed under § 27-22-103(a) or § 27-22-103(b) may be paid to the Treasurer of State for the benefit of the Arkansas Citizens First Responder Safety Enhancement Fund”.

19-6-803. Public Legal Aid Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Public Legal Aid Fund”.
The fund shall consist of such revenues as may be authorized by law.
The fund shall be used for providing financial support for public legal aid organizations and distributed as follows:
1. Forty-five percent (45%) of the fund shall be paid to Legal Aid of Arkansas; and
2. Fifty-five percent (55%) of the fund shall be paid to the Center for Arkansas Legal Services.

History. Acts 2005, No. 1893, § 2.

19-6-804. Spyware Monitoring Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Spyware Monitoring Fund”.
The fund shall consist of those special revenues as specified in § 19-6-301(228) and any other revenues as may be authorized by law;
The fund is to be used by the Attorney General to offset his or her salary and administrative expenses directly related to the enforcement of the Consumer Protection Against Computer Spyware Act, § 4-111-101 et seq., and administration of the website required by the Consumer Protection Against Computer Spyware Act, § 4-111-101 et seq.

History. Acts 2005, No. 2255, § 2; 2007, No. 407, § 16.

Amendments. The 2007 amendment added (b) and redesignated former (b) as present (c).

Cross References. Use of Spyware Monitoring Fund, § 4-111-105.

19-6-805. [Repealed.]

Publisher's Notes. This section, concerning the Arkansas Rx Program Fund was repealed by Acts 2013, No. 1145, § 1. The section was derived from Acts 2007, No. 407, § 17; 2009, No. 1464, § 9.

19-6-806. Abandoned and Orphan Well Plugging Fund.

The Abandoned and Orphan Well Plugging Fund shall consist of those special revenues as specified in § 19-6-301(230), proceeds from the transfer of a well, well-site equipment, or hydrocarbons from the well as established by § 15-72-217(b)(2), grants, gifts, and any other revenues as may be authorized by law, there to be used by the Oil and Gas Commission to provide security in the event an oil and/or gas well operator fails to perform plugging responsibilities under § 15-72-217 or fails to correct well conditions that create an imminent danger to the health or safety of the public, or threaten significant environmental harm or damage to property.

History. Acts 2007, No. 407, § 17; 2011, No. 1008, § 9.

Amendments. The 2011 amendment inserted “proceeds from the transfer of a well, well-site equipment, or hydrocarbons from the well as established by § 15-72-217(b)(2)”.

19-6-807. In God We Trust License Plate Fund.

The In God We Trust License Plate Fund shall consist of those special revenues as specified in § 19-6-301(223) and any other revenues as may be authorized by law, there to be used by the Division of Aging, Adult, and Behavioral Health Services of the Department of Human Services to provide quarterly cash grants to each senior citizen center in a similar method as is used in the state's current system for distributing United States Department of Agriculture money to the senior citizen centers to purchase raw food, and for purchasing food for use in a home-delivered meal program, as set out in § 27-15-4904.

History. Acts 2007, No. 407, § 17; 2017, No. 913, § 52.

Amendments. The 2017 amendment substituted “Division of Aging, Adult, and Behavioral Health Services” for “Division of Aging and Adult Services”.

19-6-808. Arkansas Research Infrastructure Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Arkansas Research Infrastructure Fund”.
The fund shall consist of:
1. All moneys appropriated to the fund by the General Assembly; and
2. Any gifts, contributions, grants, or bequests received from federal, private, or other sources.
The fund shall be used by the Division of Science and Technology of the Arkansas Economic Development Commission for the purposes delineated under the Arkansas Research Alliance Act, § 15-3-301 et seq.

History. Acts 2007, No. 563, § 2; 2015 (1st Ex. Sess.), No. 7, § 111; 2015 (1st Ex. Sess.), No. 8, § 111.

A.C.R.C. Notes. Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 62, provided: “Transfer of the Arkansas Science and Technology Authority.

“(a)(1) The Arkansas Science and Technology Authority is transferred to the Arkansas Economic Development Commission by a type 2 transfer under § 25-2-105.

“(2) For the purposes of this act, the commission is the principal department under Acts 1971, No. 38.

19-6-809. Arkansas Alternative Fuels Development Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Arkansas Alternative Fuels Development Fund”.
1. All moneys appropriated for the fund shall be deposited into the State Treasury to the credit of the fund as special revenues.
2. The fund also shall consist of any other revenues as may be authorized by law.
The fund shall be used by the Department of Agriculture to provide grants to support alternative fuels producers, feedstock processors, and alternative fuels distributors in Arkansas as provided under the Arkansas Alternative Fuels Development Act, § 15-13-101 et seq., or as otherwise provided by law.

History. Acts 2007, No. 873, § 2; 2019, No. 910, § 117.

Amendments. The 2019 amendment substituted “Department of Agriculture” for “Arkansas Agriculture Department” in (c).

19-6-810. [Repealed.]

Publisher's Notes. This section, concerning the Choose Life Adoption Assistance Program Fund was repealed by Acts 2013, No. 1146, § 5. The section was derived from Acts 2007, No. 1032, § 33; 2007, No. 1201, § 33.

19-6-811. Wildlife Recreation Facilities Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Wildlife Recreation Facilities Fund” administered by the Rural Services Division of the Arkansas Economic Development Commission.
The fund shall consist of:
1. Those special revenues and any other revenues authorized by law;
2. Any moneys appropriated to it by the General Assembly; and
3. Any gifts, contributions, grants, or bequests received from federal, private, or other sources.
The fund shall be used by the division to develop criteria to establish and fund the development and maintenance of wildlife recreation facilities.

History. Acts 2009, No. 687, § 2; 2015 (1st Ex. Sess.), No. 7, § 135; 2015 (1st Ex. Sess.), No. 8, § 135.

A.C.R.C. Notes. Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 122, provided: “Transfer of the Department of Rural Services to the Arkansas Economic Development Commission.

“(a)(1) The Department of Rural Services is transferred to the Arkansas Economic Development Commission by a type 2 transfer under § 25-2-105.

“(2) As used in this act, the Arkansas Economic Development Commission is the principal department.

“(b) All authority, powers, duties, functions, records, personnel, property, unexpended balances of appropriations, allocations, and other funds, including the functions of budgeting or purchasing, are transferred to the Arkansas Economic Development Commission, except as specified by this act.

“(c) All powers, duties, and functions, including rulemaking, regulation, and licensing, promulgation of rules, rates, regulations, and standards, and the rendering of findings, orders, and adjudications are transferred to the Executive Director of the Arkansas Economic Development Commission.

19-6-812. Cigarette Fire Safety Standard Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Cigarette Fire Safety Standard Fund”.
The fund shall consist of:
1. All certification fees paid under § 20-27-2105;
2. All moneys recovered as civil penalties under § 20-27-2107; and
3. Any other revenues as may be authorized by law.
The fund shall be used by the Director of Arkansas Tobacco Control to support fire safety and prevention programs.

History. Acts 2009, No. 697, § 1.

19-6-813. Military Funeral Honors Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Military Funeral Honors Fund”.
1. All moneys collected under § 27-24-209(d)(7) shall be deposited into the State Treasury to the credit of the fund as special revenues.
2. The fund also shall consist of any other revenues authorized by law.
The fund shall be used by the Department of Veterans Affairs to assist with the cost of providing military funeral honors at veterans' funerals.

History. Acts 2009, No. 784, § 2.

19-6-814. Digital Product and Motion Picture Office Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Digital Product and Motion Picture Office Fund”.
The fund shall consist of revenues as authorized by law.
The fund shall be used for providing additional funds for duties and functions of the Motion Picture Office [abolished] of the Arkansas Economic Development Commission.
1. The fund shall be administered in accordance with rules promulgated by the Department of Finance and Administration.
2. The department shall consult with the Motion Picture Office [abolished] of the Arkansas Economic Development Commission.

History. Acts 2009, No. 816, § 2.

19-6-815. School-Age Children Eye and Vision Care Fund.

Any funds remaining in the School-Age Children Eye and Vision Care Fund shall be transferred to the Division of Elementary and Secondary Education Public School Fund Account to be used for school-based health centers.

History. Acts 2009, No. 1464, § 10; 2019, No. 757, § 67.

Amendments. The 2019 amendment substituted “Any funds remaining in the” for “The” and “shall be transferred to the Division of Elementary and Secondary Education Public School Fund Account to be used for school-based health centers” for “shall consist of those special revenues as specified in § 19-6-301(242), and any other revenues as may be authorized by law, there to be used by the Arkansas Commission on Eye and Vision Care of School Age Children for the purpose of carrying out its responsibilities as stated in uncodified Section 1 of Acts 2007, No. 138”.

19-6-816. Arkansas Retirement Community Program Fund Account.

The Arkansas Retirement Community Program Fund Account shall consist of those special revenues as specified in § 19-6-301(243), and any other revenues as may be authorized by law, there to be used by the Arkansas Institute for Economic Advancement of the University of Arkansas at Little Rock for payment of administrative and personnel costs and other costs of the Arkansas Association of Development Organizations associated with administering the Arkansas Retirement Community Program, as set out in the Arkansas Retirement Community Program Act, § 15-14-101 et seq.

History. Acts 2009, No. 1464, § 10; 2013, No. 1393, § 6.

Amendments. The 2013 amendment substituted “Arkansas Institute for Economic Advancement of the University of Arkansas at Little Rock” for “Arkansas Economic Development Commission” and “Arkansas Association of Development Organizations associated” for “department associated”.

19-6-817. State Drug Crime Enforcement and Prosecution Grant Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “State Drug Crime Enforcement and Prosecution Grant Fund”.
The fund shall consist of:
1. Revenues generated under § 12-17-106; and
2. Any moneys authorized by the General Assembly.
The fund shall be used by the Department of Finance and Administration for the purpose of funding state grant awards for multi-jurisdictional drug crime task forces to investigate and prosecute drug crimes within the State of Arkansas, as set out in § 12-17-101 et seq.

History. Acts 2009, No. 1464, § 10.

Cross References. State Drug Crime Enforcement and Prosecution Grant Fund, § 12-17-102.

19-6-818. Wildlife Observation Trail Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Wildlife Observation Trail Fund” administered by the Department of Parks, Heritage, and Tourism.
The fund shall consist of:
1. Those special revenues and any other revenues as may be authorized by law;
2. Any moneys appropriated to the fund by the General Assembly; and
3. Any gifts, contributions, grants, or bequests received from federal, private, or other sources.
The fund shall be used by the department to develop criteria to establish and fund the development and maintenance of wildlife observation trails.

History. Acts 2009, No. 686, § 2; 2019, No. 910, § 5676.

Amendments. The 2019 amendment substituted “Department of Parks, Heritage, and Tourism” for “Department of Parks and Tourism” in (a).

19-6-819. Arkansas Video Service Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Arkansas Video Service Fund”.
1. All moneys collected under § 23-19-204 shall be deposited into the State Treasury to the credit of the fund as special revenues.
2. The fund also shall consist of any other revenues as may be authorized by law.
The fund shall be used by the Secretary of State to review and issue certificates of franchise authority.
The fund may be used by the Secretary of State to issue refunds and reimbursements of fees collected in regard to the purpose of the fund.

History. Acts 2013, No. 276, § 1; 2015, No. 1028, § 3.

Amendments. The 2015 amendment added (d).

19-6-820. Arkansas Court Appointed Special Advocates Program Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Arkansas Court Appointed Special Advocates Program Fund”.
The fund shall consist of such revenues as may be authorized by law.
The fund shall be used for providing program support for local offices of the Arkansas Court Appointed Special Advocates program.

History. Acts 2013, No. 545, § 2.

19-6-821. County Coroners Continuing Education Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “County Coroners Continuing Education Fund”.
1. The fund shall consist of those special revenues as specified in § 19-6-301(246).
2. The fund also shall consist of any other revenues as may be authorized by law.
The fund shall be used for defraying the expenses of training seminars and other educational projects benefiting county coroners in this state as set out in §§ 14-15-308, 16-20-105, 16-20-110, and § 26-60-101 et seq.

History. Acts 2013, No. 551, § 7.

19-6-822. Fallen Law Enforcement Officers' Beneficiary Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Fallen Law Enforcement Officers' Beneficiary Fund”.
The fund shall consist of such revenues as may be authorized by law.
The fund shall be used by the Arkansas Commission on Law Enforcement Standards and Training to provide such support and assistance to beneficiaries of fallen law enforcement officers as determined to be appropriate by the commission.

History. Acts 2013, No. 586, § 1.

19-6-823. Alcoholic Beverage Control Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Alcoholic Beverage Control Fund”.
1. The registration fee of fifteen dollars ($15.00) for each brand label and brand label size collected under § 3-2-403 shall be deposited into the State Treasury to the credit of the fund as special revenues.
2. The fund also shall consist of any other revenues as may be authorized by law.
The Alcoholic Beverage Control Division shall use the fund to:
1. Educate alcoholic beverage servers and law enforcement personnel regarding state law and the division's rules;
2. Promote alcohol safety awareness; and
3. Enforce state law and the division's rules regarding underage drinking.

History. Acts 2013, No. 1105, § 3.

19-6-824. Commercial Truck Safety and Education Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Commercial Truck Safety and Education Fund”.
1. Beginning October 1, 2013, the first two million dollars ($2,000,000) of the fee charged under § 27-14-601(a)(3)(G)(ii) for the fiscal year ending June 30, 2014, shall be deposited into the State Treasury to the credit of the fund as special revenues.
2. Beginning July 1, 2014, the first two million dollars ($2,000,000) per fiscal year of the fee charged under § 27-14-601(a)(3)(G)(ii) shall be deposited into the State Treasury to the credit of the fund as special revenues.
3. The fund also shall consist of any other revenues as may be authorized by law.
The fund shall be used by the Arkansas Department of Transportation to improve the safety of the commercial truck industry through cooperative public-private programs that focus on increased enforcement, regulatory compliance, industry training, and educational programs to ensure the safe movement of goods on state highways.

History. Acts 2013, No. 1176, § 2; 2017, No. 707, § 55.

A.C.R.C. Notes. Acts 2013, No. 1176, § 1, provided: “Legislative findings and intent.

“The General Assembly finds that:

“(1) There are no programs jointly involving the trucking industry and the Arkansas State Highway and Transportation Department to ensure improved commercial truck safety on state highways. Furthermore, no studies exist on ways to improve the efficiencies of freight movement that could improve highway safety;

“(2) Dedicating funding for these purposes could enable the industry and state government to create such programs. Additionally, the industry and the department could benefit from research specific to freight movement, regulatory compliance, education, and training; and

“(3) The purpose of this act is to advance state interests in roadway safety by proposing to improve the safety of the commercial truck industry through cooperative public private programs that focus on increased enforcement, regulatory compliance, industry training, and educational programs to ensure the safe movement of goods on Arkansas highways.”

Amendments. The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department” in (c).

19-6-825. Arkansas Sheriffs' Association Education Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Arkansas Sheriffs' Association Education Fund”.
The fund shall be used by the Arkansas Sheriffs' Association exclusively for the performance of its duties as the official agency of the sheriffs of this state, including without limitation:
1. Receiving and using funds for a continuing study of ways to improve the administration of sheriffs' offices; and
2. Developing and improving education programs designed for sheriffs' offices in Arkansas.

History. Acts 2013, No. 1283, § 5.

19-6-826. Bail Bond Recovery Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Bail Bond Recovery Fund”.
1. All moneys collected under § 17-19-301(g) shall be deposited into the State Treasury to the credit of the fund as special revenues.
2. The fund also shall consist of any other revenues authorized by law.
The fund shall be used exclusively for the recovery of forfeited professional bonds.
The Professional Bail Bond Company and Professional Bail Bondsman Licensing Board shall promulgate rules concerning the disbursements of the fund.
1. The board shall promulgate rules to suspend, revoke, or take disciplinary action for noncompliance in failure to remit or pay fees under this section or for failure to report under this section.
2. The Department of Finance and Administration may pursue any appropriate legal remedy for the collection of and remittance of the delinquent fees and penalties owed under this section against any entity that has a duty to collect or remit these fees.

History. Acts 2013, No. 1283, § 5.

19-6-827. Interpreters between Hearing Individuals and Individuals who are Deaf, Deafblind, Hard of Hearing, or Oral Deaf Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Interpreters between Hearing Individuals and Individuals who are Deaf, Deafblind, Hard of Hearing, or Oral Deaf Fund”.
1. All moneys collected under § 20-14-801 et seq. shall be deposited into the State Treasury to the credit of the fund as special revenues.
2. The fund also shall consist of any other revenues authorized by law.
The fund shall be used by the Department of Health to pay costs related to the Advisory Board for Interpreters between Hearing Individuals and Individuals who are Deaf, Deafblind, Hard of Hearing, or Oral Deaf and the licensure of licensed qualified interpreters under § 20-14-801 et seq.

History. Acts 2013, No. 1314, § 1.

19-6-828. State Aid Street Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “State Aid Street Fund”.
The fund shall consist of one cent (1¢) per gallon tax from revenue distributed under the Arkansas Highway Revenue Distribution Law, § 27-70-201 et seq., from the proceeds derived from existing motor fuel taxes and distillate fuel taxes.
The fund shall be used for construction, reconstruction, and improvements of the state aid street system under the State Aid Streets Law, § 27-72-401 et seq.
1. All revenues deposited into the fund shall be apportioned to the municipalities as prescribed in § 27-72-413 for the distribution on the state aid street system among the various municipalities.
2. The apportioned funds shall remain for a period of two (2) years from the date they are apportioned.
3. Any unused funds shall be returned to the fund for redistribution in accordance with § 27-72-413.
4. 1. For a municipality to receive these funds, the municipality shall be matched in the ratio of ninety percent (90%) of moneys from the fund to not less than ten percent (10%) municipal matching funds for all municipalities with a population in excess of twenty-five thousand (25,000) residents.
  2. For all other municipalities, the state aid street system shall be funded at one hundred percent (100%), and all municipalities receiving moneys from the fund shall comply with the State Aid Streets Law, § 27-72-401 et seq.

History. Acts 2013, No. 1393, § 7; 2017, No. 263, § 6.

Amendments. The 2017 amendment rewrote the section.

19-6-829. Road and Bridge Repair, Maintenance, and Grants Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Road and Bridge Repair, Maintenance, and Grants Fund”.
The fund shall consist of:
1. Moneys collected under § 26-58-124, as designated under § 26-58-124(c)(2); and
2. Any other revenues authorized by law.
The fund shall be used for the maintenance, operation, and improvement required by the Arkansas Department of Transportation in carrying out the functions, powers, and duties stated in Arkansas Constitution, Amendment 42, §§ 27-65-102 — 27-65-107, 27-65-110, 27-65-122, and 27-65-124, and the other laws of this state prescribing the powers and duties of the department and the State Highway Commission.

History. Acts 2015, No. 536, § 3; 2017, No. 707, § 56; 2017, No. 1019, § 2.

Amendments. The 2017 amendment by No. 707 substituted “Department of Transportation” for “State Highway and Transportation Department” in (c).

The 2017 amendment by No. 1019 substituted “§ 26-58-124(c)(2)” for “§ 26-58-124(c)(1)(B)” in (b)(1).

19-6-830. [Repealed.]

Publisher's Notes. This section, concerning the Skills Development Fund, was repealed by identical Acts 2020, Nos. 186 and 187, § 2, effective July 1, 2020. The section was derived from Acts 2015, No. 892, § 4. For current law, see § 19-5-1268.

19-6-831. Arkansas Tobacco Control Revenue Fund.

There is created on the books of the Treasurer of State, the Auditor of the State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Arkansas Tobacco Control Revenue Fund”.
1. All permit and license fees received by Arkansas Tobacco Control under the Arkansas Tobacco Products Tax Act of 1977, § 26-57-201 et seq., shall be deposited into the State Treasury as special revenues to the credit of the fund.
2. The fund also shall consist of any other revenues authorized by law.
1. The fund shall be used for expenses incurred by Arkansas Tobacco Control in the organization, maintenance, operation, and merchant education and training with regard to enforcement of § 5-27-227, the Arkansas Tobacco Products Tax Act of 1977, § 26-57-201 et seq., and the Unfair Cigarette Sales Act, § 4-75-701 et seq.
2. Expenditures of moneys in the fund are subject to the General Accounting and Budgetary Procedures Law, § 19-4-101 et seq., the Arkansas Procurement Law, § 19-11-201 et seq., and other applicable fiscal laws.
3. The receipts and disbursements of Arkansas Tobacco Control shall be audited annually by Arkansas Legislative Audit.

History. Acts 2015, No. 1235, § 29.

19-6-832. Arkansas Highway Transfer Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Arkansas Highway Transfer Fund”.
The Arkansas Highway Transfer Fund shall be used to provide additional funding to the Arkansas Department of Transportation for use in constructing and maintaining the highways of this state.
In the event revenues to the department are insufficient to fully address the highway construction and maintenance needs of the state, the department may provide a written document to the Governor outlining the reasons that additional funding is needed and requesting that the Governor provide a recommendation to the Legislative Council or the Joint Budget Committee for review and approval of the transfer of funds in the Arkansas Highway Transfer Fund to the State Highway and Transportation Department Fund.
Upon review and approval of the Legislative Council or the Joint Budget Committee, the Chief Fiscal Officer of the State may transfer funds from the Arkansas Highway Transfer Fund to the State Highway and Transportation Department Fund as deemed necessary to provide additional funding to address the highway construction and maintenance needs of the state.
The requirement of approval by the Legislative Council or Joint Budget Committee is not a severable part of this section. If the requirement of approval by the Legislative Council or Joint Budget Committee is ruled unconstitutional by a court of competent jurisdiction, this entire section is void.

History. Acts 2016 (3rd Ex. Sess.), No. 1, § 13; 2017, No. 707, § 57.

A.C.R.C. Notes. Acts 2016 (3rd Ex. Sess.), No. 1, § 1, provided: “This act shall be known and may be cited as the ‘Arkansas Highway Improvement Plan of 2016’.”

Acts 2016 (3rd Ex. Sess.), No. 1, § 21, provided:

“(a) The Chief Fiscal Officer of the State shall make a one-time transfer on his or her books and those of the Treasurer of State and the Auditor of State the sum of forty million dollars ($40,000,000) from the funds available in the Rainy Day Set-Aside of the 90th Session Projects Account of the General Improvement Fund as authorized by Acts 2015, No. 1147, § 3(a)(11), to the Arkansas Highway Transfer Fund there to be used only for the purposes set forth in § 19-6-832.

“(b) Disbursement of funds authorized by this act shall be limited to the appropriation for the agency and funds made available by law for the support of the appropriations. The restrictions of the Arkansas Procurement Law, § 19-11-201 et seq., the General Accounting and Budgetary Procedures Law, § 19-4-101 et seq., the Revenue Stabilization Law, § 19-5-101 et seq., the Regular Salary Procedures and Restrictions Act, § 21-5-101 et seq., and other fiscal control laws of this state, where applicable, and regulations promulgated by the Department of Finance and Administration, as authorized by law, shall be strictly complied with in disbursement of the funds.

“(c) It is the intent of the General Assembly that any funds disbursed under the authority of this act shall be in compliance with the stated reasons for which this act was adopted, as evidenced by the Agency Requests, Executive Recommendations, and Legislative Recommendations contained in the budget manuals prepared by the Department of Finance and Administration, letters, or summarized oral testimony in the official minutes of the Legislative Council or Joint Budget Committee which relate to its passage and adoption.”

Amendments. The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department” in (b).

19-6-833. Arkansas Division of Heritage Special Fund Account.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Arkansas Division of Heritage Special Fund Account”.
The fund shall consist of:
1. That portion of moneys collected from the excise tax of one-eighth of one percent (1/8 of 1%) levied by Arkansas Constitution, Amendment 75, as set out in § 19-6-484(3)(C); and
2. Any other funds authorized or provided by law.
The fund shall be used exclusively by the Division of Arkansas Heritage as appropriated by the General Assembly.

History. Acts 2017, No. 1051, § 7; 2019, No. 910, § 5677.

Amendments. The 2019 amendment substituted “Arkansas Division of Heritage Special Fund Account” for “Arkansas Department of Heritage Fund Account” in the section heading and in (a); and substituted “Division of Arkansas Heritage” for “Department of Arkansas Heritage” in (c).

Effective Dates. Acts 2017, No. 508, § 13(a): Oct. 1, 2017. Effective date clause provided: “Sections 1, 2, 3, 6, 7, 8, 9, 10, 11, and 12 of this act become effective on October 1, 2017.”

19-6-834. Department of Parks, Heritage, and Tourism Fund Account.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Department of Parks, Heritage, and Tourism Fund Account”.
The fund shall consist of:
1. That portion of moneys collected from the excise tax of one-eighth of one percent (1/8 of 1%) levied by Arkansas Constitution, Amendment 75, as set out in § 19-6-484(3)(B); and
2. Any other funds authorized or provided by law.
The fund shall be used by the Department of Parks, Heritage, and Tourism for state park purposes as appropriated by the General Assembly.

History. Acts 2017, No. 1051, § 7; 2019, No. 910, § 5678.

Amendments. The 2019 amendment substituted “Department of Parks, Heritage, and Tourism” for “Department of Parks and Tourism” in the section heading, and in (a) and (c).

19-6-835. Arkansas Industrial Hemp Program Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous fund to be known as the “Arkansas Industrial Hemp Program Fund”.
The fund shall consist of:
1. Fees collected under the Arkansas Industrial Hemp Act, § 2-15-401 et seq.;
2. Gifts, grants, and other funds both public and private; and
3. Other revenues as may be authorized by law.
Any unallocated or unencumbered balances in the fund shall be invested in the fund, and any interest or other income earned from the investments, along with the unallotted or unencumbered balances in the fund, shall not lapse but shall be carried forward for purposes of the fund and made available solely for the purposes and benefits of the industrial hemp research program under the Arkansas Industrial Hemp Act, § 2-15-401 et seq.

History. Acts 2017, No. 981, § 3.

19-6-836. Arkansas Medical Marijuana Implementation and Operations Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Arkansas Medical Marijuana Implementation and Operations Fund”.
The fund shall consist of:
1. Moneys obtained pursuant to § 17 of the Arkansas Medical Marijuana Amendment of 2016, Arkansas Constitution, Amendment 98, from taxation of medical marijuana; and
2. Any other revenues as may be authorized by law.
The fund shall be used to pay expenses of state agencies incurred due to the passage of the Arkansas Medical Marijuana Amendment of 2016, Arkansas Constitution, Amendment 98, and for transfers of the distributions as set out by the Arkansas Medical Marijuana Amendment of 2016, Arkansas Constitution, Amendment 98.

History. Acts 2017, No. 670, § 3.

19-6-837. Medical Marijuana Commission Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Medical Marijuana Commission Fund”.
The fund shall consist of:
1. Funds distributed under § 17(b) of the Arkansas Medical Marijuana Amendment of 2016, Arkansas Constitution, Amendment 98; and
2. Other revenues and funds authorized by law.
The Medical Marijuana Commission shall use the fund for the administration of the commission and other purposes under the Arkansas Medical Marijuana Amendment of 2016, Arkansas Constitution, Amendment 98.

History. Acts 2017, No. 670, § 3.

19-6-838. Domestic Violence Shelter Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Domestic Violence Shelter Fund”.
The fund shall be used to provide funding for statewide grants awarded to a statewide domestic violence entity under the Arkansas Domestic Violence Shelter Act, § 9-6-101 et seq.
The fund shall consist of:
1. The special revenues collected under § 9-15-202(d) and § 16-10-305(h);
2. Moneys obtained from private grants or other sources that are designated to be credited to the fund; and
3. Any other revenues authorized by law.

History. Acts 2017, No. 583, § 6.

19-6-839. Arkansas Wine Grants Fund.

1. There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Arkansas Wine Grants Fund”.
2. The Arkansas Wine Grants Fund shall consist of fees collected from grocery store wine permits under § 3-5-1802 and shall be administered by the Department of Finance and Administration.
Fifty percent (50%) of fees that are deposited into the Arkansas Wine Grants Fund under § 3-5-1802 shall be transferred to the Arkansas Agricultural Marketing Grants Fund to be used to make payments of grants under the grant program in § 3-5-901 et seq.
Fifty percent (50%) of fees that are deposited into the Arkansas Wine Grants Fund under § 3-5-1802 shall be transferred to the Tourism Development Trust Fund for the purpose of land acquisition, construction, lease, equipment acquisition, improvements, renovation, major maintenance, personal services, maintenance, operating and staffing a wine tourism facility and office space for the Arkansas Wine Producers Council within the tourism facility in Franklin County, Arkansas.
Any unused or undesignated fees at the end of the fiscal year shall be transferred to the Tourism Development Trust Fund.

History. Acts 2017, No. 508, § 10; 2019, No. 721, § 28; 2019, No. 1050, § 5.

A.C.R.C. Notes. As amended by Acts 2019, No. 721, § 28, subsection (d) read as follows: “(d) Any funds not obligated unused or undesignated fees at the end of the fiscal year shall be transferred to the Tourism Development Trust Fund.”

However, there was no markup in Acts 2019, No. 721, to indicate an intent to add the words “funds not obligated” to subsection (d), and the addition of the words “funds not obligated” would make subsection (d) unintelligible. Accordingly, pursuant to § 1-2-207, subsection (d) is set out as it appears in Acts 2019, No. 1050, § 5.

Amendments. The 2019 amendment by No. 721 inserted “land acquisition, construction, lease, equipment acquisition, improvements, renovation, major maintenance, personal services, maintenance” in (c).

The 2019 amendment by No. 1050 rewrote (b).

Effective Dates. Acts 2017, No. 508, § 13(a): Oct. 1, 2017. Effective date clause provided: “Sections 1, 2, 3, 6, 7, 8, 9, 10, 11, and 12 of this act become effective on October 1, 2017.”

19-6-840. Law Enforcement Training Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Law Enforcement Training Fund”.
The fund shall consist of such revenues as may be collected under § 12-41-505 or as otherwise authorized by law.
The fund shall be used by the Arkansas Commission on Law Enforcement Standards and Training to establish and conduct training for law enforcement officers, personnel, jailers, 911 operators, or other persons determined by the commission to qualify for the training.

History. Acts 2019, No. 372, § 4.

19-6-841. Feral Hog Eradication Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Feral Hog Eradication Fund”.
The fund shall consist of:
1. Fines collected under § 2-38-504; and
2. Any other revenues as may be authorized by law.
The fund shall be used by the Arkansas Natural Resources Commission for expenses associated with the eradication efforts to eliminate feral hogs.

History. Acts 2019, No. 991, § 6.

19-6-842. Arkansas Cyber Initiative Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Arkansas Cyber Initiative Fund”.
The fund shall consist of:
1. All moneys appropriated to the fund by the General Assembly; and
2. Any gifts, contributions, grants, or bequests received from federal, private, or other sources.
The fund shall be used by the Arkansas Economic Development Commission for the purposes set out in the Arkansas Cyber Initiative Act, § 25-26-301 et seq.

History. Acts 2019, No. 1085, § 2.

Chapter 7 Federal Funds

Subchapter 1 — General Provisions

Preambles. Acts 1971, No. 191 contained a preamble which read:

“Whereas, it has been the practice of the various Governors of the State of Arkansas during the interim between legislative sessions to enter into agreements with the federal government to obtain for the people of Arkansas the benefits of various federal programs enacted or implemented in the interim between legislative sessions; and

“Whereas, many of these programs obligate the State of Arkansas for present or future financial commitments which have not been authorized by the General Assembly and the funding of which has not been specifically authorized by legislative appropriation, and often new departments, boards or commissions are established by administrative order of the Governor to administer such programs; and

“Whereas, the Sixty-Eighth General Assembly of the State of Arkansas passed Senate Bill 21 which would have required the Governor of the State to file copies of all contracts or agreements entered into with the federal government for participating in federally financed programs with each member of the General Assembly at thirty (30) day intervals, but said bill was vetoed by the Governor on the basis of imposing additional financial costs and on the basis that the same would jeopardize federal programs; and

“Whereas, it is the consensus of the General Assembly that the Constitutional duty and obligation of the General Assembly to appropriate funds and to levy taxes for the support of government makes it essential that the General Assembly be kept informed on the nature of federal aid programs, and the extent to which State funds are being obligated in connection with such programs, now, therefore … .”

Acts 1979, No. 34 contained a preamble which read:

“Whereas, the Legislative Joint Auditing Committee reviewed the financial audit of Arkansas Plan, Inc., a nonprofit corporation; and

“Whereas, Arkansas Plan, Inc., was and has been used as a disbursing agent for federal funds that were received by Arkansas governmental entities; and

“Whereas, the expenditures of these Federal-State funds were being commingled and it appears that there is no valid reason for the accounting to be done by a nonprofit corporation,

“Now, therefore … .”

Effective Dates. Acts 1979, No. 34, § 7: Feb. 1, 1979. Emergency clause provided: “It is hereby found and determined by the 72nd General Assembly that the various State colleges, universities and vocational technical schools shall immediately implement new procedures provided herein and that such compliance by all interested parties will accrue to the benefit of the taxpayers of the State of Arkansas; therefore, an emergency is hereby declared to exist and it is necessary for the public peace, health, and safety that this act be effective from and after the date of its passage and approval.”

19-7-101. Reports to Legislative Council.

The Secretary of the Department of Finance and Administration shall file quarterly reports with the Legislative Council itemizing and summarizing all contracts or agreements entered into by the Governor with the United States Government, or any agencies or instrumentalities thereof, whereby the State of Arkansas is to participate in any program involving the expenditure of federal funds, whether or not state funds are obligated in connection therewith, with respect to new federal programs, or expansion of existing federal programs which were not in existence or which were not implemented by state participation, at the time of the adjournment of the regular session of the General Assembly and entered into prior to the convening of the next regular session of the General Assembly.
The report shall list, with respect to each such contract or agreement:
1. A brief statement of the purposes of the agreement;
2. The amount of federal funds to be expended thereunder;
3. The amount of any state matching funds required in connection with the program, if any;
4. The name of the agency or department that will administer the program; and
5. Such additional information as will enable the members of the Legislative Council to determine the nature and purposes of the agreement.

History. Acts 1971, No. 191, § 1; A.S.A. 1947, § 13-733; Acts 2019, No. 910, § 3469.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a).

19-7-102. Legislative review of federal programs.

The Legislative Council shall review the quarterly reports filed by the Secretary of the Department of Finance and Administration as required in § 19-7-101 and shall submit its findings and recommendations to each succeeding regular session of the General Assembly for enabling legislation to implement, restrict, or prohibit the state's participation in any such new federal program or expanded federal program which was implemented by contract or agreement entered into by the Governor subsequent to the adjournment of the preceding session of the General Assembly.
1. In the event the next regular session of the General Assembly shall fail to prohibit or restrict the state's participation in any such new or expanded program implemented by contract or agreement signed by the Governor with the federal government during the interim between the immediately preceding regular session of the General Assembly, then the state may continue to participate in that federal program.
2. On the other hand, if the General Assembly shall restrict or prohibit the state's participation in any such new or expanded federal program implemented by contract or agreement subsequent to the last regular session, it shall be unlawful for the state to continue to participate in, or to expend any state funds in connection with, any such program. All contracts or agreements entered into by the Governor or any department or agency of the state acting under authority of the Governor shall be void, and the state's participation therein shall cease upon the adjournment of the General Assembly or at such later date if a later date for the termination of the state's participation therein has been prescribed by law.

History. Acts 1971, No. 191, § 2; A.S.A. 1947, § 13-734; Acts 2019, No. 910, § 3470.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a).

19-7-103. Control of college study programs and basic educational grants.

All state agencies, departments, and institutions receiving public funds are charged with the responsibility of the handling, receipt, and disbursement of these funds within their normal framework as provided by the laws of the State of Arkansas. The control of these funds arising from the federal programs of college work-study programs and basic educational opportunity grants received by the named governmental entities within this subchapter shall be within the daily control of the various administrators of the agencies.
1. The Division of Elementary and Secondary Education shall issue rules for the purpose of administering the funds received for college work-study programs and basic educational opportunity grants for the vocational-technical schools.
2. The Division of Higher Education shall issue rules for the purpose of administering the funds received by state colleges and universities.
3. The administration guidelines for the control of the funds of these two (2) programs shall be treated within the fiscal management laws of the State of Arkansas.
4. Before these rules are implemented, the approval of the Legislative Council and the Legislative Joint Auditing Committee shall be obtained.
Any and all agreements made by state agencies with Arkansas Plan, Inc., are declared to be against public policy of the State of Arkansas, with such agreements being null and void.
Any public servant who does not comply with the provisions of this section commits a Class A misdemeanor. This offense is classified as noncompliance with this section.

History. Acts 1979, No. 34, §§ 1-4; A.S.A. 1947, §§ 17-735—17-738; Acts 2015, No. 1258, § 16; 2019, No. 910, § 2276.

A.C.R.C. Notes. Acts 2015, No. 1258, § 1, provided: “LEGISLATIVE FINDINGS.

The General Assembly finds:

“(1) Amendment 92 to the Arkansas Constitution states in part: ‘The General Assembly may provide by law for the review by a legislative committee of administrative rules promulgated by a state agency before the administrative rules become effective; and that administrative rules promulgated by a state agency shall not become effective until reviewed and approved by the legislative committee charged by law with the review of administrative rules under subdivision (a)(1) of this section’;

“(2) As Amendment 92 does not define the term ‘state agency’, the General Assembly may establish a definition by law as part of its implementation of Amendment 92;

“(3) The General Assembly at this time wishes to exclude the Arkansas State Game and Fish Commission, the State Highway Commission, the Arkansas State Highway and Transportation Department, and institutions of higher education from the definition of ‘state agency’ applied to the implementation of Amendment 92; and

“(4) The General Assembly or the Legislative Council reserve the right to amend the definition of ‘state agency’ in the future to include one (1) or all of the Arkansas State Game and Fish Commission, the State Highway Commission, the Arkansas State Highway and Transportation Department, and institutions of higher education.”

Amendments. The 2015 amendment inserted designations (b)(1) through (4); deleted “and regulations” following “rules” in (b)(1), (b)(2), and (b)(4); and substituted “shall be obtained” for “must be obtained by a majority vote of both named bodies” in (b)(4).

The 2019 amendment substituted “Division of Elementary and Secondary Education” for “Department of Education” in (b)(1); and substituted “Division of Higher Education” for “Department of Higher Education” in (b)(2).

Cross References. State Student Incentive Grant Program, § 6-61-401.

Subchapter 2 — Office of State-Federal Relations

Preambles. Acts 1979, No. 66 contained a preamble which read:

“Whereas, the General Assembly realizes the daily impact of the full spectrum of federal governmental actions on the health, welfare and prosperity of the State and on the ability of state agencies to fully meet the needs of the citizens of Arkansas; and

“Whereas, the General Assembly recognizes the existence and importance of the many non-governmental, national funding sources, programs, and other such activities to further and expand the well-being of the State;

“Now therefore, the General Assembly of the State of Arkansas recognizes the need to establish in Washington, D.C., an office devoted to establish the means to achieve these ends … .”

Effective Dates. Acts 1979, No. 66, § 7: Feb 7, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is an immediate need for an Office of the State-Federal Relations in Washington, D.C., for the immediate betterment of the State of Arkansas through obtaining federal governmental and private grants and other funds and forms of assistance to protect the health, welfare, and prosperity of the citizens of Arkansas; that the immediate passage of this Act is necessary in order that this Office be created on or before February 15, 1979. Therefore, an emergency is hereby declared to exist, and this Act, being necessary for the immediate preservation of the public peace, health, safety, and welfare, shall be in full force and effect from and after its passage and approval.”

19-7-201. Purpose.

It is the intent of this subchapter to establish mechanisms through which the legislative and executive branches of state government can work together with Arkansas's congressional delegation to strengthen and support the state's relationship with the federal government and to ensure that the state receives all benefits and aid to which it is entitled.

History. Acts 1979, No. 66, § 4; A.S.A. 1947, § 13-742.

19-7-202. Creation.

There is created within the Governor's office an Office of State-Federal Relations for the State of Arkansas, to be located in Washington, D.C.
The executive head of the office shall be the Director of the Office of State-Federal Relations. The director shall be appointed by the Governor, subject to confirmation by the Senate, and shall serve at the pleasure of the Governor.
All budgeting, purchasing, and related management functions shall be performed under the direction and supervision of the director. The director may delegate his or her functions, powers, and duties to personnel within the office as the director shall deem desirable and necessary for the effective and efficient operation of the office.

History. Acts 1979, No. 66, § 1; A.S.A. 1947, § 13-739.

19-7-203. Duties.

The duties of the Office of State-Federal Relations shall include, but not be limited to, the following:

Federal Grants:
1. Monitor opportunities for discretionary grants;
2. Identify and comment upon proposed changes in funding formulas; and
3. Keep the Governor's office and state agencies informed on the availability of grants;
Federal Regulations:
1. Monitor regulatory developments affecting state government;
2. Support existing and proposed legislation and regulations favoring the interests of the state; and
3. Support the public policy of this state as expressed by the Governor's office, the General Assembly, and agencies, as appropriate;
Federal Legislation:
1. Keep the Governor's office, agencies, and the General Assembly informed about proposed legislative developments of critical significance to state government; and
2. Support Arkansas's congressional delegation in efforts to influence federal governmental decisions and policies as they apply to Arkansas;
Interstate Cooperation: Facilitate cooperation with other states on issues of mutual concern;
Information Clearinghouse: Coordinate the flow of information between state and federal governments;
Reporting: Provide regular performance reports to the Governor, the Legislative Council, and the General Assembly to enable evaluation of the effectiveness of the Washington office; and
Nongovernmental Funding Sources, Programs, etc:
1. Discover information on all available additional funding and other resources and direct it to the appropriate state agency or person within the state; and
2. Take advantage of all resources available on a nationwide basis that can be beneficial to the state and its citizens.

History. Acts 1979, No. 66, § 3; A.S.A. 1947, § 13-741.

19-7-204. Fund.

There is created within the Governor's office the Office of State-Federal Relations Fund.

History. Acts 1979, No. 66, § 2; A.S.A. 1947, § 13-740.

Subchapter 3 — State Economic Opportunity Office

19-7-301, 19-7-302. [Repealed.]

Publisher's Notes. This subchapter, concerning the State Economic Opportunity Office, was repealed by Acts 1995, No. 1296, § 74. This subchapter was derived from the following sources:

19-7-301. Acts 1969, No. 347, §§ 1, 2; A.S.A. 1947, §§ 13-730, 13-731.

19-7-302. Acts 1969, No. 347, § 1; A.S.A. 1947, § 13-730.

Subchapter 4 — Receipt of Federal Funds Generally

Preambles. Acts 1911, No. 423 contained a preamble which read:

“Whereas, It is provided by act of Congress, Vol. No. 35, part 1, page 260, that twenty-five per cent of all revenue received from the Forest Reserves shall be paid into the State Treasury at the close of each fiscal year, beginning with the year which closed June 30, 1908, and that such money shall be apportioned to each county from which it was received for the benefit of the public schools and the public roads of such county or counties in such manner as may be determined by enactment of the General Assembly.

“Whereas, The Federal Government is paying this money into the State Treasury in considerable sums, now amounting to each $5,000.00, and this revenue will continue and greatly increase; and,

“Whereas, This money will lay in the State Treasury without benefit to the public schools or the public roads for the next two years, unless action is taken by the present General Assembly; therefore … .”

Effective Dates. Acts 1911, No. 423, § 5: May 31, 1911. Emergency declared.

Acts 1913, No. 299, § 2: approved Mar. 29, 1913. Emergency declared.

Acts 1945, No. 21, § 3: Feb. 6, 1945. Emergency clause provided: “Whereas the funds for 1942 and 1943 received from the leasing of lands for flood control have been held in the State Treasury for many months awaiting authority for distribution; and

“Whereas the 1944 funds will be received shortly; and

“Whereas the school districts affected are in urgent need of funds, it is necessary for the preservation of public health, peace and safety that this act shall take effect at once.

“Therefore an emergency is hereby declared to exist and this act shall be in full force and effect immediately upon its passage and approval.”

Acts 1947, No. 92, § 1: approved Feb. 18, 1947. Emergency clause provided: “It is found that this Act is necessary for the preservation of the peace, health, and safety of the people, an emergency is hereby declared to exist, and this Act shall take effect and be in full force from, and after, its passage.”

Acts 1949, No. 277, § 2: approved Mar. 10, 1949. Emergency clause provided: “It is found that this act is necessary for the preservation of the peace, health and safety of the people, an emergency is hereby declared to exist, and this act shall take effect and be in full force from and after its passage.”

Acts 1961 (1st Ex. Sess.), No. 23, § 8: Sept. 8, 1961. Emergency clause provided: “It has been found and determined by the General Assembly that the Federal Government has recently enacted legislation to match State Funds 2 to 1 for preparing plans and specifications of area redevelopment programs; that the Planning Division of Arkansas Geological and Conservation Commission shall prepare such plans and specifications; that before any political subdivision of the State may qualify for Federal funds to be made available to said political subdivision of the State, detailed plans and specifications must be prepared for each local project; that implementation of such programs should commence at its earliest date to further the industrialization of Arkansas; and that the immediate passage of this act is necessary to provide funds for the Planning Division for the Arkansas Geological and Conservation Commission. Therefore, an emergency is declared to exist and this act being necessary for the preservation of public peace, health, and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1987 (1st Ex. Sess.), No. 43, § 2: June 19, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that the State Treasurer is currently holding federal funds from the sale of timber on military lands which, by federal law, can be distributed for the benefit of public schools and public roads, only if the General Assembly prescribes a formula for distribution. Therefore, an emergency is declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1999, No. 1078, § 92: effective July 1, 2000.

19-7-401. Sale of public lands generally.

The Treasurer of State is authorized and required, from time to time, to draw for and receive, from the United States Secretary of the Treasury, all sums of money which may accrue to the state on account of the five percent (5%) of the net proceeds of the sale of public lands of the United States lying within the State of Arkansas.

History. Acts 1836, § 1, p. 206; C. & M. Dig., § 4493; Pope's Dig., § 5529; A.S.A. 1947, § 13-701.

19-7-402. Sale of public domain lands and leases.

Funds received by the Treasurer of State from the federal government on account of the sale of public domain lands from any funds coming to the Treasurer of State from the Taylor Grazing Act, 43 U.S.C. § 315, shall be distributed to the respective counties in which the property is situated.
1. Eighty percent (80%) of the funds of each county shall be distributed to the school districts of the county in ratio to the leased territory or public domain sold within the district.
2. The remaining twenty percent (20%) of the funds for each county shall be credited to the county road fund.
The county treasurer shall make distribution of the school districts' portion on an acreage basis or other equitable basis if the data required for making a distribution of funds as provided in this section is not available at the time funds are available for distribution.
1. The Treasurer of State shall distribute that portion of the funds that accrue to the schools to the respective counties and distribute the funds that accrue to the county road funds.
2. 1. It shall be the duty of the county quorum court to provide the county treasurer with a statement showing the distribution of the funds in accordance with law.
  2. Thereafter, the county treasurer shall credit the respective school districts with the amounts indicated.

History. Acts 1999, No. 1078, § 86; 2005, No. 433, § 3; 2009, No. 1476, § 1.

Amendments. The 2005 amendment substituted “treasurer” for “quorum court” in (c).

The 2009 amendment rewrote (d)(1).

Research References

ALR.

Construction and Application of Taylor Grazing Act (43 U.S.C. § 315 et seq.) and Regulations Promulgated Thereunder. 71 A.L.R. Fed. 2d 197.

19-7-403. Lease of lands for flood control purposes.

All funds received by the Treasurer of State from the federal government on account of the lease of lands acquired by the federal government for flood control purposes, and distributed by the Treasurer of State to the respective counties, shall be distributed by each county receiving them as follows:

Eighty percent (80%) of such funds received by each county shall be distributed to the school districts in the county, with each school district to receive the portion thereof that the flood control acreage in that district bears to the total flood control acreage in all districts in the county; and
Twenty percent (20%) of such funds received by each county shall be credited to the county road fund.

History. Acts 1983, No. 680, § 1; A.S.A. 1947, § 13-706.4.

19-7-404. Revenues derived from forest reserves.

All money paid into the State Treasury by the federal government from the revenue derived from the forest reserves within this state for the benefit of public schools and public roads, as provided by congressional act, to the amount of fifty thousand dollars ($50,000) or as much thereof as may be so paid in, shall be appropriated as follows:
1. Three-fourths (¾) of the money received by the State Treasury from the federal government from the revenues derived from the forest reserves within this state shall be apportioned to the public schools as provided in § 6-20-218 and Acts 1933, No. 104, § 2 [obsolete]; and
2. The remaining one-fourth (¼) shall be apportioned to the public roads of the respective counties from which the money was derived.
The Auditor of State, on the first Monday in September of each year, shall draw his or her warrant on the State Treasury in favor of the county treasurer in each county which has any funds from the forest reserve revenue for the remaining one-fourth (¼) of the money. The county treasurers shall add it to the funds of their respective counties for the improvement of the public roads. The Auditor of State's warrant shall be drawn upon a certified copy of an order of the county court, directing the county treasurer to draw the funds.

History. Acts 1911, No. 423, §§ 1, 2, 4; 1913, No. 299, § 1; C. & M. Dig., §§ 5497, 5498, 8995; Pope's Dig., §§ 7139, 7140; A.S.A. 1947, §§ 13-702, 13-703, 13-705; Acts 2001, No. 1553, § 30.

Publisher's Notes. The congressional act referred to in this section is the Act of May 23, 1908, c. 192, 35 Stat. at Large, 260, codified as 16 U.S.C. § 500.

Cross References. Distribution of national forest funds to schools, § 6-20-218.

19-7-405. Geological and Conservation Federal Fund.

There is created and established in the Treasurer of State's office a fund to be known as the “Geological and Conservation Federal Fund”. Federal funds as may be allotted to the Planning Division of the Arkansas Geological Survey are to be deposited into the fund.

History. Acts 1961 (1st Ex. Sess.), No. 23, § 6; A.S.A. 1947, § 13-729.

19-7-406. Loans on agricultural products.

It shall be lawful for the Division of Correction and other state institutions and the counties of the state which produce cotton or other agricultural products to participate in government loans made available upon these agricultural products. The superintendent of any such state institution and the county judge of any such county are authorized to enter into the necessary papers to secure the benefits of these government loans.

History. Acts 1949, No. 332, § 1; A.S.A. 1947, § 13-727; Acts 2019, No. 910, § 993.

Amendments. The 2019 amendment substituted “Division of Correction” for “Department of Correction” in the first sentence.

19-7-407. [Repealed.]

Publisher's Notes. This section, concerning the building or repairing of highways, was repealed by Acts 1987, No. 792, § 6. The section was derived from Acts 1949, No. 361, § 1; A.S.A. 1947, § 13-708.

19-7-408. [Repealed.]

Publisher's Notes. This section, concerning funds credited to the Public Institutions Fund, was repealed by Acts 1995, No. 1296, § 75. The section was derived from Acts 1949, No. 259, § 1; A.S.A. 1947, § 13-728.

19-7-409. Proceeds from sale of lumber on military bases.

All moneys received by the Treasurer of State from the United States Government from the sale of lumber and timber products on United States military installations shall be distributed to the respective counties in which the property is situated.
1. Seventy-five percent (75%) of the moneys for each county shall be distributed to the respective school districts of the county in the same proportion that the lumber and timber products sold within that school district have to the total of lumber and timber products sold in the county.
2. The remaining twenty-five percent (25%) of the moneys for each county shall be credited to the county road fund.
3. The county treasurer shall make distribution of the school districts' portions on an equitable basis if the data required for making distribution of funds as provided in this section is not available at the time funds are available for distribution.

History. Acts 1999, No. 1078, § 87; 2005, No. 433, § 4.

Amendments. The 2005 amendment substituted “treasurer” for “quorum court” in (b)(3).

Subchapter 5 — Miscellaneous Federal Grant Act

Cross References. Applicability of Higher Education Expenditure Restriction Act, § 6-63-302.

Effective Dates. Acts 2001, No. 1646, § 34: Apr. 16, 2001. The emergency clause provided: “It is hereby found and determined by the General Assembly that changes in the state's fiscal laws must take effect at the beginning of the fiscal year and that if the current legislative session is extended such that the 90 day period is later than July 1, 2001 such changes will not be timely. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

Acts 2015, No. 907, § 15: July 1, 2015. Emergency clause provided:

“(a) It is found and determined by the General Assembly of the State of Arkansas that federal law requires the implementation of state-level workforce development acts to authorize federal funding for workforce development programs; that the Arkansas Workforce Development Board must begin work immediately to prepare for the inauguration of local workforce development boards; that the first phase of work by the Arkansas Workforce Development Board must be completed to coincide with the beginning of the 2015-2016 fiscal year on July 1, 2015. Therefore, an emergency is declared to exist, and § 15-4-37-3704 being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: “(1) The date of its approval by the Governor; “(2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or “(3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto. “(b) It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this act on July 1, 2015, is essential to the inauguration of the programs for which this act is provided, and that in the event of an extension of the legislative session, the delay in the effective date of this act beyond July 1, 2015, could work irreparable harm upon the proper administration and provision of essential programs created in the act. Therefore, an emergency is hereby declared to exist and, except for § 15-4-3704, this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2015.”

19-7-501. Title.

This subchapter shall be cited and referred to as the “Miscellaneous Federal Grant Act”.

History. Acts 1983, No. 346, § 1; A.S.A. 1947, § 13-754.

19-7-502. Procedure upon availability of unanticipated federal funds.

If new or additional federal funds, new or additional Comprehensive Employment and Training Act, or its successor's, funds, or changes in state use of appropriations for programs combined into block grants from the federal government become necessary, or if new federal programs or new Comprehensive Employment and Training Act, or its successor's, programs are initiated that are not authorized or contemplated in the biennial operations appropriation act for the benefiting state agency and such changes make it necessary that the benefiting state agency employ additional personnel or require additional appropriations to expend these funds in order to carry out the objectives of the federal programs or to meet federal requirements, then the head of the affected state agency is authorized to request the approval of the Governor and the Chief Fiscal Officer of the State, as provided in this section, for additional appropriations of one (1) or more new or additional salaried positions to be utilized by that respective agency. The salary rates for these positions are not to exceed the highest maximum annual salary rate or the highest grade level position authorized in the salary schedule of the requesting agency's biennial appropriation act for operations, as governed by the Uniform Classification and Compensation Act, § 21-5-201 et seq., or its successor.
In the case of those agencies, departments, or institutions, that are specifically exempt from the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq., such new or additional employees shall be established at salary rates not to exceed the maximum established in the salary schedule of the biennial operations appropriation act for the respective agency for comparable positions. In no event shall the additional positions exceed the maximum number of positions authorized for the agency in the biennial appropriation act for operations.
Whenever the head of a state agency deems it necessary to establish such new or additional appropriations or positions as authorized in this section, he or she shall file with the Governor a written report accompanied by necessary supporting documents. These documents shall set forth the facts, justifications, and circumstances that necessitate such appropriations, the maximum number of positions sought, the titles thereof, and the maximum annual salary rate to be paid each position, a complete line item operations budget for the program, a statement of the expected duration into future years of the federal funds, and whether or not the program is anticipated to eventually be supported either in part or in whole by state revenues.
Upon receipt of the report and supporting documents, for unanticipated miscellaneous federal grants, excluding the Comprehensive Employment and Training Act or its successor, the Governor or the Governor's designee shall study it. If he or she shall determine that the new or additional positions or appropriations are being sought in strict compliance with this subchapter, the Governor, after seeking the advice of the Legislative Council or the Joint Budget Committee, may approve or modify the request for such additional or new positions or appropriations as, in his or her judgment, he or she deems necessary. He or she shall forward a copy thereof to the head of the requesting agency and the Chief Fiscal Officer of the State. Upon receipt thereof, the Chief Fiscal Officer of the State shall direct the Auditor of State and the Treasurer of State to establish upon their books of record the necessary appropriation accounts in accordance with the provisions as set out in this section and the applicable classifications of appropriations as enumerated in §§ 19-4-520 — 19-4-525 as amended, or its successor, and in accordance with any federal limitations as may be applicable to the funds which are available.

History. Acts 1983, No. 346, § 2; A.S.A. 1947, § 13-755.

U.S. Code. The Comprehensive Employment and Training Act (CETA), referred to in this section, was repealed by Public Law 97-300.

19-7-503. Additional procedures and limitations.

In addition to the limitations and procedures established in § 19-7-502, the following additional procedures and limitations shall be held in strict compliance:

All new or additional federal funds or new or additional state funds under the Arkansas Workforce Innovation and Opportunity Act, § 15-4-3701 et seq., expended by the benefiting agency under the authority of any appropriation provided by the General Assembly for such purposes and transferred through the provisions and procedures established in this section shall be deposited into, and expended from, the State Treasury;
1. Appropriations authorized by the General Assembly for such purpose and transferred pursuant to the procedures set out in this section shall be strictly used for the expenditure of the Arkansas Workforce Innovation and Opportunity Act, § 15-4-3701 et seq., grant-in-aid moneys or other federal grant-in-aid moneys received, reimbursements from the federal government, and local or private funds designated as matching funds for these federal projects.
2. Amounts appropriated under subdivision (2)(A) of this section shall be deposited into the State Treasury for the benefit of the State of Arkansas, or any of its agencies, for use in emergency relief needs or for the operation of any Arkansas Workforce Innovation and Opportunity Act, § 15-4-3701 et seq., or its successor's, programs or any other programs approved by the federal government for which no appropriations or insufficient appropriations were provided elsewhere for such purposes;
1. Additional positions authorized under § 19-7-502 shall be paid from the Arkansas Workforce Innovation and Opportunity Act, § 15-4-3701 et seq., funds deposited into the State Treasury for that specific Arkansas Workforce Innovation and Opportunity Act, § 15-4-3701 et seq., or its successor's, program as may be authorized through the provisions of this subchapter or from federal, local, or private funds deposited into the State Treasury for that specific federal program as may be authorized through this subchapter.
2. However, general, special, trust, or miscellaneous state funds may not be used for the purpose of paying salaries of the positions so authorized;
The Chief Fiscal Officer of the State may promulgate rules he or she may deem necessary and proper in order to carry out this subchapter;
Sections 19-4-1807 and 19-4-1901, or their successors, that establish the federal grants, aid, and reimbursements procedures and federal funds procedures of the General Accounting and Budgetary Procedures Law, § 19-4-101 et seq., shall be strictly complied with;
Unless provided elsewhere, all federal funds received by state agencies, departments, boards, and commissions benefiting from the establishment of the biennial operations appropriation acts authorized by the General Assembly for new federal or Arkansas Workforce Innovation and Opportunity Act, § 15-4-3701 et seq., or its successor's, programs shall be deposited into the State Treasury, except when such deposit is expressly prohibited, in writing, as a condition for approval of the grant or reimbursement by the federal grant or agency; and
An appropriation as authorized by the General Assembly for new federal or Arkansas Workforce Innovation and Opportunity Act, § 15-4-3701 et seq., or its successor's, programs that the Chief Fiscal Officer of the State transfers or causes to be transferred to the various agencies shall not be utilized for entering into or making payments for personal service contracts.

History. Acts 1983, No. 346, § 3; A.S.A. 1947, § 13-756; Acts 2001, No. 1646, § 18; 2015, No. 907, § 5.

Amendments. The 2015 amendment substituted “Arkansas Workforce Innovation and Opportunity Act, § 15-4-3701 et seq.” for “Arkansas Workforce Investment Act, § 15-4-2201 et seq.” throughout the section; in (1), inserted “new or additional state funds under the” and deleted “or its successor's funds”; in (2), inserted the (A) and (B) designations; substituted “Amounts appropriated under subdivision (2)(A) of this section shall” for “These amounts are to” in (2)(B); in (3), inserted the (A) and (B) designations; deleted “or its successor’s” preceding “funds deposited” in (3)(A); in (4), substituted “may promulgate rules” for “is authorized to promulgate such rules, regulations, procedures, and guidelines as rules” and deleted “the provisions of” at the end; substituted “Sections” for “The provisions of §§” in (5); and, in (7), substituted “An” for “No” and “shall not be utilized” for “may be utilized”.

19-7-504. Recommendation by Governor — Failure to appropriate.

Upon the convening of each regular session of the General Assembly, the Governor shall submit to the General Assembly and shall recommend to the General Assembly the appropriation of the necessary federal or state matching funds, or both, estimated to be necessary with respect to any program during the subsequent fiscal biennium.
If the General Assembly shall fail to appropriate funds for any program entered into with the federal government as authorized by the laws of the State of Arkansas, on June 30 following adjournment of the regular session of the General Assembly, the program shall cease to exist, and the State of Arkansas shall no longer participate in the program.

History. Acts 1983, No. 346, § 4; A.S.A. 1947, § 13-757.

Subchapter 6 — Grant Application Review — Indirect Cost Reimbursements

Cross References. Federal grants and aids, § 19-4-1901 et seq.

Effective Dates. Acts 1983, No. 498, § 12: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly, that the administration of grant, aid and reimbursement programs by the federal government has a significant impact on the people and government of the State of Arkansas, and that a review procedure for such programs is desirable for the efficient operation of State government. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1983.”

Acts 1985, No. 513, § 3: Mar. 25, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that federal OMB Circular A-87, and other federal laws authorize State agencies who receive federal funds to seek reimbursement for indirect costs incurred in the administration of such federal funds, and that it is essential that the State agencies of this State which elect to receive such cost reimbursement be authorized to qualify for the payment, yet such agency should not be obligated to obtain the same if the administrative head of said agency determines it would be in the better interest of the agency not to seek indirect cost reimbursement; and that the immediate passage of this Act is necessary to clarify the existing laws of this State to accomplish such purpose. Therefore, an emergency is hereby declared to exist, and this Act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989 (1st Ex. Sess.), No. 44, § 18: July 1, 1989. Emergency clause provided: “It is hereby found and determined by the Seventy-Seventh General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1989 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1989 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1989.”

19-7-601. Legislative determination.

It is found and determined by the General Assembly that all governmental units, various nongovernmental organizations, and the general public in the State of Arkansas should have the opportunity to review and comment upon applications for federal funding assistance. The General Assembly further finds that it is desirable that the State of Arkansas pursue the utilization of indirect cost reimbursements available to state agencies from the various federal agencies. It is further found that the state should cooperate with the federal government in the development and utilization of intergovernmental information exchange programs which may be of benefit to the State of Arkansas and to utilize any available federal assistance funds for the furtherance of the purposes of this subchapter.

History. Acts 1983, No. 498, § 1; A.S.A. 1947, § 13-758.

19-7-602. Definitions.

As used in this subchapter, unless the context otherwise requires:

“Executive Order 12372, Intergovernmental Review of Federal Programs” means an instrument signed and placed into effect by the President of the United States on July 14, 1982;
“Federal funding assistance” means financial aid available from the various federal government agencies to units of state and local governments, as well as to private for-profit and private nonprofit organizations;
“Indirect cost reimbursements” means the reimbursement by a federal agency to agencies of state government for the costs incurred which are necessary for the efficient conduct of a federal grant or contract, as stated in United States Office of Management and Budget Circular A-87, “A Guide for State and Local Government Agencies — Cost Principles and Procedures for Establishing Cost Allocations Plans and Indirect Cost Rates for Grants and Contracts with the Federal Government”;
“Office of Intergovernmental Services” means an organizational unit within the Department of Finance and Administration;
“Revenue sharing” means payments to units of local government as authorized by the State and Local Fiscal Assistance Act of 1972, as amended;
“Review and comment” means the process by which any unit of government, organization, or individual may request to review and provide comments upon any application for federal funding assistance, as limited by other sections of this subchapter; and
“State clearinghouse” means that section of the Office of Intergovernmental Services which is designated as the governmental unit responsible for coordinating the review of applications for federal funding assistance, pursuant to Executive Order 12372 and other provisions of this subchapter.

History. Acts 1983, No. 498, § 2; A.S.A. 1947, § 13-759.

U.S. Code. The State and Local Fiscal Assistance Act of 1972, referred to in this section, is codified as 31 U.S.C. § 6701 et seq.

19-7-603. Administration.

The Office of Intergovernmental Services shall be responsible for carrying out the duties and responsibilities of this subchapter.

History. Acts 1983, No. 498, § 3; A.S.A. 1947, § 13-760.

19-7-604. Federal grants, aids, and reimbursement procedures.

Requests for Federal Grants.
1. All formal applications for federal funds for grants, aids, and reimbursements originated by a state agency, board, commission, department, or institution shall be submitted to the Department of Finance and Administration prior to their submission to the granting source.
2. Applications shall include, in a manner prescribed by the Secretary of the Department of Finance and Administration, a summary of the proposed project.
3. The summary will include the indirect cost rate of the applicant agency, together with a projection of funds to be received as indirect cost reimbursement.
4. The Department of Finance and Administration shall file with the Bureau of Legislative Research a summary of these applications for their review.
Preliminary Proposals.
1. Preliminary, preapplication, or informal proposals which may eventually result in a commitment of personnel, space, facilities, or state funds shall be submitted to the Department of Finance and Administration at the time they are submitted to the federal granting agency.
2. In order to eliminate overlap, inefficiency, or a violation of legislative intent, the secretary may require a review of the proposal, soliciting comment from other agencies which might be affected, and may require the suspension of negotiations until the review is completed.
3. The provisions of this subsection shall not be applicable to institutions of higher education. However, a copy of the preliminary proposals shall be submitted to the Department of Finance and Administration for the information of the Department of Finance and Administration.
Procedural Requirements. The Department of Finance and Administration shall prescribe procedures relative to preliminary proposals and formal applications for federal grants, aids, and reimbursements.
Receipt of Funds.
1. When any state agency receives notification of an award of any federal funds, grants, aids, or reimbursements, including unsolicited funds, the Department of Finance and Administration shall be notified on forms to be prescribed by the secretary.
2. Included on such forms will be a section to report payments from federal funds for indirect cost reimbursements resulting from:
  1. Overhead costs of the agency, board, commission, department, or institution; and
  2. Overhead costs of state central services allocated to that agency, board, commission, department, or institution through the Statewide Cost Allocation Plan.
3. The Department of Finance and Administration will provide the Bureau of Legislative Research a summary of such notifications for review.
State Clearinghouse.
1. The Office of Intergovernmental Services is to function as the state clearinghouse for coordinating the review and comment process relative to applications for federal funding assistance under Executive Order 12372 and other provisions of this subchapter.
2. The Department of Finance and Administration shall be responsible, in consultation with state and local elected officials, for developing procedures to implement the review and comment process for applications for federal funding assistance.

History. Acts 1983, No. 498, § 4; A.S.A. 1947, § 13-761; Acts 2019, No. 910, §§ 3465-3467.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a)(2); and substituted “secretary” for “director” in (b)(2) and (d)(1).

Cross References. Federal grants, aids, and reimbursement procedures, § 19-4-1801 et seq.

19-7-605. Indirect cost reimbursements.

The Office of Intergovernmental Services shall be responsible for preparation of the Statewide Cost Allocation Plan for the allocation of state central services' overhead costs to the various state agencies who elect to seek reimbursement for them according to the provisions of United States Office of Management and Budget Circular A-87.
The Office of Intergovernmental Services also shall:
1. Prepare indirect cost rate proposals on behalf of the state agencies; or
2. Provide assistance as necessary to state agencies that prepare their own indirect cost rate proposals if the state agency elects to seek payment from the federal government for these costs.
The Office of Intergovernmental Services shall be authorized to negotiate the statewide cost allocations with the appropriate federal authorities and indirect cost proposals prepared by the Office of Intergovernmental Services with any agency.
Any agency that chooses to utilize indirect cost rates according to the provisions of this subchapter shall submit a copy of its indirect cost rate proposals to the Department of Finance and Administration and also a copy of its indirect cost rate agreement after the cognizant federal agency has approved the rate proposal.

History. Acts 1983, No. 498, § 5; 1985, No. 513, § 1; A.S.A. 1947, § 13-762.

19-7-606. Transfer of reimbursements.

The Secretary of the Department of Human Services is authorized to transfer from the Department of Human Services federal funds as designated by the Chief Fiscal Officer of the State to the appropriate state fund account those federal funds recovered as reimbursement for indirect costs which are not required to be transferred to the Constitutional Officers Fund or State Central Services Fund pursuant to this subchapter.

History. Acts 1989 (1st Ex. Sess.), No. 44, § 9; 2019, No. 910, § 5166.

A.C.R.C. Notes. Former § 19-7-606, concerning the transfer of reimbursements, is deemed to be superseded by this section. The former section was derived from Acts 1985, No. 649, § 26; A.S.A. 1947, § 13-763.1.

Amendments. The 2019 amendment substituted “Secretary of the Department of Human Services” for “Director of the Department of Human Services”.

19-7-607. Expenditure of federal funds.

The Department of Finance and Administration is authorized to receive federal funds, enter into contracts with federal agencies, and expend any such funds as necessary to accomplish the duties set out in this subchapter.

History. Acts 1983, No. 498, § 7; A.S.A. 1947, § 13-764.

19-7-608. Information exchange programs.

The Office of Intergovernmental Services is authorized to cooperate with agencies of the federal government in the development and utilization of intergovernmental information exchange programs which may be of benefit to the State of Arkansas.

History. Acts 1983, No. 498, § 8; A.S.A. 1947, § 13-765.

19-7-609. Revenue sharing.

The Office of Intergovernmental Services shall be responsible for providing technical assistance to units of local government on matters relating to federal revenue sharing. The Office of Intergovernmental Services is designated as the liaison between the federal Office of Revenue Sharing [abolished] and local governments in Arkansas.

History. Acts 1983, No. 498, § 9; A.S.A. 1947, § 13-766.

19-7-610. Advice of legislative departments.

It is recognized by the legislative and executive departments of government that some of the executive departments' authority or responsibility as provided in this subchapter should possibly have the legislative departments' concurrence before proceeding with such authority or responsibility. The legislative department, via the Legislative Joint Auditing Committee, the Legislative Council, joint interim committees, interim committees, or subcommittees of the foregoing may request the Secretary of the Department of Finance and Administration to seek the legislative department's advice before exercising certain authority or responsibility as authorized by this subchapter.

History. Acts 1983, No. 498, § 10; A.S.A. 1947, § 13-767; Acts 2019, No. 910, § 3468.

A.C.R.C. Notes. As enacted, former subsection (A) of this section provided that § 1 of Article 4 of the Constitution of the State of Arkansas provides that the power of the government of the State of Arkansas shall be divided into three distinct departments, each of them to be confined to a separate body of magistracy; those which are legislative to one, those which are executive to another, and those which are judicial to another.

As enacted, former subsection (B) of this section provided that § 2 of Article 4 of the Constitution of the State of Arkansas provides that no person, or collection of persons, being one of the legislative, executive, or judicial departments, shall exercise any power belonging to either of the others, except in the instances expressly directed or permitted in the state Constitution.

Subchapter 7 — Title XX Social Security Funds

U.S. Code. Title XX of the Social Security Act, referred to in this subchapter, is codified as 42 U.S.C. § 1397 et seq.

Effective Dates. Acts 1981, No. 538, § 16: July 1, 1981. Emergency clause provided: “It is hereby found and determined by the Seventy-Third General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more that a two (2) year period; that the effectiveness of this Act on July 1, 1981 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1981 could work irreparable harm upon the proper administration and providing of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1981.”

Acts 1981, No. 772, § 10: July 1, 1981. Emergency clause provided: “It is hereby found and determined by the Seventy-Third General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1981 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1981 could work irreparable harm upon the proper administration and providing of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1981.”

19-7-701. Contract services — Advance payment.

In order to provide effective purchased services to the needy citizens of Arkansas, the Secretary of the Department of Human Services is authorized to pay one-twelfth (1/12) of the total amount of a Title XX contract to the service provider on the effective date of the contract. The amount of the advance payment shall be adjusted out of the reimbursement actually earned by the provider during the contract period.
This section will be used only after the secretary has conducted a study of the financial condition of the contracting agency to determine if an advance payment is necessary. If the advance is necessary, the secretary shall forward his or her request and the reasons therefor to the Chief Fiscal Officer of the State for approval.
1. If the request is approved, the Chief Fiscal Officer of the State shall loan the necessary amount to the appropriate fund accounts within the Department of Human Services from the Budget Stabilization Trust Fund.
2. However, the balance of any loans made under subdivision (c)(1) of this section during the course of a fiscal year shall be recovered by the department and repaid to the fund by June 30 of that fiscal year.

History. Acts 1981, No. 538, § 4; A.S.A. 1947, § 13-743; Acts 2009, No. 251, § 26; 2019, No. 910, § 5167.

Amendments. The 2009 amendment subdivided (c), inserted “under subdivision (c)(1) of this section” in (c)(2), and made minor stylistic changes.

The 2019 amendment substituted “Secretary of the Department of Human Services” for “Director of the Department of Human Services in (a); and substituted “secretary” for “director” twice in (b).

19-7-702. Minimum program standards.

In order to unify and consolidate standards for services of clients under programs funded by Title XX Social Security funds, the Director of the Department of Human Services shall establish, by July 1, 1980, minimum program standards for the services provided by all government or private agencies under Title XX.
In developing these standards, the director will consult with such other agencies, organizations, or individuals as may be appropriate.
These standards may be amended by the director from time to time, provided that the terms of the Arkansas Administrative Procedure Act, § 25-15-201 et seq., are complied with.

History. Acts 1981, No. 538, § 5; A.S.A. 1947, § 13-744.

19-7-703. Loan provision.

It is found and determined that the continued operations of the Title XX Services Program of the Department of Human Services, in accordance with the approved annual operations plan, are, from time to time, seriously impaired by either administrative oversights and delays by the United States Office of Grants Management or by the processes of federal fiscal year conversion. It is further found and determined that such delays in the proper preparation and transmittal of federal grant award authorizations and letter of credit instruments have created unnecessary hardships on the providers of services and the needy citizens of this state. Therefore, upon certification of the pending availability of federal funding by the Secretary of the Department of Human Services, the Chief Fiscal Officer of the State may grant temporary advances, the maximum amount not to exceed five million dollars ($5,000,000), from the Budget Stabilization Trust Fund to the appropriate account of the Department of Human Services so affected by such delays.
The Chief Fiscal Officer of the State shall recover within a period of twenty (20) days such temporary advances upon receipt of the grant award authorizations or letter of credit instruments.

History. Acts 1981, No. 538, § 6; A.S.A. 1947, § 13-745; Acts 2019, No. 910, § 5168.

Amendments. The 2019 amendment substituted “Secretary of the Department of Human Services” for “Director of the Department of Human Services” in the third sentence of (a).

19-7-704. Deduction of tax withholding for individual contract providers.

It is found and determined that certain rules and regulations of the Social Security Administration and the Internal Revenue Service require the deduction of Federal Insurance Contributions Act and federal income tax withholding from persons providing services under individual purchase-of-service contracts, who are in fact independent contractors, or employees of the person receiving the service, and that there is presently no provision for payment of Federal Insurance Contributions Act and federal income tax withholding for these individuals. It is further found and determined that the use of individual contracts is necessary to the operation of the Title XIX and Title XX programs, particularly in the areas of day care and services to the elderly. Therefore, whenever the regulations of the Social Security Administration or the Internal Revenue Service require the deduction of Federal Insurance Contributions Act or federal income tax withholding for an individual providing services under a Title XX individual purchase-of-service contract, the Department of Human Services may pay the necessary Federal Insurance Contributions Act tax out of federal funds and state or local donated matching funds and may collect the necessary Federal Insurance Contributions Act and federal income tax withholding as agent for the client receiving the services.
Individuals for whom Federal Insurance Contributions Act tax is paid and Federal Insurance Contributions Act and federal income tax withholding is deducted under this section shall not be considered as employees of the state for the purposes of determining eligibility for unemployment compensation or workers' compensation, for the purpose of state income tax withholding, or for any other purposes.

History. Acts 1981, No. 538, § 7; 1981, No. 772, § 4; A.S.A. 1947, §§ 13-746, 13-746n.

U.S. Code. The Federal Insurance Contributions Act, referred to in this section, is codified as 26 U.S.C. § 3101 et seq. Titles XIX and XX of the Social Security Act are codified as 42 U.S.C. § 1396 et seq. and 42 U.S.C. § 1397 et seq., respectively.

Research References

ALR.

Construction and Application of Federal Insurance Contributions Act, 26 U.S.C. §§ 3101 et seq. — Supreme Court Cases. 7 A.L.R. Fed. 3d Art. 4 (2016).

19-7-705. Use of funds.

The Secretary of the Department of Human Services is authorized to use funds earned through service fees, audit settlements, or federal program settlements for operation of the Title XX service program. Any unanticipated federal funding received under this provision will be handled in accordance with the terms of the Miscellaneous Federal Grant Act, § 19-7-501 et seq.

History. Acts 1981, No. 538, § 8; A.S.A. 1947, § 13-747; Acts 2019, No. 910, § 5169.

Amendments. The 2019 amendment substituted “Secretary of the Department of Human Services” for “Director of the Department of Human Services”.

19-7-706. Transfer of funds and appropriations.

1. The Secretary of the Department of Human Services, in accordance with rules established by the Chief Fiscal Officer of the State, shall have the authority to transfer funds and appropriations from the appropriate division of the Department of Human Services to the various agencies of the department which receive allotments of Title XX funds. These transfers shall be limited to the allotment of funds available to each agency within the department.
2. 1. In the event that funds and appropriations transferred under this section are not fully utilized, they will be available for transfer back to the appropriate division of the department for reallocation.
  2. It is further intended that if transfer of appropriations among line items appropriated to the appropriate division of the department becomes necessary for effective operation of the program, these shall be made in accordance with rules established by the Chief Fiscal Officer of the State. However, no such transfer will be used to increase authorization for regular salaries.
The Chief Fiscal Officer of the State and the secretary shall cooperate to establish such fund accounts for deposit and disbursement of federal and local Title XX funds as are necessary for the orderly operation of a Title XX services program. The Chief Fiscal Officer of the State and the secretary shall establish procedures for the transfers of funds necessary to make reimbursement to providers or to agency fund accounts in payment for eligible services. These procedures will include provision for use of state matching funds where appropriated by law.

History. Acts 1981, No. 538, § 9; A.S.A. 1947, § 13-748; Acts 2019, No. 910, §§ 5170, 5171.

Amendments. The 2019 amendment substituted “Secretary of the Department of Human Services” for “Director of the Department of Human Services” in (a)(1); and substituted “secretary” for “director” twice in (b).

19-7-707. Transfer of retirement benefits.

Any employee who is now a member of any retirement system shall not lose any retirement benefits accrued in the system by the reorganization of the Title XX service program. An employee so affected shall have the option of continuing as a member of the retirement system of which the employee is a member at the time of transfer or to join the retirement system for which the transfer makes the employee eligible. However, the affected employee shall make his or her election within six (6) months from the date of transfer.

History. Acts 1981, No. 538, § 10; A.S.A. 1947, § 13-749.

19-7-708. Personnel transfers.

No employee transferred as a result of the reorganization of the Office of Title XX Services shall lose status under the Arkansas Rules for Merit Systems Administration as a result of transfer.

History. Acts 1981, No. 538, § 11; A.S.A. 1947, § 13-750.

Publisher's Notes. This section may be affected by Acts 1985, No. 348, § 5, reorganizing the Department of Human Services. See § 25-10-101 et seq.

Subchapter 8 — Sale or Lease of Minerals, Oil, and Gas

Effective Dates. Acts 1983, No. 157, § 4: Apr. 16, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that Federal Mineral Leasing Act monies received by the State Treasurer from the United States Government are now distributed under the provisions of Section 1 of Act 21 of 1945, as amended; that increased leasing of minerals, oil, and gas and/or the sale or leasing of minerals, oil, and gas on military and other lands belonging to the United States Government located in this State has the potential of generating substantial funds for the use and benefit of the State of Arkansas and its political subdivisions; that clarification of the method of distributing Federal Mineral Leasing Act monies derived from federal military lands different from the method set forth in Act 21 of 1945, as amended, is necessary to provide for a more equitable use and distribution of said monies between the State of Arkansas and its political subdivisions in which such federal mineral lands, other than military lands, are located. Therefore, an emergency is hereby declared to exist, and this Act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after April 16, 1983.”

Acts 1983, No. 921, § 4: Apr. 16, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that Federal Mineral Leasing Act monies received by the State Treasurer from the United States Government are distributed under the provisions of Section 1 of Act 21 of 1945, as amended; that increased leasing of minerals, oil, and gas and/or the leasing of minerals, oil, and gas on lands other than military lands belonging to the United States Government located in this State has the potential of generating substantial funds for the use and benefit of the State of Arkansas and its political subdivisions; that a method of distributing such Federal Mineral Leasing Act monies different from the method set forth in Act 21 of 1945 is necessary to provide for a more equitable use and distribution of said monies between the State of Arkansas and its political subdivisions. Therefore an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after April 16, 1983.”

19-7-801. Federal lands.

Moneys received by the Treasurer of State from the federal government for a sale, lease, royalty, bonus, or rental of oil, gas, or mineral lands belonging to the federal government and located in this state shall be distributed under this section.
Moneys received under subsection (a) of this section by and after September 1, 2008, by the Treasurer of State shall be credited by the Treasurer of State as follows:
1. Fifty percent (50%) of the moneys received shall be credited to the General Revenue Fund Account of the State Apportionment Fund for distribution to various funds that participate in the distribution of general revenues in the respective proportion to each fund, to be used for the purposes under the Revenue Stabilization Law, § 19-5-101 et seq.; and
2. Fifty percent (50%) of the moneys received shall be distributed to the counties in which the federal lands that generate the moneys are located according to federal reports that identify the counties with the federal lands that generate the moneys. Moneys under this subdivision (b)(2) shall be distributed by the Treasurer of State as follows:
  1. 1. Sixty percent (60%) of the moneys shall be distributed to the County Aid Fund, to be distributed by the Treasurer of State to the county treasurer of each county that has a school district with a boundary that includes a portion of the federal lands that generate the moneys.
    2. A county is responsible for distributing moneys under subdivision (b)(2)(A)(i) of this section to a school district with a boundary that includes a portion of the federal lands that generate the moneys.
    3. If there is more than one (1) school district with a boundary that includes a portion of the federal lands that generate the moneys within a county receiving these moneys, then each school district in that county shall receive a proportionate share of the moneys based on the school district's portion of the acreage over the total acreage in all districts in that county;
  2. Fifteen percent (15%) of the moneys received under this subdivision (b)(2) shall be distributed to the County Aid Fund to be distributed by the Treasurer of State to the county treasurer for credit to the county road funds of the counties to which these moneys are allocated; and
  3. 1. Twenty-five percent (25%) of the moneys received under this subdivision (b)(2) shall be distributed to the County Aid Fund for distribution by the Treasurer of State to the county treasurer of the county to which the moneys are to be distributed.
    2. Except as provided under subdivision (b)(2)(C)(iii) of this section, on receipt of the moneys under this subdivision (b)(2)(C), the county treasurer of the county shall distribute the moneys to the county general fund and to the respective cities, towns, school districts, community college districts, and county and municipal libraries in the county in the proportion that each taxing unit shares in the real and personal property taxes collected in the county.
    3. A school district in the county that receives a distribution of funds under subdivisions (b)(2)(A) and (B) of this section and the county road fund that receives a distribution of funds under subdivisions (b)(2)(A) and (B) of this section are not entitled to receive an additional distribution of the funds under this subdivision (b)(2)(C).

History. Acts 1983, No. 921, §§ 1, 2; A.S.A. 1947, §§ 13-706.1, 13-706.2; Acts 1999, No. 1318, § 5; 2009, No. 1476, § 2.

Publisher's Notes. Acts 1985, Nos. 164 and 705, § 1, repealed Acts 1983, No. 921, § 3, that provided for the expiration of the 1983 act on June 30, 1985.

Amendments. The 2009 amendment deleted “other than military” at the end of the section heading; and rewrote the section.

19-7-802. [Repealed.]

Publisher's Notes. This section, concerning temporary permits, was repealed by Acts 2009, No. 1476, § 3. The section was derived from Acts 1983, No. 157, §§ 1, 2; A.S.A. 1947, §§ 13-752, 13-753; Acts 1999, No. 1318, § 6.

Subchapter 9 — Resettlement or Rural Rehabilitation Projects

19-7-901. Definitions.

As used in this subchapter, unless the context otherwise requires:

“Agreement” means a contract and shall include renewals and alterations of the contract;
“County judge” means the county judge of any county in this state;
“Fund” means, unless otherwise expressed, the government project fund established pursuant to § 19-7-906;
“Governing body” means the board, body, or persons in which the powers of a political subdivision as body corporate, or otherwise, are vested;
“Political subdivision” means any agency or unit of this state which is authorized to levy taxes or empowered to cause taxes to be levied;
“Project” means any resettlement project or rural rehabilitation project for resettlement purposes of the United States located within a political subdivision and shall include the persons inhabiting such a project; and
“Service” means such public and municipal functions performed for property in and persons residing within a political subdivision.

History. Acts 1939, No. 361, § 1; A.S.A. 1947, § 13-717.

19-7-902. Agreements for payments by United States in lieu of taxes.

The county judge of any county in this state is authorized and empowered to make requests of the United States, for and on behalf of the county and the political subdivisions whose jurisdictional limits are within or coextensive with the limits of the county, for the payment of such sums in lieu of taxes as the United States may agree to pay. The county judge may enter into agreements with the United States in the name of the county for the performance of services by the county and such political subdivisions for the benefit of the project and for the payment by the United States to the county, in one (1) or more installments, of such sums in lieu of taxes.
Each political subdivision shall participate in such funds in proportion to the prevailing local tax involved on such property.

History. Acts 1939, No. 361, § 2; A.S.A. 1947, § 13-718.

19-7-903. Determination of payment amounts.

The amount of any payment of sums in lieu of taxes may be based on the estimated cost to each political subdivision, for and on whose behalf the agreement is entered into, of performing services for the benefit of a project during the period of the agreement after taking into consideration the benefits to be derived by the subdivision from the project. However, these sums shall not be in excess of the taxes which would result to the subdivision for the period if the real property of the project within the subdivision were taxable.

History. Acts 1939, No. 361, § 3; A.S.A. 1947, § 13-719.

19-7-904. Contents of agreement.

Each agreement entered into pursuant to § 19-7-902 shall contain the names of the political subdivisions with respect to which it is consummated and a statement of the proportionate share of the payment by the United States to which each subdivision shall be entitled.

History. Acts 1939, No. 361, § 4; A.S.A. 1947, § 13-720.

19-7-905. Duplicate copies of agreement.

The county judge shall prepare duplicate copies of each agreement for payment of sums in lieu of taxes and file one (1) with the county treasurer and one (1) with the clerk of the county court.
The clerk of the county court shall notify each political subdivision, for and on whose behalf the agreement is executed, that it has been consummated and shall state the share of the payment due under it to which the subdivision is entitled.
On or before the date on which any payment of sums in lieu of taxes is due, the county treasurer shall present a bill to the United States, in the name of the county, in the amount of such payment. The county treasurer shall give to the United States a receipt in the name of the county for all payments of sums in lieu of taxes.

History. Acts 1939, No. 361, § 5; A.S.A. 1947, § 13-721.

19-7-906. Government project fund of county.

The county treasurer shall establish a fund in the county treasury to be known as the “government project fund”. The fund shall contain an account with each political subdivision which is entitled to a share of a payment in lieu of taxes.
Whenever payment is received, the county treasurer shall, without any deduction, apportion it to the several accounts in the fund pursuant to the agreement under which the payment is made.

History. Acts 1939, No. 361, § 6; A.S.A. 1947, § 13-722.

19-7-907. Statement of apportionment — Distribution of funds.

After apportioning any payments to the several accounts, as provided in § 19-7-906, the county treasurer shall prepare, in duplicate, a complete itemized statement of the apportionment, one (1) copy of which shall be filed with the county judge and the other filed with the clerk of the county court.
1. The county judge, by appropriate resolution, shall order the distribution of each subdivision's share of sums in lieu of taxes to the several subdivisions entitled to a share.
2. The clerk of the county court shall thereupon draw warrants upon the county treasurer to the order of the political subdivisions entitled to a share of such payment of sums in lieu of taxes.
3. Whenever such warrant is presented to the county treasurer, he or she shall debit the proper account in the fund and shall pay immediately the amount of such warrant in full, without any deduction, to the political subdivision presenting it, notwithstanding any law providing the order in which warrants shall be paid.
4. The county treasurer shall not honor such warrant unless it is countersigned by the presiding officer of the governing body of the political subdivision.
1. The acceptance by a political subdivision of any warrant delivered pursuant to this section shall be considered as an approval of the agreement under which the payment was received.
2. If any governing body of a political subdivision shall refuse to receive any warrant delivered pursuant to this section, the amount thereof shall be refunded by the county to the United States.

History. Acts 1939, No. 361, § 7; A.S.A. 1947, § 13-723.

19-7-908. Right of political subdivision to request payment.

If the United States declines to deal with a county judge with respect to any political subdivision whose jurisdictional limits are within or coextensive with the limits of the county, or in the event the jurisdictional limits of a political subdivision lie in more than one (1) county, then that subdivision is authorized to make request of the United States for the payment of such sums in lieu of taxes as the United States may agree to pay. The subdivision is empowered to enter into agreements with the United States for the performance by the subdivision of services for the benefit of a project, and for the payment by the United States to the subdivision, in one (1) or more installments, of sums in lieu of taxes.
The amount of the payment may be based upon the cost of performing the services during the period of the agreement, after taking into consideration the benefits to be derived by the subdivision from the project, but shall not be in excess of the taxes which would result to the political subdivision during the period if the real property of the project within the political subdivision were taxable.
Whenever any payment is received by a subdivision under an agreement entered into pursuant to this section, the governing body of the subdivision shall issue a receipt of the payment to the United States.

History. Acts 1939, No. 361, § 8; A.S.A. 1947, § 13-724.

19-7-909. Disposition of funds.

All moneys received by a political subdivision pursuant to § 19-7-907 or § 19-7-908 shall be deposited into such funds or items of a fund as may be designated in the agreement.
If the agreement does not make such designation, the moneys shall be deposited into such funds or items of a fund as the governing body of the subdivision shall, by appropriate resolution, direct.

History. Acts 1939, No. 361, § 9; A.S.A. 1947, § 13-725.

19-7-910. Services of subdivision not to be denied.

In the absence of an agreement for payment of sums in lieu of taxes by the United States as provided in this subchapter, no provision of this subchapter shall be construed to relieve any political subdivision of this state of the duty of furnishing for the benefit of a project all services which the subdivision usually furnishes for the property in, and persons residing within, the subdivision without a payment of sums in lieu of taxes.

History. Acts 1939, No. 361, § 10; A.S.A. 1947, § 13-726.

Subchapter 10 — Educational Funding

19-7-1001. Federal Adult Basic Education Fund.

There shall be established on the books of the Treasurer of State a fund to be known as the “Federal Adult Basic Education Fund”.

History. Acts 1965, No. 328, § 3.

19-7-1002. Federal Elementary and Secondary Education Fund.

There shall be established on the books of the Treasurer of State a fund to be known as the “Federal Elementary and Secondary Education Fund”.

History. Acts 1965, No. 329, § 3.

Chapter 8 Depositories for Public Funds

Research References

Am. Jur. 63C Am. Jur. 2d, Pub. Funds, § 8 et seq.

Subchapter 1 — General Provisions

A.C.R.C. Notes. Section 19-3-207 et seq. supersedes this subchapter and § 19-8-201 et seq. with respect to state funds only.

Cross References. Depositories of improvement districts required to give bond, § 14-86-1801 et seq.

Suburban improvement districts to select depository, § 14-92-207.

Effective Dates. Acts 1921, No. 465, § 3: approved Mar. 26, 1921. Emergency clause provided: “That all laws and parts of laws in conflict with this act, be, and the same are hereby repealed, and this act being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in force from and after its passage.”

Acts 1933 (1st Ex. Sess.), No. 26, § 2: Sept. 2, 1933. Emergency clause provided: “Whereas, the securities now provided by law to be accepted as security for the deposit of public funds are totally inadequate and

“Whereas, such condition has meant and will mean great loss to the public, an emergency is hereby declared and this act being necessary for the immediate preservation of the public peace, health and safety, it shall be in full force and effect from and after its passage and approval.”

Acts 1935, No. 21, § 6: approved Feb. 7, 1935. Emergency clause provided: “All laws and parts of laws in conflict herewith are hereby repealed. It is ascertained that due to the prevailing deposit rates of interest and due to the requirements for making deposit of public funds it is impossible for such funds to be lawfully deposited in banks and impossible for many public officials to obtain or make official bonds. An emergency is therefore declared to exist and this act shall take effect and be in full force from and after its passage.”

Acts 1937, No. 174, § 2: approved Mar. 3, 1937. Emergency clause provided: “It is found and declared to be a fact that many people in this State will be applicants for loans to be insured by the Federal Housing Administration, and that they are in need of immediate relief, that the passage of this act will facilitate the making of such loans, give relief to debtors and contribute to the better business conditions of the State; therefore, this act being necessary for the preservation of the public peace, health and safety of the State, an emergency is declared to exist, and this act shall be in force and effect from and after its passage.”

Acts 1945, No. 62, § 2: approved Feb. 21, 1945. Emergency clause provided: “All laws and parts of laws in conflict herewith are hereby repealed. It is ascertained that due to the prevailing deposit rates of interest and due to the requirements for making deposit of public funds it is often impossible for such funds to be lawfully deposited in banks within the required time limit and impossible for many public officials to obtain or make official bonds. An emergency is therefore declared to exist and this act shall take effect and be in full force from and after its passage.”

Acts 1947, No. 122, § 2: effective on passage.

Acts 1964 (1st Ex. Sess.), No. 18, § 3: Mar. 27, 1964. Emergency clause provided: “It is hereby found and determined by the General Assembly that the laws of this State providing for the designation of depositories of public funds are working an undue hardship upon newly chartered banks in the State; that clarification of such laws is necessary in order to prevent undue, unnecessary and costly delay in designating such newly chartered banks as depositories of public funds, and that only by the immediate passage of this Act may such situation be corrected. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1973, No. 107, § 4: Feb. 12, 1973. Emergency clause provided: “It has been found and it is hereby declared that many Arkansas school districts are presently losing interest revenues because of confusion regarding the laws governing deposit of school district funds and that this condition can be bettered only by the immediate effectiveness of this Act. Therefore an emergency is declared to exist and this Act, being immediately necessary for the preservation of the public peace, health and safety, shall be in force and effect upon its passage and approval.”

Acts 1975, No. 216, § 7: Feb. 18, 1975. Emergency clause provided: “In order that the Farm Credit System can continue to provide farm credit to Arkansas farmers and improve agricultural conditions in Arkansas, an emergency is declared to exist and this Act shall take effect and be in full force from and after its passage and approval.”

Acts 1995, No. 770, § 5: Mar. 24, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that private donations are many times made to municipalities; and that under present law, the investment of these funds is so restricted that earnings are substantially decreased; that this act establishes the Prudent Man Rule as the standard for investing these funds; and that this act shall be given effect immediately in order to grant municipalities the ability as soon as possible to enhance their earnings on donated funds. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 2005, No. 86, § 2: Feb. 8, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that local communities and banks are often not receiving the benefits from the local investment of the communities' public funds due to the size of their deposits; that local communities can receive the benefits from the investment of local public funds while ensuring the safety and soundness of the investments by providing additional authority for the investment of those funds in accounts insured by the Federal Deposit Insurance Corporation; and that the exercise of the authority granted by this act is immediately necessary to enable local banks to better serve their local communities. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2013, No. 458, § 2: Mar. 21, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the limitations on the investment of public funds have resulted in economic harm to Arkansas; that the limitation on investment of public funds creates inflexibility and potential loss of investment funds; and that this act is immediately necessary to provide greater flexibility in the options available for investment of public funds. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

19-8-101. Definitions.

“Bank” or “banking institution” means any state bank, national bank, savings bank, savings association, thrift, or other financial institution authorized to do business and having a main office or branch office in this state, which is insured by the Federal Deposit Insurance Corporation.
“Public funds” or “funds” means any and all kinds of funds handled by treasurers, collectors, commissioners, sheriffs, clerks, and receivers appointed under § 14-62-104.

History. Acts 1935, No. 21, § 4; Pope's Dig., § 4330; Acts 1973, No. 89, § 2; A.S.A. 1947, § 13-804; Acts 2001, No. 1436, § 1; 2017, No. 712, § 4.

Amendments. The 2017 amendment added “and receivers appointed under § 14-62-104” in (b).

19-8-102. Legal funds.

The legal funds referred to in §§ 19-8-101 — 19-8-107 as being eligible for deposit in depositories shall include any and all funds that may come into the hands of all treasurers, collectors, commissioners, sheriffs, clerks, and receivers by reason of their official capacities as commissioners.

History. Acts 1935, No. 21, § 4; Pope's Dig., § 4330; Acts 1973, No. 89, § 2; A.S.A. 1947, § 13-804; Acts 2017, No. 712, § 5.

Amendments. The 2017 amendment inserted “and receivers”.

19-8-103. Penalties.

It is a felony, punishable by fine of not more than one thousand dollars ($1,000) or one (1) year in prison, or both, for any officer of any bank to accept for deposit more public funds in the aggregate than that amount designated by this section, § 19-8-101, § 19-8-102, and §§ 19-8-104 — 19-8-107. In no instance shall more than twenty-five percent (25%) of the total general deposits of public funds be accepted until they have been reduced to the proper proportion of general deposits. When necessary, the depository boards are authorized to order a reduction of deposits in any bank so as to conform to the twenty-five percent (25%) limitation provided for in this section. Any public officer knowingly depositing public funds in excess of this amount shall likewise be guilty of a felony and subject to the same penalty as prescribed in this subsection and shall be removed from office.
The penalties provided in this section also shall apply in the event of a depository bank’s investing any deposits in excess of the twenty-five percent (25%) limitation in any manner other than that provided in § 19-8-105(b) permitting a deposit in excess of the twenty-five percent (25%) limitation.

History. Acts 1935, No. 21, § 5; Pope's Dig., § 4331; A.S.A. 1947, § 13-805.

19-8-104. Investment of public funds.

Except as provided in subsection (b) of this section, all public funds as defined in § 19-8-101 shall be deposited into banks located in the state.
A school district may seek a hardship waiver from the Legislative Joint Auditing Committee from this section and deposit public funds into an out-of-state bank if:
1. The school district is designated as an isolated school district under §§ 6-20-601 and 6-20-602;
2. The school district lies on the borders of the state line;
3. The nearest Arkansas bank is located at least eighteen (18) miles from the administrative offices of the district;
4. The administrative offices of the district are located within six (6) miles from an out-of-state bank; and
5. The out-of-state bank meets all other requirements concerning collateralization of state funds.

History. Acts 1935, No. 21, § 5; 1973, No. 107, § 1; A.S.A. 1947, § 13-802; Acts 1991, No. 459, § 1; 1995, No. 770, § 1; 2011, No. 629, § 2.

Publisher's Notes. The version of § 6-20-601 referred to in (b)(1) was repealed in 1997.

Amendments. The 2011 amendment, in (a), substituted “subsection (b)” for “subsections (b) and (c)” and “state” for “State of Arkansas”; in (b), substituted “public funds” for “state funds” and “if” for “under the following conditions”; and deleted (c).

19-8-105. Annual list of eligible banks.

Annually, on December 1, the Bank Commissioner shall furnish to the governing board of each city, or town officer, and the county board of each county, and also any officer of any improvement district or any other political subdivision, having the supervision of public funds or funds belonging to the state or any political subdivision a list of all the banks or banking institutions doing business in this state which are members of the Federal Deposit Insurance Corporation. The commissioner shall recommend the maximum amount of deposit of public funds each bank shall be allowed to receive. None of these public funds shall be deposited into any bank other than those contained in the list.
In no instance shall the commissioner recommend, or any bank accept, for deposit more public funds than twenty-five percent (25%) of the total of its general deposits, exclusive of the public funds. Public money in excess of the amount allowed in this section, if approved by the governing board, may be deposited into an authorized bank if the excess deposit is carried in cash, United States Government bonds, Housing and Home Finance Agency bonds, or demand loans on cotton of the kind commonly known as “Commodity Credit Corporation loans”, being only such loans as are guaranteed by the United States.

History. Acts 1935, No. 21, § 1; Pope's Dig., § 4327; A.S.A. 1947, § 13-801.

A.C.R.C. Notes. The Housing and Home Finance Agency, referred to in this section, has been superseded by the United States Department of Housing and Urban Development pursuant to the Housing and Urban Development Act of 1965, Pub. L. No. 89-117.

Research References

U. Ark. Little Rock L.J.

Fifteenth Annual Survey of Arkansas Law, 15 U. Ark. Little Rock L.J. 427.

Case Notes

Liability of Bank Not Designated a Depository.

A bank which permitted a circuit clerk to cash a check showing on its face it was made for drainage taxes, with notice clerk was committing a breach of trust, even though not designated as depository of public funds, was liable for participation in the breach of trust irrespective of whether it was the clerk's agent or debtor. Drainage Dist. of Poinsett County v. Citizens Bank of Jonesboro, 205 Ark. 435, 170 S.W.2d 60 (1943).

Savings and Loans.

Arkansas savings and loans are not eligible as depositories for public funds under Act 21 of 1935. Arkansas State Banking Dep't v. Arkansas League of Sav. Insts., Inc., 307 Ark. 474, 821 S.W.2d 472 (1991).

19-8-106. Depository boards.

1. The quorum court of each of the several counties shall by ordinance establish a county depository board. The county depository board is to be composed of the county judge, the county treasurer and county collector, or the sheriff when acting as ex officio tax collector, or those officials performing the duties of the above officials where an elective county office has been changed in accordance with Arkansas Constitution, Amendment 55.
2. The board shall designate depositories and supervise the depositing of all county funds and all other public funds held by the county treasurer, except funds of a school district, and also shall designate depositories and supervise the depositing of all funds collected and held by the county collector.
3. The board may also require county officials to settle with the county treasurer more frequently than required by Arkansas law.
1. Except as provided in subdivision (b)(2) of this section, the following persons shall constitute a three-member board to designate depositories and supervise the depositing of municipal funds:
  1. A mayor;
  2. A city clerk or recorder or clerk-treasurer or recorder-treasurer; and
  3. A city council member selected by the city council.
2. Although the board shall not total more than three (3) members, the city council may replace one (1) of the three (3) board members listed in subdivision (b)(1) of this section with the city finance officer or other official.
3. A majority of the board members shall be necessary to conduct business and to constitute a quorum.
The commissioners of road, drainage, levee, and other improvement districts shall designate depositories and supervise the depositing of funds of their respective districts.
The board of directors of any school district shall constitute a board to designate depositories and supervise the depositing of school district funds. All school district funds, whether held by the treasurer of the school district or by the county treasurer, shall be deposited as designated by the board of directors.
A receiver appointed under § 14-62-104 shall be a designated depository and supervise the depositing of funds collected under § 14-62-101 et seq.

History. Acts 1935, No. 21, § 2; Pope's Dig., § 4328; Acts 1945, No. 57, § 1; 1973, No. 107, § 1; A.S.A. 1947, § 13-802; Acts 1987, No. 250, § 1; 2011, No. 619, § 1; 2017, No. 712, § 6.

Amendments. The 2011 amendment rewrote (b).

The 2017 amendment added (e).

19-8-107. Depository agreements.

1. After the receipt from the Bank Commissioner of the list of banks or banking institutions eligible for public deposits, the depository boards shall:
  1. Designate the banks or banking institutions into which the funds shall be deposited; and
  2. With each bank or banking institution designated under subdivision (a)(1)(A) of this section, enter into a depository agreement and any supplemental agreements under subsection (c) of this section needed to perfect security of public deposits not fully insured directly by the United States.
2. The depository boards may at any time enter into depository agreements with any new bank chartered if the bank is certified by the commissioner as being eligible as a depository of public funds under the laws of this state.
3. 1. All depository agreements and supplemental agreements required for creating an enforceable perfected security in collateral for deposits of public funds shall continue in full force until the bank or banking institution receives written notice of revocation by the depository board or until there is a change of membership on the depository board as prescribed in this subsection.
  2. Depository agreements and supplemental agreements required to create an enforceable perfected security in collateral for deposits shall be updated at the time a new treasurer takes office.
  3. Except as provided under subdivision (a)(3)(A) of this section, agreements required to be signed by all members of a depository board shall be changed at the time of membership change on the depository board.
1. The treasurers or other public officials or other persons having custody of public funds shall deposit those public funds into the designated depositories.
2. The depositing of public funds as required under subdivision (b)(1) of this section into the designated depositories shall relieve the public officer or other person and his or her sureties from any liability for the loss of the public funds by reason of the default or insolvency of any depository.
3. County officials shall make timely deposit and investment of public funds to earn optimum interest consistent with the prudent investor rule defined by Arkansas law.
1. County and municipal officials shall:
  1. Require security for the deposit of public funds in the form of a demand deposit, a savings deposit, or a time deposit for amounts not fully insured directly by the United States; and
  2. Enter into supplemental agreements with each depository banking institution that satisfy the requirements of this subsection.
2. 1. The Treasurer of State shall make available upon request to any county or municipality fillable depository agreement forms designed for county and municipal governments and any necessary supplemental agreement forms required for collateralizing public funds.
  2. The forms shall include language necessary to create an enforceable perfected security interest in all collateral for deposits.
3. Depository boards and banks or banking institutions giving or holding collateral for deposits of public funds shall comply with federal laws and regulations so that the governmental entity or political subdivision depositing public funds holds a valid claim in deposits and collateral given for those deposits against, and prevent avoidance of such a claim by, the Federal Deposit Insurance Corporation or its successor or any similar deposit insurance agency acting as receiver, conservator, or in any other capacity.
4. All security required under this subsection shall meet the requirements of an eligible security under § 19-8-203 and § 23-47-203(c).
5. Public officials may require as a condition for placing deposits or keeping funds on deposit such financial data as they need to make an informed decision, including without limitation quarterly financial statements, quarterly profit and loss statements, and tangible net worth or capital-to-assets ratios.

History. Acts 1935, No. 21, § 3; Pope's Dig., § 4329; Acts 1945, No. 62, § 1; 1947, No. 122, § 1; 1964 (1st Ex. Sess.), No. 18, § 1; A.S.A. 1947, § 13-803; Acts 1987, No. 250, §§ 2, 3; 1995, No. 232, § 9; 2003, No. 68, §§ 1, 2; 2011, No. 619, § 2; 2013, No. 405, § 1; 2019, No. 310, § 4.

Amendments. The 2003 amendment added (a)(3); added the subdivision designations in (d); in present (d)(1), substituted “shall require security” for “may require the collateralization” and deleted the former last sentence; added (d)(2); and substituted “Public officials” for “They” in present (d)(3).

The 2011 amendment, in (a)(2), inserted “depository” and deleted “upon request therefor” following “commissioner”; inserted “and municipal” in (a)(3)(A); substituted “create an enforceable” for “achieve a” in (a)(3)(B); inserted (a)(3)(C); substituted “prudent investor” for “prudent man” in (c)(3); and inserted “and municipal” in (d)(1).

The 2013 amendment rewrote the section.

The 2019 amendment substituted “eligible for public deposits” for “and recommended amounts of public funds each may accept” in the introductory language of (a)(1); deleted the second sentence of (a)(2); added the (a)(3)(A) designation; in (a)(3)(A), inserted “and supplemental agreements required for creating an enforceable perfected security in collateral for deposits of public funds” and “as prescribed in this subsection”; added (a)(3)(B) and (a)(3)(C); substituted “public funds shall deposit those public funds” for “these funds shall deposit them” in (b)(1); in (b)(2), substituted “public funds as required under subdivision (b)(1) of this section” for “these funds”, and inserted the third occurrence of “public”; and, in (c)(2)(A), substituted “Treasurer of State” for “State Board of Finance” and “fillable” for “sample”, and inserted “designed for county and municipal governments”.

Case Notes

County Funds.

Under Acts 1907, No. 208, as amended by Acts 1911, No. 258, no discretion was given the county court in the matter of selecting a depository for county funds; rather, the selection was to be made by advertisement and awarded to the highest responsible bidder. Casey v. Independence County, 109 Ark. 11, 159 S.W. 24 (1913) (decision under prior law).

Where a bank seeking to become the depository of county funds proposed to pay “one-fourth of one per cent per annum more than any other bid” offered, it was held that the proposition did not constitute a bid as it could not be acted upon alone without reference to anything outside itself. Grant County Bank v. McClellan, 112 Ark. 550, 166 S.W. 550 (1914) (decision under prior law).

General Deposits.

A deposit of the funds of an improvement district in a bank, although the funds were known to be a trust fund in the hands of the official depositing them, was held to be a general deposit in the absence of a written agreement making them a special deposit. Taylor v. Street Imp. Dist., 183 Ark. 524, 37 S.W.2d 84 (1931) (decision under prior law).

An improvement district making a general deposit in a bank stood upon the same footing as other general creditors and was entitled to no preference on the bank's insolvency. Taylor v. Street Imp. Dist., 183 Ark. 524, 37 S.W.2d 84 (1931) (decision under prior law).

Manner of Deposit.

The manner in which the funds of an improvement district were deposited in a depository bank was held not to affect the rights or obligations of the surety on its bond if they were so deposited as to clearly show that they were funds belonging to the district. American Bonding Co. v. Board of Street Improv. Dist., 187 Ark. 300, 59 S.W.2d 605 (1933) (decision under prior law).

Sale of Bonds.

Where a bank undertook to sell county bonds for the county, the funds derived from their sale constituted trust funds for which the county was entitled to a preference on the bank's insolvency. Taylor v. State, 186 Ark. 648, 55 S.W.2d 83 (1932) (decision under prior law).

Where a bank, without authority, permitted bonds to be substituted for trust funds derived from the sale of county bonds, the fact that the substituted bonds were, by agreement, transferred to the county depository and part of them sold did not estop the county from claiming the balance of the trust fund. Taylor v. State, 186 Ark. 648, 55 S.W.2d 83 (1932) (decision under prior law).

Subrogation.

Sureties indemnifying an improvement district for funds deposited in an insolvent bank had, by subrogation, no greater rights than the district had. Little Rock St. Imp. Dist. No. 508 v. Taylor, 184 Ark. 92, 40 S.W.2d 786 (1931) (decision under prior law).

19-8-108. Mortgages and securities as security.

Whenever securities must be furnished by any depository in the State of Arkansas as security for the deposit of any funds whatsoever, or wherever securities must be deposited with any official of the State of Arkansas pursuant to any statute of this state, mortgages insured and debentures issued by the Federal Housing Administration and obligations of national mortgage associations shall be considered eligible securities for such purposes.

History. Acts 1937, No. 174, § 1; Pope's Dig., § 4337; A.S.A. 1947, § 13-807.

19-8-109. Housing agency bonds as security.

All banks which are by law authorized to accept deposits of public funds may tender, and all officers or boards whose duty it is to award contracts for the deposit of public funds and all officers or boards whose duty it is to accept security for the deposit of public funds may accept bonds of the Housing and Home Finance Agency as security for deposits of public funds at the face value of the bonds.

History. Acts 1933 (1st Ex. Sess.), No. 26, § 1; Pope's Dig., § 4336; A.S.A. 1947, § 13-806.

19-8-110. Farm credit obligations as security.

It shall be lawful for any person, firm, or corporation required by law to maintain a cash deposit as public security, or in lieu thereof to file a bond of approved security in favor of the State of Arkansas, to deposit with the officer of the State of Arkansas designated as the custodian of funds, in lieu of a cash deposit, an amount of notes, bonds, debentures, or other similar obligations issued by the Federal Land Banks, Federal Intermediate Credit Banks, or Banks for Cooperatives, or any other obligations issued pursuant to the provisions of an act of the United States Congress known as the Farm Credit Act of 1971, and acts amendatory thereto, which at the market value thereof shall equal or be in excess of the amount required as cash deposit.

History. Acts 1921, No. 465, § 2; Pope's Dig., § 788; Acts 1975, No. 216, § 1; A.S.A. 1947, § 13-808.

U.S. Code. The Farm Credit Act of 1971, referred to in this section, is codified as 12 U.S.C. §§ 2001 et seq., 2151 et seq., and 2205 et seq.

19-8-111. Additional authority for investment of public funds — Definition.

Notwithstanding any law to the contrary, including §§ 19-8-103 and 19-8-105, the state or local government and any trusts established under the Local Government Joint Investment Trust Act, § 19-8-301 et seq., may invest public funds through an eligible bank under § 19-8-105 if:
1. The bank arranges for the deposit of all or a portion of the funds into one (1) or more banks or savings and loan associations located inside the United States for the account of the state or local government or trust;
2. Each deposit is insured by the Federal Deposit Insurance Corporation for one hundred percent (100%) of the principal and accrued interest of the deposit;
3. The bank acts as custodian of the deposits made for the account of the state or local government or trust and, as custodian, is charged with the care of the deposits and their segregation in appropriate records reflecting the total principal amount of the deposits for each custodial account; and
4. On the date the funds are deposited according to subdivision (a)(1) of this section, the bank receives an amount of deposits from customers of other financial institutions located inside the United States that is equal to or greater than the amount of the funds invested by the state or local government or trust.
For any investment of public funds under this section, the provisions of §§ 19-8-106 and 19-8-107 apply only to the eligible bank selected under subsection (a) of this section.
Additional security shall not be required for investments of public funds under this section.
As used in this section, “local government” means any city, county, town, or other political subdivision of the State of Arkansas, including, but not limited to, any:
1. School district or community college district;
2. Improvement or other taxing or assessing district;
3. Department, instrumentality, or agency of any city, county, or other political subdivision, including, but not limited to, any local fire and police pension or relief funds; and
4. Local government association as defined in § 19-8-303.

History. Acts 2005, No. 86, § 1; 2013, No. 458, § 1.

Amendments. The 2013 amendment in the introductory language of (a), deleted “but not limited to” following “including” and substituted “established” for “created” following “trusts”; in (a)(1), inserted “into”, deleted “in certificates of deposit in” following “funds”, and substituted “inside” for “within” following “located”; deleted “certificate of” preceding “deposit” twice in (a)(2); in (a)(3), substituted “deposits made” for “certificates of deposit issued” and substituted “deposits” for “certificates of deposit” twice; in (a)(4), substituted “On the date” for “At the time”, substituted “according to subdivision (a)(1) of this section” for “and the certificates of deposit are issued”, and substituted “inside” for “in” following “located”.

Subchapter 2 — Securities for Deposits

Publisher's Notes. Section 19-3-207 et seq. supersedes § 19-8-101 et seq. and this subchapter with respect to state funds only.

Effective Dates. Acts 1975, No. 373, § 6: Mar. 10, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that the existing law specifying which securities are acceptable as security for deposit of public funds is unclear, and that such condition has meant and will continue to mean great loss to the public of the State of Arkansas unless revised and clarified immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

19-8-201. Legislative intent and construction.

The law specifying what securities may be accepted as security for the deposit of public funds of the State of Arkansas or any political subdivision of the state is inadequate in that it is unduly restrictive on the types of securities which may be accepted. The types of securities which may be accepted as security for deposits of public funds is in need of being expanded, and this subchapter is supplementary to and does not repeal any existing law which specifies certain securities which may be accepted as security for deposit of public funds. To that end, this subchapter is declared to be remedial and should be liberally construed.

History. Acts 1975, No. 373, § 1; A.S.A. 1947, § 13-809.

19-8-202. Definition.

As used in this subchapter, “public funds” means, but shall not be limited to, funds of:

The State of Arkansas, or any agency, department, board, commission, or instrumentality thereof;
Any political subdivision of the State of Arkansas, or any agency thereof;
Any school board or school district;
Any improvement or other taxing or assessing district;
Any public corporation or authority created by or recognized by the State of Arkansas, or any political subdivision thereof; and
A receiver appointed under § 14-62-104.

History. Acts 1975, No. 373, § 2; A.S.A. 1947, § 13-810; Acts 2017, No. 712, § 7.

Amendments. The 2017 amendment added (6).

19-8-203. Eligible security for deposits.

Whenever, pursuant to any statute of the state, any depository in the State of Arkansas must furnish security for the deposit of any public funds or whenever any security must be granted to any public official in connection with public funds the following shall be considered as eligible security for such purposes and subject to the depositor's discretion regarding the suitability of the collateral:
1. The pledge or escrow of the assets of the bank consisting of any investment in which a state bank may invest pursuant to § 23-47-401;
2. A surety bond issued by an insurance company licensed under the laws of the State of Arkansas and either:
  1. Rated “A” or better by any one (1) or more of the following rating agencies:
    1. A.M. Best Company, Inc.;
    2. Standard & Poor's Insurance Rating Service;
    3. Moody's Investors Service, Inc.; or
    4. Duff & Phelps Credit Rating Co.; or
  2. Listed on the then-current United States Department of the Treasury Listing of Approved Sureties;
3. Private deposit insurance issued by an insurance company licensed under the laws of the State of Arkansas and either:
  1. Rated “A” or better by any one (1) or more of the following rating agencies:
    1. A.M. Best Company, Inc.;
    2. Standard & Poor's Insurance Rating Service;
    3. Moody's Investors Service, Inc.; or
    4. Duff & Phelps Credit Rating Co.; or
  2. Listed on the then-current United States Department of the Treasury Listing of Approved Sureties; or
4. An irrevocable standby letter of credit issued by a Federal Home Loan Bank.
The aggregate market value of assets pledged or escrowed or the face amount of the surety bond, private deposit insurance, or letter of credit securing the deposit of funds by any single depositor must be equal to or exceed the amount of the deposit to be secured.
Notwithstanding subdivision (a)(1) of this section, if any political subdivision, school district, improvement district, or other issuer has defaulted on any bonds or other obligations within the preceding period of ten (10) years, bonds or other obligations of the defaulting political subdivision, school district, improvement district, or other issuer shall not be eligible as security for the deposit of public funds or as security required to be deposited in connection with public funds.

History. Acts 1975, No. 373, § 3; A.S.A. 1947, § 13-811; Acts 2001, No. 310, § 1.

Cross References. Securing of deposits, § 23-47-203.

Subchapter 3 — Local Government Joint Investment Trust Act

Effective Dates. Acts 1993, No. 583, § 14: Mar. 18, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly that there is currently no authority for local governments to invest in common trust fund units of public trusts, and that such authority would make it possible for local governments to invest their cash balances more efficiently and earn greater investment returns. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

19-8-301. Title.

This subchapter may be cited as the “Local Government Joint Investment Trust Act”.

History. Acts 1993, No. 583, § 1.

19-8-302. Purpose.

The purpose of this subchapter is to permit local governments in Arkansas to join together to establish trusts for joint investment of moneys not currently needed so as to enhance their investment opportunities and increase investment earnings. This subchapter shall be deemed to provide an additional and alternative method of investment for local governments. It is supplemental to existing investment authority.

History. Acts 1993, No. 583, § 2.

19-8-303. Definitions.

For purposes of this subchapter:

“Local government” shall mean:
1. Any city, county, school district, or community college district of this state;
2. Any department, instrumentality, or agency of these entities, including local fire and police pension and relief funds; and
3. Any department, instrumentality, or agency of these entities, including a local government association;
“Local government association” shall mean the Arkansas Municipal League, the Association of Arkansas Counties, the Arkansas School Boards Association, or any similar organization whose membership is composed of local governments or their elected officials;
“Participant” shall mean a local government which is a party to a trust agreement;
“Private agency” shall mean any individual or any form of business organization authorized under the laws of this or any other state; and
“Trust agreement” shall mean the agreement, indenture, or other instrument creating a trust pursuant to this subchapter, together with any supplements thereto.

History. Acts 1993, No. 583, § 3; 1995, No. 615, § 5.

19-8-304. Creation of trusts.

Ten (10) or more local governments may create a trust under this subchapter by ordinance, resolution, or otherwise pursuant to law of their governing bodies to provide for the joint investment of moneys not currently needed by the local governments creating the trust and by other local governments that become parties to the trust.
Each trust shall be created by trust agreement.
Following the creation of a trust agreement, other local governments may become parties to the trust agreement with appropriate action taken by the local depository board, board of directors of a school district, or other authorized party responsible for decisions related to bank deposits and investments.

History. Acts 1993, No. 583, § 4; 2013, No. 217, § 1.

Amendments. The 2013 amendment rewrote (a) and (c).

19-8-305. Terms of trust agreement.

Each trust agreement shall specify the following:
1. Its duration;
2. 1. The number, qualifications, method of election, and terms of the trustees who shall serve as the governing body of the trust.
  2. 1. Each trust shall have a minimum of seven (7) trustees.
    2. Only current elected officials and active or retired employees of a local government or of a local government association may serve as trustees.
    3. A majority of the trustees must be officials or employees of participants.
  3. 1. Each trustee shall be elected by the participants for a term not to exceed three (3) years.
    2. The terms of office shall be staggered so that at least one-third (1/3) of the trustees are elected each year.
  4. Each participant shall be entitled to one (1) vote in each election of trustees;
3. The qualifications, terms, and conditions necessary for additional local governments to become parties to the trust;
4. The terms and conditions under which local governments may withdraw as parties to the trust; provided, that any party shall have the unconditional right to withdraw upon not more than ninety (90) days' notice;
5. The permissible methods for acquiring, holding, and disposing of real and personal property used in the operation of the trust;
6. The maximum amount of funds of participants the trust may accept for investment;
7. The permissible methods to be employed in accomplishing the partial or complete termination of the trust and for disposing of property upon the partial or complete termination;
8. The terms and conditions under which the trust agreement may be amended and supplemented; and
9. Any other necessary and proper matters.
Each addition of a local government as a party to a trust, each withdrawal of a local government as a party to a trust, and each amendment or supplement to a trust agreement shall be evidenced by a written supplement to the trust agreement.

History. Acts 1993, No. 583, § 5; 2009, No. 417, § 1.

Amendments. The 2009 amendment, in (a)(2)(B), substituted “current elected officials and active or retired” for “full-time” and “local government” for “participant” in (a)(2)(B)(ii), and inserted “officials or” in (a)(2)(B)(iii).

19-8-306. Filing of trust agreement and supplements thereto.

No trust agreement or supplement to a trust agreement shall be effective until it is filed with the Secretary of State.

History. Acts 1993, No. 583, § 6.

19-8-307. Common trust funds — Individual investment accounts.

Each trust created pursuant to this subchapter shall establish one (1) or more common trust funds. Moneys held for the credit of a common trust fund shall be invested only in authorized common trust fund investments.
Assets held for the credit of a common trust fund shall be divided into units of participation, and each participant who invests in the common trust fund shall be the owner of such units in proportion to the amount of its investment. Such units shall be authorized investments for participants.
If authorized by its trust agreement, and notwithstanding any other provision of state law, a trust may also act as trustee of individual investment accounts of participants. Moneys held for the credit of an individual investment account shall be invested only in obligations which are, at the time of investment, authorized investments for the participant under applicable law, excluding this subchapter.

History. Acts 1993, No. 583, § 7.

19-8-308. Authorized common trust fund investments.

A trust created under this subchapter may invest moneys held for the credit of a common trust fund in the same manner as cities under §§ 19-1-504 and 19-1-505 and according to the investment policy adopted by the board of directors of the trust.

History. Acts 1993, No. 583, § 8; 2011, No. 629, § 3.

Amendments. The 2011 amendment rewrote the section.

19-8-309. Power to own property and contract.

A trust created under this subchapter shall, subject to any limitations in the trust agreement, have power to own real and personal property necessary to carry out its functions and to contract with local government associations and private agencies for necessary services in carrying out its functions.
Without limiting the generality of the foregoing, a trust may be authorized to employ an investment advisor, a trust administrator, a custodian of investments, and a person or firm to market trust investment programs.

History. Acts 1993, No. 583, § 9.

19-8-310. Records.

Each trust shall cause proper books of account and records to be kept in which complete and correct entries shall be made of all transactions relating to its operations.
Such books shall be available for inspection by each participant at reasonable times.
Each trust shall have the records audited by the Legislative Joint Auditing Committee or by a certified public accountant one (1) time each year.
A copy of the audit shall be furnished to each participant and a copy shall be filed with the Secretary of State.

History. Acts 1993, No. 583, § 10.

19-8-311. Direct deposits by State of Arkansas into local government cash management trust account.

Notwithstanding any other provision of law, the following funds remitted to municipalities by the State of Arkansas may be deposited directly into a municipality's Arkansas local government cash management trust account, established pursuant to this subchapter:
1. The Municipal Aid Fund, as described in § 19-5-601;
2. The special highway revenues made available by the Arkansas Highway Revenue Distribution Law, § 27-70-201 et seq.; and
3. The special revenues listed in the Revenue Classification Law, § 19-6-201 et seq., including, but not limited to, those generated by the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq.
1. Upon receipt of a resolution enacted by the governing body of a municipality, the officials responsible for the transmittal of funds to the municipality shall directly deposit the funds into the municipality's local government cash management trust account.
2. The resolution shall state the following:
  1. The name of the municipality;
  2. The funds to be transmitted; and
  3. The municipality's local government cash management trust account number.
1. Direct deposits as provided in this section shall continue to be made until the state official or officials responsible for transmitting the funds receive a copy of a resolution enacted by the governing body of the municipality requesting the termination of the deposits.
2. Upon receipt, the funds shall be transmitted as provided by this section.

History. Acts 2003, No. 329, § 1.

Chapter 9 Public Obligations

Research References

Am. Jur. 72 Am. Jur. 2d, States, § 83 et seq.

C.J.S. 81A C.J.S., States, § 449 et seq.

Subchapter 1 — General Provisions

Cross References. Election required for issuance of bonds by state, except for refunding bonds, Ark. Const. Amend. No. 20.

Local Government Bond Act of 1985, § 14-164-301 et seq.

Preambles. Acts 1941, No. 350 contained a preamble which read:

“Whereas, the refinancing of public bond issues at reduced interest rates, or redeeming such bonds, is sometimes delayed or prevented by reason of the fact that some of the bonds have become lost, mislaid, destroyed, or stolen and there is no existing law in Arkansas providing for the issuance of replacement bonds in such cases as in many States … .”

Effective Dates. Acts 1941, No. 113, § 7: Mar. 3, 1941. Emergency clause provided: “In view of the fact that in all bond refunding negotiations certain bonds are misplaced by their owners and never presented for retirement after being called in and the paying agents retain said funds indefinitely to the detriment of the State of Arkansas and its political subdivisions, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in force from and after its passage and approval.”

Acts 1941, No. 350, § 2: effective on passage.

Acts 1965, No. 494, § 4: Mar. 20, 1965. Emergency clause provided: “It has been found that certain of the purchasers of bonds issued by the State, its boards, commissions and agencies, and by counties, municipalities and improvement districts require the bondholders to have the registrable options, as in this act provided, and that if these options are made available, it will enable the issuing authorities to dispose of their bonds upon more favorable terms, and inasmuch as there is an immediate need for the issuing authorities to have the benefits of this act, it is hereby declared that an emergency exists, and this act, being necessary for the immediate preservation of the public peace, health and safety, shall be in force and take effect from and after its passage and approval.”

19-9-101. Form of bonds that may be issued — Definitions.

In the case of authorizations under any existing law for the State of Arkansas, any board, commission, or agency of the State of Arkansas, any county, any municipality, or any improvement district to issue bonds or coupon bonds, the authorization shall be deemed to, and is extended to, include the authority to issue bonds that may be either coupon bonds, payable to bearer, or may be registrable as to principal only with interest coupons, or may be registrable as to both principal and interest without coupons. These bonds may be exchanged for bonds of another denomination, which bonds of another denomination may in turn be either coupon bonds payable to bearer or coupon bonds registrable as to principal only, or bonds registrable as to both principal and interest without coupons, as the governing body shall determine.
As used in this section, unless the context otherwise requires:
1. “Improvement district” means all improvement districts, drainage districts, levee districts, and other special districts formed for the purpose of constructing or maintaining a local improvement to be financed by the assessment of benefits upon the real property in the district and the levy of a tax on those assessed benefits;
2. “Municipality” means any city of the first class, city of the second class, or incorporated town; and
3. “Governing body” means the board of commissioners, city council, county court, board of trustees, or other person or body given the power and duty by the state under existing law to issue bonds by the state, any board, commission, or agency of the state, any county, any municipality, or any improvement district.
This section is to be liberally construed, and the authority set forth in it is cumulative and supplemental to all other provisions of law authorizing the issuance of registrable bonds.

History. Acts 1965, No. 494, §§ 1-3; A.S.A. 1947, §§ 13-1011 — 13-1013.

19-9-102. Replacement of lost, destroyed, or stolen bonds.

In cases where any valid bond, note, interest coupon, or evidence of indebtedness, hereinafter called “instrument”, issued by the State of Arkansas, or any of its departments, agencies, or political subdivisions, including, but not limited to, school districts and improvement districts of all kinds, becomes lost, mislaid, destroyed, or stolen, the body which issued the instrument, or its successor, shall issue and deliver to the one owning the right, title, and interest to and in the instrument a replacement instrument, but only on the filing with the body of:
1. An affidavit reciting ownership of all right, title, or interest in and to the lost, mislaid, destroyed, or stolen instrument and giving its name, the name of the board, commission, or body which issued it, the date of maturity, the denomination and number and that of any lost, mislaid, destroyed, or stolen interest coupon appertaining thereto, and briefly describing the circumstance of such loss, mislaying, destruction, or theft; and
2. A bond in double the face amount of such replacement, including any interest coupons affixed thereto, with a surety company licensed to do business in Arkansas as surety thereon, conditioned that if the principal, the heirs, legal representatives, successors, or assigns of the principal, or any of them, shall, in case the instrument so lost, mislaid, destroyed, or stolen be found or come into the hands or power of any of them, or into the hands, custody, or power of any other person, deliver, or cause it to be delivered unto the obligor for cancellation, and also shall at all times indemnify and save harmless the obligor from and against any and all loss, claims, actions, suits, damages, charges, or expenses of any nature and character by reason of the lost, mislaid, destroyed, or stolen instrument, or the issuance of a replacement in lieu thereof, or the paying or crediting as prescribed of the face amount of the lost, mislaid, destroyed, or stolen instrument without the surrender thereof, then the obligation shall be void, otherwise to remain in full force and effect.
Nothing in this section shall be construed to limit or abridge any defense which the obligor may have against the lost, mislaid, destroyed, or stolen instrument; nor shall anything in this section waive any provision of any statute of limitations.

History. Acts 1941, No. 350, § 1; A.S.A. 1947, § 13-1001.

19-9-103. Paying agents to remit funds after three years.

Paying agents, with whom the state or any political subdivision of the state has deposited or shall deposit funds for the payment of obligations of the state or of any political subdivision of the state, are required to remit to the Treasurer of State all such funds which have been in their hands for a period of three (3) years.
The Treasurer of State shall invest these funds from paying agents in government or state bonds which he or she shall hold in trust for the holders of the obligations for the payment of which the funds were deposited with the paying agents.
On the presentation to the Treasurer of State of any valid obligation that was payable out of any fund remitted to him or her by a paying agent, the Treasurer of State shall sell the bonds purchased with such fund and redeem the obligation.

History. Acts 1941, No. 113, §§ 1-3; A.S.A. 1947, §§ 13-1004 — 13-1006.

19-9-104. Bonds held five years.

After holding any government or state bond purchased by him or her for a period of five (5) years, the Treasurer of State shall liquidate the bond and place the proceeds to the credit of the General Revenue Fund Account of the State Apportionment Fund, or remit them to the political subdivision of the state to which they belong, as the case may be.

History. Acts 1941, No. 113, § 4; A.S.A. 1947, § 13-1007.

19-9-105. Pay until barred.

Every bond issued by the state, or by any political subdivision thereof, shall be paid by the state or by the political subdivision unless it is barred by the statute of limitations.

History. Acts 1941, No. 113, § 5; A.S.A. 1947, § 13-1008.

Subchapter 2 — State Obligations

19-9-201. Authority of State Board of Finance.

The State Board of Finance is authorized to:

Take such action as may be provided by law for the issuance of refunding bonds for outstanding obligations to the State of Arkansas;
Issue replacement bonds, either typewritten, printed, or lithographed, for lost, mislaid, destroyed, or stolen bonds of the State of Arkansas in the manner and within the limitations provided by § 19-9-102;
Take such action as may appear necessary or desirable to collect any funds which may have been in the hands of paying agents for a period of three (3) years or longer and to invest any funds so collected in the manner provided by §§ 19-9-103 — 19-9-105; and
Take such other action, not inconsistent with law, as may appear necessary or desirable to:
1. Retire the direct bonded debt of the State of Arkansas in an orderly manner;
2. Safeguard state funds pledged for the payment of such obligations; and
3. Maintain and improve the credit standing of the State of Arkansas.

History. Acts 1955, No. 338, § 11; 1965 (1st Ex. Sess.), No. 12, § 13; A.S.A. 1947, § 13-411.

19-9-202. Authorized paying agents.

The agents of the state for payment of the maturing principal of, and interest on, its direct obligation bonds, irrespective of any other legislation on the subject, shall be for all obligations a bank located in this state, to be designated by the State Board of Finance.
Fees of the paying agents shall be as follows:
1. For payment of interest, one-fourth of one percent (¼ of 1%) of the total amount paid; and
2. For payment of principal of each maturity, the aggregate thereof to be calculated as follows, with each paying agent to receive its respective proportion based upon the amount paid by it: one-tenth of one percent (1/10 of 1%) on the first one hundred thousand dollars ($100,000) paid, one-twentieth of one percent (1/20 of 1%) on the next nine hundred thousand dollars ($900,000) paid, one-thirtieth of one percent (1/30 of 1%) on the next four million dollars ($4,000,000) paid, and one-fortieth of one percent (1/40 of 1%) on all amounts paid in excess of five million dollars ($5,000,000).
In the event any agent so designated shall refuse to accept the paying agency or in the event any agent accepting this designation shall thereafter resign or fail to furnish service satisfactory to the board, the board shall name another commercial bank as successor thereto.
Paying agents shall render monthly statements of account to, and in such form as shall be required by, the Treasurer of State. With those monthly statements, the paying agent shall transmit all paid and cancelled obligations.

History. Acts 1955, No. 338, § 9; A.S.A. 1947, § 13-409; Acts 1997, No. 296, § 1.

A.C.R.C. Notes. Formerly, the initial provisions of this section provided that the agents of the state for payment of the maturing principal of, and interest on, its direct obligation bonds, irrespective of any other legislation on the subject, shall be as follows:

(a) For State Highway Refunding Bonds, authorized and issued under the provisions of Act 4 (Appx. 3 to this title), approved January 28, 1941: The Chase National Bank of the City of New York; Halsey Stuart and Company, Incorporated, Chicago, Illinois; Mercantile Trust Company, St. Louis, Missouri; a bank located in Memphis, Tennessee, to be designated by the State Board of Finance; and a bank located in the capital city of this state, to be designated by the board;

(b) For State Highway Construction Bonds, authorized and issued under the provisions of Act 5 (Appx. 5 of this title), approved January 20, 1949: a bank located in Memphis, Tennessee, to be designated by the board; and a bank located in the capital city of this state, to be designated by the board.

19-9-203. Registration.

The Treasurer of State is designated as the official registrar of all direct obligation bonds of this state. Upon the application of the holder of any such obligations, the Treasurer of State shall register them as to principal only or as to both principal and interest. Thereafter, upon similar application, he or she shall discharge such obligations from registration.

History. Acts 1955, No. 338, § 10; A.S.A. 1947, § 13-410.

19-9-204. Retirement of bonds before maturity.

Whenever appropriations and funds are available, the State Board of Finance is authorized and empowered to purchase direct obligations of this state in advance of maturity for the purpose of retirement under the procedure set forth in this subchapter.
All obligations purchased as prescribed, and the unmatured interest coupons attached thereto, shall be cancelled by perforation.

History. Acts 1955, No. 338, § 8; A.S.A. 1947, § 13-408.

19-9-205. Cancelled obligations.

The Treasurer of State shall classify and record all paid and cancelled state obligations and, from time to time as directed by the State Board of Finance, destroy these obligations by burning them to ashes after preparing for execution certificates of incineration, which shall set forth a detailed description thereof.

History. Acts 1955, No. 338, § 9; A.S.A. 1947, § 13-409.

Subchapter 3 — Refunding Bonds

Preambles. Acts 1961, No. 449 contained a preamble which read:

“Whereas, many of the laws permitting the refunding of bonds issued by counties, school districts, improvement districts, and municipalities carry the restriction that the refunding bonds shall not bear a greater rate of interest than that borne by the bonds to be refunded, but many of such bonds presently outstanding were issued at a time of unusually low interest rates so that they cannot now be refunded at the same rate they bear; and

“Whereas, frequently at the time of issuance of presently outstanding bonds the issuing authority pledged its entire available resources for their payment and now has no free resources to pledge for additional bonds, but if able to refund the outstanding bonds it could combine such refunding bonds with new bonds to secure funds for the needed improvements or facilities; and

“Whereas, the increase in urban and suburban population and in industry and commerce in many instances has created urgent needs for additional governmental facilities and services of all kinds; and

“Whereas, the increases in assessed valuation of taxable property, and the increased consumption and use of such governmental facilities and services, produce sufficient revenues to meet these needs if the additional revenues can be released; Now therefore … .”

Effective Dates. Acts 1939, No. 152, § 2: approved Feb. 28, 1939. Emergency clause provided: “Whereas, the State of Arkansas and various boards, commissions, other agencies and instrumentalities of the State of Arkansas have outstanding bonds which will default unless refunded in the immediate future; and whereas, there is a possibility that the opportunity to sell such bonds to the United States of America, or to some agency, corporation, or instrumentality thereof may soon terminate; and whereas, the United States of America, or any agency, corporation, or instrumentality thereof will not buy bonds of any kind at public sale; now, therefore, an emergency is hereby declared to exist and this act, being necessary for the immediate preservation of the public peace, health and safety, shall be in force and effect from and after its passage.”

Acts 1945, No. 12, § 3: approved Jan. 31, 1945. Emergency clause provided: “It has been found and it is hereby determined by the General Assembly that some of the political subdivisions of the State above named are paying interest rates on their outstanding bonds higher than those at which they might be refunded; that unprecedentedly low interest rates now prevail which have created a market advantageous to the issuance of refunding bonds; that the duration of said low interest rates is uncertain for the reason that Congress may shortly enact a statute taxing the interest upon future issues of such bonds which would render the refunding of the outstanding bonds inpracticable, if not impossible; that such political subdivisions should take advantage of the present favorable market and their failure to do so would result in great financial detriment to taxpayers; that under present laws refunding bonds cannot be delivered until the bonds they are to refund are available for payment and cancellation simultaneously with the delivery of the refunding bonds; that it often happens that some callable bonds and some bonds with fixed maturities are not presented for payment at the call date or maturity date respectively or within a reasonable time thereafter; that because of such uncertainty in the delivery date bond buyers usually will not contract for the purchase of the refunding bonds at advantageous interest rates; that for said reasons it is hereby declared necessary for the preservation of the public peace, health and safety that this act shall become effective without delay. An emergency therefore exists and this act shall take effect and be in force from and after its passage.”

Acts 1961, No. 449, § 4: Mar. 15, 1961. Emergency clause provided: “That it is hereby ascertained and declared that there is a real and urgent need for many of the State's counties, school districts, improvement districts, and municipalities to issue additional bonds in order to meet the increasing needs for public services, an emergency is therefore declared to exist, and this act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from and after its passage and approval.”

Acts 1967, No. 145, § 3: Feb. 24, 1967. Emergency clause provided: “It is hereby ascertained and declared that it is and will be in the best interest of many of issuing authorities to refund outstanding bonded indebtedness in order to accomplish a savings and in order to permit the issuance of additional bonds to meet the increasing needs for public services and that this act is necessary for issuing authorities to accomplish those public purposes. It is, therefore, declared that an emergency exists and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in force from and after its passage and approval.”

Acts 1967, No. 146, § 3: Feb. 24, 1967. Emergency clause provided: “It is hereby found and declared that certain outstanding bond issues of issuing authorities are subject to redemption prior to maturity only upon the payment of redemption premiums; that uncertainty exists as to whether issuing authorities can include the required redemption premiums as part of the principal of the refunding bonds; that this uncertainty must be eliminated since the refunding cannot be accomplished without the payment of the required premiums; and that the purpose of this act is to expressly grant the authority to include the necessary redemption premiums in the principal amount of the refunding bonds so that issuing authorities can proceed with the issuance of refunding bonds when refunding is determined to be in the best interest of the issuing authorities. It is, therefore, declared that an emergency exists and this act being necessary for the immediate preservation of the public peace, health, safety and welfare shall be in force and take effect from and after its passage and approval.”

Acts 1973, No. 502, § 3: Mar. 29, 1973. Emergency clause provided: “It is hereby ascertained and declared that there is an urgent necessity to clarify existing law concerning the advance refunding of bonds of issuing authorities so as to expressly permit issuing authorities to have the benefit of income that can be earned from investments in direct obligations of the United States of America in connection with advance refunding. It is, therefore, declared that an emergency exists and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from and after its passage and approval.”

Acts 1975, No. 222, § 3: became law without Governor's signature, Feb. 19, 1975. Emergency clause provided: “It is hereby ascertained and declared that there is an urgent necessity to broaden the existing authority of issuing authorities to permit issuing authorities more flexibility in taking advantage of improved bond market conditions to refinance existing indebtedness and realize interest savings thereby, as provided in this Act. It is, therefore, declared that an emergency exists and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect and be in force from and after its passage and approval.”

19-9-301. Delivery and deposit in trust — Definition.

When refunding bonds are issued by the state, any county, municipality, school district, state-supported educational institution, improvement district of any kind, agency, or political subdivision, which may be called “issuing authorities”, the bonds may either be sold or delivered in exchange for the outstanding obligations being refunded. If sold, the proceeds may be either applied to the payment of the outstanding obligations or deposited into trust for the retirement of the obligations, either at maturity or upon any authorized redemption date as specified in the ordinance, resolution, order, or other instrument authorizing the issuance of the refunding bonds.
The bonds may be issued in the principal amount necessary to pay the principal of, interest on, redemption premiums, if any, trustee's and paying agent's fees, and charges in connection with the obligations being refunded to maturity or to the redemption date specified in the instrument authorizing the issuance of the refunding bonds, these items to be called “total debt service requirements of the obligations being refunded”; to pay expenses incidental thereto; and to pay the expenses of authorizing and issuing the refunding bonds.
1. The bonds may be delivered when moneys or investment securities or a combination thereof, sufficient to meet, as and when due, the total debt service requirements of the obligations being refunded, have been irrevocably deposited into trust with a bank or trust company organized under the laws of the United States or any state thereof. This bank or trust company shall be qualified to receive trust funds pursuant to a trust agreement requiring the bank or trust company to apply the trust funds to the payment, as and when due, of total debt service requirements of the obligations being refunded. If the bank or trust company is not the paying agent for the obligations being refunded, the trust agreement shall require it to pay over trust moneys to the paying agent as and when required for the timely meeting of total debt service requirements of the obligations being refunded.
2. “Investment securities” shall mean direct obligations of, or obligations the principal of and interest on which are fully guaranteed by, the United States, maturing and bearing interest at such times and in such amounts as, together with uninvested trust moneys, will make available sufficient moneys to meet, as and when due, total debt service requirements of the obligations being refunded. In determining the sufficiency of the trust deposit, there shall be considered the principal amount of such investment securities and the interest to be earned on them.

History. Acts 1967, No. 145, § 1; 1973, No. 502, § 1; 1975, No. 222, § 1; A.S.A. 1947, § 13-1105.

19-9-302. Sale when old bonds cannot be presented.

Where refunding bonds are to be issued by any municipality, county, state-supported educational institution, or improvement district of any kind and the bonds to be refunded cannot be presented for payment and cancellation simultaneously with the payment and delivery of the refunding bonds, the refunding bonds may be delivered when the purchase money is deposited into trust. The purchase money may be deposited for the purpose of payment of the principal of and interest on the bonds to be refunded with any insured bank or trust company in the state which is otherwise fully qualified to receive trust funds if the bonds to be refunded have fixed maturity dates of not to exceed twelve (12) months from the date of the payment and delivery of the refunding bonds or if the bonds are redeemable before maturity and have been duly called for payment.
If the bank or trust company is not the paying agent for the bonds to be refunded, the purchase money shall be paid over by it to the paying agent three (3) days before the maturity of the bonds or three (3) days before the date for which the bonds have been called for payment.

History. Acts 1945, No. 12, § 1; A.S.A. 1947, § 13-1102.

19-9-303. Private sale to United States.

Any refunding bonds authorized to be sold by the State of Arkansas or any agency or instrumentality of the state at public sale, notwithstanding the provision for public sale, may, nevertheless, be sold to the United States or any agency thereof at private sale without public advertisement if the bonds are sold at not less than par and at a rate of interest not greater than the rate borne by the bonds to be refunded.

History. Acts 1939, No. 152, § 1; A.S.A. 1947, § 13-1101.

19-9-304. Interest rate.

Any county, school district, improvement district, or municipality may refund any bonds issued under any statutory or constitutional authority at any time outstanding by the issuance of bonds bearing a rate or rates of interest that the issuer shall deem to be just and fair, whether or not greater than the rate or rates of interest borne by the bonds being refunded.
No bonds shall be refunded at a rate of interest greater than the maximum rate set by the statutes or constitutional provision under which they were originally authorized.

History. Acts 1961, No. 449, § 1; A.S.A. 1947, § 13-1103.

19-9-305. Conversion privilege.

The refunding bonds may be issued with the privilege of conversion to a lower rate or rates of interest if the issuer receives no less and pays no more than it would receive or pay if the bonds were not converted. The conversion shall be subject to the approval of the issuer.

History. Acts 1961, No. 449, § 2; A.S.A. 1947, § 13-1104.

19-9-306. Inclusion of redemption premiums in principal.

The State of Arkansas, any agency of the state, any county, any municipality, any school district, any improvement district of any kind, or any other political subdivision of the State of Arkansas, which may be called “issuing authorities”, is authorized to include in the principal of refunding bonds the amount of any redemption premiums required to be paid to accomplish the redemption of the bonds being refunded.

History. Acts 1967, No. 146, § 1; A.S.A. 1947, § 13-1106.

A.C.R.C. Notes. Acts 1967, No. 146, § 2, provided that the act would be cumulative to any other laws authorizing or pertaining to the issuance of refunding bonds by issuing authorities.

Subchapter 4 — Registered Public Obligations Act of Arkansas

Effective Dates. Acts 1983, No. 786, § 18: Mar. 24, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that under current federal tax law, Section 103 of the Code will deny exemption from federal income tax on any obligation not issued in registered form, many laws of the State of Arkansas relating to the issuance of obligations do not adequately provide the authorization for compliance and its incidents in an adequate manner; and to enable all issuers within the state to comply, so as to prevent substantial additional financing costs or delays in financing, it is necessary that this Act take effect immediately. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of public peace, health and safety shall be in full force and effect from and after its passage and approval.”

19-9-401. Title.

This subchapter may be cited as the “Registered Public Obligations Act of Arkansas”.

History. Acts 1983, No. 786, § 1; A.S.A. 1947, § 13-2801.

19-9-402. Purpose.

The Internal Revenue Code provides that interest with respect to certain obligations may not be exempt from federal income taxation unless the obligations are in registered form. It is therefore a matter of state concern that public entities be authorized to provide for the issuance of obligations in such form. It is a purpose of this subchapter to empower all public entities to establish and maintain a system pursuant to which obligations may be issued in registered form within the meaning of the applicable provisions of the Internal Revenue Code.
Obligations have traditionally been issued in bearer rather than in registered form, and a change from bearer to registered form may affect the relationships, rights, and duties of issuers of and the persons that deal with obligations and, by such effect, the costs of issuing obligations. Such effects will impact the various issuers and varieties of obligations differently depending upon their legal and financial characteristics, their markets, and their adaptability to recent and prospective technological and organizational developments. It is therefore a matter of state concern that public entities be provided flexibility in the development of such systems and control over system incidents so as to accommodate the different impacts. It is a purpose of this subchapter to empower the establishment, maintenance, and amendment, from time to time, of differing systems of registration of obligations so as to accommodate the differing impacts upon issuers and varieties of obligations. It is further a purpose of this subchapter to authorize systems that will facilitate the prompt and accurate transfer of registered public obligations and develop practices with regard to the registration and transfer of registered public obligations.

History. Acts 1983, No. 786, § 3; A.S.A. 1947, § 13-2803.

U.S. Code. The Internal Revenue Code, referred to in this section, is codified as 26 U.S.C. § 1 et seq.

19-9-403. Definitions.

As used in this subchapter, unless the context otherwise requires:

“Authorized officer” means any individual required or permitted, alone or with others, by any provision of law or by the issuing public entity, to execute, on behalf of the public entity, a certificated registered public obligation or a writing relating to an uncertificated registered public obligation;
“Certificated registered public obligation” means a registered public obligation which is represented by an instrument;
“Code” means the Internal Revenue Code of 1954, as amended;
“Facsimile seal” means the reproduction by engraving, imprinting, stamping, or by other means of the seal of the issuer, official, or official body;
“Facsimile signature” means the reproduction by engraving, imprinting, stamping, or by other means of a manual signature;
“Financial intermediary” means a bank, broker, clearing corporation, or other person, or the nominee of any of them, which in the ordinary course of its business maintains registered public obligation accounts for its customers, when so acting;
“Issuer” means a public entity which issues an obligation;
“Obligation” means an agreement of a public entity to pay principal and any interest thereon, whether in the form of a contract to repay borrowed money, a lease, an installment purchase agreement, or otherwise and includes a share, participation, or other interest in any such agreement;
“Official actions” means the actions by statute, order, ordinance, resolution, contract, or other authorized means by which the issuer provides for issuance of a registered public obligation;
“Official or official body” means the officer or board that is empowered under the laws of one (1) or more states, including this state, to provide for original issuance of an obligation of the issuer by defining the obligation and its terms, conditions, and other incidents, the successor of any such official or official body, and such other person or group of persons as shall be assigned duties of an official or official body with respect to a registered public obligation under applicable law from time to time;
“Public entity” means any entity, department, or agency which is empowered under the laws of one (1) or more states, territories, possessions of the United States, or the District of Columbia, including this state, to issue obligations, any interest with respect to which, under any provision of law, may be provided an exemption from the income tax referred to in the code. The term “public entity” may thus include, without limitation, this state, an entity deriving powers from and acting pursuant to the Arkansas Constitution or a special legislative act, a political subdivision, a municipal corporation, a state university or college, a school or other special district, a joint agreement entity, a public authority, a public facilities board, a nonprofit corporation, and other organizations;
“Registered public obligation” means an obligation issued by a public entity pursuant to a system of registration;
“State” means the State of Arkansas;
“System of registration” and its variants means a plan that provides:
1. With respect to a certificated registered public obligation, that:
  1. The certificated registered public obligation specifies a person entitled to the registered public obligation and the rights it represents; and
  2. Transfer of the certificated registered public obligation and the rights it represents may be registered upon books maintained for that purpose by or on behalf of the issuer; and
2. With respect to an uncertificated registered public obligation, that:
  1. Books maintained by or on behalf of the issuer for the purpose of registration of the transfer of a registered public obligation specify a person entitled to the registered public obligation and the rights evidenced thereby; and
  2. Transfer of the uncertificated registered public obligation and the rights evidenced thereby be registered upon such book; and
“Uncertificated registered public obligation” means a registered public obligation which is not represented by an instrument.

History. Acts 1983, No. 786, § 2; A.S.A. 1947, § 13-2802.

U.S. Code. The Internal Revenue Code of 1954, referred to in this section, is codified as 26 U.S.C. § 1 et seq.

19-9-404. Applicability.

Unless, at any time prior to or at original issuance of a registered public obligation, the official or official body of the issuer determines otherwise, this subchapter shall be applicable to such registered public obligation, notwithstanding any provision of law to the contrary. When this subchapter is applicable, no contrary provision shall apply.
Nothing in this subchapter limits or prevents the issuance of obligations in any other form or manner authorized by law.
Unless determined otherwise pursuant to subsection (a) of this section, the provisions of this subchapter shall be applicable with respect to obligations which have been approved by vote, referendum, or hearing which authorizes or permits the authorization of obligations in bearer and registered form or in bearer form only. These obligations need not be resubmitted for a further vote, referendum, or hearing for the purpose of authorizing or permitting the authorization of registered public obligations pursuant to this subchapter.

History. Acts 1983, No. 786, § 12; A.S.A. 1947, § 13-2812.

19-9-405. Construction.

This subchapter shall be liberally construed to accomplish the intent and purposes hereof and shall be the sole authority required for the accomplishment of such purposes.
This subchapter shall be construed in conjunction with the Uniform Commercial Code, § 4-1-101 et seq., and the principles of contract law relative to the registration and transfer of obligations.

History. Acts 1983, No. 786, §§ 13, 16; A.S.A. 1947, §§ 13-2813, 13-2815.

19-9-406. System of registration.

1. Each issuer is authorized to establish and maintain a system of registration with respect to each obligation which it issues. The system may either be:
  1. A system pursuant to which only certificated registered public obligations are issued;
  2. A system pursuant to which only uncertificated registered public obligations are issued; or
  3. A system pursuant to which both certificated and uncertificated registered public obligations are issued.
2. The issuer may amend, discontinue, and reinstitute any system of registration, from time to time, subject to covenants.
The system shall be established, amended, discontinued, or reinstituted for the issuer by, and shall be maintained for the issuer as provided by, the official or official body.
The system shall be described in the registered public obligation or in the official actions which provide for original issuance of the registered public obligation and in subsequent official actions providing for amendments and other matters from time to time. Such description may be by reference to a program of the issuer which is established by the official or official body.
The system shall define the methods by which transfer of the registered public obligation shall be effective with respect to the issuer and by which payment of principal and any interest shall be made. The system may permit the issuance of registered public obligations in any denomination to represent several registered public obligations of smaller denominations. The system may also provide for the form of any certificated registered public obligation or of any writing relating to an uncertificated registered public obligation, for identifying numbers or other designations, for a sufficient supply of certificates for subsequent transfers, for record and payment dates, for varying denominations, for communications to holders or owners of obligations, and for accounting, cancelled certificate destruction, registration and release of security interests, and other incidental matters. Unless the issuer otherwise provides, the record date for interest payable on the first or fifteenth day of a month shall be the fifteenth day or the last business day of the preceding month, respectively, and for interest payable on other than the first or fifteenth day of a month, shall be the fifteenth calendar day before the interest payment date.
Under a system pursuant to which both certificated and uncertificated registered public obligations are issued, both types of registered public obligations may be regularly issued, or one (1) type may be regularly issued and the other type issued only under described circumstances or to particular described categories of owners. Provision may be made for registration and release of security interest in registered public obligations.
The system may include covenants of the issuer as to amendments, discontinuances, and reinstitutions of the system and the effect of such on the exemption of interest from the income tax provided for by the code.
Whenever an issuer shall issue an uncertificated registered public obligation, the system of registration may provide that a true copy of the official actions of the issuer relating to such uncertificated registered public obligations be maintained by the issuer or by the person, if any, maintaining such system on behalf of the issuer, so long as the uncertificated registered public obligation remains outstanding and unpaid. A copy of such official actions, verified to be such by an authorized officer, shall be admissible before any court of record, administrative body, or arbitration panel without further authentication.
Nothing in this subchapter shall preclude a conversion from one of the forms of registered public obligations provided for by this subchapter to a form of obligation not provided for by this subchapter if interest on the obligation so converted will continue to be exempt from the income tax provided for by the code.
The rights provided by other laws with respect to obligations in forms not provided for by this subchapter shall, to the extent not inconsistent with this subchapter, apply with respect to registered public obligations issued in forms authorized by this subchapter.

History. Acts 1983, No. 786, § 4; A.S.A. 1947, § 13-2804.

19-9-407. Signatures required.

A certificated registered public obligation shall be executed by the issuer by the manual or facsimile signatures of authorized officers. Any signature of an authorized officer may be attested by the manual or facsimile signature of another authorized officer.
In addition to the signatures referred to in subsection (a) of this section, any certificated registered public obligation or any writing relating to an uncertificated registered public obligation may include a certificate signed by the manual or facsimile signature of an authenticating agent, registrar, transfer agent, or the like.
At least one (1) signature of an authorized officer or other person required or permitted to be placed on a certificated registered public obligation shall be a manual signature.

History. Acts 1983, No. 786, § 5; A.S.A. 1947, § 13-2805.

19-9-408. Signature of predecessor in office.

Any certificated registered public obligation signed by the authorized officers at the time of the signing thereof shall remain valid and binding, notwithstanding that before the issuance thereof any or all of the officers shall have ceased to fill their respective offices.
1. Any authorized officer empowered to sign any certificated registered public obligation may adopt as and for the signature of such officer the signature of a predecessor in office in the event that such predecessor's signature appears on such certificated registered public obligation.
2. An authorized officer incurs no liability by adoption of a predecessor's signature that would not be incurred by such authorized officer if the signature were that of such authorized officer.

History. Acts 1983, No. 786, § 6; A.S.A. 1947, § 13-2806.

19-9-409. Seal.

When a seal is required or permitted in the execution of any certificated registered public obligation, an authorized officer may cause the seal to be printed, engraved, stamped, or otherwise placed in facsimile thereon. The facsimile seal has the same legal effect as the impression of the seal.

History. Acts 1983, No. 786, § 7; A.S.A. 1947, § 13-2807.

19-9-410. Appointment of agents by issuer.

An issuer may appoint for such term as may be agreed, including for so long as a registered public obligation may be outstanding, corporate or other authenticating agents, transfer agents, registrars, and paying or other agents. The issuer may also specify the terms of their appointment, including their rights, their compensation and duties, limits upon their liabilities, and provision for their payment of liquidated damages in the event of breach of certain of the duties imposed. These liquidated damages may be made payable to the issuer, the owner, or a financial intermediary. None of such agents need have an office or do business within this state.
An issuer may agree with custodian banks and financial intermediaries, and nominees of any of them, in connection with the establishment and maintenance by others of a central depository system for the transfer of pledge of registered public obligations. Any such custodian banks and financial intermediaries, and nominees, may, if qualified and acting as fiduciaries, also serve as authenticating agents, transfer agents, registrars, or paying or other agents of the issuer with respect to the same issue of registered public obligations.
Nothing shall preclude the issuer from itself performing, either alone or jointly with other issuers, any transfer, registration, authentication, payment, or other function described in this section.

History. Acts 1983, No. 786, § 8; A.S.A. 1947, § 13-2808.

19-9-411. Payment of costs.

An issuer, prior to or at original issuance of registered public obligations, may provide as a part of a system of registration that the transferor or transferee of the registered public obligations pay all or a designated part of the costs of the system as a condition precedent to transfer, that costs be paid out of proceeds of the registered public obligations, or that both methods be used. The portion of the costs of the system not provided to be paid for by the transferor or transferee or out of proceeds shall be the liability of the issuer.
The issuer may, as a part of a system of registration, provide for reimbursement or for satisfaction of its liability by payment by others. The issuer may:
1. Enter into agreements with others respecting such reimbursement or payment;
2. Establish fees and charges pursuant to such agreements or otherwise; and
3. Provide that the amount or estimated amount of such fees and charges shall be reimbursed or paid from the same sources and by means of the same collection and enforcement procedures and with the same priority and effect as with respect to the obligations.

History. Acts 1983, No. 786, § 9; A.S.A. 1947, § 13-2809.

19-9-412. Reciprocal recognition for obligations.

Obligations issued by public entities under the laws of one (1) or more states, territories, possessions, or the District of Columbia, which are in registered form, whether or not represented by an instrument, and which, except for their form, satisfy the requirements with regard to security for deposits of moneys of public agencies prescribed pursuant to any law of this state, shall be deemed to satisfy all such requirements, even though they are in registered form, if a security interest in such obligations is perfected on behalf of the public agencies whose moneys are so deposited.

History. Acts 1983, No. 786, § 10; A.S.A. 1947, § 13-2810.

19-9-413. Registration records.

Records, with regard to the ownership of or security interest in registered public obligations, are not subject to inspection or copying under any law of this state relating to the right of the public to inspect or copy public records, notwithstanding any law to the contrary.
Registration records of the issuer may be maintained at such locations within or without this state as the issuer shall determine.

History. Acts 1983, No. 786, § 11; A.S.A. 1947, § 13-2811.

19-9-414. Exemption of interest from taxation.

The state covenants with the owners of any registered public obligations that it will not amend or repeal this subchapter if the effect may be to impair the exemption from income taxation of interest on registered public obligations.

History. Acts 1983, No. 786, § 14; A.S.A. 1947, § 13-2814.

Subchapter 5 — Revenue Bond Reporting Act

Effective Dates. Acts 1987, No. 646, § 6: July 1, 1987. Emergency clause provided: “It is hereby found and determined by the Seventy-Sixth General Assembly, that the clarification of certain fiscal transactions of the State is needed in order to more accurately reflect the condition of the State's assets at all times and to maintain the fiscal integrity of the State. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1987.”

19-9-501. Title.

This subchapter may be known and cited as the “Revenue Bond Reporting Act”.

History. Acts 1985, No. 222, § 1; A.S.A. 1947, § 13-444.

19-9-502. Annual report.

All state and local agencies, boards, commissions, institutions of higher education, and authorities authorized by the state and cities and counties shall annually file a report with the State Board of Finance, on or before October 1, reflecting any and all revenue bonds which have been issued and have not been liquidated as of the preceding July 1 by such governmental units.
The report shall contain:
1. The purpose for which the revenue bonds were issued;
2. The total dollar amount issued;
3. The percentage interest rate payable under the revenue bonds;
4. The total dollar amount outstanding;
5. The repayment schedule; and
6. The source, type, and amount of pledged revenues for the bonds.
The Secretary of the State Board of Finance shall compile a summary report of all revenue bonds from information provided under this section and present the summary report to the Legislative Council as soon as practicable after each October 1.

History. Acts 1985, No. 222, § 2; A.S.A. 1947, § 13-445; Acts 1987, No. 646, § 4.

Subchapter 6 — Revenue Bond Act of 1987

A.C.R.C. Notes. Acts 1987, No. 852, § 6, provided:

“Notwithstanding any other evidence of legislative intent, it is hereby declared that the provisions of this Act are severable and if any provision of this Act or the application thereof to any person or circumstances is held invalid, the remainder of the Act and the application of such provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby.”

Effective Dates. Acts 1987 (1st Ex. Sess.), No. 36, § 4: July 19, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that the issuance of revenue bonds by regional water distribution districts has been unduly restricted by Act 852 of 1987 and the amendments thereto made hereby are intended to enable such districts to issue their revenue bonds to finance water improvements which are necessary for the inhabitants of the State to have sufficient availability of water resources. Therefore, an emergency is declared to exist, and this Act being necessary for the preservation of the public peace, health and safety shall take effect and be in force from July 19, 1987 which is the effective date of Act 852 of 1987.”

Acts 1991, No. 210, § 7: Feb. 21, 1991. Emergency clause provided: “It is hereby found and determined that there is an immediate and urgent need to facilitate the refunding of revenue bonds so that governmental units can reduce debt service costs. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 213, § 6: Feb. 21, 1991. Emergency clause provided: “It has been found and it is hereby declared that present law, requiring publication of notice of fourteen (14) days prior to the authorization of revenue bonds results, in some instances, in hardship and, in the case of changing interest rates, can result in economic loss, particularly in municipalities in which there is not located a daily newspaper; that the effect of the present law is greatly in the public interest; and that present law can be amended as set forth herein without prejudice to its effect. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 1245, § 6: Apr. 9, 1997. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act clarifies the definition of ‘governing body’ as used in the Revenue Bond Act of 1987 and that this act is immediately necessary to clarify the law and to avoid undue hardship and potential economic loss to governing bodies. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2005, No. 1553, § 3: Apr. 5, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the ability of local entities to issue bonds is an important component to the state economy; that laws concerning local bonds issued by regional wastewater districts and regional solid waste management districts are in need of immediate clarification in order to allow those districts to properly issue bonds for the benefit of the district and the state. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Research References

U. Ark. Little Rock L.J.

Survey—Bonds, 10 U. Ark. Little Rock L.J. 545.

19-9-601. Title.

This subchapter shall be referred to and may be cited as the “Revenue Bond Act of 1987”.

History. Acts 1987, No. 852, § 1.

19-9-602. Legislative determination.

The people of the State of Arkansas, by the adoption of Arkansas Constitution, Amendment 65, have expressed their intention to provide governmental units expanded power and authority with respect to the creation of bonded indebtedness for capital improvements of a public nature, facilities for the securing and developing of industry or agriculture, and other purposes as defined and prescribed by the General Assembly.

History. Acts 1987, No. 852, § 2.

19-9-603. Legislative intent.

It is the specific intent of this subchapter that the provisions hereof are procedural only and are supplemental to other constitutional or statutory provisions now existing or hereafter adopted which may authorize the issuance of revenue bonds for the financing of capital improvements. Nothing contained in this subchapter shall be deemed to be a restriction or limitation upon alternative means of financing previously available or hereafter made available to municipalities or counties for the purposes set forth in this subchapter.

History. Acts 1987, No. 852, § 7.

19-9-604. Definitions.

As used in this subchapter:

“Bonds” or “revenue bonds” means bonds issued pursuant to an act of the General Assembly under the authority of the Arkansas Constitution, Amendment 65, and means all bonds or other obligations, the repayment of which are secured by rents, loan payments, user fees, charges, or other revenues derived from any special fund or source other than assessments for local improvements and taxes;
“Capital improvements of a public nature” or “capital improvements” means, whether obtained by purchase, lease, construction, reconstruction, restoration, improvement, alteration, repair, or other means:
1. Any physical public betterment or improvement or any preliminary plans, studies, or surveys relative thereto;
2. Lands or rights in land, including, without limitations, leases, air rights, easements, rights-of-way, or licenses; and
3. Any furnishings, machinery, vehicles, apparatus, or equipment for any public betterment or improvement, which shall include, without limiting the generality of the foregoing, the following:
  1. Any and all facilities for state agencies, city or town halls, courthouses and other administrative, executive, or other public offices;
  2. Court facilities;
  3. Jails;
  4. Firefighting facilities and apparatus;
  5. Public health facilities and apparatus;
  6. Hospitals, nursing homes, and similar extended care facilities;
  7. Residential housing for low and moderate income, elderly persons or individuals with disabilities and families;
  8. Parking garages or other facilities;
  9. Educational and training facilities for public employees;
  10. Auditoriums, stadiums, convention halls, and similar public meeting or entertainment facilities;
  11. Ambulance and other emergency medical service facilities;
  12. Civil defense facilities;
  13. Air and water pollution control facilities;
  14. Drainage and flood control facilities;
  15. Storm sewers;
  16. Arts and crafts centers;
  17. Museums;
  18. Libraries;
  19. Public parks, playgrounds, or other public open space;
  20. Marinas;
  21. Swimming pools, tennis courts, golf courses, camping facilities, gymnasiums, and other recreational facilities;
  22. Tourist information and assistance centers;
  23. Historical, cultural, natural, or folklore sites;
  24. Fair and exhibition facilities;
  25. Streets and street lighting, alleys, sidewalks, roads, bridges, and viaducts;
  26. Airports, passenger or freight terminals, hangars, and related facilities;
  27. Barge terminals, ports, harbors, ferries, wharves, docks, and similar marine services;
  28. Slack water harbors, water resource facilities, waterfront development facilities, and navigation facilities;
  29. Public transportation facilities;
  30. Public water systems and related transmission and distribution facilities, storage facilities, wells, impounding reservoirs, treatment plants, lakes, dams, watercourses, and water rights;
  31. Sewage collection systems and treatment plants;
  32. Maintenance and storage buildings and facilities;
  33. Police and sheriff stations, apparatus, and training facilities;
  34. Incinerators;
  35. Garbage and solid waste disposal, compacting, and recycling facilities of every kind;
  36. Gas and electric generation, transmission, and distribution systems, including, without limiting the generality of the foregoing, hydroelectric generating facilities, dams, powerhouses, and related facilities; and
  37. Social and rehabilitative facilities;
“Governing body” means:
1. With respect to any governmental unit defined in subdivision (4)(A) of this section, the Governor;
2. With respect to any governmental unit defined in subdivision (4)(B) of this section, the:
  1. County court of a county;
  2. Board of directors of a regional water distribution district, regional wastewater district, or regional solid waste management district; or
  3. Council, board of directors, board of commissioners, or similar elected body of a city or town; and
3. With respect to any authority created pursuant to the Regional Airport Act, § 14-362-101 et seq. between any two (2) or more political subdivisions of the State of Arkansas, the Governor, the county court of a county participating in the agreement, or the council, board of directors, board of commissioners, or similar elected body of a city or town participating in the agreement;
“Governmental unit” means:
1. The State of Arkansas or any agency or other instrumentality of the state other than an institution of higher education; and
2. Any county, municipality, regional water distribution district, regional wastewater district, regional solid waste management district, or other political subdivision of the State of Arkansas, or any agency or instrumentality of a political subdivision of the State of Arkansas; and
“Industrial enterprise” means and includes facilities for manufacturing, producing, processing, assembling, repairing, extracting, warehousing, distributing, communications, computer services, transportation, corporate and management offices, and services provided in connection with any of the foregoing, in isolation or in any combination, that involve the creation of new or additional employment or the retention of existing employment, and industrial parks. However, a shopping center, retail store, shop, or other similar undertaking which is solely or predominantly of a commercial retail nature shall not be an industrial enterprise for the purposes of this subchapter.

History. Acts 1987, No. 852, § 3; 1987 (1st Ex. Sess.), No. 36, § 1; 1997, No. 1245, § 2; 2005, No. 1553, § 1.

Amendments. The 2005 amendment inserted “regional wastewater district, regional solid waste management district” in (4)(B); inserted the subdivision (i)-(iii) designations in (5)(B) and made related changes; and inserted “regional wastewater district, or regional solid waste management district” in present (5)(B)(ii).

19-9-605. Construction.

This subchapter shall be construed liberally to effectuate the legislative intent and the purposes of this subchapter as complete and independent authority for the performance of each and every act and thing authorized in this subchapter. All powers granted in this subchapter shall be broadly interpreted to effectuate that intent and those purposes and not as a limitation of powers.

History. Acts 1987, No. 852, § 8.

19-9-606. Proclamation, order, etc., authorizing issuance of bonds.

Whenever a governmental unit shall determine the need to issue revenue bonds for capital improvements of a public nature or industrial enterprise, the governing body shall authorize the issuance of those bonds by proclamation, order, ordinance, or resolution clearly stating the principal amount of and the purpose or purposes for which the bonds are to be issued.
Only upon the proclamation, order, ordinance, or resolution of the governing body shall the governmental unit be authorized to issue such bonds, provided that no proclamation, order, ordinance, or resolution shall be required for the issuance of refunding bonds, including refunding bonds where the principal amount of the new bonds to be issued exceeds the outstanding principal amount of the prior bonds or notes to be refunded.

History. Acts 1987, No. 852, § 4; 1987 (1st Ex. Sess.), No. 36, § 2; 1991, No. 210, § 1.

A.C.R.C. Notes. Acts 1991, No. 210, § 2, provided:

“Any provision of law, whether special or general, in conflict with this Act is expressly superseded by this Act to the extent of such conflict. This Act is supplemental to all other provisions of state law governing the issuance of bonds and, except as otherwise provided in this Act, the provisions of state law governing the issuance of bonds continue to apply.”

Acts 1991, No. 210, § 3, provided:

“The provisions of this Act shall be liberally construed in order to effectively carry out the purposes of this Act.”

19-9-607. Hearing.

No proclamation, order, or ordinance prescribed by § 19-9-606 shall be entered by a governing body until the governing body, the governmental unit, or the delegate of either shall have conducted a public hearing:
1. In the case of a regional water distribution district, regional wastewater district, or regional solid waste management district issuing bonds, in the county seat of the county that has the greatest amount of territory within the district;
2. In the case of a city or county issuing bonds, within the city or county; or
3. In the locality to be affected by the issuance of the bonds if subdivisions (a)(1) and (2) of this section are not applicable.
At least ten (10) days before the date set for the public hearing, notice of the hearing shall be published one (1) time in a newspaper of general circulation:
1. In the locality to be affected; or
2. In the case of a regional water distribution district, regional wastewater district, or regional solid waste management district, in a newspaper of general circulation in each county in which land lies within the boundaries of the district.
The notice shall:
1. Contain a general description of the purpose or purposes for which the bonds are to be issued;
2. Contain the maximum principal amount of the bonds; and
3. State the date, time, and place of the public hearing.

History. Acts 1987, No. 852, § 5; 1987 (1st Ex. Sess.), No. 36, § 3; 1991, No. 213, § 1; 2005, No. 1553, § 2.

A.C.R.C. Notes. Acts 1991, No. 213, § 2, provided:

“This Act shall apply to revenue bonds issued after February 28, 1991.”

Amendments. The 2005 amendment deleted “in the locality to be affected by the issuance of the bonds or, in the case of regional water distribution districts, in the county seat of the county in which the majority of the land lies in the district” from the end of (a); added present (a)(1)-(3); inserted the subdivision (1) and (2) designations in (b) and made related changes; substituted “a regional water distribution district, regional wastewater district, or regional solid waste management district” for “regional water distribution districts” in present (b)(2); and inserted “maximum” in (c)(2).

Subchapter 7 — Taxable Bond Act of 1989

Effective Dates. Acts 1989, No. 632, § 13: Mar. 17, 1989. Emergency clause provided: “It is hereby found and declared that there is an immediate and urgent need for providing more readily available financing for governmental units of the State of Arkansas in order that they may carry out their responsibilities previously established by the General Assembly; and that this need can be remedied or alleviated through the adoption of this Act and the authorization of the issuance of taxable bonds for public purposes as provided herein. This Act is immediately necessary in order that such financings can be accomplished and the resulting public benefits realized. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in full force and effect from after its adoption.”

19-9-701. Title.

This subchapter shall be referred to as, and may be cited as, the “Taxable Bond Act of 1989”.

History. Acts 1989, No. 632, § 1.

19-9-702. Legislative findings.

The General Assembly hereby finds and declares:

The United States Supreme Court, in the case of South Carolina v. Baker, decided April 20, 1988, 485 U.S. 505, held that no barrier exists under the United States Constitution to the imposition of federal income taxation on interest received by holders of bonds of governmental units. Such exemption from federal income taxation has been a desirable feature of such bonds, operating to reduce interest expense to governmental units and enhancing the marketability of the bonds;
The continued ability of governmental units to provide for the financing of public improvements and other projects and programs which serve important public purposes by the issuance of bonds is essential for the health, welfare, and economic well-being of the people of the State of Arkansas;
By the adoption of the Internal Revenue Code of 1986, as amended, the United States Congress has substantially limited the purposes for which bonds may be issued with interest exempt from federal income taxation and imposed other restrictive provisions as a condition of such exemption. Additionally, under the authority of South Carolina v. Baker, the United States Congress may be expected to enact other laws and effect changes in federal tax policy to eliminate or further reduce the exemption of interest on bonds of governmental units from federal income taxation, with the result that, to provide financing for public purposes, governmental units may now find it in their best interests to issue bonds the interest on which is not exempt from federal income taxation;
Under the Arkansas Constitution and existing laws of this state, governmental units have had, and continue to have, the power to issue bonds without respect to whether the interest thereon is subject to federal income taxation; but many statutes applicable to governmental units lack effective, modern procedures under which the structure of a taxable financing may comply with current market practices, obtain the lowest effective borrowing cost, or provide terms most suitable to the governmental unit, the project, or the financing program; and
The purposes sought to be achieved by this subchapter are to provide governmental units with all means necessary to obtain financing for public purposes under the changing circumstances related to future tax policy of the federal government and to supplement and complement the provisions of existing and future laws authorizing the issuance of bonds, to the end that governmental units may provide for the health, safety, and welfare of the people by the issuance of bonds under terms and conditions necessary under the then-existing conditions.

History. Acts 1989, No. 632, § 2.

U.S. Code. The Internal Revenue Code of 1986, referred to in this section, is codified as 26 U.S.C. § 1 et seq.

19-9-703. Definitions.

As used in this subchapter, unless the content otherwise requires:

“Act” means this subchapter.
“Bonds” means any bonds, issued pursuant to the Arkansas Constitution and pursuant to an act of the General Assembly heretofore or hereafter enacted, and means all debentures, notes, warrants, tax anticipation notes, bond anticipation notes, commercial paper, or other evidence of indebtedness or leases, installment purchase contracts, or other agreements or certificates of participation therein issued by or on behalf of a governmental unit, secured by revenues from any special fund or source or assessments for local improvements and taxes;
“Foreign currency” means currency, euros, or money other than the legal tender of the United States;
“Governmental unit” means the State of Arkansas, any department, board, commission, or other agency or instrumentality of the state, or any county, municipality, school district, regional water distribution district, improvement district, public trust, or other political subdivision of the state, heretofore or hereafter created, or any board, commission, authority, or other public agency or instrumentality of a governmental unit which is now or hereafter authorized by law to issue bonds. Nothing herein shall be deemed to give any department, board, commission, or other agency of the state any additional authority to issue bonds or take any action independently and without acting by or through the State Board of Finance if the participation of the State Board of Finance is otherwise required by the law under authority of which the bonds are issued;
“State” means the State of Arkansas; and
“Taxable bonds” means bonds the interest on which is not, in any manner, exempt from federal income taxation or excludable from gross income for federal income tax purposes.

History. Acts 1989, No. 632, § 3.

19-9-704. Subchapter supplemental — Effect on other state laws or on previously issued bonds.

This subchapter is supplemental to all other provisions of state law governing the issuance of bonds by any governmental unit and, except as otherwise provided in this subchapter, the provisions of state law governing the issuance of bonds by any governmental unit shall continue to apply to the issuance by such governmental unit of taxable bonds.
Nothing herein shall be deemed to broaden or otherwise alter any provisions of state law as they relate to the issuance of the bonds the interest on which is, in some manner, exempt or excludable from federal income taxation.
The reference herein to law providing authority for issuance of bonds shall mean laws now in effect and as hereafter enacted or amended by the General Assembly.
Nothing contained herein shall be construed to impugn the validity of any taxable bonds heretofore issued.

History. Acts 1989, No. 632, § 9.

19-9-705. Construction.

The provisions of this subchapter shall be liberally construed in order to effectively carry out the purposes of this subchapter.

History. Acts 1989, No. 632, § 10.

19-9-706. Issuance of bonds authorized.

A governmental unit is hereby authorized to issue taxable bonds for any purpose permitted by the law heretofore or hereafter enacted under authority of which such taxable bonds are issued, whether such purposes are set forth in each law by specific category or by a general authorization to accomplish public purposes.

History. Acts 1989, No. 632, § 6.

19-9-707. Ordinance, resolution, indenture, etc.

The ordinance, resolution, indenture, agreement, or other instrument providing for the issuance of taxable bonds may provide for any of the following:

The bonds shall be in such denominations, in such form, either bearer or registered, and payable at such place or places, either within or without the United States, at such time or times, as, in each case, the governmental unit shall determine, subject to any limitations on the maturity of bonds set forth in the law under authority of which the bonds are issued;
The bonds shall be payable in legal tender of the United States, in a foreign currency, in commodities, or in precious metals, as the governmental unit shall determine;
The governmental unit may appoint, in connection with the bond issue, a cotrustee located outside of the boundaries of the United States or its territories or possessions so long as it also shall appoint a trustee otherwise meeting the requirements of the statutes under authority of which the bonds are issued. The governmental unit may appoint, in connection with the bond issue, a paying agent or a copaying agent located outside the boundaries of the United States or its territories or possessions;
In connection with, or incidental to, the sale and issuance of bonds, the governmental unit may enter into any contracts which it determines to be necessary or appropriate to achieve a desirable effective interest rate in connection with the bonds by means of, but not limited to, contracts commonly known as investment contracts, funding agreements, interest rate swap agreements, currency swap agreements, forward payment conversion agreements, futures, or contracts providing for payments based on levels of or changes in interest rates, or contracts to exchange cash flows or a series of payments, or contracts, including, without limitation, options, puts or calls, whether or not used to hedge payment, rate, spread, or similar exposure. Such contracts or arrangements may also be entered into by governmental units in connection with, or incidental to, entering into any agreement which secures bonds or provides liquidity therefor. Such contracts and arrangements shall be made upon the terms and conditions established by the governmental unit, after giving due consideration for the credit worthiness of the counterparties, where applicable, including any rating by a nationally recognized rating service or any other criteria as may be appropriate;
In connection with, or incidental to, the sale and issuance of the bonds, or entering into any of the contracts or arrangements referred to in subdivision (4) of this section, the governmental unit may enter into such credit enhancement or liquidity agreements, with such payment, interest rate, security, default, remedy, and other terms and conditions as the governmental unit shall determine; and
Notwithstanding any provisions of state law relating to the investment or reinvestment of surplus funds of any governmental unit, proceeds of the bonds and any moneys set aside or pledged to secure payment of the principal of, premium, if any, and interest on the bonds, or any of the contracts entered into pursuant to subdivision (4) of this section, may be invested in securities or obligations described in the ordinance or resolution providing for the issuance of the bonds.

History. Acts 1989, No. 632, § 4.

19-9-708. Sale.

The bonds may be sold at public or private sale. If the governing unit shall determine that a negotiated sale of the taxable bonds is in the best interest of the governmental unit, the governmental unit may negotiate for the sale of the taxable bonds.

History. Acts 1989, No. 632, § 5.

19-9-709. Proceeds — Use.

The proceeds of an issue of taxable bonds and the investment earnings thereon shall be used, in the manner, and to the extent specified in the ordinance or resolution providing for the issuance of the bonds, by the governmental unit issuing the bonds for a purpose specified for the issuance of bonds in the law under authority of which the bonds are issued.
Notwithstanding subsection (a) of this section, invested or reinvested proceeds of an issue of taxable bonds shall be deemed to have been expended for a purpose specified for the issuance of bonds in the law under authority of which the bonds are issued if the earnings thereon and proceeds of liquidation of the investments are acquired with such proceeds, to the extent that they are:
1. Applied to pay or service debt service on the bonds; or
2. Applied toward such a purpose.
When the bond proceeds of taxable bonds are invested or reinvested by the governmental unit in obligations permitted by this subchapter, the issuance of the taxable bonds shall be deemed to be for a public purpose, provided, the net proceeds of such investment or reinvestment, after sufficient provision is made for debt service on the bonds, are then applied to a purpose for which the governmental unit has authority to issue bonds and the governmental unit has determined upon appropriate findings of fact that such application of net proceeds is for a public purpose which the governmental unit is authorized or empowered to perform.

History. Acts 1989, No. 632, §§ 6, 7.

19-9-710. Refunding bonds.

Notwithstanding any provisions of state law relating to the investment or reinvestment of surplus funds of any governmental unit or any more restrictive provisions of the law under authority of which the bonds are issued, the proceeds of taxable bonds issued to refund or advance refund a prior issue or issues of bonds may be invested in securities or obligations described in the ordinance or resolution providing for the issuance of such refunding bonds.

History. Acts 1989, No. 632, § 8.

Chapter 10 Claims Against the State

A.C.R.C. Notes. References to “this chapter” in §§ 19-10-101 to 19-10-210 and Subchapters 3 and 4 may not apply to § 19-10-213, which was enacted subsequently.

Research References

ALR.

Actual notice or knowledge by governmental body or officer of injury or incident resulting in injury as constituting required claim or notice of claim for injury — modern status. 7 A.L.R.4th 1063.

Am. Jur. 72 Am. Jur. 2d, States, § 96 et seq.

Ark. L. Rev.

Pagan, Eleventh Amendment Analysis, 39 Ark. L. Rev. 447.

C.J.S. 81A C.J.S., States, § 483 et seq.

Subchapter 1 — General Provisions

Cross References. Claims for reimbursement for uncollectible state warrants or checks, § 25-16-609.

Damages adjudged against state officers and employees, payment by state, § 21-9-201 et seq.

Governmental liability, § 21-9-201 et seq.

Effective Dates. Acts 1949, No. 462, § 17: approved Mar. 28, 1949. Emergency clause provided: “It is found that the Statutes of this State do not adequately provide for the prompt investigation and disposition or the payment of claims against the State, nor do they afford adequate protection of public funds, and that this act is necessary for the preservation of the public peace, health, and safety, an emergency is therefore declared and this act shall take effect and be in force from and after its passage.”

Acts 1951, No. 373, § 11: approved Mar. 20, 1951. Emergency clause provided: “It is found that the Statutes of this State do not adequately provide for the prompt investigation and disposition of the payment of claims against the State, nor do they afford adequate protection of public funds, and that this act is necessary for the preservation of public peace, health, and safety, an emergency is therefore declared and this act shall take effect and be in force from and after its passage.”

Acts 1977, No. 826, § 3: approved Mar. 28, 1977. Emergency clause provided: “It has been found and determined by the General Assembly that duplicate warrants being redeemed by the State Treasurer causes extra duties to be performed by the State Treasurer, Auditor of State and the Department of Finance and Administration, therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage.”

19-10-101. Investigatory powers.

1. As soon as the Secretary of the Department of Finance and Administration learns of facts from which the secretary concludes that a claim may be filed under this chapter against the state or a state agency, the secretary shall investigate and take evidence concerning the claim.
2. The secretary's duty under subdivision (a)(1) of this section applies whether or not the claim has already been filed at the time the secretary learns the relevant facts upon which the secretary bases his or her conclusion.
3. Subdivision (a)(1) of this section does not apply to a claim for personal injury or death of a state employee.
To carry out his or her duties under this section, the secretary may exercise all necessary investigatory powers conferred upon him or her by this chapter.
All information acquired by the secretary under this section shall be made available to the Arkansas State Claims Commission before the hearing and determination of the claim.

History. Acts 1949, No. 462, § 12; 1951, No. 373, § 7; A.S.A. 1947, § 13-1412; Acts 2019, No. 785, § 1; 2019, No. 910, § 3471.

Amendments. The 2019 amendment by No. 785 rewrote the section.

The 2019 amendment by No. 910 substituted “secretary” for “director” throughout the section.

19-10-102. Legal representative for state agencies.

1. An attorney for a state agency against which a claim is filed shall represent his or her respective state agency before the Arkansas State Claims Commission.
2. The Attorney General shall represent all state agencies that have no special legal representatives before the Arkansas State Claims Commission.
Legal representation for a public employer before the Workers' Compensation Commission shall be in the manner prescribed in § 21-5-606.

History. Acts 1949, No. 462, § 11; A.S.A. 1947, § 13-1411; Acts 2019, No. 785, § 1.

Amendments. The 2019 amendment rewrote (a).

19-10-103. State employee not to represent claimant.

The following shall not appear before the Arkansas State Claims Commission or the Workers' Compensation Commission as an attorney or representative for a claimant in the presentation or prosecution of a claim filed under this chapter:

A full-time employee of:
1. The State of Arkansas; or
2. A state agency; or
A member of a state agency.

History. Acts 1949, No. 462, § 13; A.S.A. 1947, § 13-1413; Acts 2019, No. 785, § 1.

Amendments. The 2019 amendment rewrote the section.

19-10-104. Claims for late or lost warrants.

Before approving a claim for reissuance of a state warrant that has been lost or presented for payment after expiration of the legal date for redemption, the Arkansas State Claims Commission shall request proof from the Auditor of State that:

The original warrant was legally canceled because of late redemption presentation; or
In the case of a lost warrant, an official warrant cancellation procedure has been exercised.

History. Acts 1977, No. 826, § 1; A.S.A. 1947, § 13-1415; Acts 2019, No. 785, § 1.

Amendments. The 2019 amendment rewrote the section.

19-10-105. Definitions.

As used in this chapter:

“General Assembly” means the appropriate subcommittee of the Legislative Council or the Joint Budget Committee that is assigned to hear appealed claims or claims requiring approval before being considered by the Legislative Council, the Joint Budget Committee, or the full General Assembly;
“Insurer” means a person engaged as indemnitor, surety, or contractor in the business of entering into contracts of insurance;
“State agency” means a department, office, board, commission, or institution of this state, including a state-supported institution of higher education; and
“Subrogation claim” means a claim filed with the Arkansas State Claims Commission by an insurer or by its insured, or both, to recover money paid or owed by an insurer to an individual under a contract of insurance.

History. Acts 2019, No. 785, § 1.

Subchapter 2 — Arkansas State Claims Commission

A.C.R.C. Notes. References to “this subchapter” in §§ 19-10-201 to 19-10-210 may not apply to § 19-10-213, which was enacted subsequently.

Acts 1951, No. 373, § 11: approved Mar. 20, 1951. Emergency clause provided: “It is found that the Statutes of this State do not adequately provide for the prompt investigation and disposition of the payment of claims against the State, nor do they afford adequate protection of public funds, and that this act is necessary for the preservation of the public peace, health, and safety, an emergency is therefore declared and this act shall take effect and be in force from and after its passage.”

Acts 1955, No. 276, § 5: Mar. 16, 1955. Emergency clause provided: “Whereas, it has been found and is declared by the General Assembly of the State of Arkansas that the present method employed by the State in paying its just debts causes innumerable hardships on the part of the claimants and causes unnecessary expenses and delay in recovering their just compensation from the State, all of which produces irreparable damage to the citizens of the State of Arkansas, now therefore, this act is necessary to remedy this existing situation and will remedy same, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, safety and welfare shall take effect upon its passage and approval.”

Acts 1983, No. 677, § 10: Mar. 22, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that various provisions of the Public Employees Retirement System law need further clarification in order for their meaning to be comprehensible to members of the system and administrators. Therefore, an emergency is declared to exist, and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 861, § 8: Apr. 4, 1985. Emergency clause provided: “It is hereby found and determined by the Seventy-Fifth General Assembly, meeting in Regular Session, that the persons and payees listed in this Act may be entitled to the sums appropriated and transferred to herein, and that they have been deprived of the use of these funds for a long period of time, and that further delay in paying these just debts of the State would do harm to the reputation of the State of Arkansas. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1997, No. 850, § 39: Mar. 27, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly, that payees listed in this Act may be entitled to the sums appropriated and transferred to herein, and that they have been deprived of the use of these funds for a long period of time, and that further delay in paying these just debts of the State would do harm to the reputation of the State of Arkansas. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 1298, § 5: Apr. 10, 1997. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there is an urgent need to clarify the jurisdiction of the Arkansas Claims Commission and that the amendment of § 19-10-204(b) will serve to further and accomplish this purpose. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1999, No. 1141, § 11: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1999 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1999 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1999.”

Acts 2003, No. 926, § 8: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2003 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2003 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2003.”

Acts 2009, No. 437, § 7: July 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2009 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2009 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2009.”

Acts 2011, No. 320, § 25: Mar. 17, 2011. Emergency clause provided: “It is found and determined by the General Assembly, that payees listed in this Act may be entitled to the sums appropriated and transferred to herein, and that they have been deprived of the use of these funds for a long period of time, and that further delay in paying these just debts of the state would do harm to the reputation of the State of Arkansas. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2013, No. 147, § 20: Feb. 26, 2013. Emergency clause provided: “It is found and determined by the General Assembly, that payees listed in this Act may be entitled to the sums appropriated and transferred to herein, and that they have been deprived of the use of these funds for a long period of time, and that further delay in paying these just debts of the state would do harm to the reputation of the State of Arkansas. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2019, No. 746, § 8: July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2019 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2019 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2019”.

Research References

Ark. L. Notes.

Smolla, Politics and Due Process Don't Mix: Should the State Claims Commission Be Abolished?, 1986 Ark. L. Notes 43.

Ark. L. Rev.

State Immunity and the Arkansas Claims Commission, 21 Ark. L. Rev. 180.

Hall v. University of Nevada: Sovereign Immunity and the Transitory Action, 27 Ark. L. Rev. 546.

Case Notes, Bly v. Young, Beaulieu v. Gray, and Carter v. Bush: The Arkansas State Employee Immunity Trilogy, 41 Ark. L. Rev. 893.

U. Ark. Little Rock L.J.

Stafford, Separation of Powers and Arkansas Administrative Agencies: Distinguishing Judicial Power and Legislative Power, 7 U. Ark. Little Rock L.J. 279.

Case Notes

Administrative Review.

The Arkansas Administrative Procedure Act, providing for a review from actions of state commissions and agencies, has no application to the State Claims Commission. Fireman's Ins. Co. v. Ark. State Claims Comm'n, 301 Ark. 451, 784 S.W.2d 771, cert. denied, 498 U.S. 824, 111 S. Ct. 76, 112 L. Ed. 2d 50 (1990) (decision based in part on Acts 1949, No. 462, § 6 without regard to amendment by Acts 1983, No. 470, § 6).

19-10-201. Creation of commission — Members — Salary and expense reimbursement.

1. 1. There is created a commission to be known as the “Arkansas State Claims Commission”.
  2. The commission shall consist of five (5) members to be known as “commissioners”.
  3. All commissioners shall be public-spirited persons of recognized standing, and at least two (2) commissioners shall be attorneys licensed to practice law in the State of Arkansas.
2. 1. 1. The commissioners shall be appointed by the Governor and confirmed by the Senate.
    2. The commissioners shall serve for terms of five (5) years and thereafter until a successor has been appointed and qualified.
    3. A vacancy in the office of commissioner shall be filled by the Governor, and that appointee shall hold office during the unexpired portion of the term in which the vacancy occurred.
  2. Commissioners may be appointed to and may serve successive terms.
Before entering upon the duties of his or her office, each commissioner shall take the constitutional oath of office.
1. A commissioner shall not hear or participate in the consideration of a claim in which he or she is interested personally, either directly or indirectly.
2. If for reason of conflict of interest a commissioner disqualifies himself or herself or is absent for any reason from hearing a particular claim and if there are no other commissioners available to hear the claim or action, the interested parties may request that a special commissioner be appointed by the Governor to hear the specific claim or action.
The commission shall elect from its membership a chair or two (2) cochairs.
1. 1. Each commissioner shall receive a salary as may be prescribed by law and appropriated by the General Assembly.
  2. The salary shall be paid in the manner as are salaries of other state officials and employees.
2. In addition to salary, each commissioner may receive expense reimbursement in accordance with § 25-16-901 et seq.
The commission is considered an adjudicatory body when the commission applies or interprets:
1. A substantive procedural rule; or
2. Case law from an appellate court with jurisdiction to a pending claim or action.

History. Acts 1955, No. 276, § 2; 1983, No. 470, § 1; 1985, No. 861, § 7; A.S.A. 1947, § 13-1401, 13-1401.2; Acts 1997, No. 250, § 175; 2019, No. 785, § 2.

A.C.R.C. Notes. Acts 1985, No. 861, § 7, provided that the terms of office of the members of the Arkansas State Claims Commission serving on March 1, 1985, shall expire on July 1, 1985. As of July 1, 1985, the Arkansas State Claims Commission created by this section shall be composed of five persons. The five persons appointed by the Governor under this section shall be appointed for the following terms: Two shall serve until January 15, 1989, two shall serve until January 15, 1991, and the other shall serve until January 15, 1992, and they shall serve until their successors are appointed and qualified. Subsequent appointees shall serve five-year terms. Acts 1985, No. 861, § 7, does not abolish the Arkansas State Claims Commission created by this section except the provisions establishing the number of commissioners and their terms of office.

Acts 1955, No. 276, § 3, provided that the Arkansas State Claims Commission should have all the powers, etc., of the commission that it replaced and that all claims, etc., and records, etc., pending or belonging to the former commission were to be transferred to the new commission.

Amendments. The 2019 amendment rewrote (a) and (c); added “or two (2) cochairs” to (d); redesignated (e)(1) as (e)(1)(A) and (e)(1)(B); substituted “a salary” for “such salary” in (e)(1)(A); substituted “commissioner” for “member” in (e)(2); and added (f).

Case Notes

Jurisdiction.

Landowners who brought action against Arkansas Highway Commission and the director of the Department of Transportation to recover for inverse condemnation and to obtain an injunction, and alleged that they had been deprived of due process because of the unlawful taking of their property, did not need to resort to federal court when the remedies of the county chancery court and the State Claims Commission were available to them. Mak Co. v. Smith, 763 F. Supp. 1003 (W.D. Ark. 1991).

Presumption of Regularity.

Circuit court properly dismissed a contractor's due process challenge to the method by which breach of contract claims against the State are resolved because the Arkansas Constitution makes clear that it is the duty of the General Assembly and its review subcommittees (which decide appeals from the Arkansas State Claims Commission) to make the very determinations challenged by the contractor and the contractor failed to establish a conflict of interest sufficient to overcome the presumption of impartiality to which the State Claims Commission and the General Assembly are clearly entitled. Thus, the contractor did not demonstrate an unconstitutional act that excepted its due-process claim from the State's sovereign immunity. Duit Constr. Co. v. Ark. State Claims Comm'n, 2015 Ark. 462, 476 S.W.3d 791 (2015), cert. denied, 137 S. Ct. 42, 196 L. Ed. 2d 28 (2016).

Cited: Parish v. Pitts, 244 Ark. 1239, 429 S.W.2d 45 (1968); Boshears v. Ark. Racing Comm'n, 258 Ark. 741, 528 S.W.2d 646 (1975); Fireman's Ins. Co. v. Ark. State Claims Comm'n, 301 Ark. 451, 784 S.W.2d 771; Office of Child Support Enforcement v. Mitchell, 330 Ark. 338, 954 S.W.2d 907 (1997).

19-10-202. Director — Personnel.

The Director of the Arkansas State Claims Commission shall be designated by the Arkansas State Claims Commission and shall serve as both the Executive Secretary for the Arkansas State Claims Commission and the Clerk of the Arkansas State Claims Commission.
The commission may appoint other personnel as may be necessary to effectuate the operations of the commission and as may be authorized by biennial appropriation of the General Assembly.

History. Acts 1949, No. 462, § 5; 1983, No. 470, § 5; A.S.A. 1947, § 13-1405; Acts 2019, No. 785, § 2.

Amendments. The 2019 amendment rewrote (a); and deleted “such” following “appoint” in (b).

19-10-203. Duties of director.

1. The duties of the Director of the Arkansas State Claims Commission shall include maintaining a system of filing and adjudicating of claims or actions against the state.
2. The director shall keep a docket of all claims or actions filed and shall present them to the Arkansas State Claims Commission in the chronological order of filing.
3. The director is responsible for maintenance and custody of the docket, files, and records of the commission, including the transcripts of testimony and exhibits, with all papers and requests filed in proceedings, the minutes of all actions taken, and all of the commission's findings, determinations, opinions, reports, orders, and rules.
4. The director shall prepare the docket of claims or actions to be considered by the commission and shall notify all parties of record of the time, date, and place of hearing in advance when a claim or action will be docketed for hearing before the commission.
5. The director shall be responsible for hiring personnel in the administration of the commission.
The commission shall authorize the director to sign or authenticate all orders and other actions of the commission.

History. Acts 1949, No. 462, § 5; 1983, No. 470, § 5; A.S.A. 1947, § 13-1405; Acts 2019, No. 315, § 1748; 2019, No. 785, § 2.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (a)(3).

The 2019 amendment by No. 785 rewrote the section.

19-10-204. Jurisdiction.

The Arkansas State Claims Commission has jurisdiction over:
1. A claim or action that is barred by the doctrine of sovereign immunity under Arkansas Constitution, Article 5, § 20, from being litigated in a court of general jurisdiction, except as otherwise provided by law;
2. A claim or action that solely addresses the receipting, processing, and reissuance of child support payments through the Arkansas Child Support Clearinghouse;
3. A claim or action to contest eligibility, qualification, or election to serve as a member of the House of Representatives for the purpose of making a nonbinding recommendation on the claim or action to that chamber of the General Assembly; and
4. A claim or action to recover reasonable attorney's fees and other litigation expenses reasonably incurred by a plaintiff who substantially prevails in an action under § 25-19-107 against the State of Arkansas or a state agency under the standard described in § 25-19-107(d)(1).
The commission has no jurisdiction over a claim or action:
1. Against a municipality, county, school district, or any other political subdivision of the state;
2. Arising under:
  1. The Workers' Compensation Law, § 11-9-101 et seq.;
  2. The Division of Workforce Services Law, § 11-10-101 et seq.;
  3. The Arkansas Teacher Retirement System Act, Acts 1973, No. 427;
  4. The Arkansas Public Employees' Retirement System Act, Acts 1957, No. 177;
  5. The State Police Retirement System Act, § 24-6-201 et seq.; or
  6. Laws providing for old age assistance grants, child welfare grants, blind pensions, or any laws of a similar nature;
3. Against the state for repayment of child support, except in cases in which the underlying support order is set aside as void ab initio by the court and the child support paid was retained by the state as reimbursement for public assistance paid on behalf of a child;
4. Brought by a member of the uniformed armed services against the Department of the Military, the State Militia, or any subdivision of the State Militia, if the claim or action arises out of the performance of the claimant's military duty;
5. Brought against the Division of Community Correction for acts committed by a person while that person is subject to conditions of parole or probation under Arkansas law;
6. Brought against the Division of Correction for acts committed by inmates while on authorized release from the Division of Correction;
7. Brought against the Division of Youth Services for acts committed by juveniles released by the Division of Youth Services, whether or not the juvenile is subject to conditions of aftercare or probation; or
8. For state tax refunds under § 26-18-507, a claim or action challenging tax assessments under § 26-18-406, or a claim or action challenging tax laws under Arkansas Constitution, Article 16, § 13.
The commission shall not make an award for a claim or action that, as a matter of law, would be dismissed from a court of law for reasons other than sovereign immunity.

History. Acts 1949, No. 462, § 2; 1983, No. 470, § 2; 1983, No. 677, § 7; A.S.A. 1947, § 13-1402; Acts 1991, No. 1014, § 2; 1997, No. 1298, § 1; 2001, No. 1625, § 1; 2003, No. 1282, § 1; 2003, No. 1468, § 1; 2009, No. 440, § 1; 2013, No. 1478, § 1; 2019, No. 785, § 2; 2019, No. 910, §§ 494-496.

Amendments. The 2019 amendment by No. 785 rewrote the section.

The 2019 amendment by No. 910 substituted “Division of Workforce Services Law” for “Department of Workforce Services Law” in (b)(1)(A)(i) (b) [now (b)(2)(B)]; substituted “Department of the Military” for “State Military Department” in (b)(1)(A)(iii) (a) [now (b)(4)]; substituted “Division of Community Correction” for “Department of Community Correction” in (b)(1)(A)(iii) (b) [now (b)(5)]; and substituted “Division of Correction” for “Department of Correction” twice in (b)(1)(A)(iii) (c) [now (b)(6)].

Meaning of “this act”. Acts 1973, No. 427, codified as §§ 24-7-201 — 24-7-205, 24-7-301 — 24-7-305, 24-7-401 — 24-7-411, 24-7-501, 24-7-502, 24-7-601 — 24-7-604, 24-7-701, 24-7-702, 24-7-704 — 24-7-713, 24-7-715, 24-7-716.

Acts 1957, No. 177, codified as §§ 24-4-101 — 24-4-105, 24-4-201, 24-4-202, 24-4-205, 24-4-207 — 24-4-209, 24-4-301 — 24-4-304, 24-4-401, 24-4-402, 24-4-507, 24-4-508, 24-4-510 — 24-4-513, 24-4-601 — 24-4-603, 24-4-605, 24-4-606.

Amendments. The 2009 amendment added (d).

The 2013 amendment added (b)(1)(A)(iii) (d)

Research References

ALR.

Construction and Application of Parratt-Hudson Doctrine, Providing That Where Deprivation of Property Interest Is Occasioned by Random and Unauthorized Conduct of State Officials, Procedural Due Process Inquiry Is Limited to Issue of Adequacy of Postdeprivation Remedies Provided by State. 89 A.L.R.6th 1.

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2003 Arkansas General Assembly, Public Finance, Claims Commission, 26 U. Ark. Little Rock L. Rev. 461.

Case Notes

Actions Against Agents.

Where an outdoor advertising sign was removed without compensation by an agent contractor of the State Highway Commission, the owner of the sign was limited to a remedy in state claims against the commission. However, he could pursue an action for commission of intentional tort on the part of the contractor. Tri-B Adv., Inc. v. Ark. State Hwy. Comm'n, 260 Ark. 227, 539 S.W.2d 430 (1976).

Constitutional Claims.

Because the doctrine of sovereign immunity does not bar plaintiff from litigating his 42 U.S.C. § 1983 claim against defendant individually in state or federal courts of general jurisdiction, the Arkansas Claims Commission has no jurisdiction over the constitutional claim; the doctrine of claim preclusion did not bar the inmate's § 1983 action against a correctional officer because the inmate's claim against the officer in his individual capacity could not have been brought in the first action before the Commission because the Commission had no jurisdiction over that constitutional claim. Smith v. Johnson, 779 F.3d 867 (8th Cir. 2015).

Return of Property.

In a civil rights action, the plaintiff, who claimed that his house had been searched pursuant to warrant and that the officers had seized several personal items not covered by the warrant that were of sentimental value, was deprived of his property without due process for he could not be granted adequate relief under this section, since only the claim against one of the officers was subject to the jurisdiction of the State Claims Commission and even a judgment in plaintiff's favor against such an officer would not give the plaintiff the remedy he sought, the return of specific property. Bumgarner v. Bloodworth, 738 F.2d 966 (8th Cir. 1984).

Takings.

A landowner's due process and equal protection claims are satisfied under Arkansas law since the landowner, claiming a taking of property, may either seek prospective injunctive relief in chancery court or damages from the State Claims Commission. Austin v. Ark. State Hwy. Comm'n, 320 Ark. 292, 895 S.W.2d 941 (1995).

Tort Claims.

Arkansas Const., Art. 2, §§ 7 and 13 prevent the General Assembly from giving the State Claims Commission exclusive jurisdiction of tort claims against state employees or officers for their unlawful acts. Grimmett v. Digby, 267 Ark. 192, 589 S.W.2d 579 (1979).

Workers' Compensation Awards.

Where the State Claims Commission awarded payment to debtor as a result of her husband, a state employee, being killed in the line of duty within the scope of his employment, but did not, under this section, have jurisdiction to make such an award, the award was in the nature of an award under the Workers' Compensation Act and thus was not for the benefit of creditors in bankruptcy proceeding and under § 11-9-110 not subject to legal process. Dinning v. Wills, 4 B.R. 475 (Bankr. E.D. Ark. 1980).

Cited: Hanley v. Arkansas State Claims Comm'n, 333 Ark. 159, 970 S.W.2d 198 (1998).

19-10-205. Rulemaking authority.

The Arkansas State Claims Commission may make and alter or amend all rules governing the procedure before the commission that may be necessary and expedient for the orderly discharge of the commission's duties and that are not inconsistent with this subchapter or other laws.

History. Acts 1949, No. 462, § 2; 1983, No. 470, § 2; 1983, No. 677, § 7; A.S.A. 1947, § 13-1402; Acts 2019, No. 315, § 1749; 2019, No. 785, § 2.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “Rules” in the section heading; and deleted “and regulations” following “rules”.

The 2019 amendment by No. 785 substituted “Rulemaking authority” for “Rules and regulations” in the section heading; and rewrote the section.

19-10-206. Meetings.

1. The Arkansas State Claims Commission shall meet at the time and place designated by the Chair of the Arkansas State Claims Commission, the cochairs of the Arkansas State Claims Commission, or the Director of the Arkansas State Claims Commission.
2. General meetings of the commission for the purpose of hearing testimony and taking evidence shall be held each month unless scheduled differently by the chair, the cochairs, or the director.
The commission may hold a special meeting of the commission upon request by the interested parties.
The commission shall meet in Little Rock but may conduct hearings elsewhere in the state if the commission determines that a hearing is relevant to business before the commission.
1. A majority of the commissioners shall constitute a quorum, and the concurrence of two (2) members of the commission shall be necessary for the allowance or disallowance of any claims.
2. A vacancy does not impair the right of the remaining two (2) commissioners assigned to a particular hearing to exercise all powers of the full commission.

History. Acts 1949, No. 462, § 2; 1983, No. 470, § 2; 1983, No. 677, § 7; A.S.A. 1947, § 13-1402; Acts 1987, No. 249, § 1; 2019, No. 785, § 2.

Amendments. The 2019 amendment, in (a)(1), substituted “the time and place” for “such time and place as may be” and inserted “the cochairs of the Arkansas State Claims Commission”; in (a)(2), substituted “shall” for “will” and substituted “chair, the cochairs, or the director” for “chair or director”; substituted “may hold a special meeting” for “may, at its discretion, hold special meetings” in (b); in (c), deleted “traditionally” following “shall”, deleted “at the State Capitol” following “Little Rock”, and substituted “determines that a hearing is relevant” for “deems a hearing is relative”; and, in (d)(2), substituted “does” for “shall” and “commissioners assigned to a particular hearing” for “members”.

19-10-207. Power to examine.

The Director of the Arkansas State Claims Commission or a commissioner of the Arkansas State Claims Commission has the authority to administer oaths, to subpoena witnesses, to examine any books, documents, or records that may be relevant to any proceeding before the commission, and to require the production of any such materials.
In an action to contest the election of a member of the House of Representatives, the commission's general authority to subpoena witnesses and documents shall specifically include the authority to subpoena election officers and to subpoena any ballots cast or other election records in the election at issue.
If a claimant or witness to whom an oath has been administered as provided under this section swears falsely to a fact material to the investigation of a claim, the false swearing shall constitute perjury, and the person swearing falsely shall be subject to prosecution.
1. 1. If a person or entity fails or refuses to obey a commission subpoena or order or refuses to testify or produce any books, papers, or other documents, the commission may present its petition setting forth the facts to any court of record.
  2. After being presented with a petition under this subsection, the court of record shall issue its subpoena to the person or entity, requiring his or her or its attendance before the court of record to testify or produce the books, papers, or documents as may be deemed necessary and pertinent.
  3. A person or entity failing or refusing to obey the subpoena or order of the court of record may be proceeded against in the same manner as for refusal to obey any other subpoena, as provided by the Arkansas Rules of Civil Procedure.
2. The commission may use the Attorney General and the services of the prosecuting attorneys for the county and district in which the enforcement of a subpoena under this subsection is required.

History. Acts 1949, No. 462, § 5; 1983, No. 470, § 5; A.S.A. 1947, § 13-1405; Acts 1991, No. 1014, § 3; 1999, No. 686, § 1; 2019, No. 785, § 2.

Amendments. The 2019 amendment, in (a), substituted “a commissioner” for “any member” and “has” for “shall have”; in (b), substituted “an action” for “actions”, and deleted “and all” preceding “ballots”; and rewrote (c) and (d).

19-10-208. Complaints.

1. A proceeding under this subchapter shall be commenced by a verified complaint, of which the original and three (3) copies shall be filed with the Director of the Arkansas State Claims Commission.
2. The party filing the claim or action shall be designated as the claimant, and the State of Arkansas, state agency, or applicable agent of the state shall be designated as the respondent.
Unless otherwise provided for under this section, the complaint shall state concisely the facts upon which the claim or action is based and shall set forth:
1. The address of the claimant and the claimant's attorney, if any;
2. The time and place of the circumstances giving rise to the claim or action;
3. The state agency whose action or inaction led to the origination of the claim or action;
4. The amount claimed or relief sought; and
5. All averments of fact necessary to state a cause of action against the state under this subchapter.
If the claim or action is based upon a contract or other instrument in writing, a copy of the contract or instrument in writing shall be attached to the complaint and the copies filed with the director.
1. The claimant shall state in the complaint whether he or she has received any payment on account of the claim or action and, if so, the amount received.
2. 1. The claimant also shall state whether another person or business entity has an absolute or contingent interest in his or her claim or action.
  2. If a person or corporation is interested in the claim, the claimant shall state the name and address of that person or corporation having the interest, the nature of the interest, and how and when it was acquired.
If the claimant is an executor, administrator, guardian, or other representative acting under judicial appointment, a duly certified copy of the record of appointment shall be filed with the complaint.
1. A claimant who is an inmate in the Division of Correction or the Division of Community Correction at the time the claim or action is filed is limited to no more than:
  1. Five (5) pages of written factual allegations and legal argument in his or her complaint; and
  2. Five (5) additional pages of exhibits to accompany his or her complaint.
2. 1. An inmate filing a claim or action may file a motion to allow him or her to file additional pages of factual allegations, argument, or exhibits in excess of the limitations under subdivision (f)(1) of this section.
  2. A motion filed under this subdivision (f)(2) may be granted only if the commissioners of the Arkansas State Claims Commission find that the inmate needs the additional pages to fully explain his or her claim or action or if the claim or action is sufficiently complex to warrant additional pages.
3. 1. If an inmate files a claim or action that exceeds the page limitations under this subsection, the commission shall:
    1. Assign the inmate's claim a docket number; and
    2. Consider the inmate's claim filed, but mail the inmate's complaint and any attached exhibits back to him or her and give the inmate forty-five (45) days to:
      1. Resubmit his or her complaint and any attached exhibits in compliance with this subsection; or
      2. File a motion requesting permission to file a complaint and accompanying exhibits that exceed the page limitations under this subsection.
  2. The forty-five-day time period under this subsection is excludable time in calculating the statute of limitations for the inmate's claim or action.
  3. The commission may dismiss an inmate's complaint without prejudice if the inmate fails to:
    1. Resubmit a complaint and attached exhibits that meet the page limitation requirements of this subsection; or
    2. File a motion requesting permission to file a complaint and attached exhibits that exceed the page limitation requirements of this subsection.
  4. 1. If the commission grants a motion for a complaint and accompanying exhibits that exceed the page limitation requirements of this subsection, the commission shall set out in the order granting the motion the revised timeline for the inmate to file his or her complaint and accompanying exhibits.
    2. The commission may set a revised limit on the number of pages an inmate's complaint and accompanying exhibits may be.

History. Acts 1949, No. 462, § 3; 1983, No. 470, § 3; A.S.A. 1947, § 13-1403; Acts 2019, No. 785, § 2.

Amendments. The 2019 amendment rewrote (a) through (d); and added (f).

19-10-209. Time for filing.

The Arkansas State Claims Commission shall not consider or allow a claim or action unless the claim or action has been filed with the Director of the Arkansas State Claims Commission as provided by this subchapter within the period allowed by law for the commencement of an action for the enforcement of the same type of claim or action.

History. Acts 1949, No. 462, § 6; 1983, No. 470, § 6; A.S.A. 1947, § 13-1406; Acts 2019, No. 785, § 2.

A.C.R.C. Notes. The decision of the Supreme Court of Arkansas in Fireman's Ins. Co. v. Arkansas State Claims Comm'n, 301 Ark. 451, 784 S.W.2d 771 (1990), which held that the Arkansas Administrative Procedure Act has no application to the State Claims Commission, was based upon provisions deleted from Acts 1949, No. 462, § 6 by Acts 1983, No. 470, § 6.

Amendments. The 2019 amendment substituted “The Arkansas State Claims Commission shall not consider or allow a claim or action unless the claim or action” for “No claim may be considered and allowed by the Arkansas State Claims Commission unless it”; and substituted “claim or action” for “claim against a private person”.

Case Notes

Cited: Hardin v. City of DeValls Bluff, 256 Ark. 480, 508 S.W.2d 559 (1974).

19-10-210. Notice and hearings.

1. The Director of the Arkansas State Claims Commission shall notify each claimant and also the head of each state agency against which a claim or action is filed of the time and place set for a hearing on the claim or action, if a hearing on the matter is set by the Arkansas State Claims Commission.
2. A party to a claim or action is not entitled to a hearing as a matter of law but may request a hearing before the commission.
1. The commission is not bound by the formal rules of evidence and shall conduct all hearings publicly and in a fair and impartial manner, giving the parties full opportunity for presentation of evidence, cross-examination of witnesses, and argument.
2. To the extent practicable, the commission shall adopt the procedure used by the circuit courts, and a hearing before the commission shall be conducted in a judicial manner.
Hearings on a motion filed by a party shall be set:
1. Upon request of one (1) of the parties; and
2. If the commission finds that oral argument or witness testimony, or both, will benefit the commission in deciding on the motion.

History. Acts 1949, No. 462, § 4; 1951, No. 373, § 2; 1983, No. 470, § 4; A.S.A. 1947, § 13-1404; Acts 2005, No. 1962, § 88; 2019, No. 785, § 2.

Amendments. The 2005 amendment substituted “circuit” for “Arkansas chancery” in (b)(2).

The 2019 amendment rewrote (a) and (b); and added (c).

Research References

Ark. L. Rev.

Watkins, Open Meetings Under the Arkansas Freedom of Information Act, 38 Ark. L. Rev. 268.

U. Ark. Little Rock L.J.

Arkansas Law Survey, Roberts and Deere, Torts, 8 U. Ark. Little Rock L.J. 207.

19-10-211. Appeals of decisions — Jurisdiction — Time periods to file.

1. Within forty (40) days after the Arkansas State Claims Commission issues a final order on a claim or action before the commission, a party to the claim or action may file with the commission a:
  1. Notice of appeal of the final order to the General Assembly; or
  2. 1. Motion requesting that the commission reconsider its final order.
    2. 1. If a motion for reconsideration is denied, a party may file with the commission a notice of appeal of the claim to the General Assembly within twenty (20) days of entry of the order denying the motion for reconsideration.
      2. Subdivision (a)(1)(B)(ii)(a) of this section applies only if the commission's reconsideration constitutes a final order.
2. The commission shall advise parties of the right of appeal under this section when the commission notifies the parties of the commission's final order.
3. The General Assembly has exclusive jurisdiction to hear appeals under this section.
1. The commission shall timely notify the General Assembly and all parties to the claim or action when a notice of appeal to the General Assembly is filed with the commission.
2. 1. Notice provided to the General Assembly under subdivision (b)(1) of this section terminates the commission's jurisdiction over the claim or action.
  2. Unless ordered to do so by the General Assembly, the commission is prohibited from doing anything further on the claim or action aside from ordinary ministerial duties.
3. The commission shall regain jurisdiction over the claim or action if, in consideration of an appeal of a final order, the General Assembly sends the claim or action back to the commission:
  1. For further proceedings consistent with any order of the General Assembly; or
  2. To notify the claimant that the award has been upheld, reversed, or amended.

History. Acts 1997, No. 33, § 1; 2019, No. 785, § 2.

Amendments. The 2019 amendment added “Jurisdiction — Time periods to file” in the section heading; and rewrote the section.

Case Notes

Presumption of Regularity.

19-10-212. Reports of state agency liability.

When a state agency admits liability to a claim filed with the Arkansas State Claims Commission, the state agency shall file a written report of the claim with the Litigation Reports Oversight Subcommittee of the Legislative Council if the claim:
1. Involves a contract with the state agency; or
2. Exceeds fifteen thousand dollars ($15,000).
The state agency shall include in its report a concise statement of facts with an explanation of the state agency's liability.
The state agency shall file its report within thirty (30) days after the claim or action has been adjudicated and a final order has been issued by the commission.

History. Acts 1997, No. 850, § 30; 2005, No. 1962, § 89; 2013, No. 147, § 17; 2013, No. 1131, § 2; 2015, No. 218, § 20; 2015, No. 1258, § 17; 2019, No. 785, § 2.

A.C.R.C. Notes. Acts 2012, No. 259, § 14, provided: “CLAIMS AWARD REPORTING. It is the intent of the General Assembly that when any state agency, board, commission or institution of higher education admits liability to a claim filed with the State Claims Commission and the claim involves a contract with a state agency, board, commission or institution of higher education or the claim exceeds twelve thousand five hundred dollars ($12,500) that such agency, board, commission or institution of higher education file a written report thereof to the Litigation Subcommittee of the Arkansas Legislative Council. Such report shall include a concise statement of facts with an explanation of the agency's liability. Provided further, such report shall be filed with the Litigation Subcommittee within thirty (30) days after the claim has been adjudicated by the State Claims Commission.”

Acts 2015, No. 1258, § 1, provided: “LEGISLATIVE FINDINGS.

The General Assembly finds:

“(2) As Amendment 92 does not define the term ‘state agency’, the General Assembly may establish a definition by law as part of its implementation of Amendment 92;

Publisher's Notes. Acts 2015, No. 1258, § 17 specifically amended this section as amended by Acts 2015, No. 218, § 20.

Amendments. The 2005 amendment, in (a), inserted “Arkansas,” substituted “ten thousand dollars ($10,000)” for “seven thousand five hundred dollars ($7,500),” inserted “Reports Oversight” and deleted “Arkansas” preceding “Legislative Council”; in (b)(2), substituted “subcommittee” for “Litigation Subcommittee” and inserted “Arkansas”; and made minor stylistic changes throughout.

The 2013 amendment by No. 147 substituted “fifteen thousand dollars ($15,000)” for “ten thousand dollars ($10,000)” in (a).

The 2013 amendment by No. 1131 rewrote the section.

The 2015 amendment by No. 218, in (b), inserted “Office of the” and deleted “Commission” following “Lottery” twice.

The 2015 amendment by No. 1258, substituted “Legislative Council” for “Arkansas Lottery Legislative Oversight Committee” in (b).

The 2019 amendment deleted “Definition” in the section heading; deleted former (a)(1) and (b), and redesignated former (a)(2)-(4) as (a)-(c); and, in (c), inserted “or action”, inserted “and a final order has been issued”, and substituted “commission” for “Arkansas State Claims Commission”.

19-10-213. State agency to pay claim — Employment compensation claims — Director disbursing officer.

1. When a claim or action is determined to be a valid claim or action against the state under this chapter and the claim or action is to be paid from funds not in the State Treasury, the Director of the Arkansas State Claims Commission shall notify the state agency against which the claim or action is to be charged of the amount of the claim or action.
2. Upon receipt of the notification under subdivision (a)(1) of this section, the state agency shall deliver a check to the director who shall deposit the funds as a nonrevenue receipt into the Miscellaneous Revolving Fund from which the director shall disburse the amount of the claim or action to the claimant.
1. The director shall distribute a warrant for the payment of a valid claim against the state for employment compensation claims in the manner provided by this subsection.
2. If an employment compensation claim is determined to be a valid claim against the state, the director shall notify the state agency against which the claim is to be charged and the Office of Personnel Management of the amount of the claim.
3. Upon receipt of the notification under this subsection, the state agency against which the claim is charged shall process the award through the state mechanized payroll system.
1. The director shall be the disbursing officer for the funds appropriated for expense reimbursements for the Firefighter Benefit Review Panel.
2. Expense reimbursements under this subsection shall be paid to the panel as certified in writing to the Arkansas State Claims Commission by the Chair of the Firefighter Benefit Review Panel.
3. The commission may pay expense reimbursements for all unpaid meetings in prior state fiscal years.

History. Acts 1997, No. 850, § 33; 2019, No. 746, § 5; 2019, No. 785, § 2.

A.C.R.C. Notes. References to “this subchapter” in §§ 19-10-201 to 19-10-210 may not apply to this section which was enacted subsequently.

References to “this chapter” in §§ 19-10-101 to 19-10-210 and Subchapters 3 and 4 may not apply to this section which was enacted subsequently.

Act 2016, No. 158, § 4, provided: “EMPLOYMENT COMPENSATION CLAIMS. The Clerk of the State Claims Commission shall not distribute any warrants prepared under the provisions of this Act for awards made by the Arkansas State Claims Commission for employment compensation claims. Upon the award by the State Claims Commission of an employment compensation claim, the Clerk of the State Claims Commission shall notify the affected state agency and the Department of Finance and Administration — Office of Personnel Management of such amounts that are due and payable. The affected state agency shall then process the award through the State Mechanized Payroll System.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 241, § 17, provided: “DISBURSING OFFICER. The Clerk of the State Claims Commission is hereby made the disbursing officer for the purpose of paying the claims appropriated by this Act. The Clerk of the State Claims Commission is hereby authorized to receive all warrants prepared under the provisions of this Act from the Auditor of State and to distribute same to the claimants.”

Acts 2016, No. 241, § 18, provided: “ARKANSAS DEPARTMENT OF HUMAN SERVICES CLAIMS. For any claims in this Act appropriated to the Department of Human Services, the Clerk of the State Claims Commission shall consult with the Department of Human Services and the Chief Fiscal Officer of the State to determine the division and funds to which liability should be assigned and from which the warrants shall be drawn. The Clerk of the State Claims Commission shall initiate the appropriate transfers as may be required and as approved by the Chief Fiscal Officer of the State.”

Acts 2016, No. 241, § 19, provided: “ARKANSAS DEPARTMENT OF HEALTH CLAIMS. For any claims in this Act appropriated to the Department of Health, the Clerk of the State Claims Commission shall consult with the Department of Health and the Chief Fiscal Officer of the State to determine the division and funds to which liability should be assigned and from which the warrants shall be drawn. The Clerk of the State Claims Commission shall initiate the appropriate transfers as may be required and as approved by the Chief Fiscal Officer of the State.”

Acts 2016, No. 241, § 20, provided: “CLAIMS FROM CASH FUNDS. In the event that any claim authorized herein is determined to be a valid claim against the State and the claim is to be paid from funds not in the State Treasury, the Clerk of the State Claims Commission shall notify the agency against which the claim is to be charged of the amount of such claims. Upon receipt of such notification, the state agency shall forth-with deliver a check to the Clerk of the State Claims Commission who shall deposit the same as a nonrevenue receipt into the Miscellaneous Revolving Fund from which he shall disburse the amount of the claim to the claimant.”

Acts 2016, No. 241, § 21, provided: “EMPLOYMENT COMPENSATION CLAIMS. The Clerk of the State Claims Commission shall not distribute any warrants prepared under the provisions of this Act for awards made by the Arkansas State Claims Commission for employment compensation claims. Upon the award by the State Claims Commission of an employment compensation claim, the Clerk of the State Claims Commission shall notify the affected state agency and the Department of Finance and Administration — Office of Personnel Management of such amounts that are due and payable. The affected state agency shall then process the award through the State Mechanized Payroll System.”

Amendments. The 2019 amendment by No. 746 added “Employment compensation claims – Director disbursing officer” to the section heading; redesignated the former provisions as (a)(1) and (a)(2); substituted “Director” for “Clerk” in (a)(1) and “director” for “clerk” in (a)(2); and added (b) and (c).

The 2019 amendment by No. 785 substituted “State agency” for “Agency” in the section heading; redesignated the former provisions as (a) and (b); in (a) [now (a)(1)], substituted “claim or action” for “claim” throughout, inserted “under this chapter”, and substituted “Director” for “Clerk”; in (b) [now (a)(2)], substituted “director” for “clerk” and “claim or action” for “claim”; and made stylistic changes.

19-10-214. Effect on liens.

Arkansas State Claims Commission awards are state property and therefore:
1. Liens do not attach to commission awards; and
2. A commission award is not assignable.
1. If the commission and the General Assembly approve appeals or claims or actions above fifteen thousand dollars ($15,000) and name as payees, in addition to the claimant, other individuals or entities who would normally have liens in a court of law, other than insurance company subrogation claims, then the commission may deposit the amount approved into the registry of the Pulaski County Circuit Court.
2. After reasonable notice to the claimant and any named payees, the court shall establish the validity and priority to the moneys upon petition of the claimant or any named payee.

History. Acts 1999, No. 685, § 1; 2019, No. 785, § 2.

Amendments. The 2019 amendment rewrote (a); redesignated (b) as (b)(1) and (b)(2); in (b)(1), inserted “or actions” and substituted “fifteen thousand dollars ($15,000)” for “seven thousand five hundred dollars ($7,500)”; and made stylistic changes.

19-10-215. Restrictions on awards.

With the exception of death and disability benefit claims paid under § 21-5-701 et seq., the Arkansas State Claims Commission shall not pay an award in excess of fifteen thousand dollars ($15,000).
If an award is greater than fifteen thousand dollars ($15,000), the commission shall refer the claim or action to the General Assembly for approval and, if approved, an appropriation.

History. Acts 1999, No. 1141, § 4; 2003, No. 926, § 4; 2011, No. 320, § 16; 2013, No. 147, § 11; 2019, No. 785, § 2.

Amendments. The 2003 amendment added the subsection designations; and substituted “ten thousand dollars ($10,000)” for “seven thousand five hundred dollars ($7,500)” in (a) and (b).

The 2011 amendment substituted “twelve thousand five hundred dollars ($12,500)” for “ten thousand dollars ($10,000)” in (a) and (b).

The 2013 amendment substituted “fifteen thousand dollars ($15,000)” for “twelve thousand five hundred dollars ($12,500)” in (a) and (b).

The 2019 amendment substituted “the Arkansas State Claims Commission shall not pay an award” for “no award may be paid” in (a); and, in (b), substituted “an award” for “the award” and “the commission shall refer the claim or action” for “the claim shall be referred”, and inserted “approval and, if approved”.

19-10-216. Final orders — Findings of fact and conclusions of law required.

1. When the Arkansas State Claims Commission dismisses a claim or action with a final order or issues a final order of a claim or action on the merits, the commission shall set forth specific findings of fact and conclusions of law to support its decision.
2. Citations to a party's motion or argument do not fulfill the requirements of this subsection unless otherwise supported by an explanation, with particularity, as to why the party's motion or argument is determinative to the outcome of the claim or action.
3. When the commission bases its decision on a specific rule of civil procedure, rule of evidence, statute, or controlling appellate court decision, the commission shall cite the rule, statute, or appellate court decision.
4. The General Assembly shall not accept a claim or action on appeal when the claim or action has as its final adjudication findings of fact and conclusions of law that do not comply with this section.
Failure to comply with this section shall result in the General Assembly's sending the claim or action back to the commission for further action until the requirements of subsection (a) of this section are met.
A claim or action filed by a person who at the time of filing is an inmate of the Division of Correction is exempted from the requirements of this section.
The findings of fact and conclusions of law contained in a final order under this section are presumed to be correct for the purposes of review by or appeal to the General Assembly.

History. Acts 2015, No. 220, § 1; 2019, No. 785, § 2; 2019, No. 910, § 994.

Amendments. The 2019 amendment by No. 785 substituted “Final orders” for “Commission decisions” in the section heading; rewrote (a); in (b), inserted “or action”, and substituted “further action” for “reconsideration”; inserted “or action” in (c); and added (d).

The 2019 amendment by No. 910 substituted “Division of Correction” for “Department of Correction” in (c).

19-10-217. Motions — Grounds required to preserve for appeal.

If the Arkansas State Claims Commission denies a motion, the party whose interests were adversely affected by the commission's denial may appeal the denial under § 19-10-211 so long as the legal issue or factual issue in dispute was preserved for appeal with a specific ruling, in writing, by the commission.
1. 1. It is the responsibility of the party whose interests were adversely affected by the commission's ruling on the motion to ask the commission to file a written order denying the motion if the commission had previously denied the motion and has not already filed a written order on the motion before the commission issues its final order.
  2. If a party requests that the commission file a written order denying a motion under this subsection, the commission shall do so before issuing a final order.
2. If the basis of a ground for appeal by a party is that a motion was erroneously granted, a filed written order by the commission is not necessary.

History. Acts 2019, No. 785, § 2.

19-10-218. Interlocutory appeals prohibited.

A party shall not file, and the Arkansas State Claims Commission shall not entertain, an interlocutory appeal of a legal issue.
1. The Director of the Arkansas State Claims Commission shall reject an interlocutory motion.
2. An interlocutory motion shall not be included in the record of the case.
All legal issues or factual issues in dispute that have been raised and addressed by the commission may be included in a party's appeal of the commission's final order.

History. Acts 2019, No. 785, § 2.

19-10-219. Small claims adjudication.

1. The Arkansas State Claims Commission may establish a small claims adjudication process for claims or actions seeking one thousand dollars ($1,000) or less.
2. The small claims adjudication process shall provide that claims or actions be given docket priority, and the use of informal discovery, hearings utilizing teleconferencing or other off-site communications technology, and relaxed procedural rules are encouraged to facilitate efficient and timely resolution.
1. A claim or action seeking one thousand dollars ($1,000) or less may be:
  1. Assigned to be heard by one (1) commissioner of the commission; and
  2. Decided by the commissioner on the basis of the pleadings alone.
2. If a claimant objects to having the claim or action heard as a small claims adjudication under this section, the claimant may request that the claim or action be heard in the usual manner for similar claims or actions.
Before a proposed written final order of a small claims adjudication under this section is considered final for the purposes of award or appeal, the proposed written final order shall be reviewed by a panel consisting of:
1. The commissioner of the commission assigned to the claim or action; and
2. Two (2) other commissioners of the commission.

History. Acts 2019, No. 785, § 2.

19-10-220. Special masters authorized.

The Arkansas State Claims Commission may appoint a special master with specialized knowledge and skill to assist the commission in achieving a more timely resolution of complex litigation arising from a claim or action.
1. All or part of a special master's findings may be included as part of or in addition to a commission's final order.
2. The special master's findings, if disputed by a party, may be raised on appeal.

History. Acts 2019, No. 785, § 2.

19-10-221. Abuse of process by litigants.

An inmate in the Division of Correction or the Division of Community Correction who has filed more than three (3) unsuccessful claims or actions under this subchapter within a period of two (2) years may have his or her subsequent claims or motions dismissed by the Arkansas State Claims Commission upon receipt as abuse of process, for one (1) year from the date of dismissal of the inmate's third unsuccessful claim.

History. Acts 2019, No. 785, § 2.

19-10-222. Corporate or business entity to be represented by attorney.

A corporate or business entity created under the laws of this state or another state shall be represented at all times in a claim or action under this subchapter by an attorney licensed to practice law in this state.

History. Acts 2019, No. 785, § 2.

19-10-223. Failure to exhaust available state or administrative remedy.

The Arkansas State Claims Commission may dismiss a claim or action without prejudice on the commission's own motion if the claimant has failed to submit with the claimant's initial complaint or claim filing documentation that the claimant has exhausted all available state or administrative remedies.

History. Acts 2019, No. 785, § 2.

Subchapter 3 — Effect of Insurance Coverage

Effective Dates. Acts 1981, No. 586, § 8: Mar. 18, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that the State Claims Commission does not now hear claims when the injured party has received partial compensation from an insurer; that such policy is inequitable and that this Act is immediately necessary to provide such equitable treatment. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 542, § 11: Mar. 14, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly that a recent court decision has led to uncertainty in the area of immunity under existing Arkansas Code provisions; that to clarify such provisions will allow those persons to avoid needless legal expenses resulting from the possible misinterpretation of the law. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 292, § 7: Mar. 1, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly that a recent court decision regarding Act 542 of 1991 has led to uncertainty and confusion in the area of immunity of officials and employees of the state and local government of Arkansas; that this act is necessary to clarify the application and immunities of Act 542 of 1991 and to avoid the unintended interpretation of Act 542 as permitting suits directly against the liability insurers for state and local government officials and employees; and that it is necessary to extend its coverage retroactively to the effective date of Act 542 of 1991. Therefore, in order to prevent the misinterpretation of law, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

Ark. L. Rev.

Case Notes, Bly v. Young, Beaulieu v. Gray, and Carter v. Bush: The Arkansas State Employee Immunity Trilogy, 41 Ark. L. Rev. 893.

19-10-301. Definitions.

As used in this subchapter, unless the context otherwise requires:

“Insurer” means every person engaged as indemnitor, surety, or contractor in the business of entering into contracts of insurance; and
“Subrogation claim” means any claim filed with the Arkansas State Claims Commission by an insurer or its insured, or both, to recover money paid or owed by an insurer to any individual under a contract of insurance.

History. Acts 1981, No. 586, § 1; A.S.A. 1947, § 13-1416.

Research References

U. Ark. Little Rock L.J.

Legislative Survey, Civil Procedure, 8 U. Ark. Little Rock L.J. 555.

19-10-302. Exhaustion of remedies against insurer.

The Arkansas State Claims Commission shall not dismiss a claim with prejudice on grounds that the claimant has received or is due benefits under a policy of insurance. However, the commission shall hear no claim until the claimant has exhausted all remedies against insurers, including the claimant's insurer.
Every claim filed with the commission shall be accompanied by a sworn affidavit, on a form to be provided by the commission, signed by the claimant and witnessed by the claimant's insurer and legal counsel, if any, that the claimant has exhausted all remedies against insurers, including the claimant's insurer. The affidavit shall further state the total amount of insurance benefits paid to the claimant.

History. Acts 1981, No. 586, § 2; A.S.A. 1947, § 13-1417.

19-10-303. Reduction of award.

If the Arkansas State Claims Commission awards damages to a claimant who has received benefits under any policy of insurance, the premium of which has not been paid by or on behalf of the claimant, the commission shall reduce its award by the amount of insurance benefits received by the claimant.
The commission shall not reduce awards for damages to a claimant who has received benefits under a policy of insurance, the premium of which has been paid by or on behalf of the claimant.

History. Acts 1981, No. 586, § 3; A.S.A. 1947, § 13-1418.

19-10-304. Subrogation claims not heard.

The Arkansas State Claims Commission shall not hear subrogation claims. This fact shall in no way alter or vary the operation or coverage of §§ 21-9-201 — 21-9-205.

History. Acts 1981, No. 586, § 4; A.S.A. 1947, § 13-1419.

19-10-305. Immunity of state officers and employees — Status as employee.

Officers and employees of the State of Arkansas are immune from liability and from suit, except to the extent that they may be covered by liability insurance, for damages for acts or omissions, other than malicious acts or omissions, occurring within the course and scope of their employment.
For purposes of this chapter, agreements between the State of Arkansas and a state of the United States or the District of Columbia entered into pursuant to the Interlocal Cooperation Act, § 25-20-101 et seq., shall confer status of an employee for purposes of this chapter on persons acting pursuant to such agreement.
For purposes of this chapter, persons acting individually or on behalf of charitable organizations, other than motor carriers as defined by § 23-13-203(a)(13), shall have the status of an employee while transporting persons as a service of the Transitional Employment Assistance Program.
For purposes of this chapter, dental residents and faculty of a pediatric dentistry program in an adjoining state shall have the status of an employee while on duty and performing assigned responsibilities in a pediatric dentistry program located within a hospital dental clinic in this state.

History. Acts 1981, No. 586, § 5; A.S.A. 1947, § 13-1420; Acts 1989, No. 989, § 1; 1991, No. 542, § 6; 1993, No. 292, § 1; 1999, No. 1567, § 23; 2009, No. 284, § 1.

A.C.R.C. Notes. Acts 1993, No. 292, § 3, provided:

“This act shall have a retroactive application to the effective date of Act 542 of 1991 to avoid the misinterpretation of the intent of Act 542 as permitting suits directly against liability insurers of state and local government officials and employees. This act is intended to have retroactive effect so as to apply to any suits pending as of the effective date of this act.”

Amendments. The 2009 amendment added (d).

Research References

U. Ark. Little Rock L.J.

Survey—Torts, 11 U. Ark. Little Rock L.J. 261.

Case Notes

Constitutionality.

Application of the 1993 amendment would not constitute an unconstitutional retroactive application to any suit pending at time of amendment's effective date as the amendment simply added the clause “except to the extent that they be covered by liability insurance” to qualify an employee's immunity. National Bank of Commerce v. Quirk, 323 Ark. 769, 918 S.W.2d 138 (1996), overruled in part, Ark. Dep't of Health & Human Servs. v. Ahlborn, 547 U.S. 268, 126 S. Ct. 1752, 164 L. Ed. 2d 459 (2006).

In General.

If officers and employees of the State of Arkansas act without malice and within the scope of their employment, they are immune from an award of damages in litigation. Smith v. Denton, 320 Ark. 253, 895 S.W.2d 550 (1995).

The concept of sovereign immunity is well grounded in Arkansas law. Milligan v. Burrow, 52 Ark. App. 20, 914 S.W.2d 763 (1996).

By enacting subsection (a) of this section, the General Assembly did not intend to repeal § 19-10-305(a); repeal by implication is not favored and the sections can be read in harmony. Robinson v. Langdon, 333 Ark. 662, 970 S.W.2d 292 (1998).

Applicability.

Circuit court properly concluded that the supervisor was not entitled to statutory immunity on the employee's federal civil rights claims as immunity under state law was not dispositive, and the supervisor had not made a cogent legal argument or cited relevant authority. Ark. State Med. Bd. v. Byers, 2017 Ark. 213, 521 S.W.3d 459 (2017).

Consent of State.

Where a suit is brought against an officer or agency with relation to some matter in which defendant represents the state in action and liability, and the state, while not a party to the record, is the real party against which relief is sought so that a judgment for plaintiff, although nominally against the named defendant as an individual or entity distinct from the state, will operate to control the action of the state or subject it to liability, the suit is in effect one against the state and cannot be maintained without its consent. Assaad-Faltas v. University of Ark. for Medical Sciences, 708 F. Supp. 1026 (E.D. Ark. 1989), aff'd without op., 902 F.2d 1572 (8th Cir.), cert. denied, 498 U.S. 905, 111 S. Ct. 271, 112 L. Ed. 2d 227 (1990).

Employees Held Immune.

Where an action was filed against employees of the state, those employees were immune from civil liability for nonmalicious acts occurring within the course of their employment under this section. Beaulieu v. Gray, 288 Ark. 395, 705 S.W.2d 880 (1986).

Where plaintiffs sued three state employees for acts performed in their official capacities, the action was tantamount to an action against the State of Arkansas; sovereign immunity, therefore, applied and protected not only the State but its employees as well. Milligan v. Burrow, 52 Ark. App. 20, 914 S.W.2d 763 (1996).

A wildlife officer acting within the scope of his employment was immune from liability for his entry onto the defendant's property and damages caused thereby. Rainey v. Hartness, 339 Ark. 293, 5 S.W.3d 410 (1999).

Employees of the Department of Community Punishment were entitled to immunity with regard to the termination of employment of parole officer, without regard to whether they acted maliciously or outside the scope of their employment, since the parole officer was an at-will employee and could be terminated for any reason or no reason at all. Ball v. State Dep't of Community Punishment, 340 Ark. 424, 10 S.W.3d 873 (2000).

In an inmate's civil rights suit involving a prison grooming policy, the prison officials were personally immune from suit because they did not, in enacting and enforcing the grooming policy, violate clearly established principles of law of which a reasonable person would have knowledge. Fegans v. Norris, 351 Ark. 200, 89 S.W.3d 919 (2002).

State trooper was immune in his individual capacity under subsection (a) of this section due to the non-malicious nature of the actions involved; the trooper contended that he was merely conducting a pat-down on a passenger in a car after the driver was arrested for an outstanding warrant. The complaint contained mere allegations of maliciousness and sexual intent. Simons v. Marshall, 369 Ark. 447, 255 S.W.3d 838 (2007).

Appellees' allegations were conclusory and did not support each cause of action appellees pled against each individually named Arkansas Department of Environmental Quality employee; even with regard to certain emails, appellees' pleadings amounted to bare conclusions of malice. Ark. Dep't of Envtl. Quality v. Al-Madhoun, 374 Ark. 28, 285 S.W.3d 654 (2008).

Because plaintiff inmates made no allegations of willful, wanton, or otherwise malicious conduct on the part of defendant prison officials, much less sufficient factual support to stave off summary judgment, the officials were entitled to summary judgment on the inmate's state law claims due to statutory immunity under subsection (a) of this section. Langford v. Norris, 614 F.3d 445 (8th Cir. 2010).

In an action by a county resident against officials of the Arkansas Game and Fish Commission, alleging that the Commission unconstitutionally entered into gas leases with private companies, the officials were entitled to immunity under subsection (a) of this section because the resident failed to plead that the officials' acts were covered by liability insurance or that those acts were committed maliciously, or that the officials acted outside the scope of their employment in leasing the Commission's land or in utilizing the revenue from those leases. Further, the amended complaint did not seek any relief from the officials in their individual capacities. Dockery v. Morgan, 2011 Ark. 94, 380 S.W.3d 377 (2011).

Inmate's individual-capacities negligence claim against prison officials arising from another inmate's assault failed because (1) the inmate did not allege the assault was more than a surprise, and, (2) if the officials ignored prison policies and inadequately protected the inmate, the inmate did not allege the officials acted with malice or an intent to harm the inmate, so the officials were immune under this section. Early v. Crockett, 2014 Ark. 278, 436 S.W.3d 141 (2014).

To the extent school districts made any claims against the director of the Arkansas Department of Human Services individually, they were barred by subsection (a) of this section because the districts did not allege any malicious acts or omissions by the director nor did they allege that he acted outside the scope of his employment. Ark. Dep't of Human Servs. v. Fort Smith Sch. Dist., 2015 Ark. 81, 455 S.W.3d 294 (2015).

Excessive Force.

In an excessive-force case, the trial court erred in denying summary judgment with respect to the son's tort claims against the police chief, as the son did not specifically allege facts supporting the claims as to the police chief, but there was no error in the trial court's denial of summary judgment regarding the son's claims against the officer, as well as the father's claims against the officer and the police chief, because material issues of fact existed regarding the reasonableness of their conduct and therefore they were not entitled to summary judgment on the basis of qualified immunity. Faughn v. Kennedy, 2019 Ark. App. 570, 590 S.W.3d 188 (2019).

Jurisdiction.

Where the complaint alleged that defendant intentionally deprived plaintiff of employment without just cause and for personal motives, the trial court had jurisdiction to hear the claim against defendant in both his individual and official capacities. Cross v. Ark. Livestock & Poultry Comm'n, 328 Ark. 255, 943 S.W.2d 230 (1997).

Liability Insurance of Employee.

Employee of the state may be held liable for an act done in the performance of his duties as a state employee to the extent the employee carries liability insurance. Bly v. Young, 293 Ark. 36, 732 S.W.2d 157 (1987).

Physician who worked part-time for the Arkansas Department of Health could be held liable for damages resulting from the improper insertion of an intrauterine device to the extent that he carried liability insurance. Bly v. Young, 293 Ark. 36, 732 S.W.2d 157 (1987).

Malicious Conduct.

This section, conferring immunity to officers and employees does not protect them if they act maliciously; however, a bare allegation of willful and wanton conduct will not suffice to allege facts sufficient to support the claim of malicious conduct. Beaulieu v. Gray, 288 Ark. 395, 705 S.W.2d 880 (1986).

This section does not protect state employees if they act maliciously, and under Arkansas law, statements made with actual malice include not only those made with spite, hatred, or vindictiveness, but also those made with such reckless disregard of the rights of another as to constitute the equivalent of ill will. Bland v. Verser, 299 Ark. 490, 774 S.W.2d 124 (1989).

The defendant government officials were not immune from suit under the doctrine of sovereign immunity since sufficient allegations of malicious conduct were alleged in the complaint where the plaintiff alleged that the defendants conspired to have him arrested for the malicious purpose of embarrassing him and damaging his professional reputation and with knowledge that no probable cause existed; that the allegations in the arrest warrant were false, and that no prosecution would ensue. Heigle v. Miller, 332 Ark. 315, 965 S.W.2d 116 (1998).

The exception for malicious conduct did not apply to an action arising from a motor vehicle accident which occurred because of the absence of a stop sign at an intersection, notwithstanding that the absence of the sign had been reported to the appropriate state agency two days earlier and the contention that the defendant state employees knew, or should have known, that the failure to replace the stop sign could naturally and foreseeably result in death or serious bodily injury through automobile accidents. Fuqua v. Flowers, 341 Ark. 901, 20 S.W.3d 388 (2000).

Appellees were entitled to statutory immunity as it was obvious that plaintiff, who alleged that his civil rights were violated while appellees subjected him to the practical skills part of the Arkansas Emergency Medical Technician Practical Examination, failed to allege liability coverage or show that appellees committed any malicious act or omission in the course of their employment. Hanks v. Sneed, 366 Ark. 371, 235 S.W.3d 883 (2006), overruled in part, Hardin v. Bishop, 2013 Ark. 395, 430 S.W.3d 49 (2013).

Trial court erred by denying the motion for summary judgment of the Administrator of the Arkansas State Hospital and its employee based on qualified/statutory immunity grounds under this section because, as to the nurse's Arkansas Civil Rights Act claims against the employee in her individual capacity, nowhere in the complaint or materials were there specific factual allegations that asserted that the employee personally acted with malice. Smith v. Daniel, 2014 Ark. 519, 452 S.W.3d 575 (2014).

Where a detainee was involved in a single-vehicle accident, failed a breath test, was arrested, fell to the ground and was not responsive, was transported to a detention center, and died in a holding room, a trooper was not entitled to statutory immunity under the Arkansas Civil Rights Act of 1993, § 16-123-101 et seq., because the complaint alleged facts sufficient to create an inference of malice. Barton v. Taber, 820 F.3d 958 (8th Cir. 2016).

Statutory immunity under this section barred the employee's claims under the Arkansas Civil Rights Act of 1993, § 16-123-101 et seq., against the supervisor in her individual capacity where the employee's bare allegation of willful and wanton conduct was not enough to demonstrate malice. Ark. State Med. Bd. v. Byers, 2017 Ark. 213, 521 S.W.3d 459 (2017).

Former employee's individual capacity claims against a warden of a state correctional facility alleging she had been discharged due to gender and racial discrimination should have been dismissed where the complaint offered the bare assertion that she performed her job satisfactorily without factual support, failed to allege the circumstances leading up to her termination or how she was “similarly situated” to the white male employees, and failed to show that the warden was the decisionmaker for the whites and males she pointed to. In the context of statutory immunity, the employee failed to allege that the warden acted maliciously. Banks v. Jones, 2019 Ark. 204, 575 S.W.3d 111 (2019).

Cited: Carter v. Bush, 296 Ark. 261, 753 S.W.2d 534 (1988); Cousins v. Dennis, 298 Ark. 310, 767 S.W.2d 296 (1989); City of Little Rock v. Weber, 298 Ark. 382, 767 S.W.2d 529 (1989); Fireman's Ins. Co. v. Ark. State Claims Comm'n, 301 Ark. 451, 784 S.W.2d 771; Cundiff v. Crider, 303 Ark. 120, 792 S.W.2d 604 (1990); Burk v. Beene, 948 F.2d 489 (8th Cir. 1991); Qualls v. Ferritor, 329 Ark. 235, 947 S.W.2d 10 (1997); Grine v. Board of Trustees, 338 Ark. 791, 2 S.W.3d 54 (1999); Okruhlik v. Univ. of Ark., 255 F.3d 615 (8th Cir. 2001); Smith v. Brt, 363 Ark. 126, 211 S.W.3d 485 (2005); Martin v. Hallum, 2010 Ark. App. 193, 374 S.W.3d 152 (2010); Doe v. Nat'l Healthcare of Newport, Inc., 2016 Ark. App. 493 (2016).

19-10-306. Res judicata or collateral estoppel.

If an individual commences a civil action in any court of law within this state which arises out of the same subject matter or occurrence that is the subject matter of a complaint before the Arkansas State Claims Commission, the commission shall recognize any final judgment or order rendered in the civil action as a bar to further consideration of the claim in accordance with principles of res judicata and collateral estoppel.

History. Acts 1981, No. 586, § 6; A.S.A. 1947, § 13-1421.

Subchapter 4 — Workers' Compensation Commission

Effective Dates. Acts 1949, No. 462, § 17: approved Mar. 28, 1949. Emergency clause provided: “It is found that the Statutes of this State do not adequately provide for the prompt investigation and disposition of the payment of claims against the State, nor do they afford adequate protection of public funds, and that this act is necessary for the preservation of the public peace, health, and safety, an emergency is therefore declared and this act shall take effect and be in force from and after its passage.”

Acts 1951, No. 373, § 11: approved Mar. 20, 1951. Emergency clause provided: “It is found that the Statutes of this State do not adequately provide for the prompt investigation and disposition of the payment of claims against the State, nor do they afford adequate protection of public funds, and that this act is necessary for the preservation of the public peace, health, and safety, an emergency is therefore declared and this act shall take effect and be in force from and after its passage.”

Acts 1963, No. 521, § 2: Mar. 19, 1963. Emergency clause provided: “It is hereby found and determined by the General Assembly that under the present law there is some doubt as to whether the Workmen's Compensation Commission has jurisdiction of claims for injuries to or death of officers of the State, and that it is imperative that this ambiguity be clarified immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in effect from the date of its passage and approval.”

Research References

U. Ark. Little Rock L.J.

Arkansas Law Survey, Roberts and Deere, Torts, 8 U. Ark. Little Rock L.J. 207.

19-10-401. Reports of personal injury or death.

All state officers, heads of agencies, departments, and institutions shall file a report with the Workers' Compensation Commission, within ten (10) days after knowledge of any personal injury or death of any employee of the state or any of its agencies, departments, or institutions. This report shall be made on forms approved by the commission and shall give the date, place, and time of day of any such injury or death, briefly stating the circumstances and extent thereof, the name of the injured or deceased person, and the names of any and all witnesses.

History. Acts 1949, No. 462, § 10; 1951, No. 373, § 6; A.S.A. 1947, § 13-1410.

19-10-402. Jurisdiction and procedure.

1. The Workers' Compensation Commission shall have exclusive jurisdiction, as limited in this subchapter, of all claims against the State of Arkansas and its several agencies, departments, and institutions for personal injuries and deaths of employees and officers of the State of Arkansas and its agencies, departments, and institutions arising out of and in the course of employment or service.
2. 1. Awards for these injuries and deaths shall be made by the commission in the same amounts and on the same terms and conditions as if such injuries and deaths had arisen out of and in the course of private employment covered by the Workers' Compensation Law, § 11-9-101 et seq.
  2. The procedure to be followed in the presentation, hearing, and determination of claims shall, in all respects, be the same as in claims for compensation for injuries and deaths arising out of and in the course of private employment covered by the Workers' Compensation Law, § 11-9-101 et seq.
The General Assembly shall at each session appropriate, from such sources as it may see fit, a sum sufficient to satisfy such claims as are or probably will be payable during the following fiscal year under awards made under this section. The commission shall direct the distributions of this fund and make disbursements upon the vouchers issued against it.

History. Acts 1949, No. 462, § 7; 1951, No. 373, § 3; 1963, No. 521, § 1; 1979, No. 597, § 1; A.S.A. 1947, § 13-1407; Acts 2009, No. 962, § 39.

Amendments. The 2009 amendment, in the first sentence of (b), deleted “biennial” preceding “session” and substituted “year” for “biennium.”

Case Notes

Constitutionality.

This section, which simply makes the Arkansas Workers' Compensation Commission a “claims commission” in connection with claims by state employees for injuries or death growing out of their employment by the state and provides that, in administering its duties in connection with such claims, the Workers' Compensation Commission shall apply the compensation law as it relates to private industry, does not violate the equal protection clauses of the state or federal constitutions. Boshears v. Ark. Racing Comm'n, 258 Ark. 741, 528 S.W.2d 646 (1975).

Effect of Release.

Where a third party suit to determine the right to insurance payment, joined in by widow, other heirs, and administrators of deceased highway employee, resulted in a consent judgment for $10,000, and a release thereafter executed by the administrators recited receipt of $10,000, but stated that it did not include $3,000 received by widow from the insurer of the highway department, and $10,000 was prorated by heirs under family settlement, only the widow was entitled to the $3,000 as the other heirs were estopped by the release. Jenkins v. Jenkins, 219 Ark. 547, 243 S.W.2d 646 (1951).

Reduction of Benefits.

Any amounts which a state employee received from state under this section would reduce the benefits payable under an uninsured motorist provision of an insurance policy providing for a reduction for amounts received under workers' compensation law, disability benefits law, or any similiar law. Edmundson v. Commercial Union Ins. Co., 249 Ark. 350, 459 S.W.2d 112 (1970).

School District Employees.

A school district is not an agency of the state, and its employees are not state employees within the meaning of this section. Muse v. Prescott Sch. Dist., 233 Ark. 789, 349 S.W.2d 329 (1961).

Teachers.

Teachers employed by a school district do not come within the purview of this section. Muse v. Prescott Sch. Dist., 233 Ark. 789, 349 S.W.2d 329 (1961).

Cited: Parish v. Pitts, 244 Ark. 1239, 429 S.W.2d 45 (1968); Arkansas State Hwy. & Transp. Dep't v. Godwin, 270 Ark. 743, 606 S.W.2d 127 (1980); Dinning v. Wills, 4 B.R. 475 (Bankr. E.D. Ark. 1980).

19-10-403. Workers' Compensation Revolving Fund.

There is created in the State Treasury a special fund to be known as the “Workers' Compensation Revolving Fund”. All sums appropriated by the General Assembly pursuant to this subchapter shall be deposited by the Treasurer of State to the account of the fund.
The Workers' Compensation Commission shall draw all vouchers against the fund in payment of awards made by it under this subchapter.

History. Acts 1949, No. 462, § 7; 1951, No. 373, § 3; 1963, No. 521, § 1; 1979, No. 597, § 1; A.S.A. 1947, § 13-1407.

Case Notes

19-10-404. State deemed self-insurer.

For the purposes of this subchapter, the State of Arkansas shall be considered a self-insurer and shall be exempt from all fees and tax as such.

History. Acts 1949, No. 462, § 7; 1951, No. 373, § 3; 1963, No. 521, § 1; 1979, No. 597, § 1; A.S.A. 1947, § 13-1407.

Case Notes

19-10-405. Awards and expenses.

In the event an award is made, the Workers' Compensation Commission shall immediately take the necessary steps to pay the award and all expenses incidental to the claim from any funds previously made available by the General Assembly for such purpose.

History. Acts 1949, No. 462, § 9; 1951, No. 373, § 5; A.S.A. 1947, § 13-1409.

Case Notes

Cited: Boshears v. Ark. Racing Comm'n, 258 Ark. 741, 528 S.W.2d 646 (1975).

19-10-406. Report of findings.

Upon the allowance or disallowance of any claim, the Workers' Compensation Commission shall immediately transmit a copy of its findings to the Secretary of the Department of Finance and Administration and interested parties.

History. Acts 1949, No. 462, § 9; 1951, No. 373, § 5; A.S.A. 1947, § 13-1409; Acts 2019, No. 910, § 3472.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration”.

Case Notes

Cited: Boshears v. Ark. Racing Comm'n, 258 Ark. 741, 528 S.W.2d 646 (1975).

Chapter 11 Purchasing and Contracts

Research References

ALR.

Bid on public contract, right to rescind based on mistake. 2 A.L.R.4th 991.

Statute prohibiting award of government contract to person or business entity previously convicted of bribery or attempting to bribe state public employee. 7 A.L.R.4th 1202.

Waiver of competitive bidding requirements. 40 A.L.R.4th 968.

Amount of appropriation as limitation on damages for breach of contract recoverable by one contracting with government agency. 40 A.L.R.4th 998.

Am. Jur. 64 Am. Jur. 2d, Pub. Works, § 8 et seq.

C.J.S. 73A C.J.S., Pub. Contr., § 1 et seq.

Subchapter 1 — General Provisions

Cross References. Auditor of State, § 25-16-501 et seq.

Effective Dates. Acts 1993, No. 1224, § 12: July 1, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1993 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1993 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1993.”

19-11-101. Responsibility of disbursing officer — Maintenance of files by Office of State Procurement.

The disbursing officer of each agency, board, commission, department, or institution shall be responsible for reviewing all invoices prepared by commercial printers or suppliers holding commercial contracts to make certain that the charges to the agency, board, commission, department, or institution are proper under the terms of the contract.
The Office of State Procurement shall maintain complete files that shall be open to public inspection on all commercial term and one-time contracts. The files shall contain:
1. A copy of the contract;
2. A list of all printing or duplicating done or commodities ordered, as well as the name of the invoiced agency; and
3. A copy of all correspondence regarding the contract or jobs performed thereunder.

History. Acts 1993, No. 1224, § 5; 2007, No. 478, § 1.

Publisher's Notes. Former § 19-11-101 was repealed by Acts 1993, No. 1224, § 6. The former section was derived from Acts 1981, No. 600, § 30; A.S.A. 1947, § 14-295.

Amendments. The 2007 amendment deleted former (b)(4) and made related changes.

19-11-102. Use of soybean ink in state printing.

Notwithstanding any law or rule to the contrary, all printing which is chargeable to or which is paid for with funds appropriated wholly or in part by the state, or any state department, division, bureau, board, commission, or agency, shall be printed in soybean ink; provided, however, that the soybean ink is comparable in price to other inks, and that it is equally suitable for use.

History. Acts 1991, No. 630, § 1; 2019, No. 315, § 1750.

Publisher's Notes. Former § 19-11-102, concerning consulting contracts with state agencies, was repealed by Acts 1987, No. 536, § 1. The former section was derived from Acts 1981, No. 600, § 30; A.S.A. 1947, § 14-295.

Amendments. The 2019 amendment substituted “law or rule” for “law, rule, or regulation”.

19-11-103. Penalty for violation of law.

Any person who is found by a court of law to have knowingly violated any state law in conjunction with the performance or acquisition of a contract with the state shall be ineligible to contract with the state for a period of three (3) years.

History. Acts 1997, No. 1155, § 1.

19-11-104. Equal opportunity policy.

The purpose of this section is to require any entity or person bidding on a state contract, responding to a request for proposals regarding a state contract, responding to a request for qualifications regarding a state contract, or negotiating a contract with the state for professional or consulting services to submit to the Office of State Procurement the most current equal opportunity policy of the entity or person.
The office and a state agency shall require a copy of the most current equal opportunity policy of an entity or person to be filed with the office or state agency for public inspection as a condition precedent to:
1. Accepting a letter of intent, bid, proposal, or statement of qualification with regard to a state contract from the entity or person; or
2. Entering negotiations with the entity or person for a professional or consulting services contract with the state.

History. Acts 2005, No. 2157, § 1.

19-11-105. Illegal immigrants — Prohibition — Public contracts for services — Definitions.

As used in this section:
1. “Contractor” means a person having a public contract with a state agency for professional services, technical and general services, or any category of construction in which the total dollar value of the contract is twenty-five thousand dollars ($25,000) or greater;
2. “Exempt agency” means the constitutional departments of the state, the elected constitutional offices of the state, the General Assembly, including the Legislative Council and the Legislative Joint Auditing Committee and supporting agencies and bureaus thereof, the Supreme Court, the Court of Appeals, circuit courts, prosecuting attorneys, and the Administrative Office of the Courts;
3. “Illegal immigrant” means any person not a citizen of the United States who has:
  1. Entered the United States in violation of the Immigration and Nationality Act, 8 U.S.C. § 1101 et seq., or regulations issued under the Immigration and Nationality Act, 8 U.S.C. § 1101 et seq.;
  2. Legally entered the United States but without the right to be employed in the United States; or
  3. Legally entered the United States subject to a time limit but has remained illegally after expiration of the time limit;
4. “Professional services contract” means a contract between a state agency and a contractor in which:
  1. The relationship between the contractor and the state agency is that of an independent contractor rather than that of an employee;
  2. The services to be rendered consist of the personal services of an individual that are professional in nature;
  3. The state agency does not have direct managerial control over the day-to-day activities of the individual providing the services;
  4. The contract specifies the results expected from the rendering of the services rather than detailing the manner in which the services shall be rendered; and
  5. Services rendered under a professional services contract are rendered to the state agency itself or to a third-party beneficiary;
5. “Public contract for services” means any type of agreement between a state agency and a contractor for the procurement of services and all categories of construction with a state agency in which the total dollar value of that contract is twenty-five thousand dollars ($25,000) or greater;
6. 1. “State agency” means any agency, institution, authority, department, board, commission, bureau, council, or other agency of the state supported by appropriation of state or federal funds, except an exempt agency under subdivision (a)(7)(B) of this section.
  2. “State agency” includes an exempt agency when any agency or exempt agency procures any item subject to Arkansas Constitution, Amendment 54; and
7. 1. “Technical and general services” means:
    1. Work accomplished by skilled individuals involving time, labor, and a degree of expertise in which performance is evaluated based upon the quality of the work and the results produced;
    2. Work performed to meet a demand, including without limitation work of a recurring nature that does not necessarily require special skills or extensive training; or
    3. The furnishing of labor, time, or effort by a contractor or vendor, not involving the delivery of any specific end product other than reports that are incidental to the required performance.
  2. “Technical and general services” shall not be construed to include the procurement of professional services under § 19-11-801 et seq.
No state agency may enter into or renew a public contract for services with a contractor who knows that the contractor or a subcontractor employs or contracts with an illegal immigrant to perform work under the contract.
Before executing a public contract, each prospective contractor shall certify in a manner that does not violate federal law in existence on January 1, 2007, that the contractor at the time of the certification does not employ or contract with an illegal immigrant.
1. If a contractor violates this section, the state shall require the contractor to remedy the violation within sixty (60) days.
2. 1. If the contractor does not remedy the violation within the sixty (60) days specified under subdivision (d)(1) of this section, the state shall terminate the contract for breach of the contract.
  2. If the contract is terminated under subdivision (d)(2)(A) of this section, the contractor shall be liable to the state for actual damages.
1. 1. If a contractor uses a subcontractor at the time of certification, the subcontractor shall certify in a manner that does not violate federal law in existence on January 1, 2007, that the subcontractor at that time of certification does not employ or contract with an illegal immigrant.
  2. A subcontractor shall submit the certification required under subdivision (e)(1)(A) of this section within thirty (30) days after the execution of the subcontract.
2. The contractor shall maintain on file the certification of the subcontractor throughout the duration of the term of the contract.
3. If the contractor learns that a subcontractor is in violation of this section, the contractor may terminate the contract with the subcontractor, and the termination of the contract for a violation of this section shall not be considered a breach of the contract by the contractor and subcontractor.

History. Acts 2007, No. 157, § 1; 2009, No. 251, § 27.

Amendments. The 2009 amendment substituted “Nationality Act of 1952, 8 U.S.C. 1101 et seq.” for “Naturalization” in (a)(3)(A), and made related and minor stylistic changes.

19-11-106. [Repealed.]

Publisher's Notes. This section, concerning contracting goals for service-disabled veterans, was repealed by Acts 2017, No. 1080, § 3. The section was derived from Acts 2011, No. 882, § 1. For current related provisions, see § 15-4-301 et seq.

Subchapter 2 — Arkansas Procurement Law

A.C.R.C. Notes. Acts 2019, No. 417, § 11, provided: “Rules.

“(a) When adopting the initial rules required under this act, the State Procurement Director shall file the final rules with the Secretary of State for adoption under § 25-15-204(f):

“(1) On or before January 1, 2020; or

“(2) If approval under § 10-3-309 has not occurred by January 1, 2020, as soon as practicable after approval under § 10-3-309.

“(b) The director shall file the proposed rules with the Legislative Council under § 10-3-309(c) sufficiently in advance of January 1, 2020, so that the Legislative Council may consider the rules for approval before January 1, 2020”.

Acts 2019, No. 418, § 8, provided: “Rules.

“(a) When adopting the initial rules required under this act, the State Procurement Director shall file the final rules with the Secretary of State for adoption under § 25-15-204(f):

“(1) On or before January 1, 2020; or

“(2) If approval under § 10-3-309 has not occurred by January 1, 2020, as soon as practicable after approval under § 10-3-309.

Acts 2019, No. 419, § 14, provided: “Rules.

“(a) When adopting the initial rules required under this act, the State Procurement Director shall file the final rules with the Secretary of State for adoption under § 25-15-204(f):

“(1) On or before January 1, 2021; or

“(2) If approval under § 10-3-309 has not occurred by January 1, 2021, as soon as practicable after approval under § 10-3-309.

“(b) The director shall file the proposed rules with the Legislative Council under § 10-3-309(c) sufficiently in advance of January 1, 2021, so that the Legislative Council may consider the rules for approval before January 1, 2021.”

Acts 2019, No. 420, § 5, provided: “Rules.

“(a) When adopting the initial rules required under this act, the State Procurement Director shall file the final rules with the Secretary of State for adoption under § 25-15-204(f):

“(1) On or before January 1, 2020; or

“(2) If approval under § 10-3-309 has not occurred by January 1, 2020, as soon as practicable after approval under § 10-3-309.

Acts 2019, No. 421, § 4, provided: “Rules.

“(a) When adopting the initial rules required under this act, the State Procurement Director shall file the final rules with the Secretary of State for adoption under § 25-15-204(f):

“(1) On or before January 1, 2020; or

“(2) If approval under § 10-3-309 has not occurred by January 1, 2020, as soon as practicable after approval under § 10-3-309.

Cross References. Restrictions on expenditures by institutions of higher education, § 6-63-301 et seq.

Effective Dates. Acts 1979, No. 482, § 79: effective at 12:01 a.m., July 1, 1979. Emergency clause provided: “It is hereby found and determined by the Seventy-Second General Assembly that the proper and effective management and control of State finances requires that the provisions of this Act be implemented at the commencement of the next biennium and this Act being necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist and this Act shall become effective at 12:01 a.m. on July 1, 1979.”

Acts 1981, No. 240, § 6: Feb. 27, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Department of Correction should be allowed to have its own purchasing agent for the sole purpose of procuring perishable food items; that the law regarding the letting of contracts for the lease and purchase of farm machinery and equipment by the Board of Correction is in need of revision; and that this Act is immediately necessary to accomplish such purposes. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 600, § 32: Mar. 20, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that the State Purchasing Law is in immediate need of revision to bring the same into compliance with court orders, and that this Act is designed to make such needed revisions, and the immediate passage hereof is necessary to accomplish such purpose. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 517, § 4: Mar. 17, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that the State Purchasing Law is in immediate need of revision to bring the administrative structure and reporting requirements of the Office of State Purchasing into organizational conformity with the other offices within the Department of Finance and Administration for the purpose of proper and effective management and control of the Department of Finance and Administration, and that this Act is designed to make such needed revisions, and the immediate passage hereof is necessary to accomplish such purpose. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 760, § 4: Mar. 24, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that Arkansas firms engaged in the printing, stationery and office supply business are unnecessarily discriminated against by the omission of such firms from the benefits of the Arkansas Preference Law. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 983, § 3: Apr. 14, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that the State Purchasing Law currently contains no exemption for medical items used for the treatment and diagnosis of patients and purchased through a group purchasing entity; that considerable savings can be effected in many instances if such medical items are exempt from the State Purchasing Law; that this Act is designed to provide such exemption and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 57, § 4: Feb. 14, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that the state purchasing law apparently does not now apply to non-profit corporations under contract with the Department of Human Services to provide services to people with developmental disabilities; that the functions performed by these non-profit corporations are a governmental function and therefore those entities should be included in a definition of ‘state agencies’ for purposes of the state purchasing law; that this Act accomplishes the same; and that in order to make the state purchasing law applicable to those non-profit corporations as soon as possible, that this Act should be given immediate effect. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989 (3rd Ex. Sess.), No. 45, § 4: Nov. 14, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present bidder's preference law requires the Arkansas bidder to have paid Arkansas unemployment taxes; that some employers are exempt from paying unemployment taxes and therefore the requirement should not apply in those instances; that this Act will change the bidder's preference law to not disqualify an Arkansas firm who does not pay unemployment taxes because of being exempt therefrom; and that this Act should go into effect immediately in order to correct the inequity as soon as possible. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 263, § 5: Feb. 26, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly that the current law provides that in public purchasing of commodities, Arkansas bidders who have an established business in and are paying state and local taxes in Arkansas, are to be given a five percent preference over out-of-state bidders who maintain no established business facility in the state and who are not paying state and local taxes in Arkansas; that this law which was obviously enacted to benefit Arkansas businesses now appears to be having the opposite effect due to the fact that some states have reciprocated by penalizing Arkansas businesses which bid on public contracts for commodities in those states, and some state agencies simply refuse to do business with Arkansas businesses because of the Arkansas preference law; and that it is in the overall best interest of Arkansas businesses that this preference be abolished as soon as possible. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 678, § 6: Mar. 24, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law authorizing a bidders preference for the purchase of commodities by public agencies should be narrowed; that this act results in narrowing that law; that a substantial amount of commodity purchasing will occur within the next three (3) months; and that this act should go into effect immediately in order that its application will apply to purchases as soon as possible. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1995, No. 912, § 5: Apr. 5, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that the state is hampered in the execution of its duties by the inability to use lease/purchase agreements to procure essential commodities and services. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 179, § 38: Feb. 17, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 10 of the First Extraordinary Session of 1995 abolished the Joint Interim Committee on Public Health, Welfare, and Labor and in its place established the House Interim Committee and Senate Interim Committee on Public Health, Welfare, and Labor; that various sections of the Arkansas Code refer to the Joint Interim Committee on Public Health, Welfare, and Labor and should be corrected to refer to the House and Senate Interim Committees on Public Health, Welfare, and Labor; that this act so provides; and that this act should go into effect immediately in order to make the laws compatible as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 1237, § 49: Apr. 2, 2001. Emergency clause provided: “It is found and determined by the General Assembly that recent advances in technology require that the State Purchasing law be amended to allow electronic procurement and the use of electronic media in the bidding process. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 1309, § 2 Apr. 5, 2001. Emergency clause provided: “It is found and determined by the General Assembly that this measure is necessary to clarify the state's purchasing law and to prevent disruptions in the orderly conduct of business by agencies of the state. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2009, Nos. 605 and 606, § 27: Mar. 25, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the people of the State of Arkansas overwhelmingly approved the establishment of lotteries at the 2008 General Election; that lotteries will provide funding for scholarships to the citizens of this state; that the failure to immediately implement this act will cause a reduction in lottery proceeds that will harm the educational and economic success of potential students eligible to receive scholarships under the act; and that the state lotteries should be implemented as soon as possible to effectuate the will of the citizens of this state and implement lottery-funded scholarships as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, No. 1211, § 3: Apr. 7, 2009. Emergency clause provided “It is found and determined by the General Assembly of the State of Arkansas that a partial equity ownership agreement is fundamentally and substantially different than a state contract for commodities, technical and general services, and professional and consultant services that are procured under the Arkansas Procurement Law § 19-11-201 et seq., and other contracts currently procured under Arkansas Code, Title 19, Chapter 11; that frugal investment practices often require a minimum duration of ten (10) years or more for the interest to mature; that a partial equity ownership agreement is necessary for certain size trust funds to fulfill the requirements of the prudent investor rule; that a partial equity ownership agreement should be subject to a procurement process that is unique to the partial equity ownership agreement; that currently there is a lack of clarification in the law regarding a proper review process for partial equity ownership agreements; and that this new section will resolve the issue with the intent to preserve the review process for a partial equity ownership agreement and allow flexibility in the review for a narrow and clearly defined exception. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 147, § 4: Feb. 23, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that an immediate need exists to allow municipal utilities to fulfill their duties to purchase commodities and enter into legal and enforceable contracts for services to maintain and operate utility facilities on federal military installations within the state; that the window of opportunity for municipalities to enter into third party contracts for maintaining and operating utility facilities serving the utility needs of federal military installations is narrow; that the effective operation of federal military installations in the state depends on the maintenance and operation of these utility facilities; and that this act is immediately necessary because national security and the general welfare, material wellbeing, and economic stability of the citizens of this state will be furthered by this act. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 557, § 9: Aug. 1, 2015.

Acts 2019, No. 866, § 4: Jan. 1, 2020.

19-11-201. Title.

This subchapter shall be referred to as the “Arkansas Procurement Law”.

History. Acts 1979, No. 482, § 1; A.S.A. 1947, § 14-233; Acts 2001, No. 1237, § 1.

Publisher's Notes. Acts 1979, No. 482, § 7, provided that this subchapter applies only to contracts solicited or entered into after July 1, 1979, unless the parties agree to its applicability to a contract entered into prior to this date.

Case Notes

Cited: Milligan v. Burrow, 52 Ark. App. 20, 914 S.W.2d 763 (1996).

19-11-202. Purposes and policies.

The underlying purposes and policies of this subchapter are to:

Simplify, clarify, and modernize the law governing procurement by this state;
Permit the continued development of procurement policies and practices;
Provide for increased public confidence in the procedures followed in public procurement;
Ensure the fair and equitable treatment of all persons who deal with the procurement system of this state;
Provide increased economy in state procurement activities by fostering effective competition; and
Provide safeguards for the maintenance of a procurement system of quality and integrity.

History. Acts 1979, No. 482, § 3; A.S.A. 1947, § 14-233.2.

19-11-203. Definitions generally.

As used in this subchapter:

1. “Agency procurement official” means any person authorized by a state agency to enter into and administer contracts and make written determinations and findings with respect to contracts, in accordance with procedures prescribed by this subchapter and the rules promulgated under it.
2. “Agency procurement official” also includes an authorized representative acting within the limits of authority;
“Business” means any corporation, partnership, individual, sole proprietorship, joint-stock company, joint venture, or any other legal entity;
1. “Capital improvement” means all lands, buildings, structures, utilities, on-site and off-site improvements, and other appurtenant improvements, existing or future, and all construction, repairs, alterations, and renovations thereof which are undertaken, owned, operated, or otherwise managed by a state agency.
2. “Capital improvement” shall not include construction and reconstruction of roads and bridges in the state highway system by the State Highway Commission, nor shall “capital improvement” include any building, facility, plant, structure, or other improvement constructed by, or in behalf of, the Arkansas Department of Transportation or the State Highway Commission;
1. “Commodities” means all personal property, including without limitation:
  1. Goods, as defined in § 4-2-105;
  2. Leases, as defined in § 4-2A-103; and
  3. Insurance.
2. “Commodities” does not include:
  1. A lease on real property or a permanent interest in real property;
  2. Exempt commodities and services; and
  3. Capital improvements;
1. “Contract” means all types of state agreements, regardless of what they may be called, for the purchase of commodities and services and for the disposal of surplus commodities and services not otherwise exempt.
2. 1. “Contract” includes awards and notices of award, contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type, contracts providing for the issuance of job or task orders, leases, letter contracts, and purchase orders.
  2. “Contract” also includes supplemental agreements with respect to any of these items.
  3. “Contract” does not include a partial equity ownership agreement as defined under § 19-11-1301 et seq.;
“Contract modification” means any written alteration in specifications, delivery point, rate of delivery, period of performance, price, quantity, or other provisions of any contract accomplished by mutual action of the parties to the contract;
“Contractor” means any person having a contract with a state agency;
“Data” means recorded information, regardless of form or characteristic;
“Debarment” means the disqualification of a person to receive invitations for bids or requests for proposals or the award of a contract by the state for a specified period of time commensurate with the seriousness of the offense or the failure or the inadequacy of performance;
“Designee” means a duly authorized representative of a person holding a superior position;
“Electronic” means electrical, digital, magnetic, optical, or any other similar technology;
“Employee” means an individual drawing a salary from a state agency, whether elected or not, and any nonsalaried individual performing personal services for any agency;
“Exempt agencies” means the constitutional departments of the state, the elected constitutional offices of the state, the General Assembly, including the Legislative Council and the Legislative Joint Auditing Committee and supporting agencies and bureaus thereof, the Supreme Court, the Court of Appeals, circuit courts, prosecuting attorneys, and the Administrative Office of the Courts;
“Exempt commodities and services” means:
1. Advertising in newspapers, periodicals, and related publications and on television, radio, billboards, and electronic media;
2. Animals procured for medical research;
3. 1. Commodities and services for use in research, education, and treatment for the diagnosis, cure, and prevention of disease, which may be procured with administrative approval through a group purchasing entity serving other public health institutions when substantial savings are available.
  2. A report shall be filed annually with Arkansas Legislative Audit reflecting the justification of and the estimated savings accruing due to the use of this exemption;
4. 1. Commodities procured for resale in cafeterias, commissaries, bookstores, gift shops, canteens, and other similar establishments.
  2. However, these commodities procured shall not be sold or transferred to any agency with the intent of circumventing applicable procurement procedures;
5. 1. Contracts awarded by agencies for the construction of buildings and facilities and for major repairs.
  2. These contract exemptions shall not extend to the procurement of any commodities not otherwise exempt that are to be furnished by the agency under any such contract;
6. Contracts awarded by the Arkansas Transportation Department for the construction, reconstruction, and maintenance of roads and bridges in the state highway system and for the county, rural road aid, and city street aid programs;
7. 1. Farm products procured or sold by a state agency having an agency procurement official.
  2. The current trade customs with respect to the procurement or sale of cotton, cotton seed, rice, and other farm products shall be followed when it is necessary to obtain the best price for the commodities procured or sold;
8. Fees, including medical fees and physician fees;
9. Foster care maintenance services provided by foster family homes or a community provider that is licensed as a family style residential home or that provides a family home setting approved by the Division of Children and Family Services for children whose placement and care are the responsibility of the Division of Children and Family Services;
10. Freight and storage charges and demurrage;
11. Licenses required prior to performance of services;
12. 1. Livestock procured by an agency having an official experienced in selection and procurement of livestock.
  2. Such procurement will be reported to the State Procurement Director, giving details of the purchase;
13. Livestock procured for breeding, research, or experimental purposes;
14. Maintenance on office machines and technical equipment;
15. Medical items specifically requested by a physician for treatment or diagnosis of patients in his or her care, including prosthetic devices, surgical instruments, heart valves, pacemakers, radioisotopes, and catheters;
16. Membership in professional, trade, and other similar associations;
17. Perishable foodstuffs for immediate use or processing;
18. Postage;
19. Published books, manuals, maps, periodicals, films, technical pamphlets, and copyrighted educational aids for use in libraries and for other informational or instructional purposes in instances in which other applicable law does not provide a restrictive means for the acquisition of these materials;
20. Services of visiting speakers, lecturers, and performing artists;
21. Taxes;
22. Travel expense items such as room and board and transportation charges;
23. Utility services or equipment that is defined, recognized, and regulated by the Arkansas Public Service Commission as a monopoly offering;
24. Works of art for museum and public display;
25. Capital improvements valued at less than the amount stated in § 22-9-203, subject to minimum standards and criteria of the Building Authority Division;
26. Services related to work force development, incumbent work force training, or specialized business or industry training;
  1. Technical support incidental to supporting the continuous operation of proprietary software;
  2. Renewals;
  3. Additional copies; and
  4. License upgrades;
1. 1. “Grant” means the furnishing by the state of assistance, whether financial or otherwise, to any person to support a program authorized by law.
  2. “Grant” does not include an award the primary purpose of which is to procure an end product, whether in the form of commodities or services.
2. A contract resulting from such an award is not a grant but a procurement contract;
“May” means the permissive;
“Paper product” means any item manufactured from paper or paperboard;
“Person” means any business, individual, union, committee, club, or other organization or group of individuals;
“Political subdivisions” means counties, municipalities, and school districts;
1. “Procurement” means the buying, purchasing, renting, leasing, or otherwise obtaining of any commodities or services.
2. “Procurement” also includes all functions that pertain to the obtaining of any public procurement, including description of requirements, selection and solicitation of sources, preparation and award of contract, disposal of commodities, and all phases of contract administration;
“Procurement agency” means any state agency that is authorized by this subchapter, by implementing rules, or by way of delegation from the State Procurement Director to contract on its own behalf rather than through the central contracting authority of the State Procurement Director;
1. “Procurement agent” means any person authorized by a state agency not having an agency procurement official to enter into and administer contracts and make written determinations and findings with respect to contracts, in accordance with procedures prescribed by this subchapter.
2. “Procurement agent” also includes an authorized representative acting within the limits of authority;
1. “Public funds” means all state-appropriated and cash funds of state agencies, as defined by applicable law or official ruling.
2. Without necessarily being limited thereto, “public funds” does not include:
  1. Grants, donations, research contracts, and revenues derived from self-supporting enterprises that are not operated as a primary function of the agency, no part of which funds are deposited into the State Treasury; and
  2. Revenue derived from patient care and self-supporting hospital enterprises of an academic medical center;
“Public notice” means the distribution or dissemination of information to interested parties using methods that are reasonably available. Such methods will often include publication in newspapers of general circulation, electronic or paper mailing lists, and websites designated by the State of Arkansas and maintained for that purpose;
1. “Purchase request” means that document, written or electronic, in which a using agency requests that a contract be obtained for a specified need.
2. “Purchase request” may include, but is not limited to, the technical description of the requested item, delivery schedule, transportation, criteria for evaluation of solicitees, suggested sources of supply, and information supplied for the making of any written or electronic determination and finding required by this subchapter;
“Recycled paper” means paper which contains recycled fiber in a proportion specified by the State Procurement Director;
1. “Services” means the furnishing of labor, time, or effort by a contractor that does not produce tangible commodities.
2. “Services” includes without limitation:
  1. Consulting services;
  2. Personal services;
  3. Professional services;
  4. Technical and general services; and
  5. The furnishing of labor, time, or effort by a contractor for the generation, customization, configuration, or development of software and other intangible property other than technical support incidental to the procurement of proprietary software.
3. “Services” does not include employment agreements, collective bargaining agreements, exempt commodities and services, or architectural or engineering contracts requiring approval of the Building Authority Division or the Division of Higher Education;
“Shall” means the imperative;
“Signature” means a manual, an electronic, or a digital method executed or adopted by a party with the intent to be bound by or to authenticate a record which is:
1. Unique to the person using it;
2. Capable of verification;
3. Under the sole control of the person using it; and
4. Linked to data in such a manner that if the data are changed, the electronic signature is invalidated;
1. “State agency” means any agency, institution, authority, department, board, commission, bureau, council, or other agency of the state supported by appropriation of state or federal funds, except an exempt agency pursuant to subdivision (13) of this section.
2. “State agency” includes an exempt agency when any agency or exempt agency procures any item subject to Arkansas Constitution, Amendment 54;
1. “State contract” means a contract for the procurement of commodities or services in volume, awarded by the State Procurement Director.
2. The contract may apply to all or part of the state;
“State Procurement Director” means the person holding the position created in § 19-11-216, as the head of the Office of State Procurement;
“Suspension” means the disqualification of a person to receive invitations for bids, requests for proposals, or the award of a contract by the state for a temporary period pending the completion of an investigation and any legal proceedings that may ensue because a person is suspected upon probable cause of engaging in criminal, fraudulent, or seriously improper conduct or failure or inadequacy of performance, which may lead to debarment;
1. “Technical and general services” means:
  1. Work accomplished by skilled individuals involving time, labor, and a degree of expertise, in which performance is evaluated based upon the quality of the work and the results produced;
  2. Work performed to meet a demand, including, but not limited to, work of a recurring nature that does not necessarily require special skills or extensive training; or
  3. The furnishing of labor, time, or effort by a contractor or vendor, not involving the delivery of any specific end product other than reports that are incidental to the required performance.
2. “Technical and general services” shall not be construed to include the procurement of professional services under § 19-11-801 et seq.;
“Using agency” means any state agency which utilizes any commodities or services purchased under this subchapter; and
“Written” or “in writing” means the product of any method of forming characters on paper, other materials, or viewable screens, which can be read, retrieved, and reproduced, including information that is electronically transmitted and stored.

(AA) The following commodities and services relating to proprietary software after the initial procurement:

(BB) Commodities and raw materials purchased by Arkansas Correctional Industries intended for use in goods for resale;

(CC) Commodities purchased by the Division of Correction for crop production, including without limitation fertilizers, seed, seedlings, and agricultural-related chemicals;

(DD) Repair services for hidden or unknown damages to machinery already purchased; and

(EE) Commodities and services purchased by an academic medical center using revenue derived from and used for patient care and hospital enterprises;

History. Acts 1979, No. 482, § 12; 1981, No. 600, §§ 1-5; A.S.A. 1947, § 14-240; Acts 1987, No. 983, § 1; 1991, No. 128, § 1; 1991, No. 749, § 2; 1991, No. 1018, § 1; 1999, No. 1398, § 27; 2001, No. 961, § 7; 2001 No. 1237, § 2; 2001 No. 1568, § 1; 2003, No. 487, § 1; 2003, No. 1315, §§ 4-7; 2005, No. 1680, § 1; 2007, No. 478, § 2; 2009, No. 251, § 28; 2009, No. 605, § 20; 2009, No. 606, § 20; 2009, No. 1211, § 1; 2011, No. 794, § 1; 2013, No. 453, § 1; 2015, No. 218, § 21; 2015, No. 557, § 3; 2017, No. 609, §§ 1, 2; 2017, No. 707, § 58; 2017, No. 893, § 2; 2019, No. 315, §§ 1751, 1752; 2019, No. 417, §§ 1-3; 2019, No. 658, § 3; 2019, No. 910, §§ 6102, 6103.

A.C.R.C. Notes. Acts 2017, No. 893, § 1, provided: “Legislative findings and intent.

“(a) The General Assembly acknowledges that there are not enough foster homes for every child in foster care to be placed in a foster home in his or her community;

“(b) The General Assembly recognizes the need for every child in foster care to be placed in a family setting in his or her community and with his or her community;

“(c) Biological families and children would be better served if children who are removed from their home could remain in their home community instead of being placed outside of their home community;

“(d) Placing a child who has been removed from his or her home in a family setting within the community and with his or her siblings would reduce the hardship on the child, his or her family, and family service workers who would no longer have to travel outside of the community for visitation or appointments with the child; and

“(e) It is the intent of the General Assembly to support the Division of Children and Family Services of the Department of Human Services to allow community providers to be compensated through a standard board payment when the provider provides a home with house parents.”

Amendments. The 2003 amendment by No. 487 added (14)(AA).

The 2003 amendment by No. 1315 rewrote (13); repealed former (14)(U) and redesignated the remaining subdivisions in (14) accordingly; added (14)(BB); rewrote (30)(A); and substituted “an exempt agency” for “exempt agencies” in (30)(B).

The 2005 amendment substituted “Division of the Legislative Audit” for “division of the Legislative Audit” in (14)(C)(ii); substituted “Arkansas Building Authority” for “Arkansas State Building Services or public institutions of” in (27)(B); deleted “departments” following “authority” in (30)(A); inserted present (34); and redesignated former (34) and (35) as present (35) and (36).

The 2007 amendment deleted former (14)(H) and redesignated the remaining subdivisions accordingly.

The 2009 amendment by No. 251 deleted (14)(E) and redesignated the subsequent subdivisions accordingly.

The 2009 amendment by identical acts Nos. 605 and 606 inserted (14)(AA) and made related changes.

The 2009 amendment by No. 1211 inserted (5)(B)(iii) and made a related change.

The 2011 amendment added (14)(BB) [now (14)(AA)].

The 2013 amendment added (14)(CC) through (14)(EE) [now (14)(BB) through (14)(DD)].

The 2015 amendment by No. 218 repealed former (14)(AA).

The 2015 amendment by No. 557 deleted the last sentence in (23)(A).

The 2017 amendment by No. 609 added (14)(EE); redesignated (23)(B) as the introductory language of (23)(B) and (23)(B)(i); added (23)(B)(ii); and made stylistic changes.

The 2017 amendment by No. 707 substituted “Department of Transportation” for “State Highway and Transportation Department” in (3)(B).

The 2017 amendment by No. 893 inserted “or a community provider that is licensed as a family style residential home or that provides a family home setting” in (14)(I).

The 2019 amendment by No. 315 substituted “rules” for “regulations” in (1)(A) and (21).

The 2019 amendment by No. 417 rewrote (4); added “incidental to supporting the continuous operation of proprietary software” in (14)(AA)(i); and rewrote (27).

The 2019 amendment by No. 658 substituted “the amount stated in § 22-9-203” for “twenty thousand dollars ($20,000)” in (14)(Y).

The 2019 amendment by No. 910 deleted “of the Department of Finance and Administration” following “Building Authority Division” in (14)(Y) and (27)(B) [now (27)(C)]; and substituted “Division of Higher Education” for “higher education” in (27)(B) [now (27)(C)].

Research References

U. Ark. Little Rock L.J.

Survey—Environmental Law, 14 U. Ark. Little Rock L.J. 779.

19-11-204. Definitions concerning source selection and contract formation.

As used in this subchapter:

“Competitive bidding” means the same as defined in § 19-11-234(a);
“Competitive sealed bidding” means the same as defined in § 19-11-229(a);
“Competitive sealed proposals” means the same as defined in § 19-11-230(a);
“Emergency procurement” means the acquisition of commodities or services, which if not immediately initiated, will endanger human life or health, state property, or the functional capability of a state agency;
“Established catalogue price” means the price included in a catalogue, price list, schedule, or other form that:
1. Is regularly maintained by a manufacturer or contractor;
2. Is either published or otherwise available for inspection by customers; and
3. States prices at which sales are currently or were last made to a significant number of buyers constituting the general buying public for the commodities or services involved;
“Invitation for bids” means all documents or electronic media, whether attached or incorporated by reference, utilized for soliciting bids in accordance with the procedures set forth in § 19-11-229, which refers to competitive sealed bidding;
“Multiple award contracts” means a method of procurement whereby an indefinite quantity contract is awarded to more than one (1) supplier for furnishing a like item or category of items;
“Purchase description” means specifications or any other document or electronic media describing the commodities or services to be procured;
“Request for proposals” means all documents or electronic media, whether attached or incorporated by reference, utilized for soliciting proposals in accordance with the procedures set forth in § 19-11-230, which refers to competitive sealed proposals, § 19-11-231, which refers to small procurements, § 19-11-232, which refers to proprietary or sole source procurements, § 19-11-233, which refers to emergency procurements, or § 19-11-234, which refers to competitive bidding;
1. “Request for qualifications” means a solicitation document requiring submittal of qualifications or specialized expertise in response to the scope of work or services required and does not require pricing.
2. Other than as provided in § 19-11-801 et seq., the request for qualifications process may only be used when, under rules promulgated by the State Procurement Director, the director determines in writing that the request for qualifications process is warranted;
“Responsible bidder or offeror” means a person who has the capability in all respects to perform fully the contract requirements and the integrity and reliability that will assure good faith performance;
“Responsive bidder” means a person who has submitted a bid under § 19-11-229, which refers to competitive sealed bidding, which conforms in all material respects to the invitation for bids, including the specifications set forth in the invitation; and
1. 1. “Small procurements” means a procurement not exceeding a purchase price of twenty thousand dollars ($20,000).
  2. Small procurements may be procured without seeking competitive bids or competitive sealed bids.
  3. However, competition should be used to the maximum extent practicable.
2. Items under state contract are excluded.

History. Acts 1979, No. 482, § 27; 1981, No. 600, § 11; A.S.A. 1947, § 14-252; Acts 1987, No. 540, § 1; 1995, No. 317, § 1; 1995, No. 340, § 1; 1995, No. 428, § 1; 1995, No. 507, § 1; 2001, No. 1237, § 3; 2007, No. 478, § 3; 2013, No. 1189, § 1; 2017, No. 1004, § 1.

Amendments. The 2007 amendment added (10) and redesignated the remaining subdivisions accordingly; and made stylistic changes.

The 2013 amendment substituted “ten thousand dollars ($10,000)” for “five thousand dollars ($5,000)” in (13)(A)(i).

The 2017 amendment redesignated part of former (13)(A)(i) as (13)(A)(ii), and redesignated former (13)(A)(ii) as (13)(A)(iii); in (13)(A)(i), substituted “twenty thousand dollars ($20,000)” for “ten thousand dollars ($10,000)”; substituted “Small procurements” for “Small purchases” in present (13)(A)(ii); and made a stylistic change.

19-11-205. Definitions concerning commodity management.

As used in this subchapter:

“Commodities” means, for purposes of this section and §§ 19-11-242 and 19-11-243, commodities owned by the state. See § 19-11-203, which refers to commodities;
“Excess commodities” means any commodity, other than expendable commodities, having a remaining useful life but which the using agency in possession of the commodity has determined is no longer required by such agency;
“Expendable commodities” means all tangible commodities other than nonexpendable commodities;
“Nonexpendable commodities” means all tangible commodities having an original acquisition cost of more than two thousand five hundred dollars ($2,500) per unit and a useful life of more than one (1) year; and
“Surplus commodities” means any commodities, other than expendable commodities, no longer having any use to the state. This definition includes obsolete commodities, scrap materials, and nonexpendable commodities that have completed their useful life cycle.

History. Acts 1979, No. 482, § 54; A.S.A. 1947, § 14-275; Acts 2003, No. 487, § 2.

Amendments. The 2003 amendment substituted “cost of more than two thousand five hundred dollars ($2,500) per unit” for “cost of over three hundred dollars ($300) per unit” in (2).

19-11-206. Definitions concerning intergovernmental relations.

As used in this subchapter:

“Cooperative purchasing agreement” means an agreement entered into as the result of a procurement conducted by, or on behalf of, more than one (1) public procurement unit or by a public procurement unit with an external procurement activity;
1. “External procurement activity” means any buying organization not located in this state which, if located in this state, would qualify as a public procurement unit.
2. An agency of the federal government is an external procurement activity;
“Local public procurement unit” means:
1. Any county, city, town, state agency, and any other subdivision of the state or public agency thereof;
2. Any fire protection district;
3. Any regional water distribution district;
4. Any rural development authority;
5. Any public authority;
6. Any public educational, health, or other institution;
7. Any nonprofit corporation during the time that it contracts with the Department of Human Services to provide services to individuals with developmental disabilities or for transportation services, so long as the contract exceeds seventy-five thousand dollars ($75,000) per year;
8. Any nonprofit corporation providing fire protection services to a rural area or providing drinking water to the public in a rural area; and
9. To the extent not prohibited by law, any other entity that expends public funds for the acquisition or leasing of commodities and services;
“Public procurement unit” means either a local public procurement unit or a state public procurement unit; and
“State public procurement unit” means the Office of State Procurement and any other procurement agency of this state.

History. Acts 1979, No. 482, § 64; A.S.A. 1947, § 14-281; Acts 1989, No. 57, § 1; 1997, No. 872, § 1; 1999, No. 41, § 1; 2001, No. 1237, § 4; 2007, No. 478, § 4; 2019, No. 421, § 1.

Amendments. The 2007 amendment rewrote (3)(G), and deleted former (3)(I) and redesignated the remaining subdivison accordingly.

The 2019 amendment substituted “‘Cooperative purchasing agreement’ means an agreement entered into as the result of a” for “‘Cooperative procurement’ means” in (1).

19-11-207. Applicability.

This subchapter shall apply to every expenditure of public funds by this state, acting through a state agency as defined in § 19-11-203, under any contract. This subchapter shall not apply to either grants or contracts between the state and its political subdivisions or other governments, except as provided in §§ 19-11-206 and 19-11-249 — 19-11-258. This subchapter also shall apply to the disposal of state commodities. This subchapter shall not apply to contracts between agencies, except as provided in §§ 19-11-206 and 19-11-249 — 19-11-258.
The provisions of this subchapter shall not preclude the acceptance of gifts and donations in the manner authorized by law.

History. Acts 1979, No. 482, § 9; A.S.A. 1947, § 14-237.2.

19-11-208. Exemptions.

Commodities and services need not be procured through the Office of State Procurement, if procured by the out-of-state offices of state agencies for that out-of-state office's use but shall, nevertheless, be procured subject to the requirements of this subchapter and the state procurement rules.

History. Acts 1979, No. 482, § 18; 1981, No. 600, § 6; A.S.A. 1947, § 14-246; Acts 2001, No. 1237, § 5; 2019, No. 315, § 1753.

Amendments. The 2019 amendment substituted “rules” for “regulations”.

19-11-209. Construction.

This subchapter shall be construed and applied to promote its underlying purposes and policies.

History. Acts 1979, No. 482, § 2; A.S.A. 1947, § 14-233.1.

19-11-210. Operation of other laws.

Unless displaced by the particular provisions of this subchapter, the principles of law and equity, including the Uniform Commercial Code, § 4-1-101 et seq., of this state, the law merchant, and law relative to capacity to contract, agency, fraud, misrepresentation, duress, coercion, mistake, or bankruptcy shall supplement its provisions.

History. Acts 1979, No. 482, § 5; A.S.A. 1947, § 14-235.

19-11-211. Obligation of “good faith”.

Every contract or duty within this subchapter imposes an obligation of good faith in its performance or enforcement. “Good faith” means honesty in fact in the conduct or transaction concerned and the observance of reasonable commercial standards of fair dealing.

History. Acts 1979, No. 482, § 6; A.S.A. 1947, § 14-236.

19-11-212. Existing contracts.

The administration of contracts in existence on July 1, 1979, shall be the responsibility of the appropriate officials described in this subchapter.

History. Acts 1979, No. 482, § 8; A.S.A. 1947, § 14-237.1.

19-11-213. Federal assistance requirements.

If federal assistance requirements or federal contract requirements conflict with this subchapter or rules promulgated under it, nothing in this subchapter or its rules shall prevent a state agency or political subdivision from complying with the terms and conditions of the federal assistance requirements or the federal contract requirements.

History. Acts 1979, No. 482, § 10; A.S.A. 1947, § 14-238; Acts 2015, No. 147, § 1; 2019, No. 315, § 1754.

Amendments. The 2015 amendment substituted “If” for “In the event”, inserted “or federal contract requirements”, deleted “the provisions of” preceding “this subchapter”, and added “or the federal contract requirements” at the end.

The 2019 amendment substituted “rules” for “regulations” twice.

19-11-214. Determinations and findings.

Written determinations and findings required by this subchapter shall be retained in an official contract file by the Office of State Procurement or by the state agency administering the contract for a period of five (5) years.

History. Acts 1979, No. 482, § 11; A.S.A. 1947, § 14-239; Acts 2001, No. 1237, § 6.

19-11-215. Office of State Procurement.

There is created within the Department of Transformation and Shared Services the Office of State Procurement to be administered by the State Procurement Director.
1. The Office of State Procurement shall be subject to the supervision and management of the Secretary of the Department of Transformation and Shared Services.
2. The rules authorized in this subchapter shall be approved by the secretary prior to the filing of the rules in accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 1979, No. 482, § 13; A.S.A. 1947, § 14-241; Acts 2001, No. 1237, § 7; 2019, No. 315, § 1755; 2019, No. 910, § 6104.

Publisher's Notes. Acts 1979, No. 482, § 17, provided that all rights, etc., relating to procurement exercised by any state agency that did not have an agency purchasing official were transferred to the Office of State Purchasing, except as otherwise provided.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “rules” twice in (b)(2).

The 2019 amendment by No. 910 substituted “Department of Transformation and Shared Services the” for “Department of Finance and Administration an” in (a); in (b)(1), substituted “Office of State Procurement” for “office” and “Secretary of the Department of Transformation and Shared Services” for “Director of the Department of Finance and Administration”; and substituted “secretary” for “Director of the Department of Finance and Administration” in (b)(2).

19-11-216. State Procurement Director.

1. The executive head of the Office of State Procurement is designated as the administrator of the Office of State Procurement, and as such, he or she shall be known and designated as the “State Procurement Director”.
2. The State Procurement Director shall be appointed by the Secretary of the Department of Transformation and Shared Services.
The State Procurement Director shall be at least thirty (30) years of age, of good moral character, and of demonstrated ability or capacity in the field of purchasing commodities and services.

History. Acts 1979, No. 482, § 14; 1983, No. 517, § 1; A.S.A. 1947, § 14-242; Acts 2001, No. 1237, § 8; 2007, No. 478, § 5; 2019, No. 910, § 6105.

Amendments. The 2007 amendment added “and services” at the end of (b).

The 2019 amendment substituted “Secretary of the Department of Transformation and Shared Services” for “Director of the Department of Finance and Administration” in (a)(2).

19-11-217. Powers and duties of State Procurement Director.

The State Procurement Director shall serve as the principal procurement officer of the state.
1. Except as otherwise provided in this subchapter and upon the approval of the Secretary of the Department of Transformation and Shared Services, the State Procurement Director shall have the authority and responsibility to promulgate rules consistent with this subchapter.
2. In addition, consistent with the provisions of this subchapter, the director may adopt rules governing the internal procedures of the Office of State Procurement.
Except as otherwise specifically provided in this subchapter, the director, within the limitations of this subchapter and the rules promulgated under authority of this subchapter:
1. Shall procure or supervise the procurement of all commodities and services for each state agency not having an agency procurement official and, when requested to do so by such an official, procure commodities and services not otherwise under state contract;
2. 1. Shall develop and implement a plan for all state agencies acquiring vehicles that will reduce the overall annual petroleum consumption of those state agencies by at least ten percent (10%) by January 1, 2009, through measures that include:
    1. The use of alternative fuels, as defined by 42 U.S.C. § 13211, as it existed on January 1, 2005;
    2. The acquisition of vehicles with higher fuel economy, such as a hybrid vehicle operating on electricity and gasoline or diesel or bio-diesel fuel; and
    3. The substitution of cars for light trucks.
  2. 1. By January 30 of each year, the director shall submit to the Legislative Council his or her report evaluating the progress of the plan toward achieving the goal set in subdivision (c)(2)(A) of this section.
    2. The report shall include:
      1. The number and type of alternative fueled vehicles, as defined by 42 U.S.C. § 13211, as it existed on January 1, 2005, procured;
      2. The total number of alternative fueled vehicles used by each state agency;
      3. The difference between the cost of the purchase, maintenance, and operation of alternative fueled vehicles and comparable conventionally fueled motor vehicles, as defined by 42 U.S.C. § 13211, as it existed on January 1, 2005;
      4. An evaluation of the plan's success; and
      5. Suggestions for modifying the plan;
3. Shall manage and establish internal procedures for the office;
4. Shall sell, trade, or otherwise dispose of surplus commodities belonging to the state;
5. May establish and maintain programs for the inspection, testing, and acceptance of commodities and services;
6. Shall establish and manage a list of vendors desiring written notice of invitations for bid;
7. May establish, by rule, a fee for receiving a written or electronic notice of invitations for bid;
8. Shall ensure compliance with this subchapter and implementing rules by reviewing and monitoring procurements conducted by any designee, department, agency, or official delegated authority under this subchapter;
9. Shall create a roster of expiring contracts entered into by a state agency for which there is no new requisition;
10. Shall analyze information captured in state systems to measure and track the contract routing process to identify stakeholders that may be contributing to the elongation of the contracting process;
11. Shall ensure that vendor performance reports are available to and searchable by state agencies;
12. Shall provide for enhanced training on the drafting of specifications for procurements; and
13. Shall maintain records of bids and proposals that are rejected by the office for failure to adhere to the mandatory requirements of a solicitation.

History. Acts 1979, No. 482, § 15; A.S.A. 1947, § 14-243; Acts 1991, No. 1018, § 2; 2001, No. 1237, § 9; 2005, No. 2322, § 1; 2019, No. 315, §§ 1756, 1757; 2019, No. 417, § 4; 2019, No. 418, § 1; 2019, No. 419, § 1; 2019, No. 910, § 6106.

Amendments. The 2005 amendment inserted present (c)(2); and redesignated former (c)(2)-(7) to present (c)(3)-(8).

The 2019 amendment by No. 315 substituted “rules” for “regulations” in (b)(1) and (c)(8); and substituted “rule” for “regulation” in (c)(7).

The 2019 amendment by No. 417 added (c)(9).

The 2019 amendment by No. 418 added (c)(10) and (c)(11).

The 2019 amendment by No. 419 added (c)(12) and (c)(13).

The 2019 amendment by No. 910, in (b)(1), substituted “Secretary of the Department of Transformation and Shared Services” for “Director of the Department of Finance and Administration”, and “rules” for “regulations”.

19-11-218. Assistants and designees — Written delegation orders.

Subject to the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq., and the approval of the Secretary of the Department of Transformation and Shared Services, the State Procurement Director may:
1. Employ and supervise such assistants and other persons as may be necessary;
2. Fix their compensation as provided by law; and
3. 1. Delegate authority to designees or to a state agency by issuing a written delegation order, within the limitations of state law and the state procurement rules.
  2. A written delegation order issued under this section shall:
    1. Include an expiration date for the written delegation order;
    2. Be publicly posted on the official website of the Office of State Procurement;
    3. Remain in effect under the original terms unless the terms of the written delegation order are modified or rescinded in writing by the director;
    4. Not be issued for a term that exceeds two (2) years; and
    5. Be narrowly tailored if the written delegation order is based on the type of commodity or service being procured.
  3. The director shall maintain records of each written delegation order issued under this section.
  4. A person who is to be given authority under a written delegation order issued under this section shall complete training on state procurement laws, as provided for in this subchapter and in the rules adopted by the director, before the written delegation order is issued.
The director shall adopt rules to:
1. Implement the requirements for written delegation orders under this section; and
2. Outline the procurement training required under this section.

History. Acts 1979, No. 482, § 16; A.S.A. 1947, § 14-244; Acts 2001, No. 1237, § 10; 2003, No. 487, § 3; 2019, No. 315, § 1758; 2019, No. 420, § 1; 2019, No. 910, § 6107.

Amendments. The 2003 amendment substituted “procurement regulations” for “procurement rules and regulations” in (3).

The 2019 amendment by No. 315 substituted “rules” for “regulations” in (3) [now (a)(3)(A)].

The 2019 amendment by No. 420 added “Written delegation orders” in the section heading; designated the existing provisions as (a); added the (a)(3)(A) designation; substituted “by issuing a written delegation order” for “as the director may deem appropriate” in (a)(3)(A); added (a)(3)(B)-(D); added (b); and made stylistic changes.

The 2019 amendment by No. 910 inserted “and the approval of the Secretary of the Department of Transformation and Shared Services” in the introductory language [now the introductory language of (a)].

19-11-219. Legal counsel — Contract review.

The Attorney General shall act as counsel for the State Procurement Director in preparation of necessary contracts and in all legal matters.
1. A contract that the director has designated as requiring review shall be reviewed by a person employed as an attorney with a state agency.
2. The review required under this subsection shall occur before the contract is executed.
The director shall adopt rules to implement this section, including without limitation rules to:
1. Designate contracts that require review under this section, which may include without limitation contracts that:
  1. Exceed a certain dollar amount;
  2. Modify the standard state terms and conditions; and
  3. Are based on other stated criteria; and
2. Identify the requirements for the attorneys who may review contracts under this section, including without limitation:
  1. An attorney employed with the Office of State Procurement, an institution of higher education, or the Office of the Attorney General; and
  2. Any other attorney employed by the state and licensed to practice law in Arkansas.

History. Acts 1979, No. 482, § 26; A.S.A. 1947, § 14-251.3; Acts 2001, No. 1237, § 11; 2019, No. 418, § 2.

Amendments. The 2019 amendment added “Contract review” in the section heading; added the (a) designation; and added (b) and (c).

19-11-220. Agency procurement officials.

In addition to any state agency authorized by rule to have an agency procurement official, each of the following state agencies may elect to have such an official for commodities, technical and general services, and professional and consultant services, which are not within the exclusive jurisdiction of the State Procurement Director and which are not under state contract:
1. Arkansas Department of Transportation;
2. Arkansas State University-Beebe;
3. Arkansas State University;
4. Arkansas State University system;
5. Arkansas Tech University;
6. Henderson State University;
7. Southern Arkansas University;
8. University of Arkansas at Fayetteville;
9. University of Arkansas Fund entities;
10. University of Arkansas at Little Rock;
11. University of Arkansas at Monticello;
12. University of Arkansas at Pine Bluff;
13. University of Arkansas for Medical Sciences;
14. University of Central Arkansas;
15. Arkansas State University-Mountain Home;
16. Arkansas State University-Newport;
17. Black River Technical College;
18. Cossatot Community College of the University of Arkansas;
19. East Arkansas Community College;
20. National Park College;
21. Arkansas Northeastern College;
22. Arkansas State University Mid-South;
23. North Arkansas College;
24. Northwest Arkansas Community College;
25. Arkansas State University Three Rivers;
26. Ozarka College;
27. Phillips Community College of the University of Arkansas;
28. University of Arkansas Community College at Morrilton;
29. University of Arkansas — Pulaski Technical College;
30. University of Arkansas Community College at Rich Mountain;
31. SAU-Tech;
32. Southeast Arkansas College;
33. South Arkansas Community College;
34. University of Arkansas Community College at Batesville;
35. University of Arkansas Community College at Hope-Texarkana;
36. University of Arkansas at Fort Smith; and
37. Division of Higher Education.
1. Each official shall manage and establish internal procedures for the procurement office of the state agency authorized to have the official to ensure adequate administrative procedures and controls pursuant to law and the procurement rules.
2. 1. Approval by the Office of State Procurement of contracts administered by the official shall not be required, unless a determination has been made by the Secretary of the Department of Transformation and Shared Services that administrative procedures and controls are not adequate.
  2. 1. Such a determination shall result in notification by the secretary of the specific deficiencies and the reasons therefor.
    2. After the notification, approval of contracts by the Office of State Procurement shall be required until the secretary determines that the deficiencies have been corrected.
Except for the promulgation by the director of rules authorized in this subchapter and the letting of state contracts, all rights and practices granted herein to the Office of State Procurement and the director are granted to an official in the administration of contracts for the state agency authorized to have the official.
Nothing in this section is intended to prohibit a state agency from utilizing the Office of State Procurement in the same manner as state agencies not authorized to have officials.

History. Acts 1979, No. 482, § 19; 1981, No. 600, §§ 7, 8; A.S.A. 1947, § 14-247; Acts 1991, No. 1018, § 3; 2001, No. 1237, § 12; 2005, No. 1680, § 2; 2009, No. 605, § 21; 2009, No. 606, § 21; 2013, No. 1393, § 8; 2015, No. 218, § 22; 2016, No. 140, § 12; 2016, No. 141, § 12; 2017, No. 178, § 8; 2017, No. 179, § 10; 2017, No. 707, § 59; 2019, No. 204, § 4; 2019, No. 315, §§ 1759-1761; 2019, No. 910, §§ 6108, 6109; 2020, No. 129, § 7.

Amendments. The 2005 amendment substituted “commodities, technical and general services, and professional and consultant services” for “commodities and services” in (a).

The 2009 amendment by identical acts Nos. 605 and 606 inserted (a)(2) and redesignated the subsequent subdivisions accordingly.

The 2013 amendment substituted “College of The Ouachitas” for “Ouachita Technical College” in (a)(26) [now (a)(25)].

The 2015 amendment repealed former (a)(2).

The 2016 amendment by No. 140 substituted “Arkansas State University Mid-South” for “Mid-South Community College” in (a)(23) [now (a)(22)].

The 2016 amendment by No. 141 substituted “National Park College” for “National Park Community College” in (a)(21) [now (a)(20)].

The 2017 amendment by No. 178 added “University of Arkansas” preceding “Pulaski Technical College” in (a)(29).

The 2017 amendment by No. 179 substituted “University of Arkansas Community College at Rich Mountain” for “Rich Mountain Community College in (a)(30).

The 2017 amendment by No. 707 substituted “Department of Transportation” for “State Highway and Transportation Department” in (a)(1).

The 2019 amendment by No. 204 substituted “University of Arkansas Community College at Hope-Texarkana” for “University of Arkansas Community College at Hope” in (a)(35).

The 2019 amendment by No. 315 substituted “rule” for “regulation” in the introductory language of (a); substituted “rules” for “regulations” in (b)(1); and deleted “and regulations” following “rules” in (c).

The 2019 amendment by No. 910 substituted “Division of Higher Education” for “Department of Higher Education” in (a)(37); substituted “Secretary of the Department of Transformation and Shared Services” for “Director of the Department of Finance and Administration” in (b)(2)(A); and substituted “secretary” for “Director of the Department of Finance and Administration” in (b)(2)(B)(i) and (b)(2)(B)(ii).

The 2020 amendment substituted “Arkansas State University Three Rivers” for “College of the Ouachitas” in (a)(25).

19-11-221. Agency procurement official for Division of Correction.

In addition to those agencies, institutions, and departments of state government enumerated in § 19-11-220 which may elect to have agency procurement officials for commodities, technical and general services, and professional and consultant services which are not within the exclusive jurisdiction of the State Procurement Director, which are not under state contract, and which are not procured in accordance with § 19-11-230, the Division of Correction and the Division of Community Correction may have such officials for the sole purpose of procuring perishable food items, who shall possess all powers, functions, and duties as authorized for agency procurement officials under this subchapter with respect to perishable food items only.
1. The officials of the Division of Correction and the Division of Community Correction shall have exclusive authority to procure perishable food items in accordance with applicable administrative procedures and controls established pursuant to this subchapter and the procurement rules.
2. Except as noted in this subsection and in subsection (c) of this section, the officials of the Division of Correction and the Division of Community Correction shall be subject to all other provisions and requirements of this subchapter and administrative procedures controls and procurement rules provided in or promulgated pursuant to it.
1. 1. The Board of Corrections, annually, and at more frequent intervals if deemed necessary, shall make studies and determine whether it would be in the best interest of the management of the farm croplands at the farm units or at each of the separate farm units of the Division of Correction to provide for the lease of farm machinery and equipment, or certain items thereof, required for the production of farm crops, or whether it would be in the better interest of the Division of Correction to acquire such items of farm machinery and equipment by purchase.
  2. 1. Upon conclusion of the study, the board, by resolution adopted by a majority of the members of the board at a regular or special meeting, may authorize the agency procurement official for the Division of Correction to advertise for bids for the leasing of farm equipment or for the purchase of the items of farm equipment noted in the resolution.
    2. 1. No lease of farm equipment shall be for more than two (2) years nor extend beyond June 30 of the fiscal biennium for which current funds have been appropriated for the operation of the Division of Correction.
      2. However, nothing in this section shall prohibit the lease from including provisions, terms, or conditions upon which the lease may be renewed for an additional period of time, not exceeding two (2) years, at the option of the board.
2. 1. In the event the board determines to provide for the leasing of farm machinery or equipment necessary in the farming operations of the Division of Correction, the official of the Division of Correction shall be the exclusive purchasing agent for advertising of bids and awarding of contracts for the leases, subject to the approval of the Director of the Division of Correction and the board.
  2. In the advertising for bids and the awarding of contracts, the state laws, procurement procedures, and rules shall be complied with in awarding the contracts.
  3. 1. It shall not be mandatory upon the board to award the contract for the furnishing of farm machinery and equipment under a lease agreement to the lowest bidder, unless the board shall determine that the awarding of the contract to such bidder would be in the best interest of the farming operations of the Division of Correction.
    2. In that event, the board may award the contract to the bidder whose bid proposal is deemed by the board to be in the better interest of the farming operations of the Division of Correction.
  4. In making this determination the board shall consider, but not be limited by, the following factors:
    1. The type of equipment to be furnished;
    2. Compatibility of the equipment with the training and experience of the farm managers and employees of the Division of Correction and the experience and skills of the inmates who will be using the equipment;
    3. Provisions contained in the bid proposal providing for maintenance, repair, and service and upkeep of the equipment during the lease period, availability of the service and repair facilities, and source of replacement or repair parts;
    4. The age and condition of the equipment to be leased; and
    5. Such other factors as the board deems essential to performance under the contract and dependability and reliability of the equipment to be furnished during the period of the lease.
3. 1. 1. In determining the items of farm machinery and equipment to be acquired by purchase, the board may designate, if the board determines it to be within the better interest of the management of farm croplands of the Division of Correction, those items of farm machinery and equipment to be purchased.
    2. The board may restrict the bid to equipment produced by no fewer than two (2) manufacturers of each item of equipment.
  2. In making this determination, the board shall include, but not be limited to, a consideration of the following factors:
    1. The types of farm machinery equipment now being used by the Division of Correction and the experience gained by the Division of Correction in the use of the equipment for the purposes for which it is being purchased;
    2. Availability of service and replacement and spare parts for the equipment;
    3. Familiarity with the equipment of the employees or inmates responsible for the maintenance, repair, and upkeep thereof;
    4. Compatibility of the farm machinery and equipment with repair and maintenance shop facilities available at the Division of Correction;
    5. Access to the dealer responsible for warranty service; and
    6. Such additional factors as the board deems pertinent to the better interests of the management and operation of the farm crop lands of the Division of Correction.
  3. 1. All purchases of farm machinery and equipment shall be in accordance with the applicable state procurement laws and rules promulgated thereunder.
    2. Contracts for the providing or furnishing of service, repair, and replacement parts of farm machinery and equipment may include provision for the furnishing of a stated quantity of replacement and spare parts to be stored at the Division of Correction or may include contract prices for major or standard items of service or for the furnishing of replacement and spare parts at stated prices, which shall be at a discount from the published dealer price list, as the board may deem in the best interest of the Division of Correction.
    3. As an alternative, the board may elect to authorize the official to acquire replacement and spare parts on a need basis by following the applicable state procurement procedure in the acquisition of each item thereof as needed.
4. 1. The official of the Division of Correction acting under the instruction and direction of the board and the Director of the Division of Correction shall be the sole and exclusive purchasing agent for the acquisition of farm machinery and equipment, whether by lease or purchase, and for the acquisition of repair services for farm machinery and equipment and repair and replacement parts therefor in the manner set forth in this section, and for the acquisition of those items covered in subsection (b) of this section.
  2. Nothing in this section shall prohibit the Division of Correction from requesting the State Procurement Director to make available the services of the Office of State Procurement in the acquisition of any item for which the official of the Division of Correction is the exclusive purchasing agent under this section.

History. Acts 1981, No. 240, §§ 1-3; A.S.A. 1947, §§ 14-247.1 — 14-247.3; Acts 1997, No. 351, § 1; 2001, No. 1237, § 13; 2005, No. 1680, § 3; 2019, No. 315, §§ 1762-1764.

A.C.R.C. Notes. Acts 2001, No. 323, § 1, provided:

“Legislative Intent. The General Assembly, in Act 549 of 1993, established the Arkansas Department of Community Punishment and delineated its purposes. Confusion in the public's perception, with regard to the purposes of the department, exists and will persist because of the inconsistency between the name of the department and its established purposes. The purpose of this act is to provide the department with a name that more accurately describes its role as an agency that is intended to fulfill the legislatively established purposes of supervision, treatment, rehabilitation, and restoration of adult offenders as useful law-abiding citizens within the community and to provide its supervisory board with a name consistent with the department's name change.”

Amendments. The 2005 amendment substituted “commodities, technical and general services, and professional and consultant services” for “commodities and services” in (a).

The 2019 amendment substituted “rules” for “regulations” in (b)(1) and (b)(2); and deleted “and regulations” following “rules” in (c)(2)(B) and (c)(3)(C)(i).

19-11-222. Exclusive jurisdiction over procurement — Definitions.

The State Procurement Director has exclusive jurisdiction over the procurement of:
1. Items subject to Arkansas Constitution, Amendment 54;
2. Wholesale gasoline, oil, and related products;
3. Tires;
4. 1. Passenger motor vehicles and trucks, except highway construction and highway maintenance equipment, any specialized type of equipment used in highway construction, or a motor vehicle purchased under § 6-21-307, except as otherwise provided in this subchapter.
  2. The director may issue a request for qualifications for the procurement of passenger motor vehicles and trucks to compile a qualified vendor list that includes vendors in multiple areas of the state;
5. Paper products;
6. New and used school buses for state agencies;
7. A purchasing card program and travel card program to include implementation and administration; and
8. An electronic commerce procurement solution to include planning and administration consistent with the established financial systems of the state.
As used in this section:
1. “Printing” means the process of transferring images, by the use of standard industrial type printer ink, upon documents such as letterhead, envelopes, pamphlets, booklets, and forms;
2. “Stationery” means imprinted letterhead and envelopes used by the General Assembly and other departments of state government to identify an individual department, agency, board, commission, etc.; and
3. “Supplies” means paper and inks used to produce stationery.

History. Acts 1979, No. 482, § 20; 1981, No. 600, § 9; A.S.A. 1947, § 14-248; Acts 1991, No. 749, § 3; 1993, No. 896, § 4; 2001, No. 1237, § 14; 2001, No. 1309, § 1; 2003, No. 487, § 4; 2005, No. 1680, § 4; 2017, No. 442, § 2; 2017, No. 1004, § 2.

Amendments. The 2003 amendment deleted “antifreeze” following “oil” in (a)(2); deleted (a)(4) and redesignated the remaining subdivisions accordingly; in present (a)(7), inserted “and travel card program” and added “and” to the end; and added present (a)(8).

The 2005 amendment deleted “commodities and services” from the end of (a); and deleted “and school districts” from the end of (a)(6).

The 2017 amendment by No. 442 substituted “has” for “shall have” in the introductory language of (a); and, in (a)(4) [now (a)(4)(A)], deleted “or” preceding “any specialized” and inserted “or a motor vehicle purchased under § 6-21-307”.

The 2017 amendment by No. 1004 redesignated former (a)(4) as (a)(4)(A); and added (a)(4)(B).

19-11-223. Commodities, technical and general services, and professional and consultant services under state contract.

1. In addition to establishing a state contract for those commodities, technical and general services, and professional and consultant services within the exclusive jurisdiction of the State Procurement Director under § 19-11-222, the director may award a mandatory state contract for other commodities, technical and general services, and professional and consultant services when the director determines that combining the collective purchasing power of the state would be beneficial to the state.
2. The director shall submit a mandatory state contract that is not for commodities or services within the exclusive jurisdiction of the director to the Legislative Council or, if the General Assembly is in session, to the Joint Budget Committee, for review.
1. Unless an exemption is approved by the director under subdivision (b)(2) of this section, a state agency that requires commodities, technical and general services, and professional and consultant services that are under a mandatory state contract shall procure these commodities, technical and general services, and professional and consultant services exclusively under the mandatory state contract.
2. 1. Except as provided in § 19-11-233, the director may approve an exemption from a mandatory state contract awarded under this section only if the state agency demonstrates that substantial savings will likely be effected by purchasing outside of the mandatory state contract.
  2. 1. Approval of an exemption from a mandatory state contract under this section shall be in writing.
    2. Denial of a request for an exemption from a mandatory state contract under this section is not required to be in writing.
All contracts concerning commodities, technical and general services, and professional and consultant services shall disclose a projected total cost, including without limitation expenditures that may be incurred under all available periods of extension if the extensions were executed.
The director shall:
1. Identify and prioritize opportunities for awarding mandatory state contracts under this section;
2. Conduct mandatory state contract procurements under this section that would produce savings for the state;
3. Attempt to invite the participation of the potentially affected state agencies in the development and evaluation of a mandatory state contract procurement;
4. Post notice of his or her intent to procure a mandatory state contract on the official website of the Office of State Procurement; and
5. 1. Promote the use of mandatory state contracts among county and city governments, including without limitation making information about the mandatory state contracts readily available and searchable.
  2. The director shall adopt rules to include any necessary conditions, reporting, or document retention standards related to the director's duty to promote mandatory state contract use under this subsection.

History. Acts 1979, No. 482, § 21; 1981, No. 600, § 10; A.S.A. 1947, § 14-249; Acts 2001, No. 1237, §§ 15, 16; 2005, No. 1680, § 5; 2019, No. 421, § 2.

Amendments. The 2005 amendment substituted “commodities, technical and general services, and professional and consultant services” for “commodities and services” throughout (a), (c) and (d); substituted “commodities, technical and general services, or professional and consultant services” for “commodities or services” in (a) and (c); and added (e).

The 2019 amendment rewrote the section.

19-11-224. Interest and carrying charges.

State agencies, including exempt agencies, may enter into contracts which contemplate the payment of interest and late charges, but only when such late charges are incurred sixty (60) days after payment is due or carrying charges under such rules as may be promulgated by the State Procurement Director.

History. Acts 1979, No. 482, § 22; A.S.A. 1947, § 14-250; Acts 1997, No. 1066, § 2; 2001, No. 1237, § 17; 2019, No. 315, § 1765.

Amendments. The 2019 amendment substituted “rules” for “regulations”.

19-11-225. Rules.

1. The State Procurement Director shall adopt rules in accordance with the applicable provisions of this subchapter and of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
2. A rule promulgated by the director under this subchapter is not effective until the rule is:
  1. Submitted to and reviewed by the Review Subcommittee of the Legislative Council; and
  2. Reviewed and approved by the Legislative Council under § 10-3-309.
A rule shall not change any commitment, right, or obligation of the state or of a contractor under a contract in existence on the effective date of the rule.
1. A clause that is required by rule to be included is not incorporated by operation of law in any state contract without the consent of both parties to the contract to the incorporation.
2. The parties to the contract may give such consent to incorporation by reference at any time after the contract has been entered into and without the necessity of consideration passing to either party.

History. Acts 1979, No. 482, § 23; A.S.A. 1947, § 14-251; Acts 2001, No. 1237, § 18; 2019, No. 315, § 1766; 2019, No. 419, § 2.

Amendments. The 2019 amendment by No. 315 substituted “Rules” for “Regulations” in the section heading and in (a); and made similar changes in (b) and (c)(1).

The 2019 amendment by No. 419 substituted “Rules” for “Regulations” in the section heading; redesignated (a) as (a)(1); substituted “The State Procurement Director shall adopt rules” for “Regulations shall be promulgated by the State Procurement Director” in (a)(1); added (a)(2); substituted “A rule shall not change” for “No regulation shall change” in (b); substituted “rule” for “regulation” in (b) and (c)(1); and, in (c)(1), substituted “A clause that” for “No clause which”, and substituted “is not” for “shall be considered to be”.

19-11-226. Recommendations.

The State Procurement Director shall maintain a close and cooperative relationship with the using agencies.
1. The director shall afford each using agency reasonable opportunity to participate in and make recommendations with respect to matters affecting the using agency.
2. At any time, any using agency may make recommendations to the director, and the director may make recommendations to any using agency.
3. The Secretary of the Department of Transformation and Shared Services may make recommendations to the director.

History. Acts 1979, No. 482, § 24; A.S.A. 1947, § 14-251.1; Acts 2001, No. 1237, § 19; 2019, No. 910, § 6110.

Amendments. The 2019 amendment substituted “Secretary of the Department of Transformation and Shared Services” for “Director of the Department of Finance and Administration” in (b)(3).

19-11-227. Statistical data.

The State Procurement Director and the Secretary of the Department of Transformation and Shared Services shall cooperate with the Division of Budgets and Accounting in the preparation of statistical data concerning the procurement and disposition of all commodities and services, unless otherwise provided in this subchapter.

History. Acts 1979, No. 482, § 25; A.S.A. 1947, § 14-251.2; Acts 2001, No. 1237, § 20; 2019, No. 910, § 6111.

Amendments. The 2019 amendment inserted “and the Secretary of the Department of Transformation and Shared Services”.

19-11-228. Methods of source selection.

Unless otherwise authorized by law, all contracts shall be awarded by competitive sealed bidding, pursuant to § 19-11-229, which refers to competitive sealed bidding, except as provided in:

Section 19-11-230, which refers to competitive sealed proposals;
Section 19-11-231, which refers to small procurements;
Section 19-11-232, which refers to proprietary or sole source procurements;
Section 19-11-233, which refers to emergency procurements;
Section 19-11-234, which refers to competitive bidding;
Section 19-11-262, which refers to multiple award contracts; or
Section 19-11-263, which refers to special procurements.

History. Acts 1979, No. 482, § 28; 1981, No. 600, § 12; A.S.A. 1947, § 14-253; Acts 1995, No. 428, § 2; 1995, No. 507, § 2; 2001, No. 1237, § 21.

19-11-229. Competitive sealed bidding — Definition.

Definition. “Competitive sealed bidding” means a method of procurement which requires:
1. Issuance of an invitation for bids with a purchase description and all contractual terms and conditions applicable to the procurement;
2. Public, contemporaneous opening of bids at a predesignated time and place;
3. Unconditional acceptance of a bid without alteration or correction, except as authorized in §§ 19-11-204 and 19-11-228 — 19-11-240;
4. Award to the responsive and responsible bidder who has submitted the lowest bid that meets the requirements and criteria set forth in the invitation for bids; and
5. Public notice.
1. Contracts exceeding an estimated purchase price of seventy-five thousand dollars ($75,000) shall be awarded by competitive sealed bidding unless a determination is made in writing by the agency procurement official or the State Procurement Director that this method is not practicable and advantageous and specifically states the reasons that this method is not practicable and advantageous.
2. The director may provide by rule that it is not practicable to procure specified types of commodities, technical and general services, or professional and consultant services by competitive sealed bidding.
3. Factors to be considered in determining whether competitive sealed bidding is not practicable shall include whether:
  1. Purchase descriptions are suitable for award on the basis of the lowest evaluated bid price; and
  2. The available sources, the time and place of performance, and other relevant circumstances are appropriate for the use of competitive sealed bidding.
When it is considered impractical to initially prepare a purchase description to support an award based on price, an invitation for bids may be issued requesting the submission of unpriced technical proposals to be followed by an invitation for bids limited to those bidders whose technical proposals meet the requirements set forth in the first invitation.
Notice inviting bids shall:
1. Be given not fewer than five (5) calendar days nor more than ninety (90) calendar days preceding the date for the opening of bids by publishing the notice at least one (1) time in at least one (1) newspaper having general circulation in the state or posting by electronic media, but in all instances, adequate notice shall be given;
2. Include a general description of the commodities, technical and general services, or professional and consultant services to be procured;
3. State where invitations for bids may be obtained;
4. State the date, time, and place of bid opening; and
5. State the time, date, and place of the solicitation conference if a solicitation conference is to be held before the opening of bids to provide information to prospective bidders.
Bids shall be opened publicly in the presence of one (1) or more witnesses at the time and place designated in the invitation for bids. Each bid, together with the name of the bidder, shall be recorded and open to public inspection.
1. 1. Bids shall be evaluated based on the requirements set forth in the invitation for bids.
  2. These requirements may include criteria to determine acceptability such as:
    1. Inspection;
    2. Testing;
    3. Quality;
    4. Workmanship;
    5. Delivery;
    6. Past performance; and
    7. Suitability for a particular purpose and criteria affecting price such as life-cycle or total ownership costs.
2. 1. The invitation for bids shall set forth the evaluation criteria to be used.
  2. No criteria may be used in bid evaluation that were not set forth in the invitation for bids.
3. 1. A time discount may be considered in the evaluation of a bid only:
    1. If the state agency specifically solicits pricing that requests a time discount; and
    2. Under the structured terms of the invitation for bids.
  2. If a bidder offers a time discount as part of its bid without the solicitation of time discounts by the state agency, the state agency shall not consider the time discount.
1. Correction of patent or provable errors in bids that do not prejudice other bidders or withdrawal of bids may be allowed only to the extent permitted under rules promulgated by the director and upon written approval of the Attorney General or a designee of such officer.
2. No award shall be made on the basis of a corrected bid, if the corrected bid exceeds the next lowest bid of a responsible bidder.
3. 1. The director or an agency procurement official may seek the clarification of a submitted bid.
  2. A written response by a bidder under this subsection shall only clarify the submitted bid and shall not add any substantive language to the submitted bid or change the terms of the submitted bid.
  3. If the bidder fails or refuses to clarify any matter questioned about the bidder's bid in writing by the deadline set by the director or agency procurement official, the bid may be rejected.
  4. If the bidder clarifies the matter questioned under this subsection in writing, the clarification shall be evaluated and become a part of any contract awarded on the basis of the bidder's bid.
1. The contract shall be awarded with reasonable promptness by written notice to the lowest responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids.
2. 1. Except with respect to a contract being procured for a construction project, the director or the head of a procurement agency may negotiate a lower bid price, including changes in the bid requirements, with the lowest responsive and responsible bidder if:
    1. All bids received from responsive and responsible bidders exceed available funding as certified by the appropriate fiscal officer of the procurement agency; or
    2. It appears that additional savings to the state may result from negotiation.
  2. 1. 1. If negotiations with the lowest responsive and responsible bidder conducted under subdivision (h)(2)(A) of this section fail to result in a lower bid price, the state may negotiate for a lower bid price with the next lowest responsive and responsible bidder.
      2. If negotiations with the next lowest responsive and responsible bidder under subdivision (h)(2)(B)(i)(a) of this section fail to result in a lower bid price, the state may negotiate for a lower bid price with the next lowest responsive and responsible bidder until an acceptable lower bid price is negotiated or the state determines that negotiations are no longer in the best interest of the state.
    2. A bid price resulting from negotiations conducted under this section shall not be higher than:
      1. The bid price originally submitted by the lowest responsive and responsible bidder; or
      2. A price previously offered in negotiations by a responsive and responsible bidder.
    3. Negotiations conducted under this section do not preclude the use of other methods of source selection or procurement authority provided under this subchapter.
  3. [Effective July 1, 2021.]
    1. Negotiations under this subsection shall be conducted by a person who is trained and certified in negotiation and procurement processes.
    2. 1. The Office of State Procurement shall provide for the training and certification required under this subsection.
      2. The training provided by the office shall be specific to Arkansas law.
3. All other bidders requesting to be notified of the award decision shall be promptly notified of the decision.
1. An invitation for bids may be cancelled or any or all bids may be rejected in writing by the director or the agency procurement official.
2. Before the rejection of a bid by the director, the decision to reject the bid may be validated with the state agency for which the procurement is being conducted.
3. A bid may be rejected for failure to adhere to mandatory requirements.

History. Acts 1979, No. 482, § 29; 1981, No. 600, §§ 13-16; A.S.A. 1947, § 14-254; Acts 1987, No. 540, § 2; 1995, No. 317, § 2; 1995, No. 340, § 2; 2001, No. 1237, § 22; 2003, No. 487, § 5; 2005, No. 1680, § 6; 2013, No. 1189, § 2; 2017, No. 696, § 1; 2017, No. 1004, § 3; 2019, No. 315, §§ 1767, 1768; 2019, No. 419, §§ 3-7.

Amendments. The 2003 amendment, in (f), added the subdivision designations and made related changes; and inserted present (f)(1)(B)(vi).

The 2005 amendment deleted “Definition” from the beginning of (a); and substituted “commodities, technical and general services, or professional and consultant services” for “commodities or services” in (b) and (d)(2)(A).

The 2013 amendment, in (b)(1), substituted “fifty thousand dollars ($50,000)” for “twenty-five thousand dollars ($25,000)” and deleted “of the Office of State Procurement of the Department of Finance and Administration” following “State Procurement Director”.

The 2017 amendment by No. 696 rewrote (h)(2).

The 2017 amendment by No. 1004 substituted “seventy-five thousand dollars ($75,000)” for “fifty thousand dollars ($50,000)” in (b)(1).

The 2019 amendment by No. 315 substituted “rule” for “regulation” in (b)(2); and substituted “rules” for “regulations” in (g)(1).

The 2019 amendment by No. 419 rewrote (d); added (f)(3), (g)(3), and (h)(2)(C); inserted the (i)(1) designation and added (i)(2) and (i)(3); and substituted “for bids” for “for bid” in (i)(1).

19-11-230. Competitive sealed proposals — Definition.

Definition. “Competitive sealed proposals” means a method of procurement which involves, but is not limited to:
1. Solicitation of proposals through a request for proposals;
2. Submission of cost or pricing data from the offeror where required;
3. Discussions with responsible offerors whose proposals have been determined to be reasonably susceptible to being selected for award; and
4. An award made to the responsible offeror whose proposal is determined in writing to be the most advantageous considering price and evaluation factors set forth in the request for proposals.
When the use of competitive sealed bidding is not practicable and advantageous, a contract may be awarded by competitive sealed proposals.
Public notice of the request for proposals shall be given in the same manner as provided in § 19-11-229(d), which refers to public notice of competitive sealed bidding.
1. The request for proposals shall indicate the relative importance of price and other evaluation factors.
2. 1. Except as provided in subdivision (d)(2)(B) of this section, cost shall be weighted at least thirty percent (30%) of the total evaluation score for a proposal submitted in response to the request for proposals.
  2. 1. The State Procurement Director may approve that cost be weighted at a lower percentage of the total evaluation score for a proposal submitted in response to a request for proposals if the director makes a written determination that the lower percentage is in the best interest of the state.
    2. A state agency's failure to obtain the approval of the director under this subsection for a request for proposals with cost weighted at a lower percentage than required under subdivision (d)(2)(A) of this section is grounds for submitting a protest under § 19-11-244.
  3. The use of a lower percentage under subdivision (d)(2)(B) of this section and the corresponding written determination by the director shall be submitted to the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, for review before the request for proposals is issued.
3. The state's prior experience with an offeror may be considered and scored as part of the offeror's proposal only:
  1. To the extent that the request for proposals requests that all offerors provide references; and
  2. If the offeror's past performance with the state occurred no more than three (3) years before the offeror submitted the proposal.
4. A state agency shall not include prior experience with the state as a mandatory requirement for submitting a proposal under this section.
1. As provided in the request for proposals and under rule, discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of:
  1. Clarifying solicitation requirements to assure full understanding of and responsiveness to the solicitation requirements; or
  2. Negotiating a contract that is more advantageous to the state.
2. 1. If discussions conducted after the deadline for the receipt of proposals necessitate material revisions of proposals, each offeror determined to be responsible and reasonably susceptible of being awarded a contract shall be provided an opportunity to revise its proposal for the purpose of submitting a best and final offer.
  2. An offeror may be permitted to revise its original proposal as a result of discussions only after the original submission deadline and before award for the purpose of providing a best and final offer.
  3. 1. Before issuing the notice of award of a contract, the director or the agency procurement official may request a best and final offer from each responsible offeror that is reasonably susceptible of being awarded the contract.
    2. In responding to a request for a best and final offer, an offeror may:
      1. Resubmit the offeror's original proposal with lower pricing or additional benefits, or both, in accordance with the specifications of the request for proposals; or
      2. Submit a written response that states that the offeror's original proposal, including without limitation the pricing, remains unchanged.
    3. If a best and final offer is requested, the director or the agency procurement official shall evaluate each proposal submitted in response to the request for a best and final offer in determining the proposal that is the most advantageous to the state.
3. In conducting discussions, information derived from a proposal submitted by a competing offeror shall not be disclosed until after a notice of anticipation to award is announced.
1. The director or an agency procurement official may seek the clarification of a submitted proposal.
2. A written response by an offeror under this subsection shall only clarify the submitted proposal and shall not add any substantive language to the submitted proposal or change the terms of the submitted proposal.
3. If the offeror fails or refuses to clarify any matter questioned about the offeror's proposal in writing by the deadline set by the director or agency procurement official, the proposal may be rejected.
4. If the offeror clarifies the matter questioned under this subsection in writing, the clarification shall be evaluated and become a part of any contract awarded on the basis of the offeror's proposal.
1. Award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the state, taking into consideration price, the evaluation factors set forth in the request for proposals, any best and final offers submitted, and the results of any discussions conducted with responsible offerors.
2. No other factors or criteria shall be used in the evaluation.
3. If it is determined that two (2) or more responsible offerors have tied scores after the evaluation of the proposals, the award shall be made to the responsible offeror that had one (1) of the tied scores and submitted the lowest price proposal.
4. The director or the agency procurement official may enter into negotiations with the responsible offeror whose proposal is determined in writing to be the most advantageous to the state when the best interests of the state would be served, including without limitation when the state can obtain:
  1. A lower price without changes to the terms or specifications of the request for proposals; or
  2. An improvement to the terms or specifications, or both, of the request for proposals without increasing the price of the proposal.
1. The Office of State Procurement shall:
  1. Encourage full discussion by the evaluators who are evaluating proposals submitted in response to a request for proposals under this section; and
  2. Develop tools and templates to be used in evaluating proposals submitted in response to a request for proposals under this section that optimize the number of material scored attributes and provide for a limited range of possible scores for each attribute.
2. 1. A state agency may use one (1) or more private evaluators to evaluate proposals submitted in response to a request for proposals under this section.
  2. A private evaluator used under this subsection shall be:
    1. Held to the same requirements and prohibitions regarding conflicts of interest as state employees;
    2. A qualified volunteer, unless the state does not have the necessary expertise to evaluate the proposals, in which case a paid private evaluator may be used; and
    3. Eligible for travel reimbursement if the state agency decides to make travel reimbursement available.
  3. The use of a private evaluator is not required.
  4. If a state agency uses one (1) or more private evaluators, the use of a private evaluator shall be disclosed in the procurement file and in any information submitted to the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.
1. A competitive sealed proposal may be cancelled or any or all proposals may be rejected in writing by the director or the agency procurement official.
2. Before the rejection of a proposal by the director, the decision to reject the proposal may be validated with the evaluation committee that evaluated the proposal.
3. A proposal may be rejected for failure to adhere to mandatory requirements.

History. Acts 1979, No. 482, § 30; 1981, No. 600, §§ 17-20; A.S.A. 1947, § 14-255; Acts 2001, No. 1237, § 23; 2007, No. 478, § 6; 2017, No. 696, § 2; 2019, No. 419, §§ 8-10.

Amendments. The 2007 amendment deleted “under regulations promulgated by the State Procurement Director, the director determines in writing that” following “When” in (b).

The 2017 amendment rewrote (e).

The 2019 amendment inserted the (d)(1) designation, and added (d)(2) through (d)(4); added (e)(2)(C); inserted (f); redesignated former (f) as (g); inserted “any best and final offers submitted” in (g)(1); added (g)(3) and (g)(4); inserted (h); redesignated former (g) as (i)(1); substituted “director” for “State Procurement Director” in (i)(1); and added (i)(2) and (i)(3).

19-11-231. Small procurements.

Any procurement not exceeding the amount under § 19-11-204(13), which refers to small procurements, may be made in accordance with small procurement procedures promulgated by the State Procurement Director.
However, procurement requirements shall not be artificially divided so as to constitute a small procurement under this section.

History. Acts 1979, No. 482, § 32; 1981, No. 600, § 22; A.S.A. 1947, § 14-257; Acts 2001, No. 1237, § 24.

19-11-232. Proprietary or sole source procurements.

Under rules promulgated under this subchapter, a contract may be awarded for a required or designated commodity or service to a sole or mandatory supplier when the State Procurement Director, the head of a procurement agency, or a designee of either officer above the level of agency procurement official determines in writing that it is not practicable to use other than the required or designated commodity or service.
Unless a written determination is made that there is only one (1) source for the required or designated commodity or service, efforts shall be made to obtain price competition.

History. Acts 1979, No. 482, § 33; A.S.A. 1947, § 14-258; Acts 2001, No. 1237, § 25; 2019, No. 315, § 1769.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (a).

19-11-233. Emergency procurements — Definition.

The State Procurement Director, the head of a procurement agency, or a designee of either officer may make or authorize others to make emergency procurements as defined in § 19-11-204(4) and in accordance with rules promulgated by the director.
1. A person or state agency that makes an emergency procurement under this section shall:
  1. Receive at least three (3) competitive bids unless the emergency is a critical emergency; and
  2. Complete a quotation abstract that includes the:
    1. Names of the firms contacted;
    2. Time that each firm was contacted;
    3. Quoted price obtained from each contacted firm; and
    4. Method used for contacting each firm.
2. As used in this subsection, “critical emergency” means an emergency in which human life or health is imminently endangered.

History. Acts 1979, No. 482, § 34; 1981, No. 600, § 23; A.S.A. 1947, § 14-259; Acts 2001, No. 1237, § 26; 2019, No. 315, § 1770; 2019, No. 419, § 11.

Amendments. The 2019 amendment by No. 315 substituted “rules” for “regulations”.

The 2019 amendment by No. 419 added the (a) designation and added (b); and substituted “rules” for “regulations” in (a).

19-11-234. Competitive bidding.

1. Competitive bidding is a method of procurement which requires obtaining bids by:
  1. Direct mail request to prospective bidders and obtaining written bids;
  2. Telephone;
  3. Telegraph;
  4. Written form; or
  5. Electronic media.
2. A competitive bid form authorized by the State Procurement Director must be completed.
3. If three (3) competitive bids are not obtained on purchases when bids are required, the form must show the names of at least three (3) firms contacted in attempting to obtain competition or show the reason three (3) firms were not contacted.
4. 1. Only firms which sell the type of commodity or service to be procured shall be contacted.
  2. The purchase procedures outlined in this section shall not apply to commodities, technical and general services, and professional and consultant services under state contract.
1. Contracts in which the purchase price exceeds twenty thousand dollars ($20,000) and is less than or equal to seventy-five thousand dollars ($75,000) may be awarded by use of competitive bidding procedures.
2. However, in any such instances, competitive sealed bidding is permitted.
1. 1. All procurements shall be awarded to the responsive and responsible bidder who has submitted the lowest bid that meets the requirements, criteria, and specifications.
  2. Delivery time required must be reasonable and consonant with current industry norms.
2. Complete justification must be given if award is made to other than the low bidder.
Repeated small quantity procurements to circumvent the competitive bid limits or failure to obtain competitive bids without justification shall constitute a violation of these procedures and shall result in withdrawal of the state agency's competitive bid privileges.

History. Acts 1979, No. 482, § 35; 1981, No. 600, § 24; A.S.A. 1947, § 14-260; Acts 1991, No. 1018, §§ 4, 5; 1995, No. 317, §§ 3, 4; 1995, No. 340, §§ 3, 4; 2001, No. 1237, § 27; 2003, No. 487, § 6; 2005, No. 1680, § 7; 2013, No. 1189, § 3; 2017, No. 1004, § 4.

Amendments. The 2003 amendment repealed (d).

The 2005 amendment substituted “commodities, technical and general services, and professional and consultant services” for “commodities and services” in (a)(4).

The 2013 amendment substituted “ten thousand dollars ($10,000)” for “five thousand dollars ($5,000)” and substituted “fifty thousand dollars ($50,000)” for “twenty-five thousand dollars ($25,000)” in (b)(1).

The 2017 amendment substituted “twenty thousand dollars ($20,000)” for “ten thousand dollars ($10,000)” and “seventy-five thousand dollars ($75,000)” for “fifty thousand dollars ($50,000)” in (b)(1).

19-11-235. Responsibility of bidders and offerors.

1. A determination of nonresponsibility of a bidder or offeror shall be made in accordance with rules promulgated by the State Procurement Director.
2. A reasonable inquiry to determine the responsibility of a bidder or offeror may be conducted.
3. The unreasonable failure of a bidder or offeror to promptly supply information in connection with such an inquiry may be grounds for a determination of nonresponsibility with respect to such bidder or offeror.
4. If a bidder or offeror is determined to be nonresponsible, the reasons therefor shall be included in the determination.
1. Except as otherwise provided by law, information furnished by a bidder or offeror pursuant to this section shall not be disclosed outside of the Office of State Procurement or the procurement agency without prior written consent by the bidder or offeror.
2. This section is not intended to prohibit the office from disclosing such information to the Governor, the Attorney General, or the Secretary of the Department of Transformation and Shared Services when any of those officers deems it necessary.
The director or the agency procurement official may require the posting of a bid bond, a performance bond, or a similar assurance by any actual or prospective bidder, offeror, or contractor, under rules promulgated under this subchapter.

History. Acts 1979, No. 482, § 36; A.S.A. 1947, § 14-261; Acts 1991, No. 1018, § 6; 2001, No. 1237, § 28; 2019, No. 315, §§ 1771, 1772; 2019, No. 910, § 6112.

Amendments. The 2019 amendment by No. 315 substituted “rules” for “regulations” in (a)(1) and (c).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Transformation and Shared Services” for “Director of the Department of Finance and Administration” in (b)(2).

19-11-236. Prequalification of suppliers.

1. The State Procurement Director may provide for prequalification of suppliers as responsible prospective contractors for particular types of commodities, technical and general services, and professional and consultant services.
2. Solicitation mailing lists of potential contractors shall include, but shall not be limited to, such prequalified suppliers.
Prequalifications shall not foreclose a written determination:
1. Between the time of the bid opening or receipt of offers and making of an award that a prequalified supplier is not responsible; or
2. That a supplier who is not prequalified at the time of bid opening or receipt of offers is responsible.

History. Acts 1979, No. 482, § 37; A.S.A. 1947, § 14-262; Acts 2005, No. 1680, § 8.

Amendments. The 2005 amendment substituted “commodities, technical and general services, and professional and consultant services” for “commodities and services” in (a).

19-11-237. Cost-plus-a-percentage-of-cost and cost-plus-a-fixed-fee contracts.

As used in this subchapter, unless the context otherwise requires, the cost-plus-a-percentage-of-cost and cost-plus-a-fixed-fee system may be used under the authority of the State Procurement Director when:

There exists no other economically practicable price arrangement to secure the commodity;
A cost saving may be proved over the least expensive alternative; or
The pricing schedule involved is tied to an industry standard or other reliable system of cost prediction.

History. Acts 1979, No. 482, § 39; 1983, No. 517, § 2; A.S.A. 1947, § 14-264; Acts 1995, No. 1234, § 1; 2001, No. 1237, § 29.

19-11-238. Multiyear contracts.

Specified Period. Unless otherwise provided by law, a contract for commodities or services may be entered into for periods of not more than seven (7) years if funds for the first fiscal year of the contemplated contract are available at the time of contracting. Payment and performance obligations for succeeding fiscal years shall be subject to the availability and appropriation of funds therefor.
Determination Prior to Use. Prior to the utilization of a multi-year contract, it shall be determined in writing that:
1. Estimated requirements cover the period of the contract and are reasonably firm and continuing;
2. Such a contract will serve the best interests of the state by encouraging effective competition or otherwise promoting economies in state procurement; and
3. In the event of termination for any reason, the contract provides for cessation of services and/or surrender by the state of the commodities and repayment to the state of any accrued equity.
Termination Due to Unavailability of Funds in Succeeding Years.
1. Original terms of such multiyear contracts shall not exceed four (4) years.
2. When funds are not appropriated or otherwise made available to support continuation of performance in a multiyear contract, the contract shall be terminated and the contractor may be reimbursed for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the commodities or services delivered under the contract.
3. The cost of termination under subdivision (c)(2) of this section may be paid from:
  1. Appropriations currently available for performance of the contract;
  2. Appropriations currently available for procurement of similar commodities or services and not otherwise obligated; or
  3. Appropriations made specifically for the payment of such termination costs.

History. Acts 1979, No. 482, § 43; A.S.A. 1947, § 14-267; Acts 1995, No. 317, § 5; 1995, No. 340, § 5; 1995, No. 912, § 1; 2019, No. 418, § 3.

Amendments. The 2019 amendment rewrote (c).

19-11-239. Finality of determinations.

The determinations required by:

Section 19-11-229(h), which refers to competitive sealed bidding, award;
Section 19-11-230(b), which refers to competitive sealed proposals, conditions for use;
Section 19-11-230(g), which refers to competitive sealed proposals, award;
Section 19-11-232, which refers to proprietary or sole source procurements;
Section 19-11-233, which refers to emergency procurements;
Section 19-11-234, which refers to competitive bidding;
Section 19-11-235, which refers to responsibility of bidders and offerors, determination of responsibility;
Section 19-11-238(b), which refers to multiyear contracts, determination prior to use; and
Section 19-11-263, which refers to special procurements,

are final and conclusive, unless they are clearly erroneous, arbitrary, capricious, or contrary to law.

History. Acts 1979, No. 482, § 46; 1981, No. 600, § 27; A.S.A. 1947, § 14-270; Acts 2001, No. 1237, § 30.

Publisher's Notes. This section is being set out to update a reference.

19-11-240. Reporting of suspected collusion — Definition.

As used in this section, “collusion” means cooperation in the restraint of free and open competition in a public procurement, including without limitation:
1. Price fixing;
2. Bid rigging;
3. Customer or market allocation;
4. Misrepresenting the independence of the relationship between colluding parties; and
5. Exerting improper influence on public officials to obtain advantage in a public procurement, including without limitation:
  1. Offering bribes or kickbacks;
  2. Extortion; and
  3. Fraudulent misrepresentation.
When for any reason collusion is suspected among any bidders or offerors, a written notice of the relevant facts shall be transmitted to the Attorney General.
1. All documents involved in a procurement in which collusion is suspected shall be retained until the Attorney General gives notice that they may be destroyed.
2. All retained documents shall be made available to the Attorney General or a designee upon request and proper receipt of the request.
Collusion is cause for:
1. Debarment from consideration for award of a contract under § 19-11-245; and
2. Suspension from consideration for award of a contract if there is probable cause for suspecting collusion as determined by the Attorney General or the State Procurement Director.

History. Acts 1979, No. 482, § 47; A.S.A. 1947, § 14-270.1; Acts 2017, No. 696, § 3.

Amendments. The 2017 amendment added “— Definition” in the section heading; added present (a); redesignated former (a) as (b); deleted “Notification to the Attorney General” at the beginning of (b); redesignated former (b) as (c)(1) and (c)(2); in (c)(1), deleted “Retention of All Documents” at the beginning; substituted “of the request” for “therefor” at the end of (c)(2); added (d); and made a stylistic change.

19-11-241. Specifications — Definition.

Definition.
1. “Specification” means any technical or purchase description or other description of the physical or functional characteristics, or of the nature, of a commodity or service.
2. “Specification” may include a description of any requirement for inspecting, testing, or preparing a commodity or service for delivery.
The State Procurement Director shall promulgate rules governing the preparation, maintenance, and content of standard and nonstandard specifications for commodities, technical and general services, and professional and consultant services procured by the Office of State Procurement.
Maximum Practicable Competition. All specifications shall be drafted so as to assure the maximum practicable competition for the state's actual requirements.

History. Acts 1979, No. 482, §§ 49-51; 1981, No. 600, § 28; A.S.A. 1947, §§ 14-271 — 14-272.1; Acts 2001, No. 1237, § 31; 2005, No. 1680, § 9; 2019, No. 315, § 1773.

Amendments. The 2005 amendment substituted “commodities, technical and general services, and professional and consultant services” for “commodities and services” in (b).

The 2019 amendment substituted “rules” for “regulations” in (b).

19-11-242. Commodity management rules.

The State Procurement Director shall promulgate rules governing:

The sale, lease, or disposal of surplus commodities by public auction, competitive sealed bidding, or other appropriate method designated by rule, and no employee of the Department of Transformation and Shared Services or member of the employee's immediate family shall be entitled to purchase any such commodities;
The transfer of excess commodities within the state; and
The sale, lease, or disposal of surplus commodities to not-for-profit organizations under § 22-1-101.

History. Acts 1979, No. 482, § 55; A.S.A. 1947, § 14-275.1; Acts 2001, No. 1237, § 32; 2013, No. 1020, § 1; 2019, No. 315, § 1774.

Amendments. The 2013 amendment added (3) and made stylistic changes.

The 2019 amendment substituted “rules” for “regulations” in the section heading and the introductory language; and substituted “rule” for “regulation” in (1).

19-11-243. Proceeds from surplus commodities.

The State Procurement Director shall promulgate rules for the allocation of proceeds from the sale, lease, or disposal of surplus commodities, to the extent practicable, to the using agency which had possession of the commodity.

History. Acts 1979, No. 482, § 56; A.S.A. 1947, § 14-275.2; Acts 2001, No. 1237, § 33; 2019, No. 315, § 1775.

Amendments. The 2019 amendment substituted “rules” for “regulations”.

19-11-244. Resolution of protested solicitations and awards.

1. Any actual or prospective bidder, offeror, or contractor who is aggrieved in connection with the solicitation of a contract may protest by presenting a written notice at least seventy-two (72) hours before the filing deadline for the solicitation response to the State Procurement Director or the head of a procurement agency.
2. Any actual bidder, offeror, or contractor who is aggrieved in connection with the award of a contract may protest to the:
  1. Director; or
  2. Head of a procurement agency.
3. The protest shall be submitted in writing within fourteen (14) calendar days after the award or notice of anticipation to award has been posted.
4. A protest submitted by an aggrieved person under this section shall:
  1. Be limited to one (1) or more of the following grounds:
    1. The award of the contract exceeded the authority of the director or the procurement agency;
    2. The procurement process violated a constitutional, statutory, or regulatory provision;
    3. The director or the procurement agency failed to adhere to the rules of the procurement as stated in the solicitation, and the failure to adhere to the rules of the procurement materially affected the contract award;
    4. The procurement process involved responses that were collusive, submitted in bad faith, or not arrived at independently through open competition; or
    5. The award of the contract resulted from a technical or mathematical error made during the evaluation process; and
  2. State facts that substantiate each ground on which the protest is based.
1. 1. The director, the head of a procurement agency, or a designee of either officer may settle and resolve a protest concerning the solicitation or award of a contract before rendering an administrative protest determination.
  2. 1. A meeting in an attempt to settle or resolve a protest is not a public meeting.
    2. However, a final settlement or resolution of a protest made under this section shall not be kept secret, sealed, or withheld from public disclosure.
2. The authority to settle or resolve a protest under this section shall be exercised in accordance with laws governing the Arkansas State Claims Commission, which has exclusive jurisdiction over all claims against the state in connection with the solicitation or award of a contract, and the rules promulgated by the director.
1. If a protest is not settled or resolved by mutual agreement under subsection (b) of this section, the director, the head of a procurement agency, or a designee of either officer shall promptly issue an administrative protest determination in writing.
2. The administrative protest determination shall state the reasons for the action taken.
A copy of the decision under subsection (c) of this section shall be mailed or otherwise furnished within five (5) days after it is written to the protestor and any other party intervening.
An administrative protest determination under subsection (c) of this section is:
1. Final and conclusive; and
2. Not an order as defined in the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
In the event of a timely protest under subsection (a) of this section, the state shall not execute a contract that is the result of the protested solicitation or award unless the director or the head of the relevant procurement agency makes a written determination that the execution of the contract without delay is necessary to protect substantial interests of the state.
When the protest is sustained and the successfully protesting bidder or offeror was denied the contract award, the protesting bidder or offeror may be entitled to the reasonable costs incurred in connection with the solicitation, including bid preparation costs, through the commission.
An actual or prospective bidder, offeror, or contractor who is aggrieved by a protest submitted under this section that was without merit or intended purely to delay the award of a contract may bring a private cause of action for tortious interference with a business expectancy against the person or entity that submitted the protest.

History. Acts 1979, No. 482, § 57; A.S.A. 1947, § 14-276; Acts 2001, No. 1237, § 34; 2003, No. 487, § 7; 2005, No. 1680, § 10; 2009, No. 677, § 1; 2017, No. 882, §§ 1, 2; 2019, No. 420, §§ 2-4.

Amendments. The 2003 amendment added the subdivision designations in (c); and, in (c)(1), substituted “to respond to the protest issues according to the regulations promulgated by” for “to be heard” and inserted “the director” following “agency.”

The 2005 amendment substituted “the protestor” for “the person” in (c)(1) and (d); substituted “the protestor to” for “that person to” in (c)(1); and deleted “Award of Costs to Protestants” from the beginning of (g).

The 2009 amendment, in (a), deleted “or award” following “solicitation” and inserted “by presenting a written notice at least seventy-two (72) hours before the filing deadline for the solicitation response” in (a)(1), inserted (a)(2), and redesignated the subsequent subdivision accordingly; deleted “of an aggrieved bidder, offeror, or contractor, actual or prospective” in (b)(1); and made a related change.

The 2017 amendment rewrote (b), (c), and (e).

The 2019 amendment, in (a)(3), substituted “award or notice of anticipation to award has been posted” for “aggrieved person knows or should have known of the facts giving rise to the grievance”; added (a)(4); in (f), substituted “execute a contract that is the result of the protested solicitation or award unless” for “proceed further with the solicitation or with the award of the contract until”, substituted “the relevant procurement” for “a procurement”, and substituted “execution” for “award”; and added (h).

Case Notes

Exhaustion of Remedies.

Where plaintiffs chose to bring suit under the Purchasing Law, they were bound by the procedural requirements of the statute, notwithstanding their argument that they fell within a recognized exception to the exhaustion doctrine; plaintiffs were not justified in assuming that the state employee's assertion was correct, and specifically, in assuming that the Purchasing Law's dispute resolution process was no longer applicable. Milligan v. Burrow, 52 Ark. App. 20, 914 S.W.2d 763 (1996).

Cited: National Park Medical Ctr. v. Arkansas Dep't of Human Servs., 322 Ark. 595, 911 S.W.2d 250 (1995).

19-11-245. Debarment or suspension.

Applicability. This section applies to debarment for cause from consideration for award of contracts, or a suspension from such consideration during an investigation, when there is probable cause for such a debarment.
1. 1. 1. After reasonable notice to the person involved and reasonable opportunity for that person to have a hearing before a committee according to rules promulgated by the State Procurement Director, the director or the head of a procurement agency shall have authority to debar a person for cause from consideration for award of contracts, provided that doing so is in the best interests of the state.
    2. The debarment shall not be for a period of more than three (3) years.
  2. 1. The same officer shall have authority to suspend a person from consideration for award of contracts, provided that doing so is in the best interests of the state and there is probable cause for debarment.
    2. The suspension shall not be for a period exceeding three (3) months.
2. The authority to debar or suspend shall be exercised in accordance with rules promulgated by the director.
The causes for debarment or suspension because of unsuitability for award of a contract shall be set forth in rules promulgated by the director.
The director or the head of a procurement agency shall issue a written decision to debar or suspend. The decision shall state the reasons for the action taken.
Notice of Decision. A copy of the decision under subsection (d) of this section shall be mailed or otherwise furnished within five (5) days after it is written to the debarred or suspended person and any other party intervening.
Finality of Decision. A decision under subsection (d) of this section shall be final and conclusive.

History. Acts 1979, No. 482, § 58; A.S.A. 1947, § 14-277; Acts 2001, No. 1237, § 35; 2003, No. 487, § 8; 2019, No. 315, §§ 1776-1778.

Amendments. The 2003 amendment added the subdivision designations in (b); and substituted “person to have a hearing … Director, the director” for “person to be heard, the State Procurement Director” in (b)(1)(A)(i).

The 2019 amendment substituted “rules” for “regulations” in (b)(1)(A)(i), (b)(2), and (c).

19-11-246. Resolution of contract and breach of contract controversies.

Applicability. This section applies to controversies between the state and a contractor which arise under or by virtue of a contract between them. This includes, without limitation, controversies based upon breach of contract, mistake, misrepresentation, or other cause for contract modifications or rescission.
1. The State Procurement Director, the head of a procurement agency, or a designee of either officer is authorized, prior to commencement of an action in a court or any other action provided by law concerning the controversy, to settle and resolve a controversy described in subsection (a) of this section.
2. This authority shall be exercised in accordance with the law governing the Arkansas State Claims Commission and the rules promulgated by the director.
1. If such a claim or controversy is not resolved by mutual agreement, and after reasonable notice to the contractor and reasonable opportunity for the contractor to present the claim or controversy in accordance with the rules promulgated by the director, the head of a procurement agency, the director, or the designee of either officer shall promptly issue a decision in writing.
2. The decision shall state the reasons for the action taken.
A copy of the decision under subsection (c) of this section shall be mailed or otherwise furnished immediately to the contractor.
The decision under subsection (c) of this section shall be final and conclusive.
If the director, the head of a procurement agency, or the designee of either officer does not issue the written decision required under subsection (c) of this section within one hundred twenty (120) days after written request for a final decision, or within such longer period as may be agreed upon by the parties, then the contractor may proceed as if an adverse decision has been received.

History. Acts 1979, No. 482, § 59; A.S.A. 1947, § 14-278; Acts 2001, No. 1237, § 36; 2003, No. 487, § 9; 2005, No. 1680, § 11; 2019, No. 315, §§ 1779, 1780.

Amendments. The 2003 amendment added the subdivision designations in (c); and, in (c)(1), substituted “to respond to the claim or controversy in accordance with the regulations promulgated by” for “to be heard” and inserted “the director” following “agency.”

The 2005 amendment, in (c)(1), substituted “notice to the contractor” for “notice to the person involved” and “the contractor to present” for “that person to respond to.”

The 2019 amendment substituted “rules” for “regulations” in (b)(2) and (c)(1).

19-11-247. Remedies for unlawful solicitation or award.

The provisions of this section apply where it is determined upon any review provided by law that a solicitation or award of a contract is in violation of law.
If prior to award it is determined that a solicitation or proposed award of a contract is in violation of law, then the solicitation or proposed award shall be:
1. Cancelled; or
2. Revised to comply with the law.
If after an award it is determined that a solicitation or award of a contract is in violation of law, then in addition to or in lieu of other remedies provided by law:
1. If the person awarded the contract has not acted fraudulently or in bad faith:
  1. The contract may be ratified and affirmed if it is determined that doing so is in the best interests of the state; or
  2. The contract may be terminated;
2. If the person awarded the contract has acted fraudulently or in bad faith:
  1. The contract may be declared null and void; or
  2. The person awarded the contract may be directed to proceed with performance of the contract and pay such damages, if any, as may be appropriate if such action shall be in the best interests of the state.
Before a contract is ratified and affirmed under subdivision (c)(1)(A) of this section, a contract shall be presented to the Legislative Council or, if the General Assembly is in session, to the Joint Budget Committee, for review if the contract is required to be submitted for review under § 19-11-1006 [repealed].

History. Acts 1979, No. 482, §§ 60-62; A.S.A. 1947, §§ 14-279 — 14-279.2; Acts 2017, No. 696, § 4.

Amendments. The 2017 amendment added (d).

Case Notes

Improper Remedy.

In their action under the Arkansas Purchasing Law, plaintiffs sought the wrong remedy as the Purchasing Law provides for termination of the contract or “other remedies provided by law,” such as an injunction or mandamus, if an award is in violation of the law; plaintiffs sought compensatory and punitive damages, but failed to seek injunctive relief or mandamus. Milligan v. Burrow, 52 Ark. App. 20, 914 S.W.2d 763 (1996).

19-11-248. Finality of administrative determinations.

In any judicial action or other action provided by law, factual or legal determinations by employees, agents, or other persons appointed by the state shall have no finality and shall not be conclusive, notwithstanding any contract provision or rule of law to the contrary, except to the extent provided in:

Section 19-11-239, which refers to finality of determinations;
Section 19-11-244(e), which refers to resolution of protested solicitations and awards, finality of decision;
Section 19-11-245(f), which refers to debarment or suspension, finality of decision; and
Section 19-11-246(e), which refers to resolution of contract and breach of contract controversies, finality of decision.

History. Acts 1979, No. 482, § 63; A.S.A. 1947, § 14-280; Acts 2019, No. 315, § 1781.

Amendments. The 2019 amendment deleted “regulation” following “provision” in the introductory language.

19-11-249. Cooperative purchasing.

1. A public procurement unit may participate in, sponsor, conduct, or administer a cooperative purchasing agreement for the acquisition of commodities or services in accordance with an agreement entered into between the participants.
2. 1. A cooperative purchasing agreement is limited to commodities and services for which the public procurement unit may realize savings or material economic value, or both.
  2. 1. For cooperative purchasing agreements entered into by a state agency, the State Procurement Director shall consider the economic justification for using a cooperative purchasing agreement when granting or withholding approval for the cooperative purchasing agreement.
    2. The director shall adopt rules to create a review policy outlining how the economic justification required under this section may be demonstrated, including without limitation a comparison of:
      1. Current state contract pricing and the pricing under a cooperative purchasing agreement; or
      2. Information obtained from a request for information and pricing under a cooperative purchasing agreement.
  3. The director and the Secretary of the Department of Finance and Administration shall submit any request for the Office of State Procurement or the Department of Finance and Administration, respectively, to participate in a cooperative purchasing agreement to the Governor for approval.
1. 1. The director shall present an annual report of all purchases made under cooperative purchasing agreements by a state agency without an agency procurement official under this section to the Legislative Council or, if the General Assembly is in session, to the Joint Budget Committee.
  2. A state agency that has an agency procurement official shall present an annual report of all purchases made under cooperative purchasing agreements under this section to the Legislative Council or, if the General Assembly is in session, to the Joint Budget Committee.
2. The reports required under this subsection shall be in the format required by the Legislative Council and shall include the following:
  1. The name of the contractor;
  2. The name of the procuring agency;
  3. The contact information for the contractor and procuring agency;
  4. The total cost of the contract, including all available extensions;
  5. A description of the goods or services procured; and
  6. Any other information requested by the Legislative Council or the Joint Budget Committee.
A contractor shall cooperate with the director in providing information necessary for the director to complete the report required under subsection (b) of this section.

History. Acts 1979, No. 482, § 65; A.S.A. 1947, § 14-282; Acts 2015, No. 557, § 4; 2019, No. 417, § 5; 2019, No. 421, § 3.

Amendments. The 2015 amendment inserted the designations in (a); in (a)(1), substituted “A public procurement unit may” for “Any public procurement unit may either” and deleted “any” before “commodities”; in (a)(2), inserted “agreement under this section”, substituted “without limitation a” for “but is not limited to”, substituted “contract” for “contracts”, and substituted “contract that is” for “contracts which are”; and added (b).

The 2019 amendment by No. 417 added (c).

The 2019 amendment by No. 421 rewrote (a); redesignated (b)(1) as (b)(1)(A); in (b)(1)(A), substituted “an annual report” for “a quarterly report” and inserted “by a state agency without an agency procurement official”; added (b)(1)(B); and substituted “reports” for “report” in the introductory language of (b)(2).

19-11-250. Sale, etc., of commodities.

Any public procurement unit by agreement with another public procurement unit may sell to, acquire from, or use any commodities belonging to or produced by another public procurement unit or external procurement activity independent of the requirements of:

Sections 19-11-204, 19-11-228 — 19-11-240, and 19-11-263, which refer to source selection and contract formation; and
Sections 19-11-205, 19-11-242, and 19-11-243, which refer to commodity management.

History. Acts 1979, No. 482, § 66; A.S.A. 1947, § 14-283; Acts 2001, No. 1237, § 37; 2003, No. 487, § 10.

Amendments. The 2003 amendment substituted “the requirements” for “the requirement.”

19-11-251. Intergovernmental use of commodities or services.

Any public procurement unit may enter into an agreement with any other public procurement unit or external procurement activity for the intergovernmental use of commodities, technical and general services, or professional and consultant services under the terms agreed upon between the parties and in accordance with the rules promulgated under this subchapter, independent of the requirements of:

Sections 19-11-204, 19-11-228 — 19-11-240, and 19-11-263 that refer to source selection and contract formation; and
Sections 19-11-205, 19-11-242, and 19-11-243 that refer to commodity management.

History. Acts 1979, No. 482, § 67; A.S.A. 1947, § 14-284; Acts 2001, No. 1237, § 38; 2005, No. 1680, § 12; 2019, No. 315, § 1782.

Amendments. The 2005 amendment substituted “commodities, technical and general services, or professional and consultant services” for “commodities or services.”

The 2019 amendment deleted “and regulations” following “rules” in the introductory language.

19-11-252. Rules.

The State Procurement Director may promulgate reasonable rules pertaining to the sale or acquisition of any commodities, technical and general services, or professional and consultant services belonging to or produced by another public procurement unit or external procurement activity as authorized in §§ 19-11-206 and 19-11-249 — 19-11-258.

History. Acts 1979, No. 482, § 68; A.S.A. 1947, § 14-285; Acts 2001, No. 1237, § 39; 2005, No. 1680, § 13; 2019, No. 315, § 1783.

Amendments. The 2005 amendment substituted “commodities, technical and general services, or professional and consultant services” for “commodities or services.”

The 2019 amendment deleted “and regulations” following “Rules” in the section heading and in the text.

19-11-253. Joint use of facilities.

Any public procurement unit may enter into agreements for the common use or lease of warehousing facilities, capital equipment, and other facilities with another public procurement unit or an external procurement activity under the terms agreed upon between the parties.

History. Acts 1979, No. 482, § 69; A.S.A. 1947, § 14-286.

19-11-254. State information services.

Upon request, the State Procurement Director may make available to public procurement units the following services, among others:
1. Standard forms;
2. Printed manuals;
3. Product specifications and standards;
4. Quality assurance testing services and methods;
5. Qualified products lists;
6. Source information;
7. Common use commodities listings;
8. Supplier prequalification information;
9. Supplier performance ratings;
10. Debarred and suspended bidders lists;
11. Forms for invitations for bids, requests for proposals, instructions to bidders, general contract provisions, and other contract forms; and
12. Contracts, or published summaries thereof, including price and time of delivery information.
The director may enter into contractual arrangements and publish a schedule of fees for the services provided under this section.

History. Acts 1979, No. 482, §§ 70, 71; A.S.A. 1947, §§ 14-287, 14-288; Acts 2001, No. 1237, § 40.

19-11-255. Use of payments received.

All payments from any public procurement unit or external procurement activity received by a public procurement unit supplying services shall be available to the supplying public procurement unit.

History. Acts 1979, No. 482, § 72; A.S.A. 1947, § 14-289.

19-11-256. Compliance by public procurement units.

Procurement in Accordance with Requirements. When the public procurement unit or external procurement activity administering a cooperative purchase complies with the requirements of this subchapter, any public procurement unit participating in such a purchase shall be deemed to have complied with this subchapter.
When a public procurement unit or external procurement activity not subject to this subchapter administers a cooperative purchase for a public procurement unit subject to this subchapter, then the State Procurement Director must determine in writing that the procurement system and remedies procedures of the public procurement unit or external procurement activity administering the procurement substantially meet the requirements of this subchapter.

History. Acts 1979, No. 482, § 73; A.S.A. 1947, § 14-290; Acts 2001, No. 1237, § 41.

19-11-257. Review of procurement requirements.

1. To the extent possible and consistent with efficiency, the State Procurement Director shall collect information concerning the type, cost, quality, and quantity of commonly used commodities or services being procured or used by state public procurement units.
2. The director may also collect such information from local public procurement units.
The director may make available all such information to any public procurement unit upon request.

History. Acts 1979, No. 482, § 74; A.S.A. 1947, § 14-291; Acts 2001, No. 1237, § 42.

19-11-258. Contract controversies.

Under a cooperative purchasing agreement, controversies arising between an administering public procurement unit and its bidders, offerors, or contractors shall be resolved in accordance with §§ 19-11-244 — 19-11-248, which refer to legal and contractual remedies, where the administering public procurement unit is a state public procurement unit or otherwise subject to §§ 19-11-244 — 19-11-248.

History. Acts 1979, No. 482, § 75; A.S.A. 1947, § 14-292.

19-11-259. Preferences among bidders — Definitions.

Definitions.
1. The definitions in this subsection shall not be applicable to other sections of this subchapter.
2. As used in this section:
  1. “Commodities” means materials and equipment used in the construction of public works projects;
  2. “Firm resident in Arkansas” means any individual, partnership, association, or corporation, whether domestic or foreign, that:
    1. Maintains at least one (1) staffed office in this state;
    2. For not fewer than two (2) successive years immediately prior to submitting a bid, has paid taxes under the Division of Workforce Services Law, § 11-10-101 et seq., unless exempt, and either the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., or the Arkansas Compensating Tax Act of 1949, § 26-53-101 et seq., on any property used or intended to be used for or in connection with the firm's business; and
    3. Within the two-year period, has paid any taxes to one (1) or more counties, school districts, or municipalities of the State of Arkansas on either real or personal property used or intended to be used or in connection with the firm's business;
  3. “Lowest qualified bid” means the lowest bid which conforms to the specifications and request for bids;
  4. “Nonresident firm” means a firm which is not included in the definition of a “firm resident in Arkansas”; and
  5. “Public agency” means all counties, municipalities, and political subdivisions of the state.
1. 1. In the purchase of commodities by competitive bidding, all public agencies shall accept the lowest qualified bid from a firm resident in Arkansas.
  2. This bid shall be accepted only if the bid does not exceed the lowest qualified bid from a nonresident firm by more than five percent (5%) and if one (1) or more firms resident in Arkansas made written claim for a preference at the time the bids were submitted.
  3. 1. In calculating the preference to be allowed, the appropriate procurement officials, pursuant to §§ 19-11-201 — 19-11-259, shall take the amount of each bid of the Arkansas dealers who claimed the preference and deduct five percent (5%) from its total.
    2. If, after making such deduction, the bid of any Arkansas bidder claiming the preference is lower than the bid of the nonresident firm, then the award shall be made to the Arkansas firm which submitted the lowest bid, regardless of whether that particular Arkansas firm claimed the preference.
2. 1. The preference provided for in this section shall be applicable only in comparing bids where one (1) or more bids are by a firm resident in Arkansas and the other bid or bids are by a nonresident firm.
  2. This preference shall have no application with respect to competing bids if both bidders are firms resident in Arkansas, as defined in this section.
  3. 1. All public agencies shall be responsible for carrying out the spirit and intent of this section in their procurement policies.
    2. Any public agency which, through any employee or designated agent, is found guilty of violating the provisions of this section or committing an unlawful act under it, shall be guilty of a misdemeanor.
  4. Notwithstanding any other provisions of Arkansas law, upon conviction that person shall be subject to imprisonment for not more than six (6) months or a fine of not more than one thousand dollars ($1,000), or both.
  5. 1. If any provision or condition of this subchapter conflicts with any provision of federal law or any rule or regulation made under federal law pertaining to federal grants-in-aid programs or other federal aid programs, such provision or condition shall not apply to such federal-supported contracts for the purchase of commodities to the extent that the conflict exists.
    2. However, all provisions or conditions of this subchapter with which there is no conflict shall apply to contracts to purchase commodities to be paid, in whole or in part, from federal funds.
1. 1. This section applies only to projects designed to provide utility needs of a county or municipality.
  2. Those projects shall include without limitation pipeline installation, sanitary projects, and waterline, sewage, and water works.
2. To the extent that federal purchasing laws or bidding preferences conflict, this subchapter does not apply to projects related to supplying water or wastewater utility services, operations, or maintenance to a federal military installation by a municipality of the state.

History. Acts 1979, No. 482, § 76; 1981, No. 600, § 29; 1983, No. 760, § 2; A.S.A. 1947, § 14-293; Acts 1989, No. 477, § 2; 1989 (3rd Ex. Sess.), No. 45, § 1; 1991, No. 846, § 1; 1991, No. 855, § 1; 1993, No. 263, § 1; 1993, No. 678, §§ 1, 2; 2001, No. 1237, § 43; 2003, No. 487, § 11; 2015, No. 147, § 2; 2019, No. 910, § 497.

Publisher's Notes. Acts 1983, No. 760, § 1, provided that, on March 24, 1983, printing, stationery, and supplies subject to Ark. Const. Amend. 54 would be subject to the provisions of the Arkansas Preference Law (Acts 1979, No. 482, as amended).

Acts 1989, No. 477, § 1, provided:

“It is hereby found and determined by the General Assembly of the State of Arkansas that the bidder's preference for firms resident in Arkansas on purchases of commodities by public agencies has been declared unconstitutional because of the vague definition of ‘firm resident in Arkansas’; that the bidder's preference law is beneficial to the state; and corrective legislation should be enacted to reinstitute bidder's preference law. Therefore, the purpose of this act is to redefine ‘firm resident in Arkansas’ in Arkansas Code 19-11-259 in order to correct constitutional deficiencies.”

Amendments. The 2003 amendment substituted “means” for “shall mean” throughout (a); redesignated the subdivisions in (a) in alphabetical order; and made stylistic changes.

The 2015 amendment redesignated the former language of (c)(1) as (c)(1)(A); substituted “This section applies only” for “The provisions of this section shall only apply” in (c)(1)(A); redesignated former (c)(2) as (c)(1)(B) and substituted “without limitation” for “but shall not be limited to”; and added present (c)(2).

The 2019 amendment substituted “Division of Workforce Services Law” for “Department of Workforce Services Law” in (a)(2)(B)(ii).

Research References

U. Ark. Little Rock L.J.

Note, Public Contracts — Standing of Unsuccessful Bidders to Sue. Walt Bennett Ford, Inc. v. Pulaski County Special School District, 274 Ark. 208, 624 S.W.2d 426 (1981). 5 U. Ark. Little Rock L.J. 431.

Case Notes

Factual Determination.

The question presented as to whether a dealer was entitled to a preference under former statute was factual, depending upon the circumstances in each particular case. Stebbins & Roberts, Inc. v. Pulaski Glass & Mirror Co., 233 Ark. 449, 345 S.W.2d 912 (1961) (decision under prior law).

Sale of School Buses.

This section applies to a contract for the sale of 18 school buses to a school district, since a school district is a subdivision of a state. Walt Bennett Ford, Inc. v. Pulaski County Special Sch. Dist., 274 Ark. 208, 624 S.W.2d 426 (1981).

19-11-260. [Repealed.]

Publisher's Notes. This section, concerning recycled paper products and the preference, was repealed by Acts 2019, No. 417, § 6, effective July 24, 2019. The section was derived from Acts 1991, No. 749, § 4; 2001, No. 1237, §§ 44, 45.

19-11-261. Cooperative purchase of paper products for local governments.

1. All cities, counties, and school districts shall participate in a cooperative purchasing program for the purchase of paper products.
2. The program shall be administered by the State Procurement Director.
1. The director shall promulgate rules for administration of the program.
2. The rules shall be reviewed by the House Committee on Public Health, Welfare, and Labor and the Senate Committee on Public Health, Welfare, and Labor or appropriate subcommittees of the committees.

History. Acts 1991, No. 749, § 4; 1997, No. 179, § 18; 2001, No. 1237, § 46; 2019, No. 315, § 1784.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (b)(1) and (b)(2).

19-11-262. Multiple award contracts.

1. Multiple award contracts may be made only if the State Procurement Director or an agency procurement official determines in writing that a single award is not advantageous to the State of Arkansas.
2. The determination shall state in writing a rationale and basis for the multiple award contract.
3. Multiple award contracts shall be limited to the least number of suppliers necessary to meet the requirements of the using agencies.
If the director anticipates that multiple award contracts will be made, the invitation for bids shall include a notification of the right of the office to make such an award and the criteria upon which such an award will be based.

History. Acts 1995, No. 428, § 3; 1995, No. 507, § 3; 2001, No. 1237, § 47.

19-11-263. Special procurements.

Notwithstanding any other provision of this subchapter, the State Procurement Director or the head of a procurement agency may initiate a procurement above the competitive bid amount specified in § 19-11-234, when the officer determines that an unusual or unique situation exists that makes the application of all requirements of competitive bidding, competitive sealed bidding, or competitive sealed proposals contrary to the public interest.
A written determination of the basis for the procurement and for the selection of the particular contractor shall be included by the director or the head of a procurement agency in the contract file, and he or she shall file a monthly report with the Legislative Council describing all such determinations.

History. Acts 2001, No. 1237, § 48.

19-11-264. Submission of contracts with members of General Assembly required.

All contracts with a member of the General Assembly, his or her spouse, or with any business in which such person or his or her spouse is an officer, a director, or a stockholder owning more than ten percent (10%) of the stock in the business shall be presented to the Legislative Council or to the Joint Budget Committee, if the General Assembly is in session, before the execution date of the contract.
The Legislative Council or the Joint Budget Committee shall provide the State Procurement Director and the Executive Director of the Arkansas Ethics Commission with its review as to the propriety of the contract, including without limitation whether the agency properly complied with the procurement process and whether the contract represents an improper conflict of interest between the member and the agency, within thirty (30) days after receipt of the proposed contract.
The contract shall not be submitted to the Legislative Council or to the Joint Budget Committee until the Department of Transformation and Shared Services has reviewed the contract and provided the Legislative Council or the Joint Budget Committee with a recommendation regarding the legality of the contract.

History. Acts 2007, No. 567, § 1.

19-11-265. Submission of contracts required — Definition.

1. Except for critical emergency procurements and as otherwise provided in this section, a contract requiring the services of one (1) or more persons shall be presented to the Legislative Council or, if the General Assembly is in session, to the Joint Budget Committee, if the annual contract amount is at least fifty thousand dollars ($50,000) in any one (1) contract year or if the total projected contract amount, including any amendments or possible extensions, is at least three hundred fifty thousand dollars ($350,000).
2. The Legislative Council or the Joint Budget Committee shall provide the State Procurement Director with its review as to the propriety of the contract within thirty (30) days after receipt of the proposed contract.
3. The contract shall not be submitted to the Legislative Council or to the Joint Budget Committee until the Office of State Procurement has reviewed the contract and provided the Legislative Council or the Joint Budget Committee with a recommendation regarding the legality of the contract.
4. 1. 1. A contract that does not have a material change upon renewal or extension shall be included in the monthly report required under § 19-11-274 instead of being submitted to the Legislative Council or the Joint Budget Committee for review under this subsection.
    2. As used in this subdivision (a)(4), “material change” includes without limitation:
      1. An increase in the contract amount;
      2. An increase in the total projected contract amount;
      3. A change in any of the essential terms of the contract;
      4. A change in any performance-based standards stated in the contract;
      5. The imposition of financial consequences as the result of a failure to satisfy performance-based standards under § 19-11-267 during the year preceding the renewal or extension of the contract; and
      6. The submission of a vendor performance report during the year preceding the renewal or extension of the contract.
  2. However, a state agency may elect to submit a contract for review under this subsection if the state agency is uncertain whether the contract has a material change.
5. A contract that is submitted for review under this subsection and that has a total projected contract amount of at least three hundred fifty thousand dollars ($350,000) shall have a cover sheet that provides the following information:
  1. A description of the services being procured;
  2. A description of the procurement process followed, including without limitation the method used for the procurement; and
  3. The outcome of any protests.
The Legislative Council or the Joint Budget Committee may review or exempt from review any contract or group of contracts contemplated by this section.
A contract that is procured by a state agency that has a state agency procurement official or procurement authority under a delegation order is subject to the presentment requirements under this section.
It is a violation of state procurement laws, Arkansas Code Title 19, Chapter 11, for a state agency official to procure services in an incremental or split purchase arrangement to avoid the presentment requirements of this section.

History. Acts 2007, No. 870, § 1; 2009, No. 396, § 1; 2015, No. 557, § 5; 2019, No. 417, § 7.

Amendments. The 2009 amendment inserted (c).

The 2015 amendment rewrote (a)(1); deleted former (c)(1)(B) and redesignated former (c)(1)(A) as (c)(1); in (c)(1), deleted “for technical and general services that are” following “contracts” at the beginning and substituted “all executed contracts ... hundred thousand dollars ($100,000)” for “each commodities contract that includes services and has a projected total cost of two hundred fifty thousand dollars ($250,000) or more”; inserted “required under this subsection” in (c)(2); deleted “if the commodities contract is a state contract” at the end of (c)(2)(A); deleted “if the commodities contract is procured by a state agency with an agency procurement official” at the end of (c)(2)(B); in (c)(2)(D), inserted “initial” and “included in the contract”; deleted “commodity or” preceding “commodities” in (c)(2)(E); in (c)(2)(F), deleted “the commodity or” preceding “commodities” and inserted “and services”; inserted (c)(2)(H) and (I); inserted “required under this subsection” following “report” in (c)(3); deleted (c)(4); and added (d) and (e).

The 2019 amendment rewrote (a)(1); added (a)(4) and (a)(5); deleted former (c) and redesignated the remaining subsections accordingly; in present (c), substituted “that has” for “with”, inserted “or procurement authority under a delegation order”, and deleted “reporting and” preceding “presentment”; and deleted “reporting or” preceding “presentment” in present (d).

19-11-266. High efficiency lighting — Preference — Definitions.

1. The General Assembly finds:
  1. The expansion of state government makes it one of the state's leading purchasers of lighting commodities;
  2. Recent technological developments have produced energy-efficient devices that reduce energy costs through a reduction in energy usage; and
  3. Prudent use of taxpayer dollars dictates that the State of Arkansas should be at the forefront of implementing energy-efficient devices in facilities operated with public funds.
2. The intent of this section is to promote the use of high efficiency lighting in facilities operated with public funds when feasible.
As used in this section:
1. 1. “Fluorescent lamp” means a gas-discharge lamp that:
    1. Utilizes a magnetic, electronic, or other ballast; and
    2. Uses electricity to excite mercury vapor in argon or neon gas resulting in a plasma that produces short-wave ultraviolet light that causes a phosphor to fluoresce and produce visible light.
  2. “Fluorescent lamp” includes without limitation a compact fluorescent lamp;
2. “High efficiency lighting” means fluorescent lamp or solid state lighting;
3. “Solid state lighting” means a light device that utilizes light-emitting diodes, organic light-emitting diodes, or polymer light-emitting diodes as sources of illumination rather than electrical filaments or gas; and
4. 1. “State agency” means any agency, institution, authority, department, board, commission, bureau, council, or other agency of the state supported by appropriation of state or federal funds.
  2. “State agency” includes the constitutional departments of the state, the elected constitutional offices of the state, the General Assembly, including the Legislative Council and the Legislative Joint Auditing Committee and supporting agencies and bureaus thereof, the Supreme Court, the Court of Appeals, circuit courts, prosecuting attorneys, and the Administrative Office of the Courts.
Whenever a state agency purchases or requires a bid for the purchase of an indoor lamp, a preference for high efficiency lighting shall be exercised if the use of high efficiency lighting is technically feasible and the price is competitive with consideration given to the long-term cost effectiveness and savings of high efficiency lighting.
1. The goal of state agencies for the percentage of purchased indoor lamps that are high efficiency lighting shall be one hundred percent (100%) by January 1, 2008.
2. The Office of State Procurement shall prepare an annual report to the Legislative Council of the state's progress in meeting the goals for the purchase of high efficiency lighting.

History. Acts 2007, No. 1597, § 1.

19-11-267. Development and use of performance-based contracts — Findings.

The General Assembly finds that:
1. Performance-based contracts provide an effective and efficient method of monitoring and evaluating the overall quality of services provided; and
2. The practice of including benchmark objectives that the provider must attain at specific intervals during the term of the contract is an essential requirement for measuring performance.
1. A state agency, board, commission, or institution of higher education that enters into a contract under this chapter to procure services that has a contract amount of at least one million dollars ($1,000,000) in a single contract year or a total projected contract amount, including any amendments to or possible extensions of the contract, of at least seven million dollars ($7,000,000) shall use performance-based standards in the contract that are specifically tailored to the services being provided under the contract.
2. The performance-based standards used under this subsection shall include performance measures based on objective factors.
3. A state agency, board, commission, or institution of higher education is encouraged to use performance-based standards that are based on objective factors in any other contract in which it would serve the best interest of the state.
A state agency, board, commission, or institution of higher education that enters into a contract with performance-based standards:
1. 1. Shall monitor the vendor's performance and adherence to the performance-based standards in the contract.
  2. For state contracts, the Office of State Procurement shall be the state agency that monitors each vendor's performance under this subdivision (c)(1); and
2. May impose financial consequences, as identified in the contract, on a vendor that is party to a contract with performance-based standards for failure to satisfy the performance-based standards, including without limitation withholding payment or pursuing liquidated damages to the extent allowed by law.
1. The State Procurement Director shall promulgate rules necessary to implement and administer this section.
2. Rules promulgated under this subsection are subject to approval by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.

History. Acts 2015, No. 557, § 6; 2019, No. 418, § 4.

Amendments. The 2019 amendment rewrote (b); inserted (c); and redesignated former (c) as (d).

19-11-268. Vendor performance reporting.

1. A state agency shall report a vendor's performance under a contract executed under this chapter if the vendor fails to satisfy the performance-based standards stated in the contract in a manner that represents a material deviation.
2. A state agency shall use a form prescribed by the State Procurement Director and approved by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, to report a vendor's performance under this section.
The report required under this section shall be:
1. Filed with the Office of State Procurement and maintained for a minimum of three (3) years from the termination of the relevant contract, including any extensions and amendments;
2. Signed by the director of the state agency or his or her designee; and
3. Filed monthly until the vendor has performed satisfactorily under the contract for a period of at least ninety (90) consecutive days.
A state agency may report a vendor's performance in the manner prescribed under this section for any contract that would not require reporting of a vendor's performance under this section if the state agency encounters an issue with the vendor's performance of a contract.
A state agency may use a vendor performance report submitted under this section to evaluate an offeror to the extent that the past performance of an offeror may be considered under the law and the rules adopted by the office.

History. Acts 2015, No. 557, § 6; 2019, No. 418, § 4.

Amendments. The 2019 amendment substituted “chapter if the vendor fails to satisfy the performance-based standards stated in the contract in a manner that represents a material deviation” for “subchapter that has a total initial contract amount or total projected contract amount, including any amendments to or possible extensions of the contract, of at least twenty-five thousand dollars ($25,000)” in (a)(1); deleted former (b)(1), and redesignated former (b)(2) and (b)(3) as (b)(1) and (b)(2); added present (b)(3); added (c) and (d); and made a stylistic change.

19-11-269. Review of information technology plans.

The Office of State Procurement shall ensure that all required information has been submitted to the Office of Intergovernmental Services for review of proper planning and technical requirements before the execution of:

A contract issued under this subchapter that procures information technology products or services with a total projected contract amount, including any amendments to or possible extensions of the contract, of at least one hundred thousand dollars ($100,000); or
A purchase of information technology products or services made under a cooperative purchase agreement under § 19-11-249.

History. Acts 2015, No. 557, § 6.

19-11-270. Penalty for intentional violation.

A person who purposely violates state procurement laws, Arkansas Code Title 19, Chapter 11, upon conviction is guilty of a Class D felony.

History. Acts 2015, No. 557, § 6.

19-11-271. Compliance reporting.

Each report required under this subchapter shall be copied to the Secretary of the Department of Transformation and Shared Services, who shall review each report for compliance with the fiscal responsibility and management laws of the state under the State Fiscal Management Responsibility Act, § 19-1-601 et seq.
If the secretary determines that a state agency, agency procurement official, or state official or employee may be in violation of the fiscal responsibility and management laws of the state under the State Fiscal Management Responsibility Act, § 19-1-601 et seq., the secretary shall notify the chief executive officer of the relevant state agency.

History. Acts 2015, No. 557, § 6; 2019, No. 910, § 3473.

Amendments. The 2019 amendment substituted “Secretary of the Department of Transformation and Shared Services” for “Director of the Department of Finance and Administration” in (a); and substituted “secretary” for “director” twice in (b).

19-11-272. Experience requirement — Findings.

1. The General Assembly finds that:
  1. An invitation for bids, a request for proposals, and a request for qualifications often require that bidders and offerors have a certain amount of experience to qualify;
  2. These experience requirements often apply to the business of the bidder or offeror rather than the key personnel of the bidder or offeror;
  3. As a result, new businesses with highly qualified personnel often do not qualify to compete for state contracts even though the executives and employees of the business have the experience required; and
  4. It is in the best interests of the state to encourage new businesses and to seek out the most qualified people to provide products and services to the state.
2. The General Assembly intends for this section to:
  1. Encourage entrepreneurship;
  2. Level the playing field for new businesses to compete for business opportunities; and
  3. Enable new businesses with highly qualified personnel to compete for state contracts.
If an invitation for bids, a request for proposals, or a request for qualifications under this chapter requires a certain amount of experience or a certain number of years in existence for the bidder or offeror, the requirement shall be satisfied by either:
1. 1. The amount of experience of the bidder or offeror.
  2. A bidder or offeror may use the combined experience of its owners or senior executive staff to satisfy the requirement under subdivision (b)(1)(A) of this section; or
2. The combined amount of experience of the key personnel of the bidder or offeror that will be responsible for satisfying the requirements of the contract to be procured.
1. However, before the issuance of an invitation for bids, a request for proposals, or a request for qualifications, the Office of State Procurement or a procurement agency may determine in writing that the combined experience of the key personnel of a bidder or offeror under subdivision (b)(2) of this section would be insufficient to adequately satisfy the requirements of the invitation for bids, request for proposals, or request for qualifications.
2. A written determination under subdivision (c)(1) of this section shall include the following:
  1. A specific description of the products or services that the Office of State Procurement or procurement agency seeks to procure; and
  2. A detailed statement of the reasons the combined experience of the key personnel of a bidder or offeror would be insufficient.

History. Acts 2015, No. 281, § 1.

19-11-273. Procurements for services in designated positions and designated financial and information technology positions.

A contract for services with a person employed or entity employing persons in a designated position or designated financial or information technology position as defined in § 21-15-101 shall require compliance with the registry records check and criminal history records check laws under § 21-15-101 et seq.

History. Acts 2019, No. 318, § 4.

19-11-274. Reporting requirements.

The State Procurement Director shall compile a monthly report of all executed contracts for services that have a total initial contract amount or a total projected contract amount, including any amendments or possible extensions, of at least twenty-five thousand dollars ($25,000) but less than an annual contract amount of fifty thousand dollars ($50,000) in any one (1) contract year or a total projected contract amount, including any amendments or possible extensions, of three hundred fifty thousand dollars ($350,000).
A contract that is procured by a state agency that has a state agency procurement official or procurement authority under a delegation order is subject to the reporting requirements under this section.
The State Procurement Director shall adopt rules to:
1. Prescribe a cover sheet for the report required under this section that sorts and identifies contracts within the report that may be candidates for review;
2. Create instructions for completing the cover sheet prescribed under subdivision (c)(1) of this section; and
3. Provide for the identification of any contracts included in the report that may need to be reviewed under § 19-11-265.
It is a violation of state procurement laws, Arkansas Code Title 19, Chapter 11, for a state agency official to procure services in an incremental or split purchase arrangement to avoid the reporting requirements of this section.

History. Acts 2019, No. 417, § 8.

19-11-275. Tracking requirements.

The State Procurement Director, each agency procurement official, and any state agency with procurement authority under a delegation order shall track the following for the procurements they conduct and the contracts they execute:
1. Each protest received and the resolution of the protest;
2. The outcome of any negotiations under this chapter; and
3. The anticipated procurement needs of the state agency based on the contracts that:
  1. Are set to expire during the next twelve (12) months; and
  2. Will require a new solicitation in the next twelve (12) months.
Each agency procurement official and each state agency with procurement authority under a delegation order shall report the information obtained under subsection (a) of this section to the Office of State Procurement.

History. Acts 2019, No. 417, § 8.

19-11-276. Compliance.

A contractor shall ensure, in cooperation with a state agency, that the contract between the contractor and the state agency adheres to the requirements of this chapter, including without limitation the inclusion of any mandatory language and the submission of the contract for any required review.
The signature of a contractor on a contract with a state agency serves as an acknowledgement that the contractor is:
1. Equally responsible with the state agency for adhering to the requirements of this chapter related to the content and review of the contract; and
2. Subject to the relevant ethical provisions of § 19-11-701 et seq.

History. Acts 2019, No. 418, § 5.

A.C.R.C. Notes. Acts 2019, No. 418, § 8, provided: “Rules.

“(a) When adopting the initial rules required under this act, the State Procurement Director shall file the final rules with the Secretary of State for adoption under § 25-15-204(f):

“(1) On or before January 1, 2020; or

“(2) If approval under § 10-3-309 has not occurred by January 1, 2020, as soon as practicable after approval under § 10-3-309.

19-11-277. Solicitation conferences.

1. A state agency may hold a solicitation conference before or after issuing an invitation for bids, a request for proposals, or a request for statements of qualifications and performance data under § 19-11-801 et seq.
2. A solicitation conference may be held:
  1. In person; or
  2. Online or in another virtual format.
Attendance by a vendor at a solicitation conference is not required for that vendor's bid, proposal, or statement of qualifications and performance data to be accepted unless the attendance requirement is:
1. Explicitly stated in the invitation for bids, request for proposals, or request for statements of qualifications and performance data; and
2. Approved by the State Procurement Director or the head of the procurement agency.
A state agency holding a solicitation conference shall:
1. For an invitation for bids or a request for proposals, include the date and time of the solicitation conference in the notice required under § 19-11-229;
2. Require vendors in attendance at a solicitation conference to sign in at the solicitation conference or provide a registration record for an online or other virtual solicitation conference, regardless of whether attendance is required under the solicitation; and
3. Maintain the sign-in sheet or registration records with the other documents related to the solicitation.
A statement made at a solicitation conference does not change the invitation for bids, request for proposals, or request for statements of qualifications and performance data unless a change is made by written amendment to the invitation for bids, request for proposals, or request for statements of qualifications and performance data.
A state agency is encouraged to hold a solicitation conference for a procurement that:
1. Has a contract amount of at least:
  1. Five million dollars ($5,000,000) for a single contract year; or
  2. Thirty-five million dollars ($35,000,000) for the total anticipated term of the contract, including any extensions, based on the previous contract for the same commodities or services or, if a previous contract is not available, a contract for similar commodities or services; or
2. Is of strategic importance to the state.

History. Acts 2019, No. 419, § 12.

19-11-278. Vendor training and polling.

The Office of State Procurement shall:

1. Develop and deliver vendor training to inform interested vendors of how to do business with the state.
2. The training required under subdivision (1)(A) of this section shall:
  1. Be offered throughout the state; and
  2. Be delivered as training sessions in person and online or in another virtual format; and
Periodically poll vendors that have been successful in securing business with the state and vendors that have not been successful in securing business with the state to solicit procurement feedback that can be used to improve vendor training.

History. Acts 2019, No. 419, § 12.

19-11-279. Requests for information — Definition.

As used in this section, “request for information” means a procedure for formally requesting information, data, comments, or reactions from prospective bidders or offerors in contemplation of a possible competitive sealed bidding procurement under § 19-11-229 or a competitive sealed proposal procurement under § 19-11-230.
The State Procurement Director, a head of a procurement agency, or a designee of the director or of a head of a procurement agency, may issue or authorize another person to issue a request for information.
A request for information under this section shall be published in the same manner and location as an invitation for bids, a request for proposals, or a request for qualifications.
A contract shall not be awarded directly from a request for information.
Information provided in response to a request for information under this section is exempt from the Freedom of Information Act of 1967, § 25-19-101 et seq., until:
1. The bids for a competitive sealed bidding procurement are opened publicly;
2. The notice of anticipation to award is given for a competitive sealed proposal procurement; or
3. A decision is made not to pursue a procurement based on the request for information.

History. Acts 2019, No. 419, § 12.

19-11-280. Training and certification of procurement personnel.

The State Procurement Director shall establish a training and certification program to facilitate the training, continuing education, and certification of state agency procurement personnel.
As part of the training and certification program required under this section, the director:
1. Shall conduct procurement education and training for state agency employees and other public employees;
2. 1. Shall establish a tiered core curriculum that outlines the minimum procurement-related training courses a state agency employee is required to complete for certification.
  2. The tiered core curriculum required under subdivision (b)(2)(A) of this section shall:
    1. Be designed to develop procurement competency; and
    2. Create a uniform training approach for state agency employees ranging from entry-level procurement personnel to agency procurement officials;
3. May charge a reasonable fee for each participant to cover the cost of providing the training required under this section;
4. May conduct, develop, and collaborate with established training programs, if any, for the purpose of providing certifications of proficiency to state agency employees who complete the training and certification program;
5. May conduct research into existing and new procurement methods; and
6. May establish and maintain a state procurement library.
1. Beginning July 1, 2021, a state agency employee shall not conduct a procurement under this chapter unless the state agency employee is certified through the training and certification program required under this section.
2. To maintain certification under this section, a state agency employee shall complete a reasonable number of hours of continuing education, as provided for by rule by the director.
1. The director shall revoke the certification of a state agency employee who is certified under this section and who is determined to have knowingly violated state procurement laws, Arkansas Code Title 19, Chapter 11.
2. The director shall adopt rules regarding the procedure for revoking a state agency employee's certification under this section.

History. Acts 2019, No. 419, § 12.

19-11-281. Cancellation of contract on entry of final business closure order — Definition. [Effective January 1, 2020.]

As used in this subchapter, “final business closure order” means a business closure order for which a contractor has either:
1. Waived further administrative review under § 26-18-1001 et seq.; or
2. Exhausted all remedies to appeal under § 26-18-1001 et seq.
The Revenue Division shall provide to the Office of State Procurement all final business closure orders entered into against a contractor.
Upon receipt of a final business closure order, the office shall, as soon as reasonably practicable:
1. Notify each state agency with which the contractor has a contract that the:
  1. Contractor is subject to a final business closure order; and
  2. Provision of any goods or services, or both, under a contract with the contractor that is subject to a final business closure order shall cease as soon as reasonably practicable; and
2. Notify all state agencies that the contractor that is subject to a final business closure order shall not be awarded or maintain a contract with a state agency unless the office provides notice under subsection (d) of this section.
Upon receipt of information that a contractor has resolved a business closure, the office shall notify all state agencies, as soon as reasonably practicable, that:
1. Any unexpired contracts with the contractor may continue if the contract was not terminated, cancelled, suspended, or discontinued; and
2. The contractor may be awarded or maintain a contract with a state agency.

History. Acts 2019, No. 866, § 1.

Effective Dates. Acts 2019, No. 866, § 4: Jan. 1, 2020.

Subchapter 3 — Bidding — State Industry Priority

Cross References. Prison-made goods, § 12-30-201 et seq., § 22-3-1218.

Effective Dates. Acts 1981, No. 309, § 9: Mar. 4, 1981. Emergency clause provided: “It has been found and it is declared by the General Assembly of Arkansas that inequalities and discriminations in the awards of State contracts exist as the result of the receipt of bids from out of state penal institutions, and that enactment of this Bill will provide for a more efficient and effective competitive environment for Arkansas industries. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health and safety shall take effect and be in full force and effect from the date of its approval.”

19-11-301. Purpose.

The purpose of this subchapter is to protect Arkansas private industries which employ Arkansas taxpayers and citizens from the unfair advantage held by certain out-of-state penal institutions that utilize convict labor and are exempt from minimum wage requirements, Occupational Safety and Health Act of 1970 requirements, and other such standards which are imposed on private industries and which increase the costs of products manufactured by private industries. This advantage which is enjoyed by many out-of-state penal institutions allows them to often receive contracts under the Arkansas Procurement Law, § 19-11-201 et seq., bidding process when Arkansas private industries also submit bids, thus hindering a healthy competitive environment for the private industries of this state.

History. Acts 1981, No. 309, § 1; A.S.A. 1947, § 14-294.

Amendments. The 2017 amendment deleted “average daily” preceding “balances” in (107).

U.S. Code. The Occupational Safety and Health Act of 1970, referred to in this section, is codified as 5 U.S.C. §§ 5108, 5314, 5315, 7902; 15 U.S.C. §§ 633, 636; 18 U.S.C. § 1114; 29 U.S.C. §§ 553, 651—678.

19-11-302. Definitions.

As used in this subchapter, unless the context otherwise requires:

“Bids” means proposals submitted to the state for the sale of products to the state;
“Penal institution” means a penitentiary, jail, prison, reformatory, or other such establishment owned, operated, or funded by a state or local government wherein incarcerated criminals are kept;
“Private industry” means manufacturers, makers of products, companies, corporations, or firms which are not departments, divisions, or arms of the federal, state, or local governments;
“Private industry located within the State of Arkansas” means private industries, as defined in subdivision (3) of this section, which are located in Arkansas, employing Arkansas citizens and taxpayers as laborers in the process of manufacturing goods and products within this state; and
“State” means the government of the State of Arkansas and all departments, branches, agencies, and subdivisions thereof.

History. Acts 1981, No. 309, § 2; A.S.A. 1947, § 14-294.1.

19-11-303. Provisions controlling.

Where provisions of this subchapter are inconsistent with provisions of the current Arkansas Procurement Law, § 19-11-201 et seq., the provisions in this subchapter shall control.

History. Acts 1981, No. 309, § 7; A.S.A. 1947, § 14-294.5.

19-11-304. Priority for state industries.

In the bidding process for the sale of products for use by the state, bids submitted by private industries located within the State of Arkansas and employing Arkansas taxpayers shall be given priority over bids submitted by out-of-state penal institutions employing convict labor.

History. Acts 1981, No. 309, § 3; A.S.A. 1947, § 14-294.2.

19-11-305. Award to lowest state bidder — Exceptions.

Subject to any applicable bonding requirements, in all bidding procedures involving a bid by one (1) or more out-of-state penal institutions and a bid by one (1) or more private industries located within the State of Arkansas, the contract shall be awarded to the sole Arkansas bidder or lowest Arkansas bidder if the Arkansas bidder is not underbid by more than five percent (5%), as provided in § 19-11-259, by another representative of private industry located outside the State of Arkansas or by more than fifteen percent (15%) by an out-of-state correctional institution.

History. Acts 1981, No. 309, § 4; A.S.A. 1947, § 14-294.3.

19-11-306. Underbid by nonresident industry or penal institution.

Subject to any applicable bonding requirements, in the event that a private Arkansas bidder is underbid by more than five percent (5%), as provided in § 19-11-259, by another representative of private industry located outside the State of Arkansas or is underbid by more than fifteen percent (15%) by an out-of-state correctional institution, the state contract shall be awarded to the lowest responsible bidder, whether that bidder is a penal or correctional institution or is a representative of private industry.

History. Acts 1981, No. 309, § 5; A.S.A. 1947, § 14-294.4.

Subchapter 4 — Bidding — Bonds

19-11-401 — 19-11-405. [Repealed.]

Publisher's Notes. This subchapter, concerning bidding and bonds, was repealed by Acts 1993, No. 645, § 2. The subchapter was derived from the following sources:

19-11-401. Acts 1949, No. 228, § 1; A.S.A. 1947, § 14-113.

19-11-402. Acts 1949, No. 228, §§ 5, 6; 1983, No. 862, § 3; A.S.A. 1947, §§ 14-117, 14-118; Acts 1987, No. 55, § 1.

19-11-403. Acts 1949, No. 228, § 2; 1983, No. 862, § 1; A.S.A. 1947, § 14-114; Acts 1987, No. 758, § 2.

19-11-404. Acts 1949, No. 228, § 4; A.S.A. 1947, § 14-116.

19-11-405. Acts 1949, No. 228, § 3; 1983, No. 862, § 2; A.S.A. 1947, § 14-115; Acts 1987, No. 758, § 3.

Subchapter 5 — Purchases of Workshop-Made Products and Services.

19-11-501 — 19-11-504. [Repealed.]

Publisher's Notes. This subchapter, concerning purchases of workshop-made products and services, was repealed by Acts 2001, No. 1718, § 2. The subchapter was derived from the following sources:

19-11-501. Acts 1973, No. 405, § 1; A.S.A. 1947, § 14-229; Acts 1991, No. 853, § 1.

19-11-502. Acts 1973, No. 405, § 2; A.S.A. 1947, § 14-230; Acts 1991, No. 853, § 2.

19-11-503. Acts 1973, No. 405, § 3; A.S.A. 1947, § 14-231; Acts 1991, No. 853, § 3.

19-11-504. Acts 1973, No. 405, § 4; A.S.A. 1947, § 14-232; Acts 1991, No. 853, § 4; 1995, No. 1296, § 76; 2001, No. 961, § 8.

Section 19-11-504 was amended by Acts 2001, No. 961, and repealed by Acts 2001, No. 1718. The repeal by Acts 2001, No. 1718 was deemed to supersede the amendment by Acts 2001, No. 961

As amended by Acts 2001, No. 961, § 8, § 19-11-504 was amended to read as follows:

“(1)(G)(i) “Services” means the furnishing of labor, time, or effort by a contractor, not involving the delivery of a specific end product other than reports which are merely incidental to the required performance.

“(1)(G)(ii) This term shall not include employment agreements, collective bargaining agreements, or architectural or engineering contracts requiring approval of Arkansas State Building Services or public institutions of higher education;”

Subchapter 6 — Federal Government Surplus Property

A.C.R.C. Notes. Acts 2009, No. 1187, § 1, provided:

“(a) Effective July 1, 2009, the authority, powers, duties, functions, records, personnel, property, unexpended balances of appropriations, allocations, or other funds, including the functions of budgeting and purchasing, of the Federal Surplus Property program operated under Pub. L. No. 81-152 and Pub. L. No. 81-754 shall be transferred as a type 2 transfer, under § 25-2-105 from the Arkansas Department of Workforce Education to the Arkansas Department of Emergency Management.

“(b) For purposes of this act, the Arkansas Department of Emergency Management shall be considered a principal department established by Acts 1971, No. 38.”

Effective Dates. Acts 1951, No. 353, § 5: approved Mar. 20, 1951. Emergency clause provided: “Whereas, the immediate transfer of available government properties to eligible claimants as provided in Public Laws 152 and 754 by the 81st Congress is paramount to the establishment of an adequate civil defense program for the protection of the people of this State during the present national emergency; and

“Whereas, immediate action is needed by the State Board of Education for the transfer of available properties; now

“Therefore, this Act being necessary for the immediate preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this Act shall be in full force and effect from and after its passage.”

Acts 1953, No. 384, § 19 [20]: July 1, 1953.

Acts 1988 (3rd Ex. Sess.), No. 7, § 3: Feb. 5, 1988. Emergency clause provided: “It is hereby found and determined by the Seventy-Sixth General Assembly, meeting in the Third Extraordinary Session, that the passage of this Act is necessary to provide for continued operation of the Vocational and Technical Education Division of the State Department of Education. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 2009, No. 1187, § 6: July 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that for the efficient operation of state and local government this act is immediately necessary to facilitate the cooperation with the federal government in the transfer of surplus property to state and local agencies and departments. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2009.”

19-11-601. Authority to transfer to state and local agencies.

The Arkansas Department of Emergency Management is authorized to cooperate with the federal government in the transfer of government surplus property to any and all departments and agencies of state and local government and to any and all other agencies eligible to receive surplus property under Pub. L. No. 81-152 and Pub. L. No. 81-754, and any and all other statutory laws that may be enacted by the United States Congress covering the disposal of federal government surplus property.
The department is authorized to take any and all action necessary to the proper administration of the federal Surplus Property Program in the acquisition of and the distribution of government surplus properties to eligible claimants in this state, distribution to be in accordance with the appropriate controlling federal statutes.
The department is authorized to add to the cost of the properties an amount necessary to defray the expenses of this service.

History. Acts 1951, No. 353, §§ 1-3; A.S.A. 1947, §§ 80-135.2 — 80-135.4; Acts 2009, No. 1187, § 2.

Amendments. The 2009 amendment substituted “Arkansas Department of Emergency Management” for “State Board of Education” in (a); and substituted “department” for “state board” in (b) and (c).

U.S. Code. Pub. L. No. 81-152 and Pub. L. No. 81-754, referred to in this section, are codified as 40 U.S.C. § 101 et seq.

19-11-602. Purchase for schools and school districts.

The Division of Emergency Management is authorized to purchase surplus commodities, materials, supplies, equipment, and other property from the United States Government through any of its agencies for tax-supported schools and for school districts in Arkansas. The division is authorized to cooperate with the State Procurement Director in the purchase of school items.
Schools and school districts desiring to obtain federal surplus materials, equipment, etc., shall make application to the division on blanks furnished by the division for that purpose.
Schools and school districts making application to the division to purchase surplus materials, equipment, and other property from the federal government shall pay cash for it by drawing a voucher or warrant in favor of the federal government for the purchase price of such materials.

History. Acts 1945, No. 303, §§ 1-3; 1953, No. 384, § 17 [18]; A.S.A. 1947, §§ 80-132—80-134; Acts 2009, No. 1187, § 3; 2019, No. 910, § 6113.

The 2019 amendment, in (a), substituted “Division of Emergency Management” for “Arkansas Department of Emergency Management” in the first sentence and substituted “division” for “department” in the second sentence.

19-11-603. Service charge.

The Arkansas Department of Emergency Management is authorized to add to the cost of surplus properties secured by the State Agency for a Surplus Property an amount necessary to defray the expense of this service and to repay into the Revolving Loan Fund loans made to the agency as provided in this section.
The department is also authorized to establish service charges in such amounts as may be necessary to cover the expenses of the department in administering special federal service programs for schools and agencies. These charges are to be paid by the school, institution, or agency in the amount designated by the department.
The department is authorized and directed to take such action as is necessary to collect such charges and may, in its discretion, withhold from any state moneys over which the department has control funds necessary to pay the amounts owing by such school districts and agencies.
It is the intention of the General Assembly that the schools and agencies shall pay for such services amounts sufficient to reimburse the department for expenses incurred in the operation of the federal Surplus Property Program and in the operation of special federal service programs.

History. Acts 1959, No. 357, § 12; A.S.A. 1947, § 80-135.1; Acts 2009, No. 1187, § 4.

Amendments. The 2009 amendment substituted “Arkansas Department of Emergency Management” for “State Board of Education” in (a); substituted “department” for “state board” in five places in (b) and (c); and made a minor stylistic change in (b).

19-11-604. Rural water associations.

Rural water associations shall be deemed eligible to participate in the federal Surplus Property Program operated under Pub. L. No. 81-152 and Pub. L. No. 81-754 as now administered by the Arkansas Department of Emergency Management.

History. Acts 1988, (3rd Ex. Sess.), No. 7, § 2; 2009, No. 1187, § 5.

Amendments. The 2009 amendment inserted “operated under Pub. L. No. 81-152 and Pub. L. No. 81-754” and substituted “Arkansas Department of Emergency Management” for “Vocational and Technical Education Division of the Department of Education, or any successor agency.”

U.S. Code. Pub. L. No. 81-152 and Pub. L. No. 81-754, referred to in this section, are codified as 40 U.S.C. § 101 et seq.

Cross References. Rural Development Authorities, § 14-188-101 et seq.

19-11-605. Authority to transfer excess military property to state and local agencies — Service charge.

The Law Enforcement Support Office may:

Cooperate with the United States Government under 10 U.S.C. § 2576a in the transfer of excess military property to state and local law enforcement agencies:
1. Whose primary function is the enforcement of applicable federal, state, and local laws; and
2. Whose compensated law enforcement officers have powers of arrest and apprehension, including without limitation counter-drug and counter-terrorism activities;
Take any action necessary to the proper administration of the acquisition and the distribution of excess military properties to eligible claimants in this state, with distribution to be in accordance with the appropriate controlling federal statutes;
Establish service charges in an amount necessary to cover the expenses of the Department of Public Safety incurred in administering this section; and
Take action as necessary to collect service charges and, from any state moneys over which the department has control, withhold funds necessary to pay an amount owing by a state or local law enforcement agency.

History. Acts 2013, No. 1097, § 1; 2019, No. 910, § 6004.

Amendments. The 2019 amendment substituted “Department of Public Safety” for “Department of Career Education” in the introductory language following “Support Office of the” and in (3).

Subchapter 7 — Ethics

Effective Dates. Acts 1979, No. 483, § 18: became effective at 12:01 a.m., July 1, 1979. Emergency clause provided: “It is hereby found and determined by the Seventy-Second General Assembly that the proper and effective management and control of State government requires that the provisions of this act be implemented at the commencement of the next biennium and this Act being necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist and this Act shall become effective at 12:01 a.m. on July 1, 1979.”

Acts 2003, No. 1093, § 4: Apr. 4, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that although Arkansas Code § 19-11-709(d) prohibits former state employees from entering into professional or consultant contracts with the state for one (1) year period, the current definitions provide a loophole to this provision, and allows such contracts; that this act is necessary to close this loophole; and that this act is immediately necessary to maintain the integrity of the process and the citizens confidence in awarding public contracts. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2005, No. 949, § 2: Mar. 18, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that a question has arisen concerning the ability of state agencies to contract with business organizations for professional or consultant services in situations where the services will be provided, in whole or in part, by persons who are associated with the business organization and who are also employees of the public institution of higher education; that employees of institutions of higher education engage in research that results in patents, copyrights, or proprietary interests; that under the policies of most institutions of higher education, the patents, copyrights, and proprietary interests are owned by the institution and are often commercialized in a manner that encourages and enhances economic development in the State of Arkansas through business organizations in which the institutions of higher education and some of their employees have an interest; that it is generally accepted under the policies of public institutions of higher education that employees whose inventions result in patents, copyrights, or other proprietary interests retain a right to receive a portion of the income from commercialization of these inventions and are allowed to devote a portion of their time to outside employment or consulting contracts with the business organizations that have licensed their inventions; that state agencies currently are uncertain whether they may contract for goods or services with business organizations to which employees of institutions of higher education provide services through arrangements related to patents, copyrights, or other proprietary interests; that such uncertainty has the effect of depriving state agencies of the benefit of new technology developments through public institutions of higher education; and that this act is immediately necessary in order to clarify the law so that state agencies are not unreasonably restricted in their ability to enter into necessary contractual arrangements that have positive impact on the economic development of the State of Arkansas and promote the development of new technologies. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Cross References. The Disclosure Act for Lobbyists and State and Local Officials, § 21-8-401 et seq.

19-11-701. Definitions.

As used in this subchapter:

“Blind trust” means an independently managed trust in which the employee-beneficiary has no management rights and in which the employee-beneficiary is not given notice of alterations in or other dispositions of the property subject to the trust;
“Business” means any corporation, partnership, individual, sole proprietorship, joint-stock company, joint venture, or any other legal entity;
“Commodities” means all property, including, but not limited to:
1. Equipment;
2. Printing;
3. Stationery;
4. Supplies;
5. Insurance; and
6. Real property;
“Confidential information” means any information which is available to an employee only because of the employee's status as an employee of this state and is not a matter of public knowledge or available to the public on request;
“Conspicuously” means written in such special or distinctive format, print, or manner that a reasonable person against whom it is to operate ought to have noticed it;
“Contract” means all types of state agreements, regardless of what they may be called, for the purchase or disposal of commodities and services. “Contract” includes awards and notices of award; contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the issuance of job or task orders; leases; letter contracts; and purchase orders. “Contract” also includes supplemental agreements with respect to any of the foregoing;
“Contractor” means any person having a contract with a state agency;
“Employee” means an individual drawing a salary from a state agency, whether elected or not, and any nonsalaried individual performing personal services for any state agency;
“Financial interest” means:
1. Ownership of any interest or involvement in any relationship from which, or as a result of which, a person within the past year has received, or is presently or in the future entitled to receive, more than one thousand dollars ($1,000) per year, or its equivalent;
2. Ownership of more than a five percent (5%) interest in any business; or
3. Holding a position in a business such as an officer, director, trustee, partner, employee, or the like, or holding any position of management;
“Gratuity” means a payment, loan, subscription, advance, deposit of money, services, or anything of more than nominal value, present or promised, unless consideration of substantially equal or greater value is received;
“Immediate family” means a spouse, children, parents, brothers and sisters, and grandparents;
“Official responsibility” means direct administrative or operating authority, whether intermediate or final, either exercisable alone or with others, either personally or through subordinates, to approve, disapprove, or otherwise direct state action;
“Person” means any business, individual, union, committee, club, or other organization or group of individuals;
“Procurement” means the buying, purchasing, renting, leasing, or otherwise obtaining of any commodities or services. “Procurement” also includes all functions that pertain to the obtaining of any public procurement, including description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration;
“Services” means technical, professional, or other services involving the furnishing of labor, time, or effort by a contractor; and
“State agency” means any office, department, commission, council, board, bureau, committee, institution, legislative body, agency, government corporation, or other establishment or official of the executive, judicial, or legislative branch of this state.

History. Acts 1979, No. 483, § 1; A.S.A. 1947, § 14-1101; Acts 2003, No. 1093, §§ 1, 2.

Amendments. The 2003 amendment rewrote (3); and, in (15), substituted “technical, professional, or other services involving the furnishing of labor, time, or effort by a contractor; and” for “services as defined in the Arkansas Purchasing Law, § 19-11-201 et seq.”

19-11-702. Penalties.

Any employee or nonemployee who shall knowingly violate any of the provisions of this subchapter shall be guilty of a felony and upon conviction shall be fined in any sum not to exceed ten thousand dollars ($10,000) or shall be imprisoned not less than one (1) nor more than five (5) years, or shall be punished by both.

History. Acts 1979, No. 483, § 15; A.S.A. 1947, § 14-1115; Acts 1995, No. 1296, § 77.

19-11-703. Statement of policy.

Public employment is a public trust. It is the policy of the state to promote and balance the objective of protecting government integrity and the objective of facilitating the recruitment and retention of personnel needed by the state. The policy is implemented by prescribing essential restrictions against conflict of interest without creating unnecessary obstacles to entering public service.
Public employees must discharge their duties impartially so as to assure fair competitive access to governmental procurement by responsible contractors. Moreover, they should conduct themselves in such a manner as to foster public confidence in the integrity of the state procurement organization.
To achieve the purpose of this subchapter, it is essential that those doing business with the state also observe the ethical standards prescribed in this subchapter.

History. Acts 1979, No. 483, § 2; A.S.A. 1947, § 14-1102.

19-11-704. General standards of ethical conduct.

General Ethical Standards for Employees.
1. Any attempt to realize personal gain through public employment by conduct inconsistent with the proper discharge of the employee's duties is a breach of a public trust.
2. In order to fulfill this general prescribed standard, employees must also meet the specific standards set forth in § 19-11-705, which refers to employee conflict of interest; § 19-11-706, which refers to employee disclosure requirements; § 19-11-707, which refers to gratuities and kickbacks; § 19-11-708, which refers to prohibition against contingent fees; § 19-11-709, which refers to restrictions on employment of present and former employees; and § 19-11-710, which refers to use of confidential information.
General Ethical Standards for Nonemployees. Any effort to influence any public employee to breach the standards of ethical conduct set forth in this subchapter is also a breach of ethical standards.

History. Acts 1979, No. 483, § 3; A.S.A. 1947, § 14-1103.

19-11-705. Employee conflict of interest.

Conflict of Interest.
1. It shall be a breach of ethical standards for any employee to participate directly or indirectly in any proceeding or application, in any request for ruling or other determination, in any claim or controversy, or in any other particular matter pertaining to any contract or subcontract, and any solicitation or proposal therefor, in which to the employee's knowledge:
  1. The employee or any member of the employee's immediate family has a financial interest;
  2. A business or organization has a financial interest, in which business or organization the employee, or any member of the employee's immediate family, has a financial interest; or
  3. Any other person, business, or organization with whom the employee or any member of the employee's immediate family is negotiating or has an arrangement concerning prospective employment is a party.
2. “Direct or indirect participation” shall include, but not be limited to, involvement through decision, approval, disapproval, recommendation, preparation of any part of a procurement request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity.
Financial Interest in a Blind Trust. Where an employee or any member of the employee's immediate family holds a financial interest in a blind trust, the employee shall not be deemed to have a conflict of interest with regard to matters pertaining to that financial interest if disclosure of the existence of the blind trust has been made to the Secretary of the Department of Finance and Administration.
Discovery of Conflict of Interest, Disqualification, and Waiver. Upon discovery of a possible conflict of interest, an employee shall promptly file a written statement of disqualification with the secretary and shall withdraw from further participation in the transaction involved. The employee may, at the same time, apply to the secretary in accordance with § 19-11-715(b) for an advisory opinion as to what further application, if any, the employee may have in the transaction, or for a waiver in accordance with § 19-11-715(c).

History. Acts 1979, No. 483, § 4; A.S.A. 1947, § 14-1104; Acts 2019, No. 910, § 3474.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (b); and substituted “secretary” for “director” twice in (c).

19-11-706. Employee disclosure requirements.

Disclosure of Benefit Received from Contract. Any employee who has or obtains any benefit from any state contract with a business in which the employee has a financial interest shall report such benefit to the Secretary of the Department of Finance and Administration. However, this section shall not apply to a contract with a business where the employee's interest in the business has been placed in a disclosed blind trust.
Failure to Disclose Benefit Received. Any employee who knows or should have known of such benefit and fails to report the benefit to the secretary is in breach of the ethical standards of this section.

History. Acts 1979, No. 483, § 5; A.S.A. 1947, § 14-1105; Acts 2019, No. 910, § 3475.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in the first sentence of (a); and substituted “secretary” for “director” in (b).

19-11-707. Gratuities and kickbacks.

Gratuities. It is a breach of ethical standards for any person to offer, give, or agree to give any employee or former employee, or for any employee or former employee to solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, preparation of any part of a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim, or controversy, or other particular matter, pertaining to any contract or subcontract and any solicitation or proposal therefor.
Kickbacks. It is a breach of ethical standards for any payment, gratuity, or offer of employment to be made by or on behalf of a subcontractor under a contract to the prime contractor or higher tier subcontractor, or any person associated therewith, as an inducement for the award of a subcontract or order.

History. Acts 1979, No. 483, § 6; A.S.A. 1947, § 14-1106.

Case Notes

Cited: McCuen v. State, 328 Ark. 46, 941 S.W.2d 397 (1997).

19-11-708. Prohibition against contingent fees.

Contingent Fees. It shall be a breach of ethical standards for a person to be retained, or to retain a person, to solicit or secure a state contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except for retention of bona fide employees or bona fide established commercial selling agencies maintained by the contractor for the purpose of securing business.
Representation of Contractor. Before being awarded a state contract other than by procedures set forth in the Arkansas Procurement Law, § 19-11-201 et seq., and rules promulgated under the Arkansas Procurement Law, § 19-11-201 et seq., for small purchases, every person shall represent, in writing, that such person has not retained anyone in violation of subsection (a) of this section. Failure to do so constitutes a breach of ethical standards.
Notice. The representation prescribed in subsection (b) of this section shall be conspicuously set forth in all contracts and solicitations therefor.

History. Acts 1979, No. 483, § 7; A.S.A. 1947, § 14-1107; Acts 2019, No. 315, § 1785.

Amendments. The 2019 amendment substituted “rules” for “regulations” in the first sentence of (b).

19-11-709. Restrictions on employment of present and former employees — Definition.

Contemporaneous Employment Prohibited. It shall be a breach of ethical standards for any employee who is involved in procurement to become or be, while such an employee, the employee of any party contracting with the state agency by which the employee is employed.
Restrictions on Former Employees in Matters Connected with Their Former Duties.
1. Permanent Disqualification of Former Employee Personally Involved in a Particular Matter. It shall be a breach of ethical standards for any former employee knowingly to act as a principal or as an agent for anyone other than the state in connection with any:
  1. Judicial or other proceeding, application, request for a ruling, or other determination;
  2. Contract;
  3. Claim; or
  4. Charge or controversy,
2. One-Year Representation Restriction Regarding Matters for Which a Former Employee Was Officially Responsible. It shall be a breach of ethical standards for any former employee, within one (1) year after cessation of the former employee's official responsibility in connection with any:
  1. Judicial or other proceeding, application, request for a ruling, or other determination;
  2. Contract;
  3. Claim; or
  4. Charge or controversy,
Disqualification of Partners.
1. When Partner Is a State Employee. It shall be a breach of ethical standards for a person who is a partner of an employee knowingly to act as a principal or as an agent for anyone other than the state in connection with any:
  1. Judicial or other proceeding, application, request for a ruling, or other determination;
  2. Contract;
  3. Claim; or
  4. Charge or controversy,
2. When a Partner Is a Former State Employee. It shall be a breach of ethical standards for a partner of a former employee knowingly to act as a principal or as an agent for anyone other than the state where such former employee is barred under subsection (b) of this section.
Selling to State After Termination of Employment Is Prohibited.
1. It is a breach of ethical standards for a former employee, unless the former employee's last annual salary based on the state fiscal year did not exceed fifteen thousand dollars ($15,000), to engage in selling or attempting to sell commodities or services, including technical or professional consultant services, to the state for one (1) year following the date employment ceased.
2. As used in this subsection, “sell” means:
  1. Signing a bid, proposal, or contract;
  2. Negotiating a contract;
  3. Contacting any employee for the purpose of obtaining, negotiating, or discussing changes in specifications, price, cost allowances, or other terms of a contract;
  4. Settling disputes concerning performance of a contract; or
  5. Any other liaison activity with a view toward the ultimate consummation of a sale although the actual contract for the sale is subsequently negotiated by another person.
1. This section is not intended to preclude a former employee from accepting employment with private industry solely because his or her employer is a contractor with this state.
2. This section is not intended to preclude an employee, a former employee, or a partner of an employee or former employee from filing an action as a taxpayer for alleged violations of this subchapter.

in which the employee participated personally and substantially through decision, approval, disapproval, recommendation, rendering of advice, investigation, or otherwise while an employee, where the state is a party or has a direct and substantial interest.

knowingly to act as a principal or as an agent for anyone other than the state in matters which were within the former employee's official responsibility, where the state is a party or has a direct or substantial interest.

in which the employee either participates personally and substantially through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, or which is the subject of the employee's official responsibility, where the state is a party or has a direct and substantial interest.

History. Acts 1979, No. 483, § 8; A.S.A. 1947, § 14-1108; Acts 2003, No. 1093, § 3; 2015, No. 966, § 1.

Amendments. The 2003 amendment inserted “including technical or professional consultant services” in (d)(1).

The 2015 amendment, in (d)(1), substituted “It is” for “It shall be”, inserted “based on the state fiscal year”, and substituted “fifteen thousand dollars ($15,000)” for “ten thousand five hundred dollars ($10,500)”.

19-11-710. Use of confidential information.

It shall be a breach of ethical standards for any employee or former employee knowingly to use confidential information for actual or anticipated personal gain or for the actual or anticipated personal gain of any other person.

History. Acts 1979, No. 483, § 9; A.S.A. 1947, § 14-1109.

19-11-711. Public access to procurement information.

Procurement information shall be public record to the extent provided in the Freedom of Information Act of 1967, § 25-19-101 et seq., except as otherwise provided in this subchapter and the Arkansas Procurement Law, § 19-11-201 et seq.

History. Acts 1979, No. 483, § 10; A.S.A. 1947, § 14-1110.

Research References

Ark. L. Rev.

Watkins, Access to Public Records under the Arkansas Freedom of Information Act, 38 Ark. L. Rev. 741.

19-11-712. Civil and administrative remedies against employees who breach ethical standards.

Existing Remedies Not Impaired. Civil and administrative remedies against employees which are in existence on July 1, 1979, shall not be impaired.
Supplemental Remedies. In addition to existing remedies for breach of the ethical standards of this subchapter, or rules promulgated under this subchapter, the Secretary of the Department of Finance and Administration may impose any one (1) or more of the following:
1. Oral or written warnings or reprimands;
2. Forfeiture of pay without suspension;
3. Suspension with or without pay for specified periods of time; and
4. Termination of employment.
Right to Recover from Employee Value Received in Breach of Ethical Standards. The value of anything received by an employee in breach of the ethical standards of this subchapter, or rules promulgated under this subchapter, shall be recoverable by the state as provided in § 19-11-714, which refers to recovery of value transferred or received in breach of ethical standards.
Due Process. Notice and an opportunity for a hearing shall be provided prior to imposition of any of the remedies set forth in subsection (b) of this section.

History. Acts 1979, No. 483, § 11; A.S.A. 1947, § 14-1111; Acts 2019, No. 315, § 1786; 2019, No. 910, § 3476.

Amendments. The 2019 amendment by No. 315 substituted “rules” for “regulations” in the introductory language of (b) and in (c).

19-11-713. Civil and administrative remedies against nonemployees who breach ethical standards.

Existing Remedies Not Impaired. Civil and administrative remedies against nonemployees which are in existence on July 1, 1979, shall not be impaired.
Supplemental Remedies. In addition to the existing remedies for breach of the ethical standards of this subchapter, or rules promulgated under this subchapter, the Secretary of the Department of Finance and Administration may impose any one (1) or more of the following:
1. Oral or written warnings or reprimands;
2. Termination of transactions; and
3. Suspension or debarment from being a contractor or subcontractor under state contracts.
Right to Recover from Nonemployee Value Transferred in Breach of Ethical Standards. The value of anything transferred in breach of the ethical standards of this subchapter, or rules promulgated under this subchapter, by a nonemployee shall be recoverable by the state from such person as provided in § 19-11-714, which refers to recovery of value transferred or received in breach of ethical standards.
Due Process. Notice and an opportunity for a hearing shall be provided prior to imposition of any of the remedies set forth in subsection (b) of this section.

History. Acts 1979, No. 483, § 12; A.S.A. 1947, § 14-1112; Acts 2019, No. 315, § 1787; 2019, No. 910, § 3477.

Amendments. The 2019 amendment by No. 315 substituted “rules” for “regulations” in the introductory language of (b) and in (c).

19-11-714. Recovery of value transferred or received in breach of ethical standards.

General Provisions. The value of anything transferred or received in breach of the ethical standards of this subchapter, or rules promulgated under this subchapter, by an employee or a nonemployee may be recovered from both the employee and the nonemployee.
Recovery of Kickbacks by the State. Upon a showing that a subcontractor made a kickback to a prime contractor or a higher tier subcontractor in connection with the award of a subcontract or order thereunder, it shall be conclusively presumed that the amount thereof was included in the price of the subcontract or order and ultimately borne by the state and will be recoverable under this subchapter from the recipient. In addition, this value may also be recovered from the subcontractor making such kickbacks. Recovery from one (1) offending party shall not preclude recovery from other offending parties.

History. Acts 1979, No. 483, § 13; A.S.A. 1947, § 14-1113; Acts 2019, No. 315, § 1788.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (a).

19-11-715. Duties of Secretary of the Department of Finance and Administration.

Rules. The Secretary of the Department of Finance and Administration shall promulgate rules to implement this subchapter and shall do so in accordance with this subchapter and the applicable provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
Advisory Opinions. On written request of employees or contractors and in consultation with the Attorney General, the secretary may render written advisory opinions regarding the appropriateness of the course of conduct to be followed in proposed transactions. Such requests and advisory opinions may be duly published in the manner in which rules of this state are published. Compliance with the requirements of a duly promulgated advisory opinion of the secretary shall be deemed to constitute compliance with the ethical standards of this subchapter.
Waiver. On written request of an employee, the secretary may grant an employee a written waiver from the application of § 19-11-705, which refers to employee conflict of interest, and grant permission to proceed with the transaction to such extent and upon such terms and conditions as may be specified. Such waiver and permission may be granted when the interests of the state so require or when the ethical conflict is insubstantial or remote.

History. Acts 1979, No. 483, § 14; A.S.A. 1947, § 14-1114; Acts 2019, No. 315, § 1789; 2019, No. 910, § 3478.

Amendments. The 2019 amendment by No. 315 substituted “rules” for “regulations” in (a) and (b).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a) and made a similar change in the section heading; and substituted “secretary” for “director” in (b) twice and in (c).

19-11-716. Participation in business incubators — Rules and guidelines.

The provisions of this subchapter shall not be applicable to faculty or staff of state-supported institutions of higher education participating in business incubators within this state.
1. The Secretary of the Department of Finance and Administration shall promulgate rules pursuant to the procedure for adoption as provided under the Arkansas Administrative Procedure Act, § 25-15-201 et seq., and under § 10-3-309 to implement a program allowing admittance to business incubators by faculty or staff of state-supported institutions of higher education or admittance by companies in which faculty or staff may hold an ownership interest.
2. The program may include guidelines setting forth full disclosure requirements, any limitations on ownership interests, maximum income amounts to be received, annual reporting to the General Assembly, mandatory levels of student participation and such other reasonable restrictions and requirements as are necessary to maintain the public trust while encouraging the facilitation of commercialization of university-generated technology or discovery.

History. Acts 1989, No. 29, § 1; 2019, No. 315, § 1790; 2019, No. 910, § 3479.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (b)(1).

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (b)(1).

19-11-717. State-supported institutions of higher education.

1. Notwithstanding anything in this subchapter to the contrary, if, in either of the events in subdivisions (a)(1)(A) and (B) of this section, the contract or subcontract, solicitation, or proposal involves patents, copyrights, or other proprietary information in which a state-supported institution of higher education and an employee or former employee of the state-supported institution of higher education have rights or interests, provided that a contract or subcontract shall be approved by the governing board of the state-supported institution of higher education in a public meeting, it shall not be a violation of § 19-11-709, a conflict of interest, or a breach of ethical standards for:
  1. The state-supported institution of higher education to contract with a person or firm in which an employee or former employee of the state-supported institution of higher education has a financial interest; or
  2. The employee or former employee of the state-supported institution of higher education to participate directly or indirectly in a matter pertaining to a contract, subcontract, solicitation, or proposal for a contract or subcontract between a state-supported institution of higher education and a person or firm in which the employee or former employee has a financial interest.
2. 1. Within thirty (30) days of the approval by the governing board of a state-supported institution of higher education of a contract, subcontract, solicitation, or proposal executed under subdivision (a)(1) of this section, the state-supported institution of higher education shall file a summary of the contract, subcontract, solicitation, or proposal with the president of the state-supported institution of higher education.
  2. Failure to file the required summary with the president of the state-supported institution of higher education as required under subdivision (a)(2)(A) of this section renders the contract null and void.
1. Nothing in the Arkansas Procurement Law, § 19-11-201 et seq., or in § 19-11-1001 et seq. shall prevent a state agency from contracting for goods or services, including professional or consultant services, with an organization that employs or contracts with a regular, full-time, or part-time employee of a state-supported institution of higher education in situations in which the employee of the state-supported institution of higher education will provide some or all of the goods or services under the contract.
2. An organization or state agency entering into a contract described under this subsection shall comply with the Arkansas Procurement Law, § 19-11-201 et seq., and § 19-11-1001 et seq. to the extent that the Arkansas Procurement Law, § 19-11-201 et seq., and § 19-11-1001 et seq. do not conflict with this section.
3. An employee of a state-supported institution of higher education who provides goods or services to a state agency through his or her association with an organization that has a contract with the state agency to provide goods or services shall obtain the requisite approvals under the policies of the state-supported institution of higher education by which he or she is employed and comply with all provisions of this subchapter.
1. No later than January 31 each year, an employee or former employee contracting or receiving benefits under this section shall file with the Secretary of State on a form provided by the Secretary of State a disclosure of the type and amount of the contract or benefits received during the previous year.
2. Failure to file the required form with the Secretary of State as required under subdivision (c)(1) of this section is a breach of ethical standards.

History. Acts 1989, No. 875, § 1; 2005, No. 949, § 1; 2009, No. 735, § 1.

Amendments. The 2005 amendment added (b).

The 2009 amendment subdivided (a), inserted “state-supported” preceding the first instance of “institution of higher education” in (a)(1), substituted “state-supported institution of higher education” for “institution” throughout (a), and inserted (a)(2); substituted “state-supported” for “public” throughout (b), and substituted “Arkansas Procurement Law, § 19-11-201 et seq., and § 19-11-1001 et seq.” for “provisions” in (b)(2); added (c); and made related and minor stylistic changes.

19-11-718. Special state employees — Conflicts of interest — Definitions.

As used in this section:
1. 1. “Conflict of interest” means a special state employee's direct or indirect pecuniary or other interest in a matter before a covered board.
  2. “Conflict of interest” includes without limitation the following:
    1. An offer of employment from an entity that is involved in a procurement matter with the covered board or is involved in a discussion of a procurement matter with the covered board;
    2. Being an officer or employee of a business, association, or nonprofit organization that is involved in a procurement matter with the covered board or is involved in a discussion of a procurement matter with the covered board; and
    3. Receiving compensation from an entity that is involved in a procurement matter or is involved in a discussion of a procurement matter with the covered board;
2. 1. “Covered board” means:
    1. A commission, board, bureau, office, or other state instrumentality created within the executive branch; and
    2. An entity that is created by rule, statute, legislative direction, executive order, or other informal means if the entity has decision-making authority over procurement criteria, contracts, appointment of individuals to negotiate procurement directly or indirectly, or the approval of procurements.
  2. “Covered board” does not include the following:
    1. The constitutional departments of the state;
    2. The elected constitutional offices of the state;
    3. The General Assembly, including the Legislative Council, the Legislative Joint Auditing Committee, and supporting agencies and bureaus of the General Assembly;
    4. The Supreme Court;
    5. The Court of Appeals;
    6. The circuit courts;
    7. Prosecuting attorneys;
    8. The Administrative Office of the Courts;
    9. An institution of higher education;
    10. A municipal government;
    11. A county government;
    12. An interstate agency; or
    13. A legislative task force or committee if the legislative task force or committee only advises the General Assembly; and
3. 1. “Special state employee” means a person appointed to a covered board, regardless of whether the person:
    1. Receives compensation for his or her services;
    2. Receives reimbursement for travel expenses;
    3. Receives per diem; or
    4. Was appointed formally or informally.
  2. “Special state employee” does not include a constitutional officeholder or an ex officio or nonvoting member of an entity described in subdivision (a)(2)(A) of this section.
A special state employee shall disclose a conflict of interest in a procurement matter before the covered board:
1. Either:
  1. In writing to the head of a covered board; or
  2. Orally or in writing at a public meeting of the covered board if the disclosure is included in the minutes of the public meeting; and
2. By filing a conflict of interest disclosure report with the Secretary of State within five (5) business days of the date the special state employee becomes aware of the conflict of interest.
A special state employee shall not vote on, receive or read confidential materials related to, participate in discussion of, or attempt to influence the covered board's decision on a procurement matter if the special state employee has a conflict of interest in the procurement matter.
A special state employee who is a lobbyist registered under § 21-8-601 shall recuse himself or herself from a procurement matter before the covered board if:
1. The special state employee receives compensation as a lobbyist from an entity involved in the procurement matter; or
2. The procurement matter involves a person or entity that is a competitor of a lobbying client of the special state employee.
A special state employee or former special state employee shall not:
1. Represent an entity other than the state in a matter in which he or she participated in making a decision, rendering approval or disapproval, making a recommendation, or rendering advice on behalf of the covered board; or
2. Assist or represent a party for contingent compensation in a matter involving a covered board other than in a judicial, administrative, or quasi-judicial proceeding.
A former special state employee shall not lobby the members or staff of a covered board of which he or she is a former member for one (1) year after the cessation of the special state employee's membership on the covered board.
A contract entered into by a covered board, including a renewal, extension, or amendment of a contract entered into by a covered board, shall include a statement that no special state employee has been influenced by the vendor in the course of the procurement.
1. A complaint about a violation of this section may be filed with the Arkansas Ethics Commission.
2. A violation of this section is grounds for discipline or removal of the special state employee by the commission.
The commission shall promulgate rules regarding disciplinary and removal proceedings for special state employees.

History. Acts 2015, No. 1287, § 2; 2019, No. 315, § 1791.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (a)(2)(A)(ii).

Subchapter 8 — Procurement of Professional Services

Effective Dates. Acts 1995, No. 429, § 8: Feb. 24, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that the state and political subdivisions are hampered in the ability to select the most qualified professional services since the present statutory definition of professional services excludes many professions that are vital to the successful completion of important public projects. Since each public entity is better able to determine which professional services it will need and since the public health, safety and welfare require that many of these public projects proceed as soon as possible, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1995, No. 1331, § 8: became law without Governor's signature. Noted April 14, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that the state and its political subdivisions are hampered in the ability to select the most qualified professional services since the present statutory definition of professional services excludes many professions that are vital to the successful completion of important public projects. Since each public entity is better able to determine which professional services it will need and since the public health, safety and welfare require that many of these public projects proceed as soon as possible, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2005, No. 2154, § 2: Apr. 13, 2005. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the Arkansas Supreme Court has determined that current public school facilities in Arkansas are inadequate and inequitable; that the clarification of construction management as a project delivery method will increase the construction options of public schools entering into construction projects to improve their school facilities and assist in the process of improving current school facilities; and that the improvements to public school facilities through the use of construction management will ultimately benefit public school students and the state of Arkansas. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

19-11-801. Policy — Definitions.

It is the policy of the State of Arkansas that state agencies shall follow the procedures stated in this section, except that competitive bidding shall not be used for the procurement of legal, architectural, engineering, construction management, and land surveying professional consultant services if:
1. State agencies not exempt from review and approval of the Building Authority Division shall follow procedures established by the division for the procurement of architectural, engineering, land surveying, and construction management services; and
2. Institutions of higher education exempt from review and approval of the division shall follow procedures established by their governing boards for the procurement of architectural, engineering, land surveying, and construction management professional consultant services.
It is the policy of the State of Arkansas and its political subdivisions that political subdivisions shall follow the procedures stated in this section, except that competitive bidding shall not be used for the procurement of legal, financial advisory, architectural, engineering, construction management, and land surveying professional consultant services.
For purposes of this subchapter, a political subdivision of the state may elect to not use competitive bidding for other professional services not listed in subsection (b) of this section with a two-thirds (2/3) vote of the political subdivision's governing body.
1. As used in this section, “construction management” means a project delivery method based on an agreement in which a state agency, political subdivision, public school district, or institution of higher education acquires from a construction entity a series of services that include, but are not limited to, design review, scheduling, cost control, value engineering, constructability evaluation, preparation and coordination of bid packages, and construction administration.
2. “Construction management” includes, but is not limited to:
  1. 1. “Agency construction management”, in which a public school district selects a construction manager to serve as an agent for the purpose of providing administration and management services.
    2. The construction manager shall not hold subcontracts for the project or provide project bonding for the project;
  2. “At-risk construction management”, in which the construction entity, after providing agency services during the preconstruction period, serves as the general contractor and the following conditions are met:
    1. The construction manager provides a maximum guaranteed price;
    2. The public school district holds all trade contracts and purchase orders; and
    3. The portion of the project not covered by the trade contracts is bonded and guaranteed by the construction manager; and
  3. 1. “General contractor construction management”, in which the construction entity, after providing agency services during the preconstruction period, serves as the general contractor.
    2. The general contractor shall hold all trade contracts and purchase orders and shall bond and guarantee the project.
As used in this subchapter:
1. “Political subdivision” means counties, school districts, cities of the first class, cities of the second class, and incorporated towns; and
2. “Other professional services” means professional services not listed in subsection (b) of this section as defined by a political subdivision with a two-thirds (2/3) vote of its governing body.

History. Acts 1989, No. 616, § 1; 1995, No. 429, § 1; 1995, No. 1331, § 1; 2003, No. 1315, § 8; 2005, No. 2154, § 1; 2005, No. 2171, § 1; 2019, No. 910, § 6114.

Amendments. The 2003 amendment rewrote (a); and deleted (c).

The 2005 amendment by No. 2154 inserted present (a) and made related changes.

The 2005 amendment by No. 2171 substituted “that state agencies” for “and its political subdivisions that state agencies and political subdivisions” in (a); rewrote (b); and added (c) and (d).

The 2019 amendment deleted “of the Department of Finance and Administration” following “Building Authority Division” in (a)(1).

Cross References. Projects exceeding two million dollars, § 14-58-1001.

Case Notes

In General.

Acts 1989, No. 616 does not require a political subdivision to accept the price finally offered by the most qualified firm during negotiations. The Act specifically provides for termination of negotiations with the top firm if the contracting authority is unable to negotiate a contract it considers fair and reasonable. The contracting authority then proceeds to the next most qualified firm and begins negotiations anew. This process allows the contracting authority to negotiate the most fair and reasonable price with the most qualified firm in accordance with the stated policy of the legislature. Graham v. Forrest City Hous. Auth., 304 Ark. 632, 803 S.W.2d 923 (1991).

Bid.

The term “bid” generally refers to an offer to perform a contract for work and labor or supplying materials or goods at a specified price. Graham v. Forrest City Hous. Auth., 304 Ark. 632, 803 S.W.2d 923 (1991).

Competitive Bidding.

Competitive bidding is defined as bids which are submitted as a result of public notice and advertising of an intended sale or purchase. Graham v. Forrest City Hous. Auth., 304 Ark. 632, 803 S.W.2d 923 (1991).

Acts 1989, No. 616 expressly and unequivocally prohibits the use of competitive bidding in the procurement of professional engineering services. Graham v. Forrest City Hous. Auth., 304 Ark. 632, 803 S.W.2d 923 (1991).

Consideration of Price.

Acts 1989, No. 616 prohibits the consideration of price in the procurement of professional services until the most qualified firms have been selected and negotiations have begun with the best qualified firm. Graham v. Forrest City Hous. Auth., 304 Ark. 632, 803 S.W.2d 923 (1991).

19-11-802. Annual statements of qualifications and performance data — Restrictions on competitive bidding.

In the procurement of professional services, a state agency or political subdivision which utilizes these services may encourage firms engaged in the lawful practice of these professions to submit annual statements of qualifications and performance data to the political subdivision or may request such information as needed for a particular public project.
The state agency or political subdivision shall evaluate current statements of qualifications and performance data of firms on file or may request such information as needed for a particular public project whenever a project requiring professional services is proposed.
1. The political subdivision shall not use competitive bidding for the procurement of legal, financial advisory, architectural, engineering, construction management, and land surveying professional consulting services.
2. A political subdivision shall not use competitive bidding for the procurement of other professional services with a two-thirds (2/3) vote of its governing body.
1. A public school district that utilizes construction management services shall encourage construction management firms to submit to the school district annual statements of qualifications and performance data or may request such information as needed for a particular public project.
2. The public school district shall evaluate current statements of qualifications and performance data on file with the school district or when submitted as requested whenever a project requiring professional services of a construction manager is proposed.
3. The public school district shall not use competitive bidding for the procurement of professional services of a construction manager.
1. A request for statements of qualifications and performance data under this section may be used for certain procurements through a request for qualifications other than legal, architectural, engineering, construction management, land surveying, and interior design services if the:
  1. State Procurement Director approves the use of a request for qualifications and determines that it is the most suitable method of procurement; and
  2. Approval of the director under subdivision (e)(1)(A) of this section is submitted to the Legislative Council for review.
2. In determining whether a request for qualifications under this subsection is the most suitable method of procurement, the director shall consider, based on information submitted by the requesting state agency:
  1. Why the request for qualifications is the most suitable method of procurement;
  2. Why cost should not be considered in the procurement; and
  3. How the cost of the contract will be controlled if cost is not a factor in the procurement.

History. Acts 1989, No. 616, § 2; 1995, No. 429, § 2; 1995, No. 1331, § 2; 2003, No. 1315, § 9; 2005, No. 2171, § 2; 2019, No. 419, § 13.

A.C.R.C. Notes. Acts 2019, No. 419, § 14, provided: “Rules.

“(a) When adopting the initial rules required under this act, the State Procurement Director shall file the final rules with the Secretary of State for adoption under § 25-15-204(f):

“(1) On or before January 1, 2021; or

“(2) If approval under § 10-3-309 has not occurred by January 1, 2021, as soon as practicable after approval under § 10-3-309.

Amendments. The 2003 amendment inserted “state agency or” in (a) and (b); made a stylistic change in (a); and substituted “legal, architectural, engineering, construction management, and land surveying professional consulting services” for “professional services” in (c).

The 2005 amendment redesignated former (c) as present (c)(1); inserted “financial advisory” in present (c)(1); and added (c)(2).

The 2019 amendment added (e).

Case Notes

Cited: Graham v. Forrest City Hous. Auth., 304 Ark. 632, 803 S.W.2d 923 (1991).

19-11-803. Evaluation of qualifications.

In evaluating the qualifications of each firm, the state agency or political subdivision shall consider:

The specialized experience and technical competence of the firm with respect to the type of professional services required;
The capacity and capability of the firm to perform the work in question, including specialized services, within the time limitations fixed for the completion of the project;
The past record of performance of the firm with respect to such factors as control of costs, quality of work, and ability to meet schedules and deadlines; and
The firm's proximity to and familiarity with the area in which the project is located.

History. Acts 1989, No. 616, § 3; 2003, No. 1315, § 10.

Amendments. The 2003 amendment inserted “state agency or” preceding “political” in the introductory paragraph.

Case Notes

Cited: Graham v. Forrest City Hous. Auth., 304 Ark. 632, 803 S.W.2d 923 (1991).

19-11-804. Selection.

The state agency or political subdivision shall select three (3) qualified firms.
The state agency or political subdivision shall then select the firm considered the best-qualified and capable of performing the desired work and negotiate a contract for the project with the firm selected.

History. Acts 1989, No. 616, § 4; 2003, No. 1315, § 11.

Amendments. The 2003 amendment inserted subdivision designations, and inserted “state agency or” preceding “political” in (a) and (b).

Case Notes

Competitive Bidding.

Consideration of Price.

19-11-805. Negotiation of contracts.

For the basis of negotiations, the state agency or political subdivisions and the selected firm shall jointly prepare a detailed, written description of the scope of the proposed services.
1. 1. If the state agency or political subdivision is unable to negotiate a satisfactory contract with the firm selected, negotiations with that firm shall be terminated.
  2. The state agency or political subdivision shall then undertake negotiations with another of the qualified firms selected.
2. 1. If there is a failing of accord with the second firm, negotiations with the firm shall be terminated.
  2. The state agency or political subdivision shall undertake negotiations with the third qualified firm.
If the state agency or political subdivision is unable to negotiate a contract with any of the selected firms, the state agency or political subdivision shall reevaluate the necessary professional services, including the scope and reasonable fee requirements, again compile a list of qualified firms and proceed in accordance with the provisions of this subchapter.
When unable to negotiate a contract for construction management, a public school district also shall perform a reevaluation of services in accordance with subsection (c) of this section.

History. Acts 1989, No. 616, § 5; 1995, No. 429, § 3; 1995, No. 1331, § 3; 2003, No. 1315, § 12.

Amendments. The 2003 amendment inserted “state agency or” in (a), (b)(1)(A), (b)(1)(B), (b)(2)(B) and (c); and substituted “the” for “such” in (b)(2)(A).

Case Notes

In General.

19-11-806. [Repealed.]

Publisher's Notes. This section, concerning cities of the first or second class and ordinances, was repealed by Acts 2005, No. 3, § 3. The section was derived from Acts 1995, No. 429, § 4; 1995, No. 1331, § 4.

19-11-807. Design-build construction — Definitions.

As used in this section:
1. “Design-build” means a project delivery method in which the school district acquires both design and construction services in the same contract from a single legal entity, referred to as the “design-builder”, without competitive bidding;
2. 1. “Design-builder” means any individual, partnership, joint venture, corporation, or other legal entity that is appropriately licensed in the State of Arkansas and that furnishes the necessary design services, in addition to the construction of the work, whether by itself or through subcontracts, including, but not limited to, subcontracts for architectural services, landscape architectural services, and engineering services.
  2. Architectural services, landscape architectural services, and engineering services shall be performed by an architect, landscape architect, or engineer licensed in the State of Arkansas.
  3. Construction contracting shall be performed by a contractor qualified and licensed under Arkansas law; and
3. “Design-build contract” means the contract between the school district and a design-builder to furnish the architecture, engineering, and related services as required and to furnish the labor, materials, and other construction services for the same project.
1. Any school district may use design-build construction as a project delivery method for building, altering, repairing, improving, maintaining, or demolishing any structure, or any improvement to real property owned by the school district.
2. The design-builder shall contract directly with subcontractors and shall be responsible for the bonding of the project.
3. A project using design-build construction shall comply with state and federal law.
The Division of Public School Academic Facilities and Transportation shall develop and promulgate rules consistent with the provisions of this section concerning the use of design-build construction by school districts.

History. Acts 2005, No. 2155, § 1.

Subchapter 9 — Purchases of Work Center Products and Services

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

19-11-901. Purchase required — Exception.

All suitable commodities and services, including small purchases, hereafter procured in accordance with applicable state specifications by or for any state department, institution, or agency shall be procured from nonprofit work centers for individuals with disabilities in all cases when such commodities are available within the period specified and at the fair market price for the article or articles so procured.
Services offered by work centers shall be procured by competitive sealed bidding as specified by § 19-11-229, competitive sealed proposals as specified by § 19-11-230, or competitive bidding as specified by § 19-11-234, subject to purchase exceptions set forth in § 19-11-902.
This section shall not apply in any cases in which products and services are available for procurement from any state department, institution, or agency, and procurement therefrom is required under the provisions of any law in effect on or after March 1, 1991.

History. Acts 2001, No. 1718, § 1.

19-11-902. Rules — Definitions.

The Office of State Procurement shall be responsible for developing rules governing implementation of this subchapter.
As used in this subchapter:
1. “Commodities” means all property, including without limitation equipment, printing, stationery, supplies, and insurance, but excluding real property, leases on real property, or a permanent interest in real property;
2. “Fiscal year” means July 1 of one (1) year through June 30 of the next year;
3. “Individuals with disabilities” means those persons who have a medically or psychiatrically determined physical, mental, or developmental disability constituting a substantial vocational handicap;
4. “Ordering office” means any state department, independent establishment, board, commission, bureau, service, or division of state government and any wholly owned state corporation;
5. “Products”, for purposes of this subchapter, means commodities or services wherein the price of the commodities includes at least twenty percent (20%) value added when the work center is awarded a contract using the ten percent (10%) preference, and in the case of services, that they are performed by individuals with disabilities;
6. 1. “Services” means the furnishing of labor, time, or effort by a contractor, not involving the delivery of a specific end product other than reports which are merely incidental to the required performance.
  2. “Services” shall not include employment agreements, collective bargaining agreements, or architectural or engineering contracts requiring approval of the Building Authority Division;
7. “Sheltered workshop” means a work center which has:
  1. Certification from the United States Department of Labor as a sheltered workshop; and
  2. Been licensed by the Division of Developmental Disabilities Services or certified by Arkansas Rehabilitation Services;
8. 1. “Work center” means any facility certified by Arkansas Rehabilitation Services where any manufacture or handiwork is carried on and which is operated for the primary purpose of providing evaluation, training, and gainful employment to individuals with disabilities in Arkansas:
    1. As an interim step in the rehabilitation process for those who cannot be readily absorbed in the competitive labor market; or
    2. During such time as employment opportunities for them in the competitive labor market do not exist.
  2. “Work center” includes without limitation:
    1. A sheltered work center; and
    2. A work center for the blind; and
9. “Work center for the blind” means a facility certified by the Division of State Services for the Blind where any manufacture, handiwork, or provision of services is carried on and that is operated to provide evaluation, training, and gainful employment to individuals in the State of Arkansas eligible for services from the Division of State Services for the Blind:
  1. As an interim step in the rehabilitation process for those who cannot be readily absorbed in the competitive labor market;
  2. During such time as employment opportunities for individuals in the State of Arkansas eligible for service from the Division of State Services for the Blind in the competitive labor market do not exist; or
  3. For whom such placement represents informed choice as appropriate employment at a competitive wage.
All state agencies as defined in § 19-11-203 are required to purchase their requirements of needed available and suitable products and purchase suitable services from nonprofit work centers for individuals with disabilities, unless such commodities and services are authorized by prior legislation for production in another state agency, department, or institution.
1. The Office of State Procurement shall issue to all state agency purchasing agents a schedule of commodities and services made by the work center and the conditions under which they are to be procured from the workshops.
2. The schedule shall include the item or service description.
Arkansas Rehabilitation Services and the Division of State Services for the Blind shall undertake the inspection on a continuing basis of the workshops certified by each respective state agency to determine that they operate in accordance with the requirements of the statute and the rules of this section.
1. 1. In order to qualify for participation in the program as a work center, an organization shall submit an application to the Office of State Procurement.
  2. If required for all vendors, there should be included a list of the commodities and services offered for sale to the state.
2. Work centers shall:
  1. Furnish commodities and services in strict accordance with the allocation and government order;
  2. Maintain records of wages paid, hours of employment, and sales;
  3. Make available pertinent books and records of the state agency for inspection at any reasonable time to representatives of Arkansas Rehabilitation Services or the Division of State Services for the Blind, as applicable; and
  4. 1. Submit to Arkansas Rehabilitation Services or the Division of State Services for the Blind, as applicable, by September 1 an annual report for the preceding fiscal year.
    2. This report shall include data on individuals with disabilities who are workers, wages and wage supplements, hours of employment, sales, whether the workshop requires a facilities sheltered workshop certificate from the United States Department of Labor and special minimum rates authorized where such certificate is held, and such other relevant information as may be required.
When a commodity or service is identified in the schedule of work center-made commodities and services as being available through the Office of State Procurement, it shall be obtained in accordance with the requisitioning procedures of the supplying state agency.
An ordering office may purchase from a nonworkshop source commodities or services listed in the schedule of commodities and services made by the work center in any of the following circumstances:
1. Necessity requires delivery within the specified period, and the work center cannot give assurance of positive availability;
2. When commodities listed on the schedule of work center-made commodities can be purchased from a non-work-center source by the state agency for a price more than ten percent (10%) lower than commodities made by the work center included in the schedule; or
3. Services offered by any work center shall be procured by any state agency in accordance with this section at a price not more than ten percent (10%) above the lowest price submitted from a non-work-center source.
Product commodities made by a work center shall be delivered in accordance with the terms of the purchase order.
When a workshop fails to comply with the terms of a government order, the ordering office shall make reasonable efforts to negotiate an adjustment before taking action to cancel the order.
Any alleged violation of these rules shall be investigated by the Office of State Procurement, which shall notify the work center concerned and afford it an opportunity to submit a statement of facts and evidence.

History. Acts 2001, No. 1718, § 1; 2007, No. 186, § 7; 2011, No. 807, § 1; 2019, No. 315, §§ 1792, 1793; 2019, No. 910, § 6115.

Amendments. The 2007 amendment substituted “rules” for “regulations” in the section heading and in (a); and substituted “Arkansas Building Authority” for Arkansas State Building Services” in (b)(7)(B).

The 2011 amendment deleted former (b)(1) and (b)(3), inserted present (b)(3), and redesignated the remaining subdivisions accordingly; added present (b)(8)(B)(ii) and (b)(9); in (e), inserted “and the Division of State Services for the Blind” and substituted “each respective state agency” for “Arkansas Rehabilitation Services”; and inserted “or the Division of State Services for the Blind, as applicable” in (f)(2)(C) and (f)(2)(D)(i); and made stylistic changes.

The 2019 amendment by No. 315 substituted “rules” for “regulations” in (e) and (k).

The 2019 amendment by No. 910 deleted “of the Department of Finance and Administration” following “Building Authority Division” in (b)(6)(B).

Subchapter 10 — Professional and Consultant Services Contracts

Effective Dates. Acts 2009, Nos. 605 and 606, § 27: Mar. 25, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the people of the State of Arkansas overwhelmingly approved the establishment of lotteries at the 2008 General Election; that lotteries will provide funding for scholarships to the citizens of this state; that the failure to immediately implement this act will cause a reduction in lottery proceeds that will harm the educational and economic success of potential students eligible to receive scholarships under the act; and that the state lotteries should be implemented as soon as possible to effectuate the will of the citizens of this state and implement lottery-funded scholarships as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 557, § 9: Aug. 1, 2015.

Acts 2019, No. 866, § 4: Jan. 1, 2020.

19-11-1001. Definitions.

As used in this subchapter:

“Consultant services contract” means a contract between a state agency and an individual or organization in which:
1. The service to be rendered to the state agency or to a third-party beneficiary under the contract is primarily the giving of advice by the contractor on a particular problem facing the state agency or the third-party beneficiary;
2. The contractor is an independent contractor with respect to the state agency;
3. The state agency does not exercise managerial control over the day-to-day activities of the contractor; and
4. The contract specifies the results expected from the services to be rendered by the contractor and the advice or assistance to be provided;
“Contractor” means any person or organization that executes a contract with a state agency under which the person or organization agrees to provide professional services or consultant services to the state agency, and the individuals performing the services are not state employees occupying regular full-time or part-time or extra help positions provided by law;
1. “Design professional contract” means a contract that is primarily for:
  1. Minor projects that are time-critical; and
  2. Minor remodeling projects that do not exceed one million dollars ($1,000,000) in cost.
2. Design professional contracts are primarily for the procurement of architectural, engineering, and professional services competitively selected under § 19-11-801 et seq.
3. Design professional contracts shall be reviewed by the agency or institution at least yearly and adjusted to reflect historical expenditures.
4. 1. A state agency shall follow applicable Building Authority Division guidelines, procedures, and rules for the selection and award of contracts.
  2. However, a guideline, procedure, or rule of the division shall not increase or decrease the:
    1. Dollar amount under subdivision (3)(A)(ii) of this section; or
    2. Specified period under § 19-11-238(a).
5. Institutions of higher education that are exempt from review and approval of the division shall comply with the provisions of this section;
“Director” means the State Procurement Director;
“Employee” means an individual drawing a salary from a state agency, whether elected or not, and any nonsalaried individual performing professional services for any state agency;
“Professional services contract” means a contract between a state agency and a contractor in which:
1. The relationship between the contractor and the state agency is that of an independent contractor rather than that of an employee;
2. The services to be rendered consist of the personal services of an individual that are professional in nature;
3. The state agency does not have direct managerial control over the day-to-day activities of the individual providing the services;
4. The contract specifies the results expected from the rendering of the services rather than detailing the manner in which the services shall be rendered; and
5. Services rendered under a professional services contract are rendered to the state agency itself or to a third-party beneficiary; and
“State agency” means any department, agency, board, commission, or institution of higher education of the State of Arkansas.

History. Acts 2003, No. 1315, § 13; 2007, No. 478, § 7; 2009, No. 532, § 1; 2019, No. 910, § 6116.

Amendments. The 2007 amendment added (3) and redesignated the remaining subdivisions accordingly.

The 2009 amendment rewrote (3)(D).

The 2019 amendment deleted “of the Department of Finance and Administration” following “Building Authority Division” in (3)(D)(i).

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2003 Arkansas General Assembly, Public Finance, Contracts for Professional and Consultant Services, 26 U. Ark. Little Rock L. Rev. 461.

19-11-1002. Purpose of contracts.

The principal purpose of a professional services contract or a consultant services contract is the procurement of services by the state agency rather than the procurement of commodities.

History. Acts 2003, No. 1315, § 13; 2005, No. 1680, § 14.

Amendments. The 2005 amendment substituted “procurement of services” for “procurement of the services of an individual.”

19-11-1003. Contracts exempted.

This subchapter shall not apply to the contracts of the Arkansas Department of Transportation that are covered by the technical work requirements and administrative controls of the Federal Highway Administration, nor shall the provisions of this subchapter be applicable to contracts entered into by the department in which the costs and fees are established by competitive bidding.
This subchapter shall not apply to contracts of institutions of higher education that are for services related to patents, copyrights, or trademarks.
This subchapter does not apply to contracts created under federally approved state plans for services reimbursed under Title V of the Social Security Act, 42 U.S.C. §§ 701 — 710, or Title XIX of the Social Security Act, 42 U.S.C. §§ 1396 — 1396v, as they existed on January 1, 2001, if those contracts and services conform to all applicable federal laws and rules, and to the ethical standards provided for in § 19-11-704.

History. Acts 2003, No. 1315, § 13; 2009, No. 605, § 22; 2009, No. 606, § 22; 2015, No. 218, § 23; 2017, No. 707, § 60.

Amendments. The 2009 amendment by identical acts Nos. 605 and 606 added (d).

The 2015 amendment repealed former (d).

The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department” in (a).

19-11-1004. Restrictions on contracts.

No contract under this subchapter shall be used to avoid the purpose or the spirit of the General Accounting and Budgetary Procedures Law, § 19-4-101 et seq.
No contract shall be approved that would be in violation of § 19-4-701 et seq. relating to expenditures.
1. Except as provided in this subsection, a state agency shall not engage in a professional services or consultant services contract with a part-time or full-time employee who occupies a position authorized to be paid from extra help or regular salaries for a state agency, except as provided in § 21-1-403.
2. However, this subsection does not prohibit an institution of higher education from executing a contract with a state agency under which professional or consulting services will be performed by employees of the institution of higher education.
3. An employee of an institution of higher education performing professional or consulting services to a state agency may receive additional compensation if:
  1. The institution of higher education requests and receives written approval from the Director of the Division of Higher Education concerning the amount of additional compensation to be paid to any employee; and
  2. The total salary payments received from the employee's regular salaried position and amounts received for services performed under a professional services contract do not exceed one hundred twenty-five percent (125%) of the maximum annual salary authorized by law for the employee's position with the institution of higher education.
No director or any other department head of any state agency shall receive additional compensation under this subchapter.
1. Any contract under which a state agency retains day-to-day managerial control over the person performing the services or in which the relationship between the contractor and the state agency is that of employer and employee is not a professional services contract and is prohibited.
2. However, the Division of Information Systems may employ persons over whom they exercise day-to-day managerial control for those services under § 25-4-112 for which professional services contracts may be used.

History. Acts 2003, No. 1315, § 13; 2017, No. 365, § 6; 2019, No. 910, § 2277.

Amendments. The 2017 amendment substituted “a state agency shall not” for “no state agency shall” in (c)(1); and substituted “Director of the Department of Higher Education” for “Office of Personnel Management” in (c)(3)(A).

The 2019 amendment substituted “Division of Higher Education” for “Department of Higher Education” in (c)(3)(A).

19-11-1005. General guidelines and rules.

The State Procurement Director, after soliciting suggestions from state agencies and after seeking and receiving the advice of the Attorney General and review by the Legislative Council or by the Joint Budget Committee, if the General Assembly is in session, shall publish general guidelines for the procurement of professional and consultant services contracts and general rules governing the use of each type of contract.

History. Acts 2003, No. 1315, § 13; 2019, No. 315, § 1794.

Amendments. The 2019 amendment substituted “rules” for “regulations” in the section heading and in the text.

19-11-1006. [Repealed.]

Publisher's Notes. This section, concerning submission of contracts being required, was repealed by Acts 2019, No. 417, § 9, effective July 24, 2019. The section was derived from Acts 2003, No. 1315, § 13; 2013, No. 1189, § 4; 2015, No. 557, § 7.

19-11-1007. Certification by agency head.

The head of every state agency shall certify by his or her signature on each contract entered into by that state agency that:

All information required by law and by rule is supplied;
The proper contracting form is utilized;
All information contained in the contract is true and correct to the best of his or her knowledge and belief;
All general guidelines prescribed by the State Procurement Director have been complied with;
The services proposed to be provided under the contract are necessary for operation of the state agency in fulfilling its legal responsibilities and cannot be provided by any existing state agency;
The contractor is fully qualified to perform the contract and has no vested interest in the subject matter of the contract that would constitute a conflict of interest and a bar to the contractor's providing services of a professional and disinterested quality;
The contract terms are reasonable and the benefits to be derived are sufficient to warrant the expenditure of the funds called for in the contract;
Sufficient funds are available to pay the obligations when they become due; and
A projected total cost of the contract is provided to include expenditures that may be incurred under all available periods of extension if the extensions were executed.

History. Acts 2003, No. 1315, § 13; 2005, No. 1680, § 15; 2019, No. 315, § 1795.

Amendments. The 2005 amendment added (8) and (9) and made related changes.

The 2019 amendment substituted “rule” for “regulation” in (1).

19-11-1008. Approval or disapproval of contracts.

The State Procurement Director may make whatever additional inquiry he or she deems necessary and may require that additional information be supplied if he or she has reason to believe that the contract should be rejected because it does not comply with this subchapter.
The director shall return to the contracting state agency any contract which fails to comply with the applicable laws and rules governing the contract and shall approve any contract that complies with this subchapter.
1. The director shall have final and ultimate authority over the supervision and approval of all contracts described in this subchapter.
2. However, the director shall seek review of the Legislative Council or the Joint Budget Committee before approving or disapproving any contract or class or group of contracts authorized under this subchapter, unless the Legislative Council or Joint Budget Committee specifically exempts the contract or class or group of contracts by formal committee action.

History. Acts 2003, No. 1315, § 13; 2019, No. 315, § 1796.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (b).

19-11-1009. Filing of contracts.

Service contracts filed with a state agency under § 19-4-1109 shall be available for public inspection and auditing purposes.

History. Acts 2003, No. 1315, § 13.

19-11-1010. [Repealed.]

A.C.R.C. Notes. The repeal of this section by Acts 2019, No. 418, supersedes the amendment of this section by Acts 2019, No. 315. Acts 2019, No. 315, § 1797, amended subsection (c) to read as follows: “(c) Under rules promulgated by the State Procurement Director, all state agencies, boards, commissions, and institutions of higher education shall use performance-based standards in professional and consultant service contracts.”

Publisher's Notes. This section, concerning development and use of performance-based contracts and findings, was repealed by Acts 2019, No. 418, § 6, effective July 24, 2019. The section was derived from Acts 2003, No. 1315, § 13; 2019, No. 315, § 1797.

19-11-1011. Review requirement.

1. Every contract for professional consultant services covered by this subchapter that is executed using the professional and consultant service contract form approved by the State Procurement Director shall be filed with the Office of State Procurement.
2. The execution date of all contracts shall be defined as the date upon which performance of the services to be rendered under the contract is to begin and not the date upon which the agreement was made.
1. No purchase order shall be paid if a copy of the contract under which the payment is being made has not previously been filed with the Office of State Procurement.
2. No payment shall be made covering services rendered prior to the execution date of the contract.
1. It is the intent of the General Assembly that this section be strictly construed and enforced.
2. However, in the unusual event that an obligation has been incurred by a state agency under any contractual agreement or proposed contract prior to the approval of the contract, the Chief Fiscal Officer of the State may approve payment for such services after having first received the review of the Legislative Council.

History. Acts 2003, No. 1315, § 13; 2005, No. 1680, § 16; 2019, No. 910, § 6117.

Amendments. The 2005 amendment substituted “for professional consultant … shall be filed” for “services covered by this subchapter shall be filed” in (a)(1).

The 2019 amendment deleted “of the Department of Finance and Administration” following “Office of State Procurement” in (a)(1).

19-11-1012. Standard contract forms.

The State Procurement Director shall prescribe standard forms to be utilized by all state agencies.
The standard contract form shall include the following items, plus such additional items as the director shall deem desirable for the purposes of this subchapter:
1. A section setting forth in reasonable detail the objectives and scope of the contractual agreement and the methods to be used to determine whether the objectives specified have been achieved;
2. The rates of compensation, transportation, per diem, subsistence, out-of-pocket allowances, and all other items of costs contemplated to be paid the contractor by the state agency;
3. The method by which the rate of compensation and the total payment shall be calculated;
4. The maximum number of dollars which the state agency may be obligated to pay to the contractor under the terms of the contract, including all expenses and other items of costs, and the source of funding to be utilized;
5. The term of the contract;
6. 1. The names of all individuals who will be supplying services to the state agency or to third-party beneficiaries under the terms of the contracts, so far as those names are known to the contractor at the time of the execution of the contract.
  2. If the names of all individuals supplying services under the contract are not available at the time of the execution of the contract, the contract shall contain a provision requiring the contractor to submit periodically the names of individuals supplying services as soon as the identity of those individuals is known to the contractor;
7. When the contractor is a business entity, the federal identification number of the business entity shall be listed on the contract form;
8. 1. A certification signed by the contractor shall be included as follows:
  2. As used in subdivision (b)(8)(A) of this section, it shall be understood that when the contractor is a widely held public corporation “direct or indirect monetary benefit” shall not apply to any regular corporate dividends paid to a stockholder of the corporation who is also a state employee and who owns less than ten percent (10%) of the total outstanding stock of the contracting corporation;
9. 1. For any contract in which the total compensation exclusive of reimbursable expenses to be paid by the state agency does not exceed fifty thousand dollars ($50,000), a purchase order may be utilized in lieu of the standard form or forms prescribed by the director.
  2. 1. However, should the state agency enter into a subsequent contract with the same individual or organization during the same fiscal year, regardless of the nature of the contract, then the details of the original contract which utilized a purchase order form and of all subsequent contracts, regardless of amount or type, shall be promptly reported to the director.
    2. This reporting shall be done to allow the director to determine whether the state agency is utilizing a series of contracts to avoid the use of the standard form and to avoid the application of appropriate rules;
10. Standard contract forms in use by licensed practitioners such as architects and engineers may be used to supplement the standard contract forms; and
11. All professional consultant services contracts shall contain the following clause:
For the purpose of reporting methods of finance, a state agency shall disclose the total estimated project cost in addition to any other reporting requirements of the Legislative Council or the Joint Budget Committee.

“ (name) (title)

I , certify under penalty of perjury that, to the best of my knowledge and belief, no regular full-time or part-time employee of any state agency of the State of Arkansas will receive any personal, direct, or indirect monetary benefits which would be in violation of the law as a result of the execution of this contract.”

“In the event the State of Arkansas fails to appropriate funds or make moneys available for any biennial period covered by the term of this contract for the services to be provided by the contractor, this contract shall be terminated on the last day of the last biennial period for which funds were appropriated or moneys made available for such purposes.

“This provision shall not be construed to abridge any other right of termination the agency may have.”

History. Acts 2003, No. 1315, § 13; 2005, No. 1680, § 17; 2013, No. 1189, § 5; 2019, No. 315, § 1798.

Amendments. The 2005 amendment deleted “and social security numbers” following “The names” in (b)(6)(A) and following “periodically the names” in (b)(6)(B); and added (c).

The 2013 amendment substituted “fifty thousand dollars ($50,000)” for “twenty-five thousand dollars ($25,000)” in (b)(9)(A).

The 2019 amendment substituted “rules” for “regulations” in (b)(9)(B)(ii).

19-11-1013. [Repealed.]

Publisher's Notes. This section, concerning vendor performance reporting, was repealed by Acts 2019, No. 418, § 7, effective July 24, 2019. The section was derived from Acts 2015, No. 557, § 8.

19-11-1014. Compliance reporting — Definition.

Each report required under this subchapter shall be copied to the Secretary of the Department of Transformation and Shared Services, who shall review each report for compliance with the fiscal responsibility and management laws of the state under the State Fiscal Management Responsibility Act, § 19-1-601 et seq.
If the secretary determines that a state agency, agency procurement official, or state official or employee may be in violation of the fiscal responsibility and management laws of the state under the State Fiscal Management Responsibility Act, § 19-1-601 et seq., the secretary shall notify the chief executive officer of the relevant state agency.

History. Acts 2015, No. 557, § 8; 2019, No. 910, § 3480.

19-11-1015. Cancellation of contract on entry of final business closure order — Definition. [Effective January 1, 2020.]

As used in this subchapter, “final business closure order” means a business closure order for which a contractor has either:
1. Waived further administrative review under § 26-18-1001 et seq.; or
2. Exhausted all remedies to appeal under § 26-18-1001 et seq.
The Revenue Division shall provide to the Office of State Procurement all final business closure orders entered into against a contractor.
Upon receipt of a final business closure order, the office shall, as soon as reasonably practicable:
1. Notify each state agency with which the contractor has a contract that the:
  1. Contractor is subject to a final business closure order; and
  2. Provision of any goods or services, or both, under a contract with the contractor that is subject to a final business closure order shall cease as soon as reasonably practicable; and
2. Notify all state agencies that the contractor that is subject to a final business closure order shall not be awarded or maintain a contract with a state agency unless the office provides notice under subsection (d) of this section.
Upon receipt of information that a contractor has resolved a business closure, the office shall notify all state agencies, as soon as reasonably practicable, that:
1. Any unexpired contracts with the contractor may continue if the contract was not terminated, cancelled, suspended, or discontinued; and
2. The contractor may be awarded or maintain a contract with a state agency.

History. Acts 2019, No. 866, § 2.

Effective Dates. Acts 2019, No. 866, § 4: Jan. 1, 2020.

Subchapter 11 — Purchase Of Technology Systems

Effective Dates. Acts 2003, No. 1095, § 3, Apr. 4, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that there is an urgent need for funding for the purchase of technology to increase efficiency and more effectively administer the areas of government that are charged with the responsibility for administering and collecting revenue for the state; that legislation is needed for enabling state agencies to more quickly utilize private sector information technologies that pay for themselves directly from a portion of additional state revenues; that there are vendors who will agree to contract with the state to deliver such technology in consideration for the payment of the technology from a portion of the increase in revenue that would result from the use of the more efficient technology solution; that such contracts would not obligate the state to funding and payment of the technology prior to its purchase; that the contracts would provide for payment to vendors only in the event that revenues increased as a result of the implementation and use of the technology solution; and that this act is immediately necessary because there is an urgent need for this technology. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

19-11-1101. Contracts.

An agency procurement official or procurement agent may enter into contracts to acquire technology systems for performing the revenue-generating functions and duties of the agency, including, but not limited to, registration, processing, and collection functions.
Any contract entered into under this subchapter between an agency procurement official or procurement agent and a vendor of technology systems shall provide for:
1. Payment of the technology systems on the basis of a percentage of the increase in the amount of specific taxes or fees collected, including interest and penalties thereon, for a fixed time period, which increase exceeds revenues projected prior to the project and is attributable to the implementation and use of the technology system; or
2. Payment of the technology system on a fixed fee contract basis, the fee to be paid from the increase in the amount of specific taxes or fees collected, including interest and penalties thereon, which increase exceeds revenues projected prior to the project and is attributable to the implementation and use of the technology system.
1. All contracts authorized by this subchapter shall be entered into pursuant to the requirements of the Arkansas Procurement Law, § 19-11-201 et seq., and amendments thereto.
2. Prior to execution of the contract, the following process shall be followed:
  1. The requesting agency shall request approval from the Secretary of the Department of Transformation and Shared Services to prepare a request for proposal for a project authorized under this subchapter;
  2. The request shall include the general nature of the project, the anticipated revenues that will be enhanced, and the forecasted revenues for the current biennium;
  3. Upon approval of the Secretary of the Department of Transformation and Shared Services, the requesting agency shall prepare a request to the Department of Finance and Administration for approval to prepare a request for proposal for a technology project authorized under this subchapter;
  4. The request must include the revenue source or sources that will be increased as a result of the project and the projected revenues for the anticipated life of the project;
  5. The requesting agency shall prepare a request for proposal, with advice and consultation from the department, for the purchase of technology systems on the basis of a portion of the increase in the agency's revenues produced by the technology system; and
  6. 1. The request for proposal may provide that the agency and the vendor may negotiate an amount or baseline upon which the increase in taxes or fees is measured.
    2. Any contract other than a fixed fee contract shall include a factor in the baseline calculation to account for an increase in taxes or fees due solely to economic factors and not to the use of the technology.
3. The agency procurement official or procurement agent and the vendor shall negotiate the contract, with the oversight of the department to assist in negotiating an advantageous contract.
4. 1. The agency director shall submit the proposed contract and a request for new appropriation to the Governor or his or her designee.
  2. The accompanying information will include the methodology used to calculate the baseline amount proposed by the agency and other justifications and information that detail the program and the expected benefits of the agreement.
  3. The Governor or his or her designee shall study the request and determine whether the appropriation requested and the terms of the proposed contract are in strict compliance with this subchapter.
  4. 1. The Governor may approve or modify the request for new appropriation and the proposed contract.
    2. Any modification of the proposed contract shall be submitted to the vendor for approval.
5. 1. Upon approval of the shared benefit agreement and new appropriation request, the Governor shall seek the advice and recommendation of the Legislative Council.
  2. Upon review of the Legislative Council, the Governor shall forward a copy of his or her approvals to the agency director and the Chief Fiscal Officer of the State.
After receipt of the Governor's approvals, the Chief Fiscal Officer of the State shall direct the Auditor of State and the Treasurer of State to establish upon their books of record the necessary appropriation accounts in accordance with the provisions as set out in this section from the shared benefit holding appropriation.
The requesting agency may utilize these appropriations to implement the approved contract.
Nothing in this section shall prohibit an agency that enters into a contract according to this section from acquiring any goods or services through appropriations for any function or program of that agency not specifically included in any contract entered into according to this section.
The Secretary of the Department of Transformation and Shared Services may promulgate such rules, procedures, and guidelines as he or she may deem necessary and proper in order to carry out the provisions of this section.

History. Acts 2003, No. 1095, § 1; 2007, No. 751, § 9; 2019, No. 315, § 1799.

Amendments. The 2007 amendment deleted “the office of the Executive Chief Information Officer and” preceding “the department” in (c)(2)(E) and (c)(3).

The 2019 amendment deleted “regulations” following “rules” in (g).

19-11-1102. Shared Benefit Payment Fund.

There is created on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a special revenue fund to be known as the “Shared Benefit Payment Fund”.
1. All moneys collected under this subchapter shall be deposited into the State Treasury to the credit of the fund as special revenues.
2. The fund also shall consist of any other revenues as may be authorized by law.
The fund shall be used by the state agencies to pay vendors for contracts entered into under this subchapter.
The fund shall consist of the amount of taxes or fees collected for the relevant time period less the baseline amount stated in each technology purchase contract entered into pursuant to § 19-11-1101, which difference is attributable to the implementation and use of the technology systems as provided in the contract and approved under the provisions of § 19-11-1101(c).
As soon as practical after the close of each month during the biennial period beginning July 1, 2003, and thereafter, each agency purchasing official who has a technology purchase contract shall determine the difference between the amount of taxes or fees collected and the contract baseline amount and report these findings to the Chief Fiscal Officer of the State.
The Chief Fiscal Officer of the State shall certify to the Treasurer of State the following:
1. The amounts determined in subsection (e) of this section for transfer to the fund; and
2. That portion of the amount determined in subsection (e) of this section which is currently required to be paid to each technology contract vendor.
The Treasurer of State shall make the transfer of the amount determined in subdivision (f)(1) of this section, after making the deduction required from the net special revenues as set out in § 19-5-203(b)(2)(A).

History. Acts 2003, No. 1095, § 2.

19-11-1103. [Repealed.]

Publisher's Notes. This section, concerning exemptions, was repealed by Acts 2015, No. 218, § 24. This section was derived from Acts 2009, No. 605, § 23; 2009, No. 606, § 23.

Subchapter 12 — Guaranteed Energy Cost Savings Act

19-11-1201. Title.

This subchapter shall be known and may be cited as the “Guaranteed Energy Cost Savings Act”.

History. Acts 2005, No. 1761, § 1.

19-11-1202. Definitions.

As used in this subchapter:

1. “Energy cost savings measure” means:
  1. A new facility that is designed to reduce the consumption of energy or natural resources or operating costs as a result of changes that:
    1. Do not degrade the level of service or working conditions;
    2. Are measurable and verifiable under the International Performance Measurement and Verification Protocol, as adopted by the Arkansas Pollution Control and Ecology Commission, in the rules required under § 19-11-1207; and
    3. Are measured and verified by an audit performed by a qualified provider; or
  2. An existing facility alteration that is designed to reduce the consumption of energy or natural resources or operating costs as a result of changes that conform with subdivisions (1)(A)(i)(a) and (b) of this section.
2. “Energy cost savings measure” includes:
  1. Insulation and reduced air infiltration of the building structure, including walls, ceilings, and roofs or systems within the building;
  2. Storm windows or doors, caulking or weather-stripping, multi-glazed windows or doors, heat-absorbing or heat-reflective glazed and coated window or door systems, additional glazing, reductions in glass area, or other window and door system modifications that reduce energy consumption;
  3. Automated or computerized energy control systems, including computer software and technical data licenses;
  4. Heating, ventilating, or air conditioning system modifications or replacements;
  5. Replacement or modification of lighting fixtures to increase the energy efficiency of the lighting system without increasing the overall illumination of a facility, unless an increase in illumination is necessary to conform to the applicable state or local building code for the lighting system after the proposed modifications are made;
  6. Indoor air quality improvements;
  7. Energy recovery systems;
  8. Electric system improvements;
  9. Life safety measures that provide long-term, operating-cost reductions;
  10. Building operation programs that reduce operating costs;
  11. Other energy-conservation-related improvements or equipment, including improvements or equipment related to renewable energy;
  12. Water and other natural resources conservation; or
  13. An alteration or measure identified through a comprehensive audit or assessment of new or existing facilities;
“Equipment warranty period” means the time following the execution of a guaranteed energy cost savings contract in which a material defect in an installed energy conservation measure is required to be replaced or corrected by the manufacturer or an energy service company;
1. “Guaranteed energy cost savings contract” means a contract for the implementation of one (1) or more energy cost savings measures and services provided by a qualified provider in which the energy and cost savings achieved by the installed energy project cover all project costs, including financing, over a specified contract term.
2. “Guaranteed energy cost savings contract” does not include improvements or equipment that allow or cause water from any condensing, cooling, or industrial process or any system of nonpotable usage over which public water supply system officials do not have sanitary control to be returned to the potable water supply;
“Operational cost savings” means expenses eliminated and future replacement expenditures avoided as a result of new equipment installed or services performed;
“Public notice” means the same as “public notice” is defined in § 19-11-203;
“Qualified provider” means a person or business, including all subcontractors and employees of that person or business and third-party financing companies, that:
1. Is properly licensed in the State of Arkansas;
2. Has been reviewed and certified by the office as a qualified provider under this subchapter;
3. Is experienced in the design, implementation, measurement, verification, and installation of energy cost savings measures;
4. Has at least five (5) years of experience in the analysis, design, implementation, installation, measurement, and verification of energy efficiency and facility improvements;
5. Has the ability to arrange or provide the necessary financing to support a guaranteed energy cost savings contract; and
6. Has the ability to perform under a contract that requires the person or business to guarantee the work performed by one (1) or more subcontractors;
“State agency” means the same as “state agency” is defined in § 19-11-203; and
“Useful life” means the rated service life of an individual energy conservation measure as defined by the:
1. American Society of Heating, Refrigerating and Air-Conditioning Engineers;
2. Illuminating Engineering Society; or
3. Solar Energy Industries Association.

History. Acts 2005, No. 1761, § 1; 2013, No. 554, §§ 2-4; 2017, No. 271, § 14; 2019, No. 507, § 3.

Amendments. The 2013 amendment rewrote (1)(A)(i) (b) ; deleted “independent” preceding “audit” in (1)(A)(i) (c) ; substituted “a qualified provider” for “qualified energy service companies” in (2)(A); and rewrote (5).

The 2017 amendment substituted “Arkansas Pollution Control and Ecology Commission” for “Arkansas Energy Office” in (1)(A)(i)( b

The 2019 amendment added the definitions for “Equipment warranty period” and “Useful life”.

19-11-1203. Energy cost savings measures authorized.

1. A state agency may enter into a guaranteed energy cost savings contract in order to reduce energy consumption or operating costs of government facilities in accordance with this subchapter.
2. A state agency or several state agencies together may enter into an installment payment contract or lease purchase agreement with a qualified provider for the purchase and installation of energy cost savings measures in accordance with this subchapter.
All energy cost savings measures shall comply with current local, state, and federal construction and environmental codes and regulations.
The provisions of the Arkansas Procurement Law, § 19-11-201 et seq., shall control if there is any conflict with that law and the provisions of this subchapter.

History. Acts 2005, No. 1761, § 1.

19-11-1204. Method of solicitation.

Any solicitation of a guaranteed energy cost savings contract by a state agency shall be consistent with the Arkansas Procurement Law, § 19-11-201 et seq.

History. Acts 2005, No. 1761, § 1.

19-11-1205. Evaluation of responses to solicitations.

In a state agency's evaluation of each qualified provider's response to a solicitation under § 19-11-1204, the state agency shall include an analysis of:
1. Whether the qualified provider meets the objectives of the solicitation, including without limitation a reduction in the state agency's energy consumption or operating costs resulting from a guaranteed energy cost savings contract with the qualified provider;
2. The qualifications and experience of the qualified provider;
3. The technical approach to the energy cost savings measures;
4. The financial aspects of the energy cost savings measures;
5. The overall benefit to the state agency; and
6. Any other relevant factors.
After evaluating a response to a solicitation as required under subsection (a) of this section, a state agency may:
1. Reject the response; or
2. Award a contract to a qualified provider to conduct an energy audit to be used in developing the guaranteed energy cost savings contract.

History. Acts 2005, No. 1761, § 1; 2013, No. 554, § 5.

Amendments. The 2013 amendment rewrote the section catchline and the section.

19-11-1206. Guaranteed energy cost savings contract requirements.

The following provisions are required in a guaranteed energy cost savings contract:
1. A statement that the state agency shall maintain and operate the energy cost savings measures as defined in the guaranteed energy cost savings contract; and
2. A guarantee by the qualified provider that:
  1. The energy cost savings and operational cost savings to be realized over the term of the guaranteed energy cost savings contract meet or exceed the costs of the energy cost savings measures; and
  2. If the annual energy or operational cost savings fail to meet or exceed the annual costs of the energy cost savings measure as required by the guaranteed energy cost savings contract, the qualified provider shall reimburse the state agency for any shortfall of guaranteed energy cost savings over the term of the guaranteed energy cost savings contract.
1. If a guaranteed energy cost savings contract includes energy cost savings measures that possess either an active equipment warranty period or a combined useful life in excess of twenty (20) years, a guaranteed energy cost savings contract may be extended to the length of the:
  1. Equipment warranty period; or
  2. Weighted useful life of the relevant energy cost savings measures.
2. A guaranteed energy cost savings contract shall not exceed twenty (20) years without approval of the Arkansas Energy Office of the Division of Environmental Quality.
Before entering into a guaranteed energy cost savings contract, the state agency shall require the qualified provider to file with the state agency a payment and performance bond or similar assurance as provided under § 19-11-235.

History. Acts 2005, No. 1761, § 1; 2013, No. 554, § 6; 2019, No. 507, § 4.

Amendments. The 2013 amendment rewrote the section heading; in the introductory language of (a), added “The following provisions are required in” at the beginning and deleted “shall include the properly state licensed qualified provider's guarantee that” from the end; inserted present (a)(1) and (2); redesignated former (a)(1) and (a)(3) as (a)(2)(A) and (a)(2)(B); deleted former (a)(2); in (a)(2)(A) inserted “cost savings” and deleted “shall” preceding “meet”; substituted “over the term of the guaranteed energy cost savings contract” for “on an annual basis” in (a)(2)(B); rewrote (b); and substituted “payment and” for “bid bond” in (c).

The 2019 amendment rewrote (b).

19-11-1207. Administration of subchapter — Fees.

The Arkansas Energy Office of the Division of Environmental Quality shall administer this subchapter.
The Arkansas Pollution Control and Ecology Commission may promulgate rules for the administration of this subchapter to include without limitation the following:
1. Standards for measuring and verifying the performance of energy cost savings measures;
2. A standard contract form for use by a state agency in entering into a guaranteed energy cost savings contract;
3. The adoption of the International Performance Measurement and Verification Protocol as it existed on a specific date; and
4. To establish and collect a reasonable fee to cover the costs of administering this subchapter.

History. Acts 2013, No. 554, § 7; 2017, No. 271, § 15; 2019, No. 315, § 1800; 2019, No. 910, § 3208.

Amendments. The 2017 amendment rewrote the section.

The 2019 amendment by No. 315 substituted “rules” for “regulations” in the introductory language of (b).

The 2019 amendment by No. 910 substituted “Division of Environmental Quality” for “Arkansas Department of Environmental Quality” in (a).

19-11-1208. Use of maintenance and operation appropriations.

Notwithstanding any law to the contrary, a state agency may utilize maintenance and operations appropriations for the payment of equipment and energy cost savings measures required by a guaranteed energy cost savings contract.
An energy cost savings measure shall be treated as an energy efficiency project under Arkansas Constitution, Amendment 89.

History. Acts 2013, No. 554, § 7; 2013, No. 1252, § 6.

Amendments. The 2013 amendment added (b).

Subchapter 13 — Partial Equity Ownership Agreement Executed by a State Retirement System

Effective Dates. Acts 2009, No. 1211, § 3: Apr. 7, 2009. Emergency clause provided “It is found and determined by the General Assembly of the State of Arkansas that a partial equity ownership agreement is fundamentally and substantially different than a state contract for commodities, technical and general services, and professional and consultant services that are procured under the Arkansas Procurement Law § 19-11-201 et seq., and other contracts currently procured under Arkansas Code, Title 19, Chapter 11; that frugal investment practices often require a minimum duration of ten (10) years or more for the interest to mature; that a partial equity ownership agreement is necessary for certain size trust funds to fulfill the requirements of the prudent investor rule; that a partial equity ownership agreement should be subject to a procurement process that is unique to the partial equity ownership agreement; that currently there is a lack of clarification in the law regarding a proper review process for partial equity ownership agreements; and that this new section will resolve the issue with the intent to preserve the review process for a partial equity ownership agreement and allow flexibility in the review for a narrow and clearly defined exception. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

19-11-1301. Definition.

As used in this subchapter, “partial equity ownership agreement” means an agreement with a legal entity, including without limitation a partnership, a limited partnership, a limited liability company, or similar legal entity that:

Includes a state retirement system as a partner, a limited partner, or a partial owner;
Creates an equity interest or ownership position for the state retirement system; and
Utilizes retirement trust funds that are not appropriated by the General Assembly.

History. Acts 2009, No. 1211, § 2.

19-11-1302. Review of partial equity ownership agreements.

A partial equity ownership agreement is subject to review by submission of the partial equity ownership agreement to the Office of State Procurement and the Legislative Council under this section.
Since the partial equity ownership agreement is fundamentally and substantially different from a state contract for commodities, goods, and services that are reviewed under the Arkansas Procurement Law, § 19-11-201 et seq., or other contract that is reviewed under subchapters 1-12 of this chapter, and since the partial equity ownership agreement is utilizing retirement trust funds that are not appropriated by the General Assembly, the partial equity ownership agreement is not subject to:
1. A limitation of the term or duration of the partial equity ownership agreement; or
2. An annual renewal clause.
When submitting a partial equity ownership agreement for review, the state retirement system shall provide information that includes without limitation:
1. The managing parties to the partial equity ownership agreement;
2. The state retirement system's interest and ownership in the partial equity ownership agreement;
3. The reason for the formation of or entry into the partial equity ownership agreement;
4. Justification that the duration of the partial equity ownership agreement is necessary to serve the best interests of the retirants under the prudent investor rule as set out in §§ 24-2-610 — 24-2-619;
5. The anticipated date of implementation of the partial equity ownership;
6. The anticipated termination date of the partial equity ownership agreement; and
7. Other information regarding the terms of the partial equity ownership agreement that the office or the Legislative Council may reasonably require for an adequate review.

History. Acts 2009, No. 1211, § 2.

19-11-1303. Imminent need to enter into partial equity ownership agreement.

In lieu of a review under § 19-11-1302, a partial equity ownership agreement that necessitates immediate formation shall be reviewed by the Office of State Procurement and the Legislative Council under this section.
1. The board of trustees of a state retirement system may enter into a partial equity ownership agreement or substantially alter the terms of an existing partial equity ownership agreement if the board of trustees passes a resolution that:
  1. Determines an imminent need to immediately form or enter into the partial equity ownership agreement;
  2. Deems it financially appropriate to immediately form or enter into a partial equity ownership agreement; and
  3. Concludes that to forego the opportunity to promptly implement the board of trustees' investment directives under the prudent investor rule as set out in §§ 24-2-610 — 24-2-619 would be inconsistent with the board of trustees' fiduciary duty of care to the retirants.
2. The board of trustees of the state retirement system shall provide the office and the Legislative Council with a copy of the resolution under subsection (a) of this section within five (5) business days of the passage of the resolution.
For a partial equity ownership agreement reviewed under this section, the retirement system shall submit information to the office and the Legislative Council within thirty (30) days of the passage of the resolution that discloses:
1. The managing parties to the partial equity ownership agreement;
2. The state retirement system's interest and ownership in the partial equity ownership agreement;
3. The reason for the immediate formation or entry into a partial equity ownership agreement;
4. Justification that the duration of the partial equity ownership agreement is necessary to serve the best interests of the retirants under the prudent investor rule as set out in §§ 24-2-610 — 24-2-619;
5. The anticipated date of implementation;
6. The anticipated termination date of the partial equity ownership agreement; and
7. Other information regarding the terms of the partial equity ownership agreement that the office or the Legislative Council may reasonably require for an adequate review.
As may be reasonably required by the Legislative Council, a member of the board of trustees, the director of the respective state retirement system, or the director's appointee shall appear at the next scheduled meeting of the Legislative Council after the receipt of the information under subsection (c) of this section to present the information and explain the details of the partial equity ownership agreement.

History. Acts 2009, No. 1211, § 2.

19-11-1304. Retrospective review of partial equity ownership agreement to ensure disclosure.

Before April 7, 2009, if a state retirement system has entered into a partial equity ownership agreement that has not been submitted previously for review under § 19-11-101 et seq., the Arkansas Procurement Law, § 19-11-201 et seq., or § 19-11-801 et seq., then the partial equity ownership agreement shall be reviewed retrospectively under this section.
The board of trustees of a state retirement system shall submit information that the Office of State Procurement or the Legislative Council may reasonably require to allow a retrospective review of a partial equity ownership agreement under this section.

History. Acts 2009, No. 1211, § 2.

Subchapter 14 — Construction Manager-General Contractor Method of Procurement Pilot Program

19-11-1401. Title.

This subchapter shall be known and may be cited as the “Construction Manager-General Contractor Method of Procurement Pilot Program”.

History. Acts 2017, No. 809, § 1.

19-11-1402. Legislative findings.

The General Assembly finds that:

An efficient transportation system is critical for Arkansas's economy and the quality of life of the state's residents;
Transportation projects are costly and the revenues currently available for highways and local roads are inadequate to preserve and maintain existing infrastructure and to provide funds for highway improvements;
The State Highway Commission has developed an alternative, cost-effective, procurement procedure for transportation projects performed by the commission and the Arkansas Department of Transportation;
A construction manager-general contractor method allows the commission to engage a construction manager:
1. To assist during the design and development process of the transportation project, including without limitation to provide input concerning the transportation project's:
  1. Design;
  2. Scheduling;
  3. Pricing; and
  4. Phasing; and
2. Who may subsequently become the general contractor and construct the transportation project if the parties agree on a guaranteed maximum price; and
The cost-effective benefits are achieved by shifting the liability and risk for cost containment and transportation project scheduling to the construction manager, which leads many states to call this method the “construction manager at-risk method”.

History. Acts 2017, No. 809, § 1; 2019, No. 1019, § 1.

Amendments. The 2019 amendment substituted “has developed” for “is interested in developing” in (3); deleted former (4); and redesignated former (5) and (6) as (4) and (5).

19-11-1403. Definitions.

As used in this subchapter:

“Authorized contingency” means a provision prepared and submitted by the construction manager-general contractor as part of the guaranteed maximum price that is designed to cover costs that may result from:
1. Incomplete design;
2. Unforeseen and unpredictable conditions; or
3. Uncertainties within the defined transportation project scope that a prudent construction manager would not have reasonably detected or anticipated during the discharge of his or her preconstruction duties;
“Construction manager-general contractor” means a business firm or a legal entity selected by the Director of State Highways and Transportation to act as a construction manager to provide preconstruction services during the design and development phase of a transportation project;
“Construction manager-general contractor method” means a transportation project delivery method using a best value procurement process in which a construction manager is procured to provide preconstruction services and may subsequently construct the whole transportation project or any part of the transportation project as the general contractor if the Arkansas Department of Transportation and the construction manager-general contractor reach an agreement on a guaranteed maximum price;
“Guaranteed maximum price” means:
1. The total dollar amount agreed to by the construction manager-general contractor to complete the construction of the transportation project, including without limitation the construction manager-general contractor's:
  1. Direct costs;
  2. Overhead;
  3. Profit; and
  4. Any authorized contingency; and
2. Any dollar amount added to the total dollar amount of the transportation project submitted under subdivision (4)(A) of this section to cover additional costs arising from changes in the scope of work as the department may subsequently direct in writing;
“Preconstruction services” means work, labor, or services, including services furnished in connection with the design and development of a transportation project before the construction phase, including without limitation:
1. Cost estimates;
2. Schedule analysis;
3. Sequencing of work;
4. Risk identification and mitigation;
5. Constructability reviews;
6. Evaluation of alternative construction options;
7. Assistance with various permits;
8. Coordination with public or private utility service providers;
9. Communication with third-party stakeholders or the public; and
10. Development of a guaranteed maximum price; and
“Request for proposals” means a document or publication soliciting proposals for a contract for construction of a transportation project between a construction manager-general contractor and the department.

History. Acts 2017, No. 809, § 1.

19-11-1404. Construction Manager-General Contractor Method of Procurement Pilot Program — Creation.

The State Highway Commission may develop a Construction Manager-General Contractor Method of Procurement Pilot Program to test the utilization of the construction manager-general contractor method as a cost-effective option for constructing transportation projects.
1. During the term of the program the commission may select a total of five (5) transportation projects on which to utilize the construction manager-general contractor method.
2. 1. The sum of the construction cost estimates prepared as required under § 19-11-1407 of all five (5) construction manager-general contractor method transportation projects shall not exceed two hundred million dollars ($200,000,000).
  2. A construction cost estimate of a construction manager-general contractor method transportation project shall not exceed one hundred million dollars ($100,000,000).
The Director of State Highways and Transportation shall send written notice identifying the transportation project and the reasons for deciding to apply the construction manager-general contractor method to that specific transportation project to:
1. The Chair of the House Committee on Public Transportation; and
2. The Chair of the Senate Committee on Public Transportation, Technology, and Legislative Affairs.
The program established under this subchapter shall terminate no later than June 30, 2024.

History. Acts 2017, No. 809, § 1; 2019, No. 1019, §§ 2, 3.

Amendments. The 2019 amendment substituted “five (5)” for “three (3)” in (b)(1) and (b)(2)(A); deleted former (b)(2)(B); rewrote former (b)(2)(C) as present (b)(2)(B); and, in (d), substituted “The program” for “A program” and substituted “June 30, 2024” for “June 30, 2022”.

19-11-1405. Project selection.

If the Arkansas Department of Transportation determines that a construction manager-general contractor method of procurement is appropriate for a transportation project, the department shall establish a procedure for awarding the contract for construction of the construction manager-general contractor method transportation project using the criteria listed in § 19-11-1406.

History. Acts 2017, No. 809, § 1; 2019, No. 1019, § 4.

Amendments. The 2019 amendment deleted former (a); deleted the (b) designation; and substituted “If the Arkansas Department of Transportation determines” for “If the department determines”.

19-11-1406. Request for proposals.

A request for proposals under this subchapter shall include without limitation the following:
1. The minimum qualifications of the construction manager-general contractor;
2. The procedures for submitting a proposal to the Arkansas Department of Transportation, the criteria for the evaluation of and selection of a construction manager-general contractor to perform preconstruction services, and the relative weight assigned for each criteria as indicated in a technical scoring matrix;
3. The form of the contract to be awarded for preconstruction services;
4. A listing of the types and scope of the preconstruction services that will be required;
5. The scope of the intended contract;
6. The budget limits for the transportation project and the preconstruction services;
7. The method of payment and structure of fees for the preconstruction services;
8. A requirement that the construction manager-general contractor submit relevant information regarding any licenses, registration, or credentials that may be required to construct the transportation project;
9. A requirement that the construction manager-general contractor provide evidence that establishes that the construction manager-general contractor is capable of obtaining the required bonding and insurance;
10. A requirement that the construction manager-general contractor submit information concerning the debarment or default from a federal, state, or local government transportation project within the past five (5) years;
11. A requirement that the construction manager-general contractor provide information concerning the bankruptcy or receivership of any of its members, including information concerning any work completed by a surety;
12. A requirement that the construction manager-general contractor provide evidence of competency, capability, and capacity to complete a transportation project of similar size, scope, or complexity; and
13. A prohibition that excludes a person or firm that has received compensation for assisting the department in preparing the request for proposals from submitting a proposal in response to the request for proposals or participating as a construction manager-general contractor team member.
A request for proposals under this subchapter shall not:
1. Require that the construction manager-general contractor have prior experience with any particular transportation project procurement method as a condition for submitting a proposal; and
2. Give any preference for any particular contract delivery method in the scoring of a proposal.
The department shall:
1. Send a written notice of award to the best-evaluated construction manager-general contractor; or
2. Send to all the construction manager-general contractors that submitted a proposal a written notice that all proposals have been rejected.

History. Acts 2017, No. 809, § 1.

19-11-1407. Construction manager-general contractor selection.

The Arkansas Department of Transportation shall:
1. Prepare contract plans, specifications, special provisions, and other requirements composing the contract for construction of a transportation project elected for procurement using the construction manager-general contract method authorized by this subchapter;
2. Prepare a detailed construction cost estimate to evaluate the appropriate price for the construction of the transportation project;
3. If requested by the Director of State Highways and Transportation, have an independent third-party cost estimator prepare a detailed construction cost estimate to confirm the appropriate price for the construction of the transportation project;
4. Include in the contract created by subdivision (a)(1) of this section a requirement that the construction manager-general contractor perform at least thirty percent (30%) of the total cost for construction, not including the preconstruction work performed by the construction manager-general contractor; and
5. 1. Keep the construction cost estimates prepared under subdivisions (a)(2) and (3) of this section confidential and not subject to public disclosure until after the contract has been awarded.
  2. Construction cost estimates prepared under subdivisions (a)(2) and (3) of this section are confidential and exempt from public disclosure under the Freedom of Information Act of 1967, § 25-19-101 et seq., but only until after the contract has been awarded.
A construction manager-general contractor shall submit to the department a guaranteed maximum price for the construction of the transportation project using the contract plans, specifications, special provisions, and other requirements prepared by the department as required by subdivision (a)(1) of this section.
The department may award the contract to a construction manager-general contractor if the guaranteed maximum price does not exceed the cost estimate provided by the department or independent third party by more than ten percent (10%).
If the director rejects the proposed guaranteed maximum price, the department may:
1. Work with the construction manager-general contractor to find a guaranteed maximum price that is acceptable to both parties; or
2. Request that the construction manager-general contractor provide additional preconstruction services and submit a new guaranteed maximum price as directed by this section.
If the department does not award the contract to a construction manager-general contractor, the department may proceed with the transportation project using a procurement process authorized by law.

History. Acts 2017, No. 809, § 1.

19-11-1408. Rules.

The State Highway Commission and the Arkansas Department of Transportation may promulgate rules to implement and administer this subchapter.

History. Acts 2017, No. 809, § 1.

Chapter 12 Tobacco Settlement Proceeds Act

A.C.R.C. Notes. References to “this chapter” in §§ 19-12-101 through 19-12-118 may not apply to § 19-12-119 which was enacted subsequently.

Acts 2007, No. 1292, § 8, provided: “It is the intent of the General Assembly that any funds disbursed under the authority of the appropriations contained in this act shall be in compliance with the stated reasons for which this act was adopted, as evidenced by Initiated Act 1 of 2000, the Agency Requests, Executive Recommendations and Legislative Recommendations contained in the budget manuals prepared by the Department of Finance and Administration, letters, or summarized oral testimony in the official minutes of the Arkansas Legislative Council or Joint Budget Committee which relate to its passage and adoption.”

Acts 2015, No. 75, § 7, provided: “LEGISLATIVE INTENT. It is the intent of the General Assembly that any funds disbursed under the authority of the appropriations contained in this act shall be in compliance with the stated reasons for which this act was adopted, as evidenced by Initiated Act 1 of 2000, the Agency Requests, Executive Recommendations and Legislative Recommendations contained in the budget manuals prepared by the Department of Finance and Administration, letters, or summarized oral testimony in the official minutes of the Arkansas Legislative Council or Joint Budget Committee which relate to its passage and adoption.”

Acts 2015, No. 269, § 8, provided: “LEGISLATIVE INTENT. It is the intent of the General Assembly that any funds disbursed under the authority of the appropriations contained in this act shall be in compliance with the stated reasons for which this act was adopted, as evidenced by Initiated Act 1 of 2000, the Agency Requests, Executive Recommendations and Legislative Recommendations contained in the budget manuals prepared by the Department of Finance and Administration, letters, or summarized oral testimony in the official minutes of the Arkansas Legislative Council or Joint Budget Committee which relate to its passage and adoption.”

Acts 2015, No. 323, § 11, provided: “LEGISLATIVE INTENT. It is the intent of the General Assembly that any funds disbursed under the authority of the appropriations contained in this act shall be in compliance with the stated reasons for which this act was adopted, as evidenced by Initiated Act 1 of 2000, the Agency Requests, Executive Recommendations and Legislative Recommendations contained in the budget manuals prepared by the Department of Finance and Administration, letters, or summarized oral testimony in the official minutes of the Arkansas Legislative Council or Joint Budget Committee which relate to its passage and adoption.”

Acts 2016, No. 38, § 6, provided: “POSITIONS.

“(a) Nothing in this act shall be construed as a commitment of the State of Arkansas or any of its agencies or institutions to continue funding any position paid from the proceeds of the Tobacco Settlement in the event that Tobacco Settlement funds are not sufficient to finance the position.

“(b) State funds will not be used to replace Tobacco Settlement funds when such funds expire, unless appropriated by the General Assembly and authorized by the Governor.

“(c) A disclosure of the language contained in (a) and (b) of this Section shall be made available to all new hire and current positions paid from the proceeds of the Tobacco Settlement by the Minority Health Commission.

“(d) Whenever applicable the information contained in (a) and (b) of this Section shall be included in the employee handbook and/or Professional Services Contract paid from the proceeds of the Tobacco Settlement.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 123, § 9, provided: “POSITIONS.

“(b) State funds will not be used to replace Tobacco Settlement funds when such funds expire, unless appropriated by the General Assembly and authorized by the Governor.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 125, § 5, provided: “POSITIONS.

“(b) State funds will not be used to replace Tobacco Settlement funds when such funds expire, unless appropriated by the General Assembly and authorized by the Governor.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 127, § 6, provided: “POSITIONS.

“(b) State funds will not be used to replace Tobacco Settlement funds when such funds expire, unless appropriated by the General Assembly and authorized by the Governor.

“(d) Whenever applicable the information contained in (a) and (b) of this section shall be included in the employee handbook and/or Professional Services Contract paid from the proceeds of the Tobacco Settlement.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 134, § 6, provided: “POSITIONS.

“(b) State funds will not be used to replace Tobacco Settlement funds when such funds expire, unless appropriated by the General Assembly and authorized by the Governor.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 191, § 8, provided: “POSITIONS.

“(b) State funds will not be used to replace Tobacco Settlement funds when such funds expire, unless appropriated by the General Assembly and authorized by the Governor.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 224, § 6, provided: “POSITIONS.

“(b) State funds will not be used to replace Tobacco Settlement funds when such funds expire, unless appropriated by the General Assembly and authorized by the Governor.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2018, No. 157, § 6, provided: “POSITIONS.

“(b) State funds will not be used to replace Tobacco Settlement funds when such funds expire, unless appropriated by the General Assembly and authorized by the Governor.

“The provisions of this section shall be in effect only from July 1, 2018 through June 30, 2019.”

Acts 2018, No. 171, § 5, provided: “POSITIONS.

“(b) State funds will not be used to replace Tobacco Settlement funds when such funds expire, unless appropriated by the General Assembly and authorized by the Governor.

“The provisions of this section shall be in effect only from July 1, 2018 through June 30, 2019.”

Acts 2018, No. 175, § 6, provided: “POSITIONS.

“(b) State funds will not be used to replace Tobacco Settlement funds when such funds expire, unless appropriated by the General Assembly and authorized by the Governor.

“The provisions of this section shall be in effect only from July 1, 2018 through June 30, 2019.”

Acts 2018, No. 191, § 9, provided: “POSITIONS.

“(b) State funds will not be used to replace Tobacco Settlement funds when such funds expire, unless appropriated by the General Assembly and authorized by the Governor.

“The provisions of this section shall be in effect only from July 1, 2018 through June 30, 2019.”

Effective Dates. Acts 2002 (1st Ex. Sess.), No. 2, § 12: June 12, 2002. Emergency clause provided: “It is found and determined by the General Assembly that the budgetary crisis facing this state may require large reductions in the state Medicaid program, which reductions will cut three federal matching dollars for each state dollar, resulting in a serious threat to the ability of the state Medicaid program to provide adequate care to the state's neediest citizens. Setting aside funds for an Arkansas Rainy Day Fund by shifting the Prevention and Cessation Program Account to a current year budget will make moneys available to assist the state Medicaid program in maintaining its established levels of service in the event that the current revenue forecast is not collected. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2005, No. 1872, § 4: Apr. 8, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that clarification is needed to properly distribute moneys under the Master Settlement Agreement; that the distributions are for the benefit of the programs supported by tobacco settlement funds; and that the clarification is required immediately in order for the distributions for the current fiscal year to be correct. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Subchapter 1 — Tobacco Settlement Proceeds Act

A.C.R.C. Notes. Acts 2015, No. 269, § 8, provided: “LEGISLATIVE INTENT. It is the intent of the General Assembly that any funds disbursed under the authority of the appropriations contained in this act shall be in compliance with the stated reasons for which this act was adopted, as evidenced by Initiated Act 1 of 2000, the Agency Requests, Executive Recommendations and Legislative Recommendations contained in the budget manuals prepared by the Department of Finance and Administration, letters, or summarized oral testimony in the official minutes of the Arkansas Legislative Council or Joint Budget Committee which relate to its passage and adoption.”

Acts 2016, No. 123, § 9, provided: “POSITIONS.

“(b) State funds will not be used to replace Tobacco Settlement funds when such funds expire, unless appropriated by the General Assembly and authorized by the Governor.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 125, § 5, provided: “POSITIONS.

“(b) State funds will not be used to replace Tobacco Settlement funds when such funds expire, unless appropriated by the General Assembly and authorized by the Governor.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 127, § 6, provided: “POSITIONS.

“(b) State funds will not be used to replace Tobacco Settlement funds when such funds expire, unless appropriated by the General Assembly and authorized by the Governor.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 134, § 6, provided: “POSITIONS.

“(b) State funds will not be used to replace Tobacco Settlement funds when such funds expire, unless appropriated by the General Assembly and authorized by the Governor.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 191, § 8, provided: “POSITIONS.

“(b) State funds will not be used to replace Tobacco Settlement funds when such funds expire, unless appropriated by the General Assembly and authorized by the Governor.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Acts 2016, No. 224, § 6, provided: “POSITIONS.

“(b) State funds will not be used to replace Tobacco Settlement funds when such funds expire, unless appropriated by the General Assembly and authorized by the Governor.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Publisher's Notes. Due to the enactment of subchapter 2 by Acts 2006 (1st Ex. Sess.), No. 9, the existing provisions of this chapter have been redesignated as subchapter 1.

Effective Dates. Acts 2015, No. 894, § 2: July 1, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Medicaid Expansion Program Account currently funds a program that provides increased healthcare access to Arkansans; that this increased healthcare access is necessary for the preservation of the public peace, health, and safety; that increased funding is essential to continuation of that program; and that without this increased funding, the program may be compromised. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2015.”

Acts 2017, No. 50, § 2: Jan. 26, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that thousands of citizens of Arkansas are on a waiting list to receive home and community-based services that they need to maintain quality of life; that the present Alternative Community Services Waiver Program, also known as the ‘Developmental Disabilities Waiver’, does not have the capacity to provide assistance to these individuals; and that this act is immediately necessary to ensure the health and safety of the individuals with intellectual and developmental disabilities in the State of Arkansas. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

19-12-101. Title.

This chapter may be referred to and cited as the “Tobacco Settlement Proceeds Act”.

History. Init. Meas. 2000, No. 1, § 1.

19-12-102. Definitions.

The following terms, as used in this chapter, shall have the meanings set forth in this section:
1. “Act” shall mean this Arkansas Tobacco Settlement Funds Act of 2000.
2. “ADFA” shall mean the Arkansas Development Finance Authority.
3. “Arkansas Biosciences Institute” shall mean the Arkansas Biosciences Institute created by § 19-12-115.
4. “Arkansas Biosciences Institute Program Account” shall mean the account by that name created pursuant to § 19-12-111 to be funded from the Tobacco Settlement Program Fund and used by the Arkansas Biosciences Institute for the purposes set forth in this chapter.
5. “Arkansas Healthy Century Trust Fund” shall mean that public trust for the benefit of the citizens of the State of Arkansas created and established pursuant to § 19-12-107.
6. “Arkansas Tobacco Settlement Commission” shall mean the entity that administers the programs established pursuant to this chapter, also known as “ATSC”, which is described and established in § 19-12-117.
7. “Arkansas Tobacco Settlement Commission Fund” shall mean the fund by that name created pursuant to § 19-12-108(f) to be used by the Arkansas Tobacco Settlement Commission for the purposes set forth in § 19-12-117.
8. “Bonds” shall mean any and all bonds, notes, or other evidences of indebtedness issued by ADFA as Tobacco Settlement Revenue Bonds pursuant to the terms of this chapter.
9. “Capital Improvement Projects” shall mean the acquisition, construction and equipping of land, buildings, and appurtenant facilities, including but not limited to parking and landscaping, all intended for the provision of health care services, health education, or health-related research; provided that each such Capital Improvement Project must be either set forth in this chapter or subsequently designated by the General Assembly pursuant to legislation.
10. “Debt Service Requirements” shall mean all amounts required to be paid in connection with the repayment of Bonds issued pursuant to this chapter, including, but not limited to, the principal of and interest on the Bonds, amounts reasonably required for a debt service reserve, amounts reasonably required to provide debt service coverage, trustee's and paying agent fees, and, to the extent reasonably necessary, capitalized interest on the Bonds.
11. “Initial MSA Disbursement” shall mean the first disbursement from the MSA Escrow to the State, consisting of Arkansas' share of payments from Participating Manufacturers due under the Master Settlement Agreement and designated as the 1998 First Payment, the 2000 Initial Payment, and the 2000 Annual Payment, which amounts, along with any accumulated interest, represent all money due to the State and attributable to payments prior to January 1, 2001.
12. “Master Settlement Agreement” or “MSA” shall mean that certain Master Settlement Agreement between certain states (the “Settling States”) and certain tobacco manufacturers (the “Participating Manufacturers”), pursuant to which the Participating Manufacturers have agreed to make certain payments to each of the Settling States.
13. “Medicaid Expansion Program Account” shall mean the account by that name created pursuant to § 19-12-112 to be funded from the Tobacco Settlement Program Fund and used by the Arkansas Department of Human Services for the purposes set forth in this chapter.
14. “MSA Disbursements” shall mean all amounts disbursed from the MSA Escrow pursuant to the Master Settlement Agreement to the State of Arkansas.
15. “MSA Disbursement Date” shall mean any date on which MSA Disbursements are made to the State of Arkansas pursuant to the Master Settlement Agreement at the request of the State.
16. “MSA Escrow” shall mean those escrow accounts established to hold the State of Arkansas's share of the Tobacco Settlement proceeds prior to disbursement to the State pursuant to the Master Settlement Agreement.
17. “MSA Escrow Agent” shall mean that agent appointed pursuant to the Escrow Agreement entered into between the Settling States and the Participating Manufacturers pursuant to the Master Settlement Agreement.
18. “Participating Manufacturers” shall mean those entities defined as Participating Manufacturers by the terms of the Master Settlement Agreement.
19. “Prevention and Cessation Program Account” shall mean the account by that name created pursuant to § 19-12-109 to be funded from the Tobacco Settlement Program Fund and used for the purposes set forth in this chapter.
20. “Program Accounts” shall mean, collectively, the Prevention and Cessation Program Account, the Targeted State Needs Program Account, the Arkansas Biosciences Institute Program Account, and the Medicaid Expansion Program Account.
21. “State Board of Finance” shall mean the entity created pursuant to § 19-3-101, as amended.
22. “Targeted State Needs Programs Account” shall mean the account by that name created pursuant to § 19-12-110 to be funded from the Tobacco Settlement Program Fund and used for the purposes set forth in this chapter.
23. “Tobacco Settlement” shall mean the State of Arkansas's share of funds to be distributed pursuant to the Master Settlement Agreement between the Settling States and the Participating Manufacturers.
24. “Tobacco Settlement Cash Holding Fund” shall mean the Fund established as a cash fund outside of the State Treasury pursuant to § 19-12-104, into which all MSA Disbursements shall be deposited on each MSA Disbursement Date.
25. “Tobacco Settlement Debt Service Fund” shall mean the Fund established as a cash fund outside of the State Treasury pursuant to § 19-12-105.
26. “Tobacco Settlement Program Fund” or “Program Fund” shall mean the Tobacco Settlement Program Fund established pursuant to § 19-12-108, which shall be used to hold and distribute funds to the various Program Accounts created by this chapter.
27. “Trust indenture” or “indenture” shall mean any trust indenture, ADFA resolution, or other similar document under which Tobacco Settlement Revenue Bonds are to be issued and secured.

History. Init. Meas. 2000, No. 1, § 2.

19-12-103. Grant of authority to State Board of Finance.

The State Board of Finance is hereby authorized and directed to perform the following duties with respect to the Tobacco Settlement:

The State Board of Finance is authorized and directed on behalf of the State of Arkansas to receive all authorized disbursements from the MSA Escrow. The Initial MSA Disbursement and each subsequent MSA Disbursement shall be immediately deposited into the Tobacco Settlement Cash Holding Fund, and distributed from there as prescribed in this chapter. The Office of the Attorney General is directed to take all action necessary to inform the MSA Escrow Agent that the State Board of Finance is authorized to receive such disbursements on behalf of the State.
The State Board of Finance shall manage and invest all amounts held in the Tobacco Settlement Cash Holding Fund, the Tobacco Settlement Debt Service Fund, the Arkansas Healthy Century Trust Fund, the Tobacco Settlement Program Fund, the Arkansas Tobacco Settlement Commission Fund, and the Program Accounts, and shall have full power to invest and reinvest the moneys in such funds and accounts and to hold, purchase, sell, assign, transfer, or dispose of any of the investments so made as well as the proceeds of the investments and moneys, pursuant to the following standards:
1. with respect to amounts in the Arkansas Healthy Century Trust Fund, all investments shall be pursuant to and in compliance with the prudent investor and other applicable standards set forth in §§ 24-3-408 [repealed], 24-3-414 [repealed], 24-3-415 [repealed], and 24-3-417 — 24-3-425 [repealed], and § 19-3-518;
2. with respect to amounts in the Tobacco Settlement Debt Service Fund, all investments shall be pursuant to and in compliance with the prudent investor and other applicable standards set forth in §§ 24-3-408 [repealed], 24-3-414 [repealed], 24-3-415 [repealed], and 24-3-417 — 24-3-425 [repealed], and § 19-3-518; provided further that the types and manner of such investments may be further limited as set forth in § 19-12-105; and
3. with respect to amounts held in the Tobacco Settlement Cash Holding Fund, the Tobacco Settlement Program Fund, each of the Program Accounts, and the Arkansas Tobacco Settlement Commission Fund, all investments shall of the type described in § 19-3-510 and shall be made with depositories designated pursuant to § 19-3-507; or such investment shall be in certificates of deposit, in securities as outlined in § 23-47-401 without limitation or as approved in the State Board of Finance investment policy. The State Board of Finance shall insure that such investments shall mature or be redeemable at the times needed for disbursements from such funds and accounts pursuant to this chapter.
The State Board of Finance is authorized to employ such professionals as it deems necessary and desirable to assist it in properly managing and investing the Arkansas Healthy Century Trust Fund, pursuant to the standards set forth in § 24-3-425 [repealed].
The State Board of Finance is authorized to use investment earnings from the Arkansas Healthy Century Trust Fund to compensate the professionals retained under subsection (d), and to pay the reasonable costs and expenses of the State Board of Finance in administering the funds and accounts created under this chapter and performing all other duties ascribed to it hereunder.
On the last day of each month, the State Board of Finance shall provide the Department of Finance and Administration, Office of Accounting with the current balances in the Tobacco Settlement Cash Holding Fund, the Arkansas Healthy Century Trust Fund, the Tobacco Settlement Program Fund, the Tobacco Settlement Debt Service Fund, the Arkansas Tobacco Settlement Commission Fund, and each Program Account.
The State Board of Finance is authorized and directed to perform all other tasks that may be assigned to the State Board of Finance pursuant to this chapter.

History. Init. Meas. 2000, No. 1, § 3.

A.C.R.C. Notes. As adopted, subsection (c) is missing language essential to its meaning. The phrase “all investments shall of the type described in § 19-3-510 and shall be made with depositories designated pursuant to § 19-3-507;” was probably intended to read “all investments shall be of the type described in § 19-3-510 and shall be made with depositories designated pursuant to § 19-3-507;”.

As adopted, subsection (d) contains an incorrect internal reference. The intended reference appears to be to subsection (c) rather than to subsection (d).

19-12-104. Creation and administration of Tobacco Settlement Cash Holding Fund.

There is hereby created and established a fund, held separate and apart from the State Treasury, to be known as the “Tobacco Settlement Cash Holding Fund”, which fund shall be administered by the State Board of Finance.
All moneys received as part of the Tobacco Settlement are hereby designated cash funds pursuant to § 19-6-103, restricted in their use and to be used solely as provided in this chapter. All MSA Disbursements shall be initially deposited into the credit of the Tobacco Settlement Cash Holding Fund, when and as received. Any and all MSA Disbursements received prior to the effective date of this Act shall be immediately transferred to the Tobacco Settlement Cash Holding Fund upon this chapter becoming effective. The Tobacco Settlement Cash Holding Fund is intended as a cash fund, not subject to appropriation, and, to the extent practical, amounts in the Tobacco Settlement Cash Holding Fund shall be immediately distributed to the other Funds and Accounts described in this chapter.
The Initial MSA Disbursement shall be distributed from the Tobacco Settlement Cash Holding Fund to the Arkansas Healthy Century Trust Fund as an initial endowment pursuant to § 19-12-107.
After the Initial MSA Disbursement has been transferred as set forth in subsection (c) of this section, the State Board of Finance, beginning with MSA Disbursements for years 2001 and thereafter, shall receive all amounts due to the State from the MSA Escrow. In calendar year 2001, there shall first be deposited into the Arkansas Healthy Century Trust Fund from the MSA Disbursements attributable to calendar year 2001, the amount necessary to bring the principal amount of the Arkansas Healthy Century Trust Fund to one-hundred million dollars ($100,000,000). The remainder of any MSA Disbursements attributable to calendar year 2001 shall be deposited into the Tobacco Settlement Program Fund and distributed pursuant to § 19-12-108. Beginning in 2002, and for each annual MSA Disbursement thereafter, all MSA Disbursements shall be immediately deposited into the Tobacco Settlement Cash Holding Fund and then distributed, as soon as practical after receipt, as follows:
1. The first five million dollars ($5,000,000) received as an MSA Disbursement in each calendar year beginning in 2002 shall be transferred from the Tobacco Settlement Cash Holding Fund to the Tobacco Settlement Debt Service Fund; and
2. After the transfer described in § 19-12-104(d)(1), the amounts remaining in the Tobacco Settlement Cash Holding Fund shall be transferred to the Tobacco Settlement Program Fund.
While it is intended that the State Board of Finance will transfer funds from the Tobacco Settlement Cash Holding Fund immediately upon receipt, to the extent that any amounts must be held pending the transfers described in § 19-12-104(c) and (d), the State Board of Finance is authorized to invest such amounts in suitable investments maturing not later than when the moneys are expected to be transferred, provided that such investments are made in compliance with § 19-12-103(c).

History. Init. Meas. 2000, No. 1, § 4.

A.C.R.C. Notes. Acts 2013, No. 1496, § 20, provided: “FUND TRANSFER PROVISIONS — MEDICAID PROGRAM. Notwithstanding the provisions of Initiated Act 1 of 2000, or Arkansas Code 19-12-104 regarding the establishment and administration of the Tobacco Settlement Cash Holding Fund, or any other laws to the contrary, the entire amount of the settlement funds received, approximately twenty-two million seven hundred sixty-eight thousand one hundred twenty-six dollars ($22,768,126), or so much as is actually awarded and received by the state, through the settlement agreement in the nearly decade old dispute between Arkansas and the tobacco companies that signed the Master Settlement Agreement, shall be deposited into the Tobacco Settlement Cash Holding Fund and not distributed under the provisions of the Tobacco Settlement Proceeds Act, but instead such settlement funds shall be deposited directly into and credited to the Medicaid Expansion Program Account of the Tobacco Settlement Program Fund.”

19-12-105. Creation and administration of Tobacco Settlement Debt Service Fund.

There is hereby created and established a fund, designated as a cash fund and held separate and apart from the State Treasury, to be known as the “Tobacco Settlement Debt Service Fund”, which Fund shall be administered by the State Board of Finance. All moneys deposited into the Tobacco Settlement Debt Service Fund are hereby designated cash funds pursuant to § 19-6-103, restricted in their use and to be used solely as provided in this chapter.
There shall be transferred from the Tobacco Settlement Cash Holding Fund to the Tobacco Settlement Debt Service Fund, the amount set forth for such transfer in § 19-12-104(d). All amounts received into the Tobacco Settlement Debt Service Fund shall be held until needed to make payments on Debt Service Requirements. The State Board of Finance is authorized to invest any amounts held in the Tobacco Settlement Debt Service Fund in suitable investments maturing not later than when the moneys are needed to pay Debt Service Requirements, provided that such investments comply with § 19-12-103(c), and further provided that the investment of such moneys may be further limited by the provisions of any trust indenture pursuant to which Bonds are issued or any related non-arbitrage certificate or tax regulatory agreement.
Amounts held in the Tobacco Settlement Debt Service Fund shall be transferred to funds and accounts established and held by the trustee for the Bonds at such times and in such manner as may be specified in the trust indenture securing the Bonds. If so required by any trust indenture pursuant to which Bonds have been issued, amounts deposited into the Tobacco Settlement Debt Service Fund may be immediately deposited into funds or accounts established by such trust indenture and held by the trustee for the Bonds. The State Board of Finance is authorized to execute any consent, pledge, or other document, reasonably required pursuant to a trust indenture to affirm the pledge of amounts held in the Tobacco Settlement Debt Service Fund to secure Tobacco Settlement Revenue Bonds.
On December 15 of each calendar year, any amounts held in the Tobacco Settlement Debt Service Fund, to the extent such amounts are not needed to pay Debt Service Requirements prior to the following April 15, shall be transferred to the Arkansas Healthy Century Trust Fund. At such time as there are no longer any Bonds outstanding, and all Debt Service Requirements and other contractual obligations have been paid in full, amounts remaining in the Tobacco Settlement Debt Service Fund shall be transferred to the Arkansas Healthy Century Trust Fund.

History. Init. Meas. 2000, No. 1, § 5.

19-12-106. Issuance of tobacco settlement revenue bonds by Arkansas Development Finance Authority.

The Arkansas Development Finance Authority (“ADFA”) is hereby directed and authorized to issue Tobacco Settlement Revenue Bonds, the proceeds of which are to be used for financing the Capital Improvement Projects described in § 19-12-106(b). The Bonds may be issued in series from time to time, and shall be special obligations only of ADFA, secured solely by the revenue sources set forth in this section.
The Capital Improvement Projects to be financed shall be:
1. University of Arkansas for Medical Sciences, Biosciences Research Building; provided, however, that no more than two million, two hundred thousand dollars ($2,200,000) of the annual transfer to the Tobacco Settlement Debt Service Fund shall be allocated in any one year to pay Debt Service Requirements for this project, and provided further that no more than twenty-five million dollars ($25,000,000) in principal amount of Tobacco Settlement Revenue Bonds may be issued for this project;
2. Arkansas State University Biosciences Research Building; provided, however, that no more than one million, eight hundred thousand dollars ($1,800,000) of the annual transfer to the Tobacco Settlement Debt Service Fund shall be allocated in any one year to pay Debt Service Requirements for this project, and provided further that no more than twenty million dollars ($20,000,000) in principal amount of Tobacco Settlement Revenue Bonds may be issued for this project;
3. College of Public Health of the University of Arkansas for Medical Sciences; provided, however, that no more than one million dollars ($1,000,000) of the annual transfer to the Tobacco Settlement Debt Service Fund shall be allocated in any one year to pay Debt Service Requirements for this project, and provided further that no more than fifteen million dollars ($15,000,000) in principal amount of Tobacco Settlement Revenue Bonds may be issued for this project; and
4. Only such other capital improvement projects related to the provision of health care services, health education, or health-related research as designated by legislation enacted by the General Assembly; provided that the deposits to the Tobacco Settlement Debt Service Fund are adequate to pay Debt Service Requirements for such additional projects.
Prior to issuance of any series of Bonds authorized herein, ADFA shall adopt a resolution authorizing the issuance of such series of Bonds. Each such resolution shall contain such terms, covenants, conditions, as deemed desirable and consistent with this chapter together with provisions of the Arkansas Development Finance Authority Act, § 15-5-101 et seq., § 15-5-201 et seq., and § 15-5-301 et seq., including without limitation, those pertaining to the establishment and maintenance of funds and accounts, deposit and investment of Bond proceeds and the rights and obligations of ADFA and the registered owners of the Bonds. In authorizing, issuing, selling the Bonds and in the investment of all funds held under the resolution or indenture securing such Bonds, ADFA shall have the powers and be governed by the provisions of §§ 15-5-309 and 15-5-310.
The Bonds shall be special obligations of ADFA, secured and payable from deposits made into the Tobacco Settlement Debt Service Fund created pursuant to this chapter. In pledging revenues to secure the Bonds, the provisions of § 15-5-313 shall apply.
If so determined by ADFA, the Bonds may additionally be secured by a lien on or security interest in facilities financed by the Bonds, by a lien or pledge of loans made by ADFA to the user of such facilities, and any collateral security received by ADFA, including, without limitation, ADFA's interest in and any revenue derived from any loan agreements. It shall not be necessary to the perfection of the lien and pledge for such purposes that the trustee in connection with such bond issue or the holders of the Bonds take possession of the loans, mortgages and collateral security.
It shall be plainly stated on the face of each Bond that it has been issued under this chapter, and the Arkansas Development Finance Authority Act, § 15-5-101 et seq., § 15-5-201 et seq., and § 15-5-301 et seq., that the Bonds shall be obligations only of ADFA secured as specified herein and that, in no event, shall the bonds constitute an indebtedness of the State of Arkansas or an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues are pledged or an indebtedness secured by lien, or security interest in any property of the State.
The Bonds may be issued in one or more series, as determined by ADFA. Additional Bonds may be issued in one or more series to fund additional Capital Improvement Projects subsequently designated pursuant to § 19-12-106(b)(4), so long as ADFA determines that revenues transferred to the Tobacco Settlement Debt Service Fund, in combination with other revenues available to secure the Bonds pursuant to § 19-12-106(e); will be sufficient to meet all Debt Service Requirements on such additional Bonds and any other Bonds then outstanding.
Any funds remaining and available to ADFA or the trustees under any indenture or resolution authorized herein after the retirement of all Bonds outstanding under such indenture or resolution, and the satisfaction of all contractual obligations related thereto and all current expenses of ADFA related thereto, shall be transferred to the Arkansas Healthy Century Trust Fund.
ADFA may issue Bonds for the purpose of refunding Bonds previously issued pursuant to this chapter, and in doing so shall be governed by the provisions of § 15-5-314.
All Bonds issued under this chapter, and interest thereon, shall be exempt from all taxes of the State of Arkansas, including income, inheritance, and property taxes. The Bonds shall be eligible to secure deposits of all public funds, and shall be legal for investment of municipal, county, bank, fiduciary, insurance company and trust funds.
The State of Arkansas does hereby pledge to and agree with the holders of any Tobacco Settlement Revenue Bonds issued pursuant to this chapter that the State shall not (1) limit or alter the distribution of the Tobacco Settlement moneys to the Tobacco Settlement Debt Service Fund if such action would materially impair the rights of the holders of the Bonds, (2) amend or modify the Master Settlement Agreement in any way if such action would materially impair the rights of the holders of the Bonds, (3) limit or alter the rights vested in ADFA to fulfill the terms of any agreements made with the holders of the Bonds, or (4) in any way impair the rights and remedies of the holders of the Bonds, unless and until all Bonds issued pursuant to this chapter, together with interest on the Bonds, and all costs and expenses in connection with any action or proceeding by or on behalf of the holders of the Bonds, have been paid, fully met, and discharged. ADFA is authorized to include this pledge and agreement in any agreement with the holders of the Bonds.

History. Init. Meas. 2000, No. 1, § 6.

19-12-107. Creation and administration of Arkansas Healthy Century Trust Fund.

There is hereby created and established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State, a trust fund, to be created as a public trust for the benefit of the State of Arkansas, to be known as the “Arkansas Healthy Century Trust Fund”, which Trust Fund shall be administered by the State Board of Finance. Such fund shall be restricted in its use and is to be used solely as provided in this chapter.
The Arkansas Healthy Century Trust Fund shall be a perpetual trust, the beneficiary of which shall be the State of Arkansas and the programs of the State of Arkansas enumerated in this section. The State Board of Finance, as it may from time to time be comprised, is hereby appointed as trustee of the Arkansas Healthy Century Trust Fund. Such trust shall be revocable, and subject to amendment.
The Arkansas Healthy Century Trust Fund shall be administered in accordance with the provisions of this section, which shall, for all purposes, be deemed to be the governing document of the public trust.
The Arkansas Healthy Century Trust Fund shall be funded in an initial principal amount of one hundred million dollars ($100,000,000) as provided in § 19-12-104. All earnings on investments of amounts in the Arkansas Healthy Century Trust Fund, to the extent not used for the purposes enumerated in subsection (e) of this section, shall be redeposited into the Arkansas Healthy Century Trust Fund, it being the intent of this chapter that the Arkansas Healthy Century Trust Fund shall grow in principal amount until needed for programs and purposes to benefit the State of Arkansas.
The Arkansas Healthy Century Trust Fund shall be held in trust and used for the following purposes, and no other purposes:
1. investment earnings on the Arkansas Healthy Century Trust Fund may be used for:
  1. the payment of expenses related to the responsibilities of the State Board of Finance as set forth in § 19-12-103; and
  2. such programs, and other projects related to healthcare services, health education, and health-related research as shall, from time to time, be designated in legislation adopted by the General Assembly;
2. the principal amounts in the Arkansas Healthy Century Trust Fund may be used for such programs, and other projects related to healthcare services, health education, and health-related research as shall, from time to time, be designated in legislation adopted by the General Assembly, it being the intent of this chapter that the principal amount of the Arkansas Healthy Century Trust Fund should not be appropriated without amendment of this public trust; and
3. notwithstanding subdivisions (e)(1) and (2) of this section, investment earnings and principal amounts from the Arkansas Healthy Century Trust Fund may be transferred as designated in legislation adopted by the General Assembly.
It is intended that the beneficiaries of the Arkansas Healthy Century Trust Fund be the State of Arkansas and its programs, and other projects related to healthcare services, health education, and health-related research, as such are now in existence or as such may be created in the future.
The State Board of Finance, as trustee of the Arkansas Healthy Century Trust Fund, is authorized to invest all amounts held in the Arkansas Healthy Century Trust Fund in investments pursuant to and in compliance with § 19-12-103(c).

History. Init. Meas. 2000, No. 1, § 7; Acts 2017 (1st Ex. Sess.), No. 7, § 3.

A.C.R.C. Notes. Acts 2017 (1st Ex. Sess.), No. 7, § 1, provided: “Legislative findings. The General Assembly finds that:

“(1) The level of state financial reserves affects the state’s credit rating, as a higher level of reserves will result in a better credit rating;

“(2) Arkansas scores low on financial reserves analyses, with the lack of adequate reserves negatively affecting the state’s credit rating;

“(5) A funded reserve fund and a higher credit rating will save the state money;

“(6) Arkansas currently has approximately one billion five hundred million dollars ($1,500,000,000) in outstanding general obligation debt;

Acts 2017 (1st Ex. Sess.), No. 7, § 4, provided:

“Transfer from the Arkansas Healthy Century Trust Fund. Immediately upon the effective date of this act [May 4, 2017], or as soon as is practicable after the effective date of this act, the Chief Fiscal Officer of the State shall transfer on his or her books and the books of the Treasurer of State and the Auditor of State the balance of the Arkansas Healthy Century Trust Fund to the Long Term Reserve Fund.”

Amendments. The 2017 (1st Ex. Sess.) amendment, in (e)(2), deleted “only” preceding “be used” and inserted the second occurrence of “Arkansas Healthy Century”; and added (e)(3).

19-12-108. Creation and administration of the Tobacco Settlement Program Fund.

There is hereby created and established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the “Tobacco Settlement Program Fund”, which fund shall be administered by the State Board of Finance. All moneys deposited into the Tobacco Settlement Program Fund are hereby restricted in their use and to be used solely as provided in this chapter. All expenditures and obligations that are payable from the Tobacco Settlement Program Fund and from each of the program accounts shall be subject to the same fiscal control, accounting, budgetary, and purchasing laws as are expenditures and obligations payable from other State Treasury funds, except as specified otherwise in this chapter. The Chief Fiscal Officer of the State may require additional controls, procedures, and reporting requirements that he or she determines are necessary to carry out the intent of this chapter.
There shall be transferred from the Tobacco Settlement Cash Holding Fund to the Tobacco Settlement Program Fund the amounts set forth for such transfer as provided in § 19-12-104.
Amounts deposited into the Tobacco Settlement Program Fund shall, prior to the distribution to the program accounts set forth in § 19-12-108(d)(1), be held and invested in investments pursuant to and in compliance with § 19-12-103(c); provided, that all such investments must mature or be redeemable without penalty on or prior to the next-succeeding June 30.
1. On each July 1, the amounts deposited into the Tobacco Settlement Program Fund, excluding investment earnings, shall be transferred to the various program accounts as follows:
  1. Fifteen and eight-tenths percent (15.8%) of amounts in the Tobacco Settlement Program Fund shall be transferred to the Targeted State Needs Program Account;
  2. Twenty-two and eight-tenths percent (22.8%) of amounts in the Tobacco Settlement Program Fund shall be transferred to the Arkansas Biosciences Institute Program Account; and
  3. Thirty-four and two-tenths percent (34.2%) of amounts in the Tobacco Settlement Program Fund shall be transferred to the Medicaid Expansion Program Account.
2. 1. The Prevention and Cessation Program Account may receive loans from the Budget Stabilization Trust Fund in amounts determined by the Chief Fiscal Officer of the State that shall not exceed twenty-seven and two-tenths percent (27.2%) of the amounts estimated to be received in the Tobacco Settlement Program Fund during the current fiscal year. This estimate shall not include moneys returned to the Tobacco Settlement Program Fund under subdivision (e)(1) of this section.
  2. The loans shall be repaid from twenty-seven and two-tenths percent (27.2%) of amounts received in the Tobacco Settlement Program Fund during the fiscal year in which the loans are made. The loans shall be repaid before the end of the fiscal year. After the loans have been repaid, the Prevention and Cessation Program Account shall be transferred the difference between twenty-seven and two-tenths percent (27.2%) of amounts received in the Tobacco Settlement Program Fund during the fiscal year in which the loans are made and the amount of the loans.
1. All moneys distributed to the program accounts set forth in subdivision (d)(1) of this section and remaining at the end of each fiscal biennium shall be transferred to the Tobacco Settlement Program Fund by the board. The amounts will be held in the Tobacco Settlement Program Fund and then redeposited on July 1 as follows:
  1. Twenty-three and one-tenth percent (23.1%) of amounts in the Tobacco Settlement Program Fund shall be transferred to the Targeted State Needs Program Account;
  2. Thirty-three and three-tenths percent (33.3%) of amounts in the Tobacco Settlement Program Fund shall be transferred to the Arkansas Biosciences Institute Program Account; and
  3. Forty-three and six-tenths percent (43.6%) of amounts in the Tobacco Settlement Program Fund shall be transferred to the Medicaid Expansion Program Account.
2. However, if the director of any agency receiving funds from the Tobacco Settlement Program Fund determines that there is a need to retain a portion of the amounts transferred under this section, the director may submit a request and written justification to the Chief Fiscal Officer of the State. Upon determination by the Chief Fiscal Officer of the State that sufficient justification exists, and after certification by the Arkansas Tobacco Settlement Commission that the program has met the criteria established in § 19-12-118, such amounts requested shall remain in the account at the end of a biennium, there to be used for the purposes established by this chapter; provided, that the Chief Fiscal Officer of the State shall seek the review of the Legislative Council prior to approval of any such request.
The board shall invest all moneys held in the Tobacco Settlement Program Fund and in each of the program accounts. All investment earnings on such funds and accounts shall be transferred on each July 1 to a fund hereby established and as a trust fund on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State and designated as the Arkansas Tobacco Settlement Commission Fund. Such fund is to be a trust fund and administered by the board. All moneys deposited into the Arkansas Tobacco Settlement Commission Fund are hereby restricted in their use and to be used solely as provided in this chapter. Amounts held in the Arkansas Tobacco Settlement Commission Fund shall be used to pay the costs and expenses of the commission, including the monitoring and evaluation program established pursuant to § 19-12-118, and to provide grants as authorized in § 19-12-117.

History. Init. Meas. 2000, No. 1, § 8; Acts 2002 (1st Ex. Sess.), No. 2, §§ 2-4; 2005, No. 1872, §§ 1, 2; 2015, No. 894, § 1.

A.C.R.C. Notes. As originally enacted by Acts 2002 (1st Ex. Sess.), No. 2, § 3, subdivision (d)(2) began “Beginning July 1, 2002.”

The Arkansas Tobacco Settlement Commission Fund, created in subsection (f) of this section, is also codified as § 19-5-1117.

Amendments. The 2005 amendment added the last sentence in (d)(2)(A); in (e)(1), in the last sentence, deleted “and combined with amounts deposited to the fund from the annual NSA Disbursements” following “Tobacco Settlement Program Fund” and substituted “as follows” for “pursuant to the formula set forth in § 19-12-108(d)(1)”; and added (e)(1)(A) through (e)(1)(C).

The 2015 amendment substituted “Thirty-four and two-tenths percent (34.2%)” for “Twenty-nine and eight-tenths percent (29.8%)” in (d)(1)(C); in (d)(2)(A), deleted “from time to time”, substituted “twenty-seven and two-tenths percent (27.2%)” for “thirty-one and six-tenths percent (31.6%)” in the first sentence, and substituted “under” for “pursuant to”; and, in (d)(2)(B), substituted “twenty-seven and two-tenths percent (27.2%)” for “thirty-one and six-tenths percent (31.6%)” in the first and last sentences, and substituted “before” for “prior to” in the second sentence.

19-12-109. Creation of Prevention and Cessation Program Account.

There is hereby created a trust fund on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State within the Tobacco Settlement Program Fund maintained by the State Board of Finance, an account to be known as the “Prevention and Cessation Program Account”. The account shall be used by the Department of Health for such purposes and in such amounts as may be appropriated in law.
All moneys deposited into the account except for investment earnings shall be used for the purposes set forth in § 19-12-113 or such other purposes as may be appropriated in law.
Moneys remaining in the account at the end of each fiscal year shall be carried forward and used for the purposes provided by law.

History. Init. Meas. 2000, No. 1, § 9; Acts 2002 (1st Ex. Sess.), No. 2, § 5; 2005, No. 1872, § 3.

Amendments. The 2005 amendment, in (c), substituted “each fiscal year” for “the first fiscal year of a biennium” and deleted the last sentence.

19-12-110. Creation of the Targeted State Needs Program Account.

There is hereby created a trust fund on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State, within the Tobacco Settlement Program Fund maintained by the State Board of Finance, an account to be known as the “Targeted State Needs Program Account”. Such account shall be used for such purposes and in such amounts as may be appropriated by law.
On each July 1, there shall be transferred from the fund to the account the amount specified in § 19-12-108(d)(1)(A).
All moneys deposited into the account except for investment earnings shall be used for the purposes set forth in § 19-12-114, or such other purposes as may be appropriated in law. Of the amounts deposited into the account, the following proportions shall be used to fund the programs established in § 19-12-114:
1. College of Public Health of the University of Arkansas for Medical Sciences — thirty-three per cent (33%);
2. Area Health Education Center located in Helena — twenty-two per cent (22%);
3. Donald W. Reynolds Center on Aging — twenty-two per cent (22%); and
4. Minority Health Initiative, administered by the Minority Health Commission — twenty-three per cent (23%).
Moneys remaining in the account at the end of the first fiscal year of a biennium shall be carried forward and used for the purposes provided by law. Such amounts that remain at the end of a biennium shall be transferred to the Tobacco Settlement Program Fund pursuant to § 19-12-108(e).

History. Init. Meas. 2000, No. 1, § 10; Acts 2002 (1st Ex. Sess.), No. 2, § 6.

A.C.R.C. Notes. The Area Health Education Center referred to in (c)(2) is a regional center operated by the University of Arkansas for Medical Sciences and is known as UAMS East.

The reference in (c)(4) to the Minority Health Commission appears to be an intended reference to the Arkansas Minority Health Commission established under § 20-2-102.

19-12-111. Creation of Arkansas Biosciences Institute Program Account.

There is hereby created a trust fund on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State, within the Tobacco Settlement Program Fund maintained by the State Board of Finance, an account to be known as the Arkansas Biosciences Institute Program Account. Such account shall be used by the Arkansas Biosciences Institute and its members for such purposes and in such amounts as may be appropriated in law.
On each July 1, there shall be transferred from the fund to the account the amount specified in § 19-12-108(d)(1)(B).
All moneys deposited into the account except for investment earnings shall be used for the purposes set forth in § 19-12-115 or such other purposes as may be appropriated in law.
Moneys remaining in the account at the end of the first fiscal year of a biennium shall be carried forward and used for the purposes provided by law. Such amounts that remain at the end of a biennium shall be transferred to the fund pursuant to § 19-12-108(e).

History. Init. Meas. 2000, No. 1, § 11; Acts 2002 (1st Ex. Sess.), No. 2, § 7.

19-12-112. Creation of Medicaid Expansion Program Account.

There is hereby created a trust fund on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State, within the Tobacco Settlement Program Fund maintained by the State Board of Finance, an account to be known as the “Medicaid Expansion Program Account”. Such account shall be used by the Department of Human Services for such purposes and in such amounts as may be appropriated in law. These funds shall not be used to replace or supplant other funds available in the Department of Human Services Grants Fund Account. The funds appropriated for this program shall not be expended, except in conformity with federal and state laws, and then only after the department obtains the necessary approvals from the federal Centers for Medicare and Medicaid Services.
On each July 1, there shall be transferred from the fund to the account the amount specified in § 19-12-108(d)(1)(C).
All moneys deposited into the account except for investment earnings shall be used for the purposes set forth in § 19-12-116, or such other purposes as may be appropriated in law.
Moneys remaining in the account at the end of the first fiscal year of a biennium shall be carried forward and used for the purposes provided by law. Such amounts that remain at the end of a biennium shall be transferred to the fund pursuant to § 19-12-108(e).

History. Init. Meas. 2000, No. 1, § 12; Acts 2002 (1st Ex. Sess.), No. 2, § 8.

19-12-113. Establishment and administration of prevention and cessation programs.

It is the intent of this chapter that the Department of Health should establish the Tobacco Prevention and Cessation Program described in this section, and to administer such programs in accordance with law. The program described in this section shall be administered pursuant to a strategic plan encompassing the elements of a mission statement, defined program(s), and program goals with measurable objectives and strategies to be implemented over a specific timeframe. Evaluation of each program shall include performance based measures for accountability which will measure specific health related results.
The Department of Health shall be responsible for developing, integrating, and monitoring tobacco prevention and cessation programs funded under this chapter and shall provide administrative oversight and management, including, but not limited to implementing performance based measures. The Department of Health shall have authority to award grants and allocate money appropriated to implement the tobacco prevention and cessation program mandated under this chapter. The Department of Health may contract with those entities necessary to fully implement the tobacco prevention and cessation initiatives mandated under this chapter. Within thirty (30) days of receipt of moneys into the Prevention and Cessation Program Account, fifteen percent (15%) of those moneys shall be deposited into a special account within the prevention and cessation account at the Department of Health to be expended for tobacco prevention and cessation in minority communities as directed by the Secretary of the Department of Health in consultation with the Chancellor of the University of Arkansas at Pine Bluff, the President of the Arkansas Medical, Dental, and Pharmaceutical Association, Inc., and the League of United Latin American Citizens.
The Tobacco Prevention and Cessation Program shall be comprised of components approved by the State Board of Health. The program components selected by the board shall include:
1. community prevention programs that reduce youth tobacco use;
2. local school programs for education and prevention in grades kindergarten through twelve (K-12) that should include school nurses, where appropriate;
3. enforcement of youth tobacco control laws;
4. state-wide programs with youth involvement to increase local coalition activities;
5. tobacco cessation programs;
6. tobacco-related disease prevention programs;
7. a comprehensive public awareness and health promotion campaign;
8. grants and contracts funded pursuant to this chapter for monitoring and evaluation, as well as data gathering; and
9. other programs as deemed necessary by the board.
There is hereby created an Advisory Committee to the State Board of Health, to be known as the “Tobacco Prevention and Cessation Advisory Committee”. It shall be the duty and responsibility of the Committee to advise and assist the board in carrying out the provisions of this chapter. The Advisory Committee's authority shall be limited to an advisory function to the board. The Advisory Committee may, in consultation with the Department of Health, make recommendations to the board on the strategic plans for the prevention, cessation, and awareness elements of the comprehensive Tobacco Prevention and Cessation Program. The Advisory Committee may also make recommendations to the board on the strategic vision and guiding principles of the Tobacco Prevention and Cessation Program.
The Advisory Committee shall be governed as follows:
1. The Advisory Committee shall consist of eighteen (18) members; one (1) member to be appointed by the President Pro Tempore of the Senate, one (1) member to be appointed by the Speaker of the House of Representatives, and sixteen (16) members to be appointed by the Governor subject to confirmation by the Senate. The Governor shall consult each of the following designated groups before making an appointment, and shall consist of the following: one (1) member appointed to represent the Arkansas Medical Society, Inc.; one (1) member shall represent the Arkansas Hospital Association, Inc.; one (1) member shall represent the American Cancer Society; one (1) member shall represent the American Heart Association; one (1) member shall represent the American Lung Association; one (1) member shall represent the Coalition for a Tobacco Free Arkansas; one (1) member shall represent Arkansans for Drug Free Youth; one (1) member shall represent the Division of Elementary and Secondary Education; one (1) member shall represent the Arkansas Minority Health Commission; one (1) member shall represent the Arkansas Center for Health Improvement; one (1) member shall represent the Arkansas Association of Area Agencies on Aging; one (1) member shall represent the Arkansas Nurses Association; one (1) member shall represent the University of Arkansas Cooperative Extension Service; one (1) member shall represent the University of Arkansas at Pine Bluff; one (1) member shall represent the League of United Latin American Citizens; and one (1) member shall represent the Arkansas Medical, Dental, and Pharmaceutical Association, Inc. The Executive Committee of Arkansas Students Working Against Tobacco shall serve as youth advisors to this Advisory Committee. All members of this committee shall be residents of the State of Arkansas.
2. The Advisory Committee will initially have four (4) members who will serve one (1) year terms; four (4) members who will serve two (2) year terms; five (5) members who will serve three (3) year terms; and five (5) members who will serve four (4) years. Members of the Advisory Committee shall draw lots to determine the length of the initial term. Subsequently appointed members shall be appointed for four (4) year terms and no member can serve more than two (2) consecutive full four (4) year terms. The terms shall commence on October 1st of each year.
3. Members of the Advisory Committee shall not be entitled to compensation for their services, but may receive expense reimbursement in accordance with § 25-16-902, to be paid from funds appropriated for this program to the Department of Health.
4. Members appointed to the Advisory Committee and the organizations they represent shall make full disclosure of the member's participation on the Committee when applying for any grant or contract funded by this chapter.
5. All members appointed to the Advisory Committee shall make full and public disclosure of any past or present association to the tobacco industry.
6. The Advisory Committee shall, within ninety (90) days of appointment, hold a meeting and elect from its membership a chair for a term set by the Advisory Committee. The Advisory Committee shall adopt bylaws.
7. The Advisory Committee shall meet at least quarterly, however, special meetings may be called at any time at the pleasure of the State Board of Health or pursuant to the bylaws adopted by the Advisory Committee.
The board is authorized to review the recommendations of the Advisory Committee. The board shall adopt and promulgate rules, standards and guidelines as necessary to implement the program in consultation with the Department of Health.
The Department of Health in implementing this Program shall establish such performance based accountability procedures and requirements as are consistent with law.
Each of the programs adopted pursuant to this chapter shall be subject to the monitoring and evaluation procedures described in § 19-12-118.

History. Init. Meas. 2000, No. 1, § 13; Acts 2015, No. 1100, § 45; 2019, No. 910, §§ 4916, 4917.

Amendments. The 2015 amendment, in (e)(1), added “subject to confirmation by the Senate” in the first sentence, and at the beginning of second sentence, substituted “The Governor shall consult” for “The Committee members appointed by the Governor shall be selected from a list of at least three (3) names submitted by” and “before making an appointment” for “to the Governor”.

The 2019 amendment substituted “Secretary of the Department of Health” for “Director of the Department of Health” in (b); and, in (e)(1), substituted “Arkansas Medical Society, Inc.” for “Arkansas Medical Society”, “Arkansas Hospital Association, Inc.” for “Arkansas Hospital Association”, “Division of Elementary and Secondary Education” for “Department of Education”, and “Arkansas Medical, Dental, and Pharmaceutical Association, Inc.” for “Arkansas Medical, Dental, and Pharmaceutical Association”.

19-12-114. Establishment and administration of the Targeted State Needs Program.

The University of Arkansas for Medical Sciences is hereby instructed to establish the Targeted State Needs Programs described in this section, and to administer such programs in accordance with law.
The targeted state needs programs to be established are as follows:
1. College of Public Health of the University of Arkansas for Medical Sciences;
2. Area Health Education Center (located in Helena);
3. Donald W. Reynolds Center on Aging; and
4. Minority Health Initiative administered by the Minority Health Commission.
1. College of Public Health of the University of Arkansas for Medical Sciences. The College of Public Health of the University of Arkansas for Medical Sciences is hereby established as a part of the University of Arkansas for Medical Sciences for the purpose of conducting activities to improve the health and healthcare of the citizens of Arkansas. These activities should include, but not be limited to the following functions: faculty and course offerings in the core areas of public health including health policy and management, epidemiology, biostatistics, health economics, maternal and child health, environmental health, and health and services research; with courses offered both locally and statewide via a variety of distance learning mechanisms.
2. It is intended that the College of Public Health of the University of Arkansas for Medical Sciences should serve as a resource for the General Assembly, the Governor, state agencies, and communities. Services provided by the College of Public Health of the University of Arkansas for Medical Sciences should include, but not be limited to the following: consultation and analysis, developing and disseminating programs, obtaining federal and philanthropic grants, conducting research, and other scholarly activities in support of improving the health and healthcare of the citizens of Arkansas.
Area Health Education Center. The first Area Health Education Centers were founded in 1973 as the primary educational outreach effort of the University of Arkansas for Medical Sciences. It is the intent of this chapter that the University of Arkansas for Medical Sciences establish a new Area Health Education Center to serve the following counties: Crittenden, Phillips, Lee, St. Francis, Chicot, Monroe, and Desha. The new Area health Education Center shall be operated in the same fashion as other facilities in the University of Arkansas for Medical Sciences Area Health Education Center program including training students in the fields of medicine, nursing, pharmacy and various allied health professions, and offering medical residents specializing in family practice. The training shall emphasize primary care, covering general health education and basic medical care for the whole family. The program shall be headquartered in Helena with offices in Lake Village and West Memphis.
Donald W. Reynolds Center on Aging. It is the intent of this chapter that the University of Arkansas for Medical Sciences establish, in connection with the Donald W. Reynolds Center on Aging and its existing Arkansas Health Education Centers program, healthcare programs around the state offering interdisciplinary educational programs to better equip local healthcare professionals in preventive care, early diagnosis and effective treatment for the elderly population throughout the state. The satellite centers will provide access to dependable healthcare, education, resource and support programs for the most rapidly growing segment of the State's population. Each center's program is to be defined by an assessment of local needs and priorities in consultation with local healthcare professionals.
Minority Health Initiative. It is the intent of this chapter that the Arkansas Minority Health Commission establish and administer the Arkansas Minority Health Initiative for screening, monitoring, and treating hypertension, strokes, and other disorders disproportionately critical to minority groups in Arkansas. The program should be designed:
1. to increase awareness of hypertension, strokes, and other disorders disproportionately critical to minorities by utilizing different approaches that include but are not limited to the following: advertisements, distribution of educational materials and providing medications for high risk minority populations;
2. to provide screening or access to screening for hypertension, strokes, and other disorders disproportionately critical to minorities but will also provide this service to any citizen within the state regardless of racial/ethnic group;
3. to develop intervention strategies to decrease hypertension, strokes and other disorders noted above, as well as associated complications, including: educational programs, modification of risk factors by smoking cessation programs, weight loss, promoting healthy lifestyles, and treatment of hypertension with cost-effective, well-tolerated medications, as well as case management for patients in these programs; and
4. to develop and maintain a database that will include: biographical data, screening data, costs, and outcomes.
The Arkansas Minority Health Commission will receive quarterly updates on the progress of these programs and make recommendations or changes as necessary.
The programs described in this section shall be administered pursuant to a strategic plan encompassing the elements of a mission statement, defined program(s), and program goals with measurable objectives and strategies to be implemented over a specific timeframe. Evaluation of each program shall include performance based measures for accountability which will measure specific health related results.
Each of the programs adopted pursuant to this section shall be subject to the monitoring and evaluation procedures described in § 19-12-118.

History. Init. Meas. 2000, No. 1, § 14.

A.C.R.C. Notes. Acts 2003, No. 856, § 1 provided:

“The Arkansas School of Public Health, created by Arkansas Code § 19-12-114 as a part of the University of Arkansas for Medical Sciences, shall hereafter be known as the College of Public Health of the University of Arkansas for Medical Sciences.”

The reference in (b)(4) to the Minority Health Commission appears to be an intended reference to the Arkansas Minority Health Commission established under § 20-2-102.

The Area Health Education Center referred to in (d) is a regional center operated by the University of Arkansas for Medical Sciences and is known as UAMS East.

19-12-115. Establishment and administration of the Arkansas Biosciences Institute.

It is the intent of this chapter to hereby establish the Arkansas Biosciences Institute for the educational and research purposes set forth hereinafter to encourage and foster the conduct of research through the University of Arkansas, Division of Agriculture of the University of Arkansas, the University of Arkansas for Medical Sciences, University of Arkansas at Fayetteville, Arkansas Children's Hospital and Arkansas State University. The Arkansas Biosciences Institute is part of a broad program to address health issues with specific emphasis on smoking and the use of tobacco products. The Arkansas Biosciences Institute is intended to develop more fully the interdisciplinary opportunities for research primarily in the areas set forth hereinafter.
Purposes. The Arkansas Biosciences Institute is established for the following purposes:
1. to conduct agricultural research with medical implications;
2. to conduct bioengineering research focused on the expansion of genetic knowledge and new potential applications in the agricultural-medical fields;
3. to conduct tobacco-related research that focuses on the identification and applications of behavioral, diagnostic and therapeutic research addressing the high level of tobacco-related illnesses in the State of Arkansas;
4. to conduct nutritional and other research focusing on prevention or treatment of cancer, congenital or hereditary conditions or other related conditions; and
5. to conduct other research identified by the primary educational and research institutions involved in the Arkansas Biosciences Institute or as otherwise identified by the Arkansas Biosciences Institute Board of the Arkansas Biosciences Institute and which is reasonably related, or complementary to, research identified in subdivisions (b)(1)-(4) of this section.
1. Arkansas Biosciences Institute Board. There is hereby established the Arkansas Biosciences Institute Board which shall consist of the following: the President of the University of Arkansas; the President of Arkansas State University; the Chancellor of the University of Arkansas for Medical Sciences; the Chancellor of the University of Arkansas at Fayetteville; the Vice President for Agriculture of the University of Arkansas; the Director of the Arkansas Economic Development Commission; the Director of the National Center for Toxicological Research; the President of Arkansas Children's Hospital; and two (2) individuals possessing recognized scientific, academic or business qualifications appointed by the Governor. The two (2) members of the Arkansas Biosciences Institute Board who are appointed by the Governor will serve four-year terms and are limited to serving two (2) consecutive four-year terms. The terms shall commence on October 1 of each year. These members appointed by the Governor are not entitled to compensation for their services, but may receive expense reimbursement in accordance with § 25-16-902, to be paid from funds appropriated for this program. The Arkansas Biosciences Institute Board shall establish and appoint the members of an Industry Advisory Committee and a Science Advisory Committee composed of knowledgeable persons in the fields of industry and science. These Committees shall serve as resources for the Arkansas Biosciences Institute Board in their respective areas and will provide an avenue of communication to the Arkansas Biosciences Institute Board on areas of potential research.
2. The Arkansas Biosciences Institute Board shall establish rules for governance for Board affairs and shall:
  1. provide overall coordination of the program;
  2. develop procedures for recruitment and supervision of member institution research review panels, the membership of which shall vary depending on the subject matter of proposals and review requirements, and may, in order to avoid conflicts of interest and to ensure access to qualified reviews, recommend reviewers not only from Arkansas but also from outside the state;
  3. provide for systematic dissemination of research results to the public and the healthcare community, including work to produce public service advertising on screening and research results, and provide for mechanisms to disseminate the most current research findings in the areas of cause and prevention, cure diagnosis and treatment of tobacco related illnesses, in order that these findings may be applied to the planning, implementation and evaluation of any other research programs of this state;
  4. develop policies and procedures to facilitate the translation of research results into commercial, alternate technological, and other applications wherever appropriate and consistent with state and federal law; and
  5. transmit on or before the end of each calendar year on an annual basis, a report to the General Assembly and the Governor on grants made, grants in progress, program accomplishments, and future program directions. Each report shall include, but not be limited to, all of the following information:
    1. the number and dollar amounts of internal and external research grants, including the amount allocated to negotiated indirect costs;
    2. the subject of research grants;
    3. the relationship between federal and state funding for research;
    4. the relationship between each project and the overall strategy of the research program;
    5. a summary of research findings, including discussion of promising new areas; and
    6. the corporations, institutions, and campuses receiving grant awards.
Director. The director of the Arkansas Biosciences Institute shall be appointed by the President of the University of Arkansas, in consultation with the President of Arkansas State University, and the President of Arkansas Children's Hospital, and based upon the advice and recommendation of the Arkansas Biosciences Institute Board. The Director shall be an employee of the University of Arkansas and shall serve at the pleasure of the President of the University of Arkansas. The Director shall be responsible for recommending policies and procedures to the Arkansas Biosciences Institute Board for its internal operation and shall establish and ensure methods of communication among the units and divisions of the University of Arkansas, Arkansas Children's Hospital and Arkansas State University and their faculty and employees engaged in research under the auspices of the Arkansas Biosciences Institute. The Director shall undertake such administrative duties as may be necessary to facilitate conduct of research under the auspices of the Arkansas Biosciences Institute. The Director shall perform such other duties as are established by the President of the University of Arkansas in consultation with the President of Arkansas State University, the President of Arkansas Children's Hospital and with the input of the Arkansas Biosciences Institute Board.
Conduct of Research. Research performed under the auspices of the Arkansas Biosciences Institute shall be conducted in accordance with the policies of the University of Arkansas, Arkansas Children's Hospital, and Arkansas State University, as applicable. The Arkansas Biosciences Institute Board and the Director shall facilitate the establishment of centers to focus on research in agri-medicine, environmental biotechnology, medical genetics, bio-engineering and industry development. Such centers shall be established in accordance with procedures adopted by the Arkansas Biosciences Institute Board, and shall provide for interdisciplinary collaborative efforts with a specific research and educational objectives.
In determining research projects and areas to be supported from such appropriated funds, each of the respective institutions shall assure that adequate opportunities are given to faculty and other researchers to submit proposals for projects to be supported in whole or in part from such funds. At least annually the Arkansas Biosciences Institute Board shall review research being conducted under the auspices of the Arkansas Biosciences Institute and may make recommendations to the President of the University of Arkansas and the President of Arkansas State University and President of Arkansas Children's Hospital of ways in which such research funds may be more efficiently employed or of collaborative efforts which would maximize the utilization of available funds.
The programs described in this section shall be administered pursuant to a strategic plan encompassing the elements of a mission statement, defined program(s), and program goals with measurable objectives and strategies to be implemented over a specific timeframe. Evaluation of each program shall include performance based measures for accountability which will measure specific health related results.
Each of the programs adopted pursuant to this Section shall be subject to the monitoring and evaluation procedures described in § 19-12-118.

History. Init. Meas. 2000, No. 1, § 15; Acts 2015 (1st Ex. Sess.), No. 7, § 112; 2015 (1st Ex. Sess.), No. 8, § 112; 2019, No. 910, § 498.

A.C.R.C. Notes. Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 62, provided: “Transfer of the Arkansas Science and Technology Authority.

“(a)(1) The Arkansas Science and Technology Authority is transferred to the Arkansas Economic Development Commission by a type 2 transfer under § 25-2-105.

“(2) For the purposes of this act, the commission is the principal department under Acts 1971, No. 38.

Amendments. The 2015 amendment by Acts 2015 (1st Ex. Sess.), Nos. 7 and 8 substituted “Executive Director of the Arkansas Economic Development Commission” for “Director of the Arkansas Science and Technology Authority” in (c)(1).

The 2019 amendment substituted “Director of the Arkansas Economic Development Commission” for “Executive Director of the Arkansas Economic Development Commission” in (c)(1).

19-12-116. Establishment and administration of Medicaid Expansion Program.

It is the intent of this chapter that the Department of Human Services should establish the Medicaid Expansion Program described in this section, and to administer such program in accordance with law.
1. The Medicaid Expansion Program shall be a separate and distinct component of the Arkansas Medicaid Program currently administered by the Department of Human Services and shall be established as follows:
  1. expanding Medicaid coverage and benefits to pregnant women;
  2. expanding inpatient and outpatient hospital reimbursements and benefits to adults aged nineteen (19) to sixty-four (64);
  3. expanding non-institutional coverage and benefits to adults aged sixty-five (65) and over; and
  4. expanding medical assistance, home and community-based services, and employment supports for:
    1. Adults with intellectual and developmental disabilities who qualify for services; and
    2. Children with intellectual and developmental disabilities who qualify for services.
2. All such expenditures shall be made in conformity with the Arkansas Medicaid Program as amended and approved by the Centers for Medicare and Medicaid Services.
The programs defined in this section shall be administered pursuant to a strategic plan encompassing the elements of a mission statement, defined program(s), and program goals with measurable objectives and strategies to be implemented over a specific timeframe. Evaluation of each program shall include performance-based measures for accountability which will measure specific health related results.
Each of the programs adopted pursuant to this section shall be subject to the monitoring and evaluation procedures described in § 19-12-118.

History. Init. Meas. 2000, No. 1, § 16; Acts 2017, No. 50, § 1.

A.C.R.C. Notes. Acts 2016, No. 191, § 6, provided:

“MEDICAID EXPANSION PROGRAM — PAYING ACCOUNTS. The Medicaid Expansion Program as established by Initiated Act 1 of 2000 shall be a separate and distinct component embracing (1) expanded Medicaid coverage and benefits to pregnant women; (2) expanded inpatient and outpatient hospital reimbursements and benefits to adults aged nineteen (19) to sixty-four (64); (3) expanded non-institutional coverage and benefits to adults aged 65 and over; and (4) creation and provision of a limited benefit package to adults aged nineteen (19) to sixty-four (64), to be administered by the Department of Human Services. Separate Paying Accounts shall be established for the Medicaid Expansion Program as designated by the Chief Fiscal Officer of the State, to be used exclusively for the purpose of drawing down federal funds associated with the federal share of expenditures and for the state share of expenditures transferred from the Medicaid Expansion Program Account or for any other appropriate state match funds.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Amendments. The 2017 amendment redesignated (b) as (b)(1) and (2) and former (b)(1)-(4) as (b)(1)(A)-(D); substituted “Arkansas Medicaid Program” for “state Medicaid program” in (b)(1) and (2); rewrote (b)(1)(D); and made stylistic changes.

19-12-117. Establishment of the Arkansas Tobacco Settlement Commission.

There is hereby created and recognized the Arkansas Tobacco Settlement Commission, which shall be composed of the following:
1. The Director of the Arkansas Economic Development Commission or his or her designee;
2. The Commissioner of Elementary and Secondary Education or his or her designee;
3. The Director of the Division of Higher Education or his or her designee;
4. The Secretary of the Department of Human Services or his or her designee;
5. The Secretary of the Department of Health or his or her designee;
6. A healthcare professional to be selected by the President Pro Tempore of the Senate;
7. A healthcare professional to be selected by the Speaker of the House of Representatives;
8. A citizen selected by the Governor; and
9. A citizen selected by the Attorney General.
1. The four (4) members of the commission who are not on the commission by virtue of being a director of an agency, will serve four-year terms. The terms shall commence on October 1 of each year. Commission members are limited to serving two (2) consecutive four-year terms.
2. Members of the commission shall not be entitled to compensation for their services, but may receive expense reimbursement in accordance with § 25-16-902, to be paid from funds appropriated for this program.
Members appointed to the commission and the organizations they represent shall make full disclosure of the members' participation on the commission when applying for any grant or contract funded by this chapter.
All members appointed to the commission shall make full and public disclosure of any past or present association to the tobacco industry.
The commission shall, within ninety (90) days of appointment, hold a meeting and elect from its membership a chair for a term set by the commission. The commission is authorized to adopt bylaws.
The commission shall meet at least quarterly. However, special meetings of the commission may be called at any time at the pleasure of the chair or pursuant to the bylaws of the commission.
The commission is authorized to hire an independent third party with appropriate experience in health, preventive resources, health statistics, and evaluation expertise to perform monitoring and evaluation of program expenditures made from the program accounts pursuant to this chapter. Such monitoring and evaluation shall be performed in accordance with § 19-12-118, and the third party retained to perform such services shall prepare a biennial report to be delivered to the General Assembly and the Secretary of the Department of Health by each August 1 preceding a general session of the General Assembly. The report shall be accompanied by a recommendation from the commission as to the continued funding for each program.
The costs and expenses of the monitoring and evaluation program, as administered by the Department of Health, as well as the salaries, costs, and expenses of staff shall be paid from the Arkansas Tobacco Settlement Commission Fund established pursuant to § 19-12-108.
If the deposits into the Arkansas Tobacco Settlement Commission Fund exceed the amount necessary to pay the costs and expenses described in subsection (h) of this section, then the commission is authorized to make grants as follows:
1. Those organizations eligible to receive grants are nonprofit and community-based;
2. Grant criteria shall be established based upon the following principles:
  1. All funds should be used to improve and optimize the health of Arkansans;
  2. Funds should be spent on long-term projects that improve the health of Arkansans;
  3. Future tobacco-related illness and healthcare costs in Arkansas should be minimized through this opportunity; and
  4. Funds should be invested in solutions that work effectively and efficiently in Arkansas; and
3. Grant awards shall be restricted in amounts up to fifty-thousand dollars ($50,000) per year for each eligible organization.

History. Init. Meas. 2000, No. 1, § 17; Acts 2015 (1st Ex. Sess.), No. 7, § 113; 2015 (1st Ex. Sess.), No. 8, § 113; 2019, No. 910, § 4918.

A.C.R.C. Notes. Acts 2015 (1st Ex. Sess.), Nos. 7 and 8, § 62, provided: ”Transfer of the Arkansas Science and Technology Authority.

“(a)(1) The Arkansas Science and Technology Authority is transferred to the Arkansas Economic Development Commission by a type 2 transfer under § 25-2-105.

“(2) For the purposes of this act, the commission is the principal department under Acts 1971, No. 38.

Acts 2016, No. 224, § 3, provided:

“INDEPENDENT MONITORING AND EVALUATION. The Arkansas Tobacco Settlement Commission shall file a quarterly progress report to the Public Health, Welfare and Labor Committees and shall hire an independent third party to perform monitoring and evaluation of program expenditures made from tobacco settlement funds. This independent third party shall have appropriate experience in health, preventive resources, health statistics and evaluation expertise. The third party retained to perform such services shall prepare a biennial report to be delivered to the General Assembly and the Governor by each August 1 preceding a regular session of the General Assembly. The report shall be accompanied by a recommendation from the Arkansas Tobacco Settlement Commission as to the continued funding for each program.

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

Publisher's Notes. The position of Director of the Department of Education, referred to in this section, was renamed the Commissioner of Education by Acts 2005, No. 1672. See § 6-11-102.

The 2019 amendment deleted “Executive” preceding “Director” in (a)(1); substituted “Commissioner of Elementary and Secondary Education” for “Director of the Department of Education” in (a)(2); substituted “Division of Higher Education” for “Department of Higher Education” in (a)(3); substituted “Secretary of the Department of Human Services” for “Director of the Department of Human Services” in (a)(4); substituted “Secretary of the Department of Health” for “Director of the Department of Health” in (a)(5); substituted “Secretary of the Department of Health” for “Governor” in the second sentence of (g); in (h), deleted the former first sentence and inserted “as administered by the Department of Health”; and made stylistic changes.

19-12-118. Monitoring and evaluation of programs.

The Arkansas Tobacco Settlement Commission is directed to conduct monitoring and evaluation of the programs established in §§ 19-12-113 — 19-12-116 to ensure optimal impact on improving the health of Arkansans and fiscal stewardship of the Tobacco Settlement. The commission shall develop performance indicators to monitor programmatic functions that are state-specific and situation-specific and to support performance-based assessment for governmental accountability. The performance indicators shall reflect short-term and long-term goals and objectives of each program, be measurable, and provide guidance for internal programmatic improvement and legislative funding decisions. The commission is expected to modify these performance indicators as goals and objectives are met and new inputs to programmatic outcomes are identified.
All programs funded by the tobacco settlement and established in §§ 19-12-113 — 19-12-116 shall be monitored and evaluated to justify continued support based upon the state's performance-based budgeting initiative. These programs shall be administered pursuant to a strategic plan encompassing the elements of a mission statement, defined programs, program goals with measurable objectives and strategies to be implemented over a specific timeframe. Evaluation of each program shall include performance-based measures for accountability that will measure specific health-related results. All expenditures that are payable from the Tobacco Settlement Program Fund and from each of the program accounts, therein, shall be subject to the same fiscal control, accounting, budgetary, and purchasing laws as are expenditures and obligations payable from State Treasury funds, except as specified otherwise in this chapter. The Chief Fiscal Officer of the State may require additional controls, procedures, and reporting requirements that he or she determines are necessary in order to carry out the intent of this chapter.
The commission is directed to establish program goals in according with the following initiation, short-term and long-term performance indicators for each program to be funded by the tobacco settlement, which performance indicators shall be subject to modification by the commission based on specific situations and subsequent developments. Progress with respect to these performance indicators shall be reported to the Governor and the General Assembly for future appropriation decisions:
1. Tobacco prevention and cessation: The goal is to reduce the initiation of tobacco use and the resulting negative health and economic impact. The following are anticipated objectives in reaching this overall goal:
  1. Initiation: The Department of Health is to start the program within six (6) months of available appropriation and funding;
  2. Short-term: Communities shall establish local tobacco prevention initiatives;
  3. Long-term: Surveys demonstrate a reduction in numbers of Arkansans who smoke and/or use tobacco.
2. Medicaid Expansion: The goal is to expand access to healthcare through targeted Medicaid expansions, thereby improving the health of eligible Arkansans:
  1. Initiation: The Department of Human Services is to start the program initiatives within six (6) months of available appropriation and funding;
  2. Short-term: The Department of Human Services demonstrates an increase in the number of new Medicaid eligible persons participating in the expanded programs.
  3. Long-term: Demonstrate improved health and reduced long-term health costs of Medicaid eligible persons participating in the expanded programs;
3. Research and health education: The goal is to develop new tobacco-related medical and agricultural research initiatives to improve the access to new technologies, improve the health of Arkansans, and stabilize the economic security of Arkansas:
  1. Initiation: The Arkansas Biosciences Institute Board shall begin operation of the Arkansas Biosciences Institute within twelve (12) months of available appropriation and funding;
  2. Short-term: The Arkansas Biosciences Institute shall initiate new research programs for the purpose of conducting, as specified in § 19-12-115, agricultural research with medical implications, bioengineering research, tobacco-related research, nutritional research focusing on cancer prevention or treatment, and other research approved by the Arkansas Biosciences Institute Board;
  3. Long-term: The institute's research results should translate into commercial, alternate technological, and other applications wherever appropriate in order that the research results may be applied to the planning, implementation and evaluation of any health related programs in the state. The Arkansas Biosciences Institute is also to obtain federal and philanthropic grant funding;
4. Targeted state needs programs: The goal is to improve the healthcare systems in Arkansas and the access to healthcare delivery systems, thereby resolving critical deficiencies that negatively impact the health of the citizens of the state:
  1. College of Public Health of the University of Arkansas for Medical Sciences:
    1. Initiation: Increase the number of communities in which participants receive public health training;
    2. Short-Term: Obtain federal and philanthropic grant funding;
    3. Long-term: Elevate the overall ranking of the health status of Arkansas;
  2. Minority health initiative:
    1. Initiation: Start the program within twelve (12) months of available appropriation and funding;
    2. Short-term: Prioritize the list of health problems and planned intervention for minority population and increase the number of Arkansans screened and treated for tobacco-related illnesses;
    3. Long-term: Reduce death/disability due to tobacco-related illnesses of Arkansans;
  3. Donald W. Reynolds Center on Aging:
    1. Initiation: Start the program within twelve (12) months of available appropriation and funding;
    2. Short-term: Prioritize the list of health problems and planned intervention for elderly Arkansans and increase the number of Arkansans participating in health improvement programs;
    3. Long-term: Improve health status and decrease death rates of elderly Arkansans, as well as obtaining federal and philanthropic grant funding; and
  4. Area Health Education Center:
    1. Initiation: Start the new area health education center in Helena with DHEC offices in West Memphis and Lake Village within twelve (12) months of available appropriation and funding;
    2. Short-term: Increase the number of communities and clients served through the expanded AHEC/DHEC offices;
    3. Long-term: Increase the access to a primary care provider in underserved communities.

History. Init. Meas. 2000, No. 1, § 18.

A.C.R.C. Notes. Acts 2016, No. 224, § 3, provided:

“The provisions of this section shall be in effect only from July 1, 2016 through June 30, 2017.”

19-12-119. Use of funds for the Medicaid Expansion Program Account.

In addition to the purposes enumerated in § 19-12-116 for the Medicaid expansion program, the funds made available to the Medicaid Expansion Program Account may also be used to supplement current general revenues as approved by the Governor and the Chief Fiscal Officer of the State for the Arkansas Medicaid Program.
None of the funds shall be used for this additional purpose if the usage will reduce the funds made available by the General Assembly for the Meals-on-Wheels program and the senior prescription drug program.

History. Acts 2002 (1st Ex. Sess.), No. 2, § 11.

A.C.R.C. Notes. References to “this chapter” in §§ 19-12-101 — 19-12-118 may not apply to this section, which was enacted subsequently.

Subchapter 2 — Tobacco Settlement Revenue Bonds Act of 2006

Effective Dates. Acts 2006 (1st Ex. Sess.), No. 9, § 2: Apr. 7, 2006. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that cancer is one of the leading health problems and causes of death in the state; there is an immediate need for additional facilities to support research in the cause, prevention, and treatment of various types of cancer; that this act provides financial resources critical to the development and construction of necessary medical facilities. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

19-12-201. Title.

This subchapter shall be known and may be cited as the “Tobacco Settlement Revenue Bonds Act of 2006”.

History. Acts 2006 (1st Ex. Sess.), No. 9, § 1.

19-12-202. Legislative findings, intent, and purpose.

The General Assembly finds that:
1. Cancer is one of the leading health problems and causes of death in the state;
2. There is an immediate need for additional facilities to support research in the cause, treatment, and prevention of various types of cancer;
3. Because the Arkansas Cancer Research Center of the University of Arkansas for Medical Sciences is engaged in education, research, and clinical care addressing the causes, treatment, and prevention of cancer, the General Assembly has recognized the center as the official cancer institute of the State of Arkansas since its inception in 1984;
4. It is appropriate that the center should be designated as a capital improvement project relating to healthcare services, health education, or health-related research under the Tobacco Settlement Proceeds Act, § 19-12-101 et seq.; and
5. This subchapter provides financial resources critical to the development and construction of necessary medical facilities by authorizing the issuance of an additional series of Tobacco Settlement Revenue Bonds in support of the center.
This subchapter is not intended to amend nor does it amend Initiated Act 1 of 2000, the Tobacco Settlement Proceeds Act, § 19-12-101 et seq.
The purpose of this subchapter is to designate an additional capital improvement project as anticipated by § 19-12-106(b)(4) and to enact implementation legislation necessary to authorize an additional series of Tobacco Settlement Revenue Bonds to finance a portion of the additional capital improvement project as provided under § 19-12-106(g).

History. Acts 2006 (1st Ex. Sess.), No. 9, § 1.

19-12-203. Applicability of Tobacco Settlement Proceeds Act.

The Tobacco Settlement Proceeds Act, § 19-12-101 et seq., is fully applicable to this subchapter and any Tobacco Settlement Revenue Bonds issued under this subchapter.

History. Acts 2006 (1st Ex. Sess.), No. 9, § 1.

19-12-204. Arkansas Cancer Research Center designated as capital improvement project.

As authorized by § 19-12-106(b)(4), the Arkansas Cancer Research Center of the University of Arkansas for Medical Sciences is designated as a capital improvement project relating to healthcare services, health education, or health-related research.

History. Acts 2006 (1st Ex. Sess.), No. 9, § 1.

19-12-205. Additional Tobacco Settlement Revenue Bonds authorized.

Additional Tobacco Settlement Revenue Bonds may be issued in connection with the capital improvement project described in § 19-12-204 under the following conditions:

No more than five million dollars ($5,000,000) of the annual transfer to the Tobacco Settlement Debt Service Fund shall be allocated in any one (1) year to pay debt service requirements for the capital improvement project;
Annual transfers to the Tobacco Settlement Debt Service Fund allocated to the capital improvement project shall not commence until the Tobacco Settlement Revenue Bonds issued in 2001 under the Tobacco Settlement Proceeds Act, § 19-12-101 et seq., are no longer outstanding; and
No more than forty million dollars ($40,000,000) in an initial principal amount of Tobacco Settlement Revenue Bonds may be issued for the capital improvement project.

History. Acts 2006 (1st Ex. Sess.), No. 9, § 1.

19-12-206. Issuance of additional Tobacco Settlement Revenue Bonds by Arkansas Development Finance Authority.

If revenues in the Tobacco Settlement Debt Service Fund are sufficient to meet Debt Services Requirements with regard to additional Tobacco Settlement Revenue Bonds that may be issued in connection with the capital improvement project described in § 19-12-204, then the Arkansas Development Finance Authority shall issue additional Tobacco Settlement Revenue Bonds in accordance with the limitations established in § 19-12-205 to be used for financing a portion of the capital improvement project described in § 19-12-204.
The additional Tobacco Settlement Revenue Bonds shall be issued as set forth under the Tobacco Settlement Proceeds Act, § 19-12-101 et seq., and shall be entitled to the same rights and protections as the Tobacco Settlement Revenue Bonds issued in 2001 under the Tobacco Settlement Proceeds Act, § 19-12-101 et seq.

History. Acts 2006 (1st Ex. Sess.), No. 9, § 1.

APPENDIX — TITLE 19 BOND ISSUES

The following laws relate to bond issues which had not matured at the time of publication of this code. While they are not laws of a general and permanent nature, and consequently are not codifiable, they are included in this appendix for easy reference.

1. Arkansas Revenue Department Building Act — Acts 1961 (1st Ex. Sess.), No. 38, as amended by Acts 1997, No. 250.

SECTION 1. This Act shall be referred to and may be cited as the “Arkansas Revenue Department Building Act.”

SECTION 2. There is hereby created and established a Commission to be known as the Arkansas Revenue Department Building Commission, hereinafter referred to as the “Commission”.

SECTION 3. The Commission shall consist of five (5) members. The Commissioner of Revenues and the Secretary of State shall be, ex-officio, members, and Chairman and Secretary, respectively, of the Commission. Three (3) members of the Commission shall be appointed by the Governor from resident electors of this State.

SECTION 4. Members of the Commission shall receive no pay for their services, but may receive expense reimbursement in accordance with Arkansas Code 25-16-901 et seq.

SECTION 5. The terms of office of the original members of the Commission so appointed by the Governor shall commence upon qualification after appointment and shall be arranged by the Governor in such manner that the term of one of such members shall expire on the 14th day of January of each year, beginning with January 14, 1963. For each member appointed by the Governor for a regular term subsequent to the expiration of the term of the original member, the term of office shall commence on the 15th day of January following such expiration date and shall end on the 14th day of January of the third year following the year in which such regular term commenced. Any vacancies arising in the membership of the Commission so appointed by the Governor for any reason other than the expiration of the regular terms for which such members were appointed, shall be filled by appointment by the Governor, to be thereafter effective until the expiration of such regular term.

SECTION 6. The Commission is hereby authorized to:

Arrange for a suitable site for the Revenue Department Building, on the State Capitol Grounds in Little Rock, Pulaski County, Arkansas; thereafter, on such site, construct and equip such building; and obtain the necessary funds for the construction and equipping thereof by the issuance of Revenue Bonds as hereinafter in this Act specified.
Arrange for the housing therein of the State Revenue Department and such other State agency or agencies as space and facilities may permit from time to time and with reference to other agencies, if any, to rent, lease, or otherwise make space available upon such terms and conditions and for such rentals, if any, as the Commission may determine;
Purchase, lease or rent any corporeal or personal property.
Receive bequests or donations of any real, corporeal or personal property.
Sell, barter, lease or rent any real, corporeal or personal property, or convert into money any such property which cannot be used in the form received.
Establish accounts in one or more banks, and thereafter from time to time make deposits in and withdrawals from such accounts.
Contract and be contracted with.
Take such other action, not inconsistent with law, as may be necessary or desirable to carry out the authority in this Act conferred and to carry out the intent and purposes of this Act.

SECTION 7. Meetings of the Commission shall be held on call by the Chairman or by any three or more members on advance notice to each member, at such place or places as may suit the Commission's convenience. All meetings of the Commission shall be open to the public, and records of the proceedings thereof shall be kept. A quorum for the transaction of business at any meeting shall consist of not less than three (3) members, and the affirmative vote of three (3) members shall be requisite for the authorizing or approval of any action or the passage or adoption of any motion or resolution.

SECTION 8. The Chairman of the Commission shall be custodian of all property held in the name of the Commission and shall be its disbursing agent and executive officer. The Commission may, by resolution duly adopted, delegate to the Chairman any of the powers or functions vested in or imposed upon it by this Act, and until such a resolution shall subsequently have been modified or rescinded, such delegated powers and functions may be exercised by the Chairman in the name of the Commission. The Chairman shall furnish bond to the State, with a corporate surety thereon, in the penal sum of Twenty-five Thousand Dollars ($25,000), conditioned that he will faithfully perform his powers, functions and duties and properly handle all funds received and disbursed by him and account therefor. An additional disbursing agent's bond shall not be required of the Chairman, and the bond so furnished shall be filed in the office of the Auditor of State. The premium on the bond shall be a proper charge against funds of the Commission.

SECTION 9. The Revenue Department Building after its completion shall house the State Revenue Department, and shall contain facilities for the proper conduct of the business of said Department. In addition, the Revenue Department Building may house such other agency or agencies as space and facilities will permit from time to time.

SECTION 10. All monies received from collections of the charge of $1.00 for each original and each duplicate certificate of title to a motor vehicle, as provided in Section 83 of Act 142 of the Acts of the General Assembly of the State of Arkansas for the year 1949, approved February 23, 1949, and Section 1 of Act 436 of the Acts of the General Assembly of the State of Arkansas for the year 1961, approved March 15, 1961, are hereby specifically declared to be cash funds. Said monies shall not be deposited in the State Treasury, but as soon as practicable after receipt shall be deposited in the “Revenue Department Building Fund”, hereafter in this Act created. So long as any Revenue Bonds issued under this Act shall be outstanding, until the entire principal and interest on said outstanding bonds shall be paid or adequate provision made for the payment thereof, said charge shall be collected and the monies received therefrom shall be deposited, pledged and used as in this Act provided.

SECTION 11. The Commissioner of Revenues is hereby authorized and directed to establish and maintain a permanent ledger record of all leases and agreements for the production or taking of oil, gas, casing-head gas, sand, gravel, coal or other minerals or hydrocarbons from the beds or bars of navigable rivers and lakes in the State of Arkansas or any other lands owned by or held in the name of the State of Arkansas. The person, firm, company, corporation or association entering into such a lease or agreement with the State of Arkansas shall pay to the Commissioner of Revenues a five dollar ($5.00) charge for the recording of each said lease or agreement in said permanent ledger record and the maintaining of said ledger record. The proceeds of said five dollar ($5.00) charge are hereby specifically declared to be cash funds and shall not be placed in the State Treasury but shall be deposited in the “Revenue Department Building Fund”, hereafter in this Act created. So long as any Revenue Bonds issued under this Act shall be outstanding, until the entire principal of and interest on said outstanding bonds shall be paid or adequate provision made for the payment thereof, said charge shall be collected and the monies received therefrom shall be deposited, pledged and used as in this Act provided.

SECTION 12. (a) There is hereby created a Trust Fund which shall be designated “Revenue Department Building Fund” which shall be maintained by the Commission in such depository bank or banks as may from time to time be designated by the Commission. There shall be deposited into this fund the following:

All moneys collected on and after the first day of the month next following the effective date of this Act from the charge for Certificate of Title referred to in Section 10 of this Act.
All moneys collected from the charge imposed by Section 11 of this Act.
All moneys received by the Commission from any other source whatever, including, without limitation, rental from other agencies, if any.

(b) All monies in the Revenue Department Building Fund shall be used solely, and in the order of priority, hereinafter specified:

(1) Beginning on the first day of the month immediately following the month within which Revenue Bonds are issued under this Act, and continuing on the first day of each month thereafter until the principal of and interest on all bonds issued under this Act are paid, or adequate provision made for their payment, there shall be transferred from the Revenue Department Building Fund and deposited in a trust fund which is hereby created and designated “Revenue Department Building Bond Fund” (herein sometimes called “Bond Fund”) a sum equal to at least one-sixth (1/6) of the next installment of interest and one-twelfth (1/12) of the next installment of principal and the amounts necessary to provide for the paying agent's fees, plus such additional amounts, if any, as shall be required to insure that on the next interest paying date and the next principal paying date there will be sufficient funds in the Bond Fund to pay the interest and principal then maturing and plus such additional amounts as shall be necessary to establish and maintain a reserve for contingencies in the Bond Fund (if the Commission deems it necessary or desirable to provide for such reserve) in such amount as the Commission may determine; provided, however, that if the amount deposited in the Bond Fund in any month pursuant to the preceding provisions of this Section 12 (b) (1) shall be less than fifty percentum (50%) of the amount deposited into the Revenue Department Building Fund during the preceding month from the charges referred to in Section 10 of this Act and less than one hundred percentum (100%) of the amount deposited into the Revenue Department Building Fund during the preceding month from the charges imposed by Section 11 of this Act, there shall be deposited into the Bond Fund the additional amount necessary to make the total deposit for said month equal fifty percentum (50%) of said deposit of charges referred to in Section 10 and one hundred percentum (100%) of said deposit of charges imposed by Section 11. The Bond Fund shall be maintained by the Commission in such depository bank or banks as may from time to time be designated by the Commission. The monies in the Bond Fund shall be used for no other purpose than to pay the principal of, interest on, redemption premiums, if any, and paying agent's fees in connection with the bonds issued under this Act, at maturity or at redemption prior to maturity.

(2) On the first day of the month next following the month in which collections from the charges referred to in Section 10 of this Act are first deposited into the Revenue Department Building Fund pursuant to the provisions of Section 12 (a) (1) and continuing on the first day of each month thereafter through the first day of the month immediately preceding the month on the first day of which deposits into the Bond Fund are required to be made pursuant to the provisions of Section 12 (b) (1), there shall be withdrawn from the Revenue Department Building Fund and deposited into the State Treasury as a special revenue and there credited to the Constitutional and Fiscal Agencies Fund fifty percentum (50%) of the amount deposited into the Revenue Department Building Fund during the preceding month from the charges referred to in Section 10 of this Act. Commencing on the first day of the month on which date deposits are required to be made into the Bond Fund pursuant to the provisions of Section 12 (b) (1) and continuing on the first day of each month thereafter as long as said deposits into the Bond Fund are required to be made, there shall be withdrawn from the Revenue Department Building Fund and deposited in the State Treasury (and, there credited as aforesaid) that portion of the amounts deposited into the Revenue Department Building Fund during the preceding month from the charges referred to in Section 10 of this Act not required to be deposited into the Bond Fund by the provisions of Section 12 (b) (1) of this Act but in no event more than fifty percentum (50%) of the amount deposited into the Revenue Department Building Fund during the preceding month from said charges referred to in Section 10.

(3) The monies remaining in the Revenue Department Building Fund after the provisions of Section 12 (b) (1) and (2) have been fully complied with, may be used, at the option of the Commission, for the payment of the expenses of the Commission incurred in the carrying out of its functions and powers under this Act or may be transferred to the Bond Fund.

(c) After the principal of and interest on all bonds issued under this Act are fully paid, or adequate provision made for their payment, all monies then remaining in the Revenue Department Building Fund and in the Bond Fund and all monies received from collections of the charges referred to in Section 10 of this Act and all monies received from collections of the charge imposed by Section 11 of this Act shall be deposited in the State Treasury as a special revenue, and by the State Treasurer credited to the Constitutional and Fiscal Agencies Fund.

SECTION 13. (a) The Commission is authorized and empowered to issue revenue bonds in the total principal amount of not to exceed One Million Six Hundred Thousand Dollars ($1,600,000) and to use the proceeds thereof for defraying the cost of constructing the Revenue Department Building (including, without limitation, all construction costs, architectural and engineering fees, legal fees and other necessary expenses), to defray the expenses of issuing the revenue bonds, to provide for the creation of a reserve for contingencies fund (if the Commission deems it necessary or desirable) and to provide for the payment of interest on the bonds, if necessary, until sufficient funds are available therefor in the Bond Fund.

(b) Said revenue bonds shall be authorized by resolution of the Commission. The bonds shall be coupon bonds payable to bearer, may be made subject to registration as to principal only, may be dated on such date, may mature at such time or times, not exceeding twenty (20) years from date, may bear interest at such rate or rates, not exceeding four and one-half per cent (4 ½%) per annum, may be in such form, may be payable in such medium of payment, at such place or places, may be subject to such terms of redemption, and may contain such terms, covenants and conditions not inconsistent with the provisions of this Act, as the authorizing resolution may provide, including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance of funds and reserves, the nature and extent of the security, the rights, duties and obligations of the Commission and the Trustee for the holders or registered owners of the bonds, and the rights of the holders or registered owners of the bonds. Bonds issued hereunder shall have all the qualities of negotiable instruments under the Negotiable Instruments Laws of this State.

(c) Revenue bonds issued hereunder shall be sold at public sale on sealed bids. Notice of the sale shall be published once a week for three (3) consecutive weeks in a newspaper published in the City of Little Rock, Arkansas, and having a general circulation throughout the State of Arkansas, with the first publication to be at least twenty (20) days prior to the date of sale. The Commission shall pay no fiscal agents' fees in connection with the sale or issuance of the bonds. The bonds may be sold at such price as the Commission may accept, but in no event shall any bid be accepted which shall be less than par and accrued interest on the basis of the interest rate bid, nor shall any bid be accepted which specifies an interest rate in excess of four and one-half per cent (4 ½%) per annum. The bonds may be sold with the privilege of conversion to an issue bearing a lower rate or rates of interest upon such terms that the Commission receive no less and pay no more than it would receive and pay if the bonds were not converted and the conversion shall be subject to the approval of the Commission.

(d) Revenue bonds issued hereunder shall be executed by the manual signature of the Chairman of the Commission and by the manual signature of the Secretary of the Commission. The coupons attached to the bonds shall be executed by the fascimile signature of the Chairman of the Commission. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of such bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes. The Commission shall adopt and use a seal in the execution and issuance of bonds authorized hereunder and each bond shall be sealed with the seal of the Commission.

SECTION 14. It shall be plainly stated on the face of each revenue bond that the same has been issued under the provisions of this Act, and revenue bonds issued hereunder shall be general obligations only of the Commission, and in no event shall they constitute an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues are pledged. No member of the Commission shall be personally liable on the bonds, or for any damages sustained by anyone in connection with the contracts with the holders or registered owners of the bonds or the construction and equipping of the Revenue Department Building unless he shall have acted with a corrupt intent. All covenants and agreements entered into and made by the Commission shall be binding in all respects upon the Commission and the members thereof and their successors from time to time in accordance with the terms of such covenants and agreements, and all of the provisions thereof shall be enforcible by mandamus or other appropriate proceedings at law or in equity.

SECTION 15. The principal of, interest on, and paying agent's fees in connection with the Revenue Bonds issued under this Act shall be secured by a pledge of the gross revenues collected from the charges referred to in Section 10 of this Act and the charges imposed by Section 11 of this Act and the gross revenues derived from the leasing or renting of space in the Revenue Department Building to other agencies (it being understood that although all of the gross revenues collected from the charges referred to in Section 10 of this Act are pledged that portion described in Section 12 of this Act not required by the provisions of said Section 12 to be deposited in the Bond Fund will be withdrawn from the Revenue Department Building Fund and deposited in the State Treasury and credited as in said Section 12 provided and the portion so withdrawn will at the time of withdrawal in accordance with the provisions of said Section 12 and thereafter be released from said pledge), which revenues have been elsewhere in this Act and are hereby specifically declared to be cash funds, restricted in their use, and dedicated and to be used solely as provided in this Act. The principal of, interest on, and paying agent's fees in connection with the bonds shall be payable solely from the monies in the Bond Fund and the monies required by this Act to be deposited in the Bond Fund.

SECTION 16. All officers, departments, agencies and commissions of the State of Arkansas are hereby expressly authorized to execute and to enter into lease agreements with the Commission for the leasing of space in the Revenue Department Building when there is space therein over and above the requirements of the State Revenue Department. Such lease agreements may be upon such conditions, for such terms, for such amounts, and containing such other provisions as may be determined by the Commission and particular state officer, agency or Commission to be appropriate and in the best interests of all concerned. All such lease agreements and all covenants and agreements therein contained on the part of the parties thereto shall be binding in all respects upon the parties thereto and their successors from time to time, including any successor agency or commission performing the functions exercised by the agency or commission executing the lease agreement, in accordance with the terms of such covenants and agreements, and all of the provisions thereof shall be enforcible by mandamus or other appropriate proceedings at law or in equity.

SECTION 17. Revenue bonds issued under the provisions of this Act, and the interest thereon, shall be exempt from all state, county and municipal taxes, except property taxes, and this exemption shall include income, inheritance and estate taxes.

SECTION 18. The Board of Trustees of any retirement system created by the General Assembly of the State of Arkansas may, in its discretion, invest its funds in the bonds of the Commission issued under the provisions of this Act.

SECTION 19. The agency of the State authorized by law to audit the records and accounts of the various state agencies is hereby authorized and directed to audit the records and accounts of the Commission, and to furnish a copy of the report thereof to the Commission.

SECTION 20. The Commission is hereby authorized to employ an architect to prepare plans, specifications and estimates of cost for the construction of the Arkansas Revenue Department Building, and to supervise and inspect such construction. After the Commission shall have approved the plans and specifications prepared by the architect, it shall proceed to advertise for bids and contract for the construction and equipping of the Arkansas Revenue Department Building in accordance with applicable laws governing the constructing and equipping of public buildings.

SECTION 21. This Act shall be construed liberally. The enumeration of any object, purpose, power, manner, method and thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods or things.

SECTION 22. This Act shall not create any right of any character, and no right of any character shall arise under or pursuant to it, unless and until bonds authorized by this Act shall have been issued and actually sold by the Commission.

SECTION 23. The provisions of this Act are hereby declared to be severable. If any section, paragraph, sentence or clause of this Act shall be held unconstitutional or invalid, the invalidity of such section, paragraph, sentence or clause, shall not affect the validity of the remainder of the Act.

SECTION 24. On the first day of the month next following the effective date of this Act, the balance in the Revenue Department Building Fund in the State Treasury shall, by the State Treasurer, be transferred to the Constitutional and Fiscal Agencies Fund, there to be used, as appropriated by the General Assembly, for the operation and maintenance of the Revenue Department Building, and as of said date (the first day of the month next following the effective date of this Act) Act 266, approved March 14, 1961, and Sections 2, 3 and 4 of Act 436, approved March 15, 1961, are hereby repealed.

SECTION 25. It has been found and it is hereby declared by the General Assembly: That the principal office of the State Revenue Department is, and should be, located on the State Capitol Grounds; that its present office space is wholly inadequate to permit it to properly carry out its functions and duties as required by law; that because of such inadequacy the State is losing badly needed tax revenue and the citizens of the State of Arkansas are seriously inconvenienced in dealing with the State Revenue Department; that no other office space is available to the State Revenue Department in the State Capitol Building or in other office buildings on the State Capitol Grounds; and that only by the immediate operation of this Act may such conditions be alleviated. Therefore, an emergency is herby declared to exist and this Act being necessary for the preservation of the public peace, health and safety, shall take effect and be in full force from and after its passage and approval.

APPROVED: September 8, 1961.

2. Arkansas State Department of Health Building Act — Acts 1965, No. 469.

SECTION 1. This Act may be referred to and cited as the “Arkansas State Department of Health Building Act”.

SECTION 2. There is hereby created and established a commission to be known as the “Arkansas State Department of Health Building Commission”, hereafter sometimes referred to as the “Commission”.

SECTION 3. The Commission shall consist of five (5) members. The State Health Officer shall be an ex officio member of the Commission and shall be Chairman. Four (4) members of the Commission shall be appointed by the Governor from resident electors of this State. The Commission shall designate a Secretary, who need not be a member of the Commission.

SECTION 4. Members of the Commission shall receive no pay for their services but, with respect to attendance at each regular or special meeting of the Commission, appointive members shall be entitled to Fifteen Dollars ($15.00) per diem, plus a mileage allowance for each mile traveled from his home to the place of meeting and return in the amount approved, from time to time, for State employees.

SECTION 5. The terms of office of the original members of the Commission so appointed by the Governor shall commence upon qualification after appointment and shall be arranged by the Governor in such manner that the term of one (1) of such members shall expire on the 14th day of January of each year, beginning with January 14, 1966. For each member appointed by the Governor for a regular term subsequent to the expiration of the term of the original member, the term of office shall commence on the 15th day of January following such expiration date and shall end on the 14th day of January of the fourth year following the year in which such regular term commenced. Any vacancies arising in the membership of the Commission so appointed by the Governor for any reason other than the expiration of the regular terms for which such members were appointed, shall be filled by appointment by the Governor, to be thereafter effective until the expiration of such regular term.

SECTION 6. The Commission is hereby authorized and empowered to:

Arrange for a suitable site for the State Department of Health Building either on the State Capitol Grounds as now or hereafter existing or on the State Hospital Grounds, as now or hereafter existing, in the City of Little Rock, Arkansas, and thereafter on the site so selected construct and equip a State Department of Health Building. In this regard, the appropriate board, agency or officers of the State of Arkansas in charge of the properties upon which a site may be selected are hereby authorized and directed to negotiate with the Commission and to make available to the Commission such lands as may be necessary for a site, including adequate parking area, at such location as will not unreasonably interfere with the needs of the particular board, agency or officers or of other State boards, agencies or officers for land use purposes.
Arrange for the housing of the various divisions, units, agencies, officers and employees under the jurisdiction of the State Board of Health, the State Health Officers and the State Department of Health and such other agencies as space and facilities may permit from time to time and with reference to other agencies to rent, lease or otherwise make available space upon such terms and conditions and for such rentals, if any, as the Commission may determine.
Construct or cause to be constructed parking facilities to serve the State Department of Health Building and to serve such other agencies, officers and employees and the public having business therein.
Obtain the necessary funds for financing the objects specified in this Section 6.
Purchase, lease or rent and receive bequests or donations of, and sell or barter, any property, personal or mixed, or convert into money any property bequeated or donated to it not needed or which cannot be used in the form received.
Establish accounts in one (1) or more banks, and thereafter from time to time make deposits in and withdrawals from such accounts.
Contract and be contracted with.
Apply for, receive, accept and use any moneys, and properties from agencies of the Government of the United States of America, from any State or other Governmental agency, from any public or private corporation, agency or organization of any nature, and from any individual group.
Invest and reinvest any of its moneys.
Take such other action, not inconsistent with law, as may be necessary or desirable to carry out the authority in this Act conferred and to carry out the intent and purposes of this Act.

SECTION 7. Meetings of the Commission shall be held on call by the Chairman or by any three or more members on advance notice to each member, at such place or places as may suit the Commission's convenience. Meetings of the Commission shall be open to the public, and records of the proceedings thereof shall be kept. A quorum for the transaction of business at any meeting shall consist of not less than three (3) members and the affirmative vote of three (3) members shall be requisite for the authorizing or approval of any action or the passage or adoption of any motion or resolution.

SECTION 8. The Chairman of the Commission shall be custodian of the State Department of Health Building, and shall be the Commission's disbursing agent and executive officer. The Commission may, by resolution duly adopted, delegate to the Chairman any of the powers or functions vested in or imposed upon it by this Act, and until such a resolution shall subsequently have been modified or rescinded, such delegated powers and functions may be exercised by the Chairman in the name of the Commission. The Chairman shall furnish bond to the State, with a corporate surety thereon, in the penal sum of Twenty Five Thousand Dollars ($25,000), conditioned that he will faithfully perform his powers, functions and duties and properly handle all funds received and disbursed by him and account therefor. An additional disbursing agent's bond shall not be required of the Chairman, and the bond so furnished shall be kept in the office of the Auditor of State. The premium on the bond shall be a proper charge against funds of the Commission.

SECTION 9. The State Department of Health Building after its completion shall house the State Board of Health, the State Health Officer, the State Department of Health divisions, and the divisions, units, agencies, officer and employees under the supervision thereof, and shall contain facilities for the proper conduct of the business of the State Board of Health, the State Department of Health, and such divisions, units, agencies, officers and employees thereof. In addition, the State Department of Health Building may house such others as space and facilities will permit from time to time.

SECTION 10. [Codified as 20-7-123.]

SECTION 11. (a) The Commission is hereby authorized and empowered to issue revenue bonds from time to time in the total aggregate principal amount of not to exceed Three Million Dollars ($3,000,000) and to use the proceeds thereof, together with any other available funds, for defraying the costs of the objects set forth in Section 6 thereof, together with all expenses incidental to and reasonably necessary in connection therewith, the expenses of the issuance of the bonds, and for providing for the creation of a reserve for contingencies to secure the payment of the bonds, if the Commission deems it necessary or desirable, and for providing for the payment of interest on bonds, if necessary, until sufficient funds are available therefor out of pledged revenues.

(b) Said revenue bonds shall be authorized by resolution of the Commission. All bonds to the total authorized principal amount may be issued at one time or, as determined by the Commission, in series from time to time, in which event the initial series shall be designated Series A and subsequent series shall be designated in alphabetical order. The bonds of each series shall rank on a parity as to lien on the revenues pledged for their payment and as to the security for their payment with the bonds of other series, regardless of date of issuance. The bonds may be coupon bonds, payable to bearer, or may be registrable as to principal only with interest coupons, or may be registrable as to both principal and interest without coupons, and may be made exchangeable for bonds of another denomination, which bonds of another denomination may in turn be either coupon bonds payable to bearer or coupon bonds registrable as to principal only, or bonds registrable as to both principal and interest without coupons; may be in such form and denomination; may have such date or dates; may be stated to mature at such times; may bear interest payable at such times and at such rate or rates, provided that no bonds of any series may bear interest at a rate or rates exceeding 4½% per annum; may be made payable at such places within or without the State of Arkansas; may be made subject to such terms of redemption in advance of maturity at such prices; and may contain such terms and conditions, all as the Commission shall determine. The bonds shall have the qualities of negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration of ownership, as set forth above. The authorizing resolution may contain any other terms, covenants and conditions that are deemed desirable, including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the rights, duties and obligations of the Commission and of the holders and registered owners of the bonds as the Commission shall determine.

(c) Bonds issued hereunder shall be sold at public sale on sealed bids. Notice of the sale shall be published once a week for three (3) consecutive weeks in a newspaper published in the City of Little Rock, Arkansas, and having a general circulation throughout the State of Arkansas, with the first publication to be at least twenty (20) days prior to the date of sale. The Commission shall pay no fiscal agent's fees in connection with the sale or issuance of the bonds. The bonds may be sold at such price as the Commission may accept, but in no event shall any bid be accepted which shall be less than par and accrued interest on the basis of the interest rate bid, nor shall any bid be accepted which specifies an interest rate in excess of 4½% per annum. The award, if made, shall be to the bidder whose bid results in the lowest net interest cost determined by computing the aggregate interest cost at the rate bid and deducting therefrom any premium. The bonds may be sold with the privilege of conversion to an issue bearing a lower rate or rates of interest upon such terms that the Commission receive no less and pay no more than it would receive and pay if the bonds were not converted and the conversion shall be subject to such conditions as shall be specified by the Commission and shall be subject to the approval of the Commission.

(d) Bonds issued hereunder shall be executed by the manual or facsimile signature of the Chairman of the Commission and by the manual signature of the Secretary of the Commission. The coupons attached to the bonds shall be executed by the facsimile signature of the Chairman of the Commission. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of such bonds or coupons, their signature shall nevertheless be valid and sufficient for all purposes. The Commission shall adopt and use a seal in the execution and issuance of bonds authorized hereunder and each bond shall be sealed with the seal of the Commission.

SECTION 12. It shall be plainly stated on the face of each bond that the same has been issued under the provisions of this Act and bonds issued hereunder shall be general obligations only of the Commission, and in no event shall they constitute an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues are pledged and the bonds shall not be secured by a mortgage or lien on any land or building belonging to the State of Arkansas. No member of the Commission shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purposes and intent of this Act unless he shall have acted with a corrupt intent.

SECTION 13. The principal of, interest on and paying agent's fees in connection with all bonds issued under this Act shall be secured by a lien on and pledge of the fee revenues referred to in Section 10 of this Act and the gross revenues derived from the leasing or renting of space in the State Department of Health Building to others, herein collectively referred to as “pledged revenues”, and such pledged revenues are hereby specifically declared to be cash funds restricted in their use, and dedicated and to be used solely as provided in this Act. There is hereby created a fund designated “State Department of Health Revenue Bond Fund” to be maintained at such depository as shall be specified by the Commission, which fund shall be a trust fund and after the issuance of any bonds hereunder moneys therein shall be appropriated solely for the payment of the principal of, interest on and paying agent's fees in connection with the bonds at maturity and at redemption prior to maturity, except moneys that are withdrawn therefrom pursuant to the subsequent provisions hereof, all as shall be specified and subject to the terms and conditions set forth in the authorizing resolution of the Commission. The pledged revenues shall not be deposited into the State Treasury, but, as and when received, shall be deposited into the State Department of Health Revenue Bond Fund. On March 1, June 1, September 1 and December 1 of each year, if not required for paying the principal of, interest on, and paying agent's fees in connection with the bonds as the same become due, there shall be released from the pledged revenues and withdrawn from the State Department of Health Revenue Bond Fund and deposited, as a special revenue, to the credit of the Public Health Fund in the State Treasury, that amount of the pledged revenues equaling the sum of the following:

One-half of the revenues derived from the fee referred to in Section 10 (a) (3) hereof;
One-fourth of the revenues derived from the fee referred to in Section 10 (a) (5) hereof;
One-half of the revenues derived from the fee referred to in Section 10 (a) (6) hereof;
One-half of the revenues derived from the fee referred to in Section 10 (a) (8) hereof;
One-fourth of the revenues derived from the fee referred to in Section 10 (a) (9) hereof.

The Commission may, if it so desires, use any of the pledged revenues in the State Department of Health Revenue Bond Fund prior to the issuance of any bonds hereunder for defraying the costs of the objects set forth in Section 6 of this Act. The principal of, interest on and paying agent's fees in connection with the bonds shall be payable solely from the moneys in the State Department of Health Revenue Bond Fund and the moneys required by this Act to be deposited into the State Department of Health Revenue Bond Fund. The Commission is directed to insert appropriate provisions in the authorizing resolution for the investing and reinvesting of moneys in the State Department of Health Revenue Bond Fund in short term direct obligations of the United States of America having maturity dates not later than the date that the moneys therein will be needed for the authorized purposes and all income derived from such investments shall be and become a part of the State Department of Health Revenue Bond Fund.

SECTION 14. All officers, departments, agencies and commissions of the State of Arkansas are hereby expressly authorized to execute and enter into Lease Agreements with the Commission for the leasing of space in the State Department of Health Building when there is space therein over and above the requirements of the State Board of Health, the State Health Officer, the State Department of Health, and the divisions, units, agencies, officers and employees required by this Act to be housed therein. Such Lease Agreements may be upon such conditions, for such terms, for such amounts, and containing such other provisions as may be determined by the Commission and the particular State Officer, department, agency or commission to be appropriate and in the best interests of all concerned. All such Lease Agreements and all covenants and agreements therein contained on the part of the parties thereto shall be binding in all respects upon the parties thereto and their successors from time to time, including any successor department, agency or commission performing the functions exercised by the department, agency or commission executing the Lease Agreement, in accordance with the terms of such covenants and agreements, and all of the provisions thereof shall be enforcible by mandamus or other appropriate proceedings at law or in equity.

SECTION 15. Each resolution authorizing the issuance of bonds under this Act shall, together with this Act, constitute a contract by and between the Commission and the holders and registered owners of the bonds issued hereunder, which contract, and all covenants, agreements and obligations therein, shall be promptly performed in strict accordance with the terms and provisions thereof, and the covenants, agreements and obligations of the Commission may be enforced by mandamus or other appropriate proceedings at law or in equity.

SECTION 16. Bonds issued under the provisions of this Act, and the interest thereon, shall be exempt from all state, county and municipal taxes, except property taxes, and this exemption shall include income, inheritance and estate taxes.

SECTION 17. The Board of Trustees of any retirement system now existing or hereafter created by the General Assembly of the State of Arkansas may, in its discretion, invest its funds in bonds issued under the provisions of this Act.

SECTION 18. The agency of the State authorized by law to audit the records and accounts of the various State agencies is hereby authorized and directed to audit the records and accounts of the Commission and to furnish a copy of the report thereof to the Commission.

SECTION 19. The Commission is hereby authorized to employ an architect to prepare plans, specifications and estimates of cost for the construction of the State Department of Health Building and to supervise and inspect such construction. After the Commission shall have approved the plans and specifications prepared by the architect, it shall proceed to advertise for bids and contract for the construction and equipping of the State Department of Health Building in accordance with applicable laws governing the constructing and equipping of public buildings. In addition, the Commission is hereby authorized to engage and pay such professional, technical and other help as it shall determine to be necessary or desirable in assisting it to effectively carry out the functions, powers and duties conferred and imposed upon it by this Act.

SECTION 20. The Commission shall include necessary provisions in the authorizing resolution to require the deposit of the proceeds of the bonds (except the accrued interest) into a special construction fund which shall be a trust fund in such depository as the Commission shall designate, which depository shall be a member of the Federal Deposit Insurance Corporation and all moneys in said construction fund in excess of the amount insured by the Federal Deposit Insurance Corporation must be secured by direct obligations of the United States of America, unless invested as hereafter provided. The accrued interest received by the Commission at the delivery of the bonds shall be deposited into the State Department of Health Revenue Bond Fund. The moneys in said construction fund shall be used solely as specified in Section 11 (a) hereof. The Commission shall include appropriate provisions in the authorizing resolution pertaining to the investing and reinvesting of moneys in said construction fund in short term direct general obligations of the United States of America and all income derived from such investments shall be deemed to constitute and be a part of said construction fund.

SECTION 21. Sole and complete jurisdiction and authority is hereby vested in the Commission to hold, deal with and dispose of the present State Department of Health building (called “present health building”). The Commission is hereby authorized and directed to take the necessary steps to either sell the present health building to another agency or department of the State of Arkansas upon such terms as shall be mutually agreeable to the parties involved or to lease all or portions of the present health building and space therein to other agencies and departments of the State of Arkansas upon such terms as shall be mutually agreeable to the parties involved. In this regard, all other agencies and departments of the State of Arkansas are hereby expressly authorized to execute and enter into necessary contracts and agreements, including lease agreements, with the Commission for the acquisition of or the leasing of space in the present health building.

SECTION 22. [Codified as 20-7-123n.]

SECTION 23. This Act shall be construed liberally. The enumeration of any object, purpose, power, manner, method and thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods or, things.

SECTION 24. This Act shall not create any right of any character, and no right of any character shall arise under or pursuant to it, unless and until the bonds authorized by this Act, or Series A in the event the bonds are delivered in series, shall have been actually sold and delivered by the Commission.

SECTION 25. The provisions of this Act are hereby declared to be severable. If any section, paragraph, sentence or clause of this Act shall be held unconstitutional or invalid, the invalidity of such section, paragraph, sentence or clause shall not affect the validity of the remainder of the Act.

SECTION 26. All acts and portions thereof in conflict herewith are hereby repealed to the extent of such conflict.

SECTION 27. It is hereby found and declared by the General Assembly that the present building is wholly inadequate to house the State Board of Health, the State Health Officer, the State Department of Health and the divisions, units, agencies, officers and employees thereof, with the result that it is impossible to properly and efficiently carry out functions and duties required by law; that because of such inadequacy the State is not having its health and related needs properly taken care of, all of which is to the detriment of the public health, safety and welfare; and that only by the immediate operation of this Act can these conditions be alleviated. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety, shall take effect and be in full force from and after its passage and approval. APPROVED: March 20, 1965.

3. War Memorial Stadium, Additional Bonds — Acts 1970 (1st Ex. Sess.), No. 9.

SECTION 1. The Stadium Commission created under the provisions of Act 249, approved March 18, 1947, is hereby authorized and empowered to borrow funds from time to time not exceeding the principal sum of $400,000 outstanding at any one time for the purpose of financing the cost of improvements to and extensions of the physical plant of War Memorial Stadium and expenses incidental thereto which the Stadium Commission may determine in its discretion to construct.

SECTION 2. As evidence of any such loan of funds the Stadium Commission is authorized and empowered to issue one series of bonds, certificates of indebtedness or other debt obligations provided that the principal amount thereof shall not exceed the sum of $400,000. Such bonds, certificates of indebtedness or other debt obligations shall have such date or dates, shall mature at such time or times, shall be in such form and denominations, may be subject to such terms of redemption, shall bear such rate or rates of interest and shall be sold for such price or prices, and in such manner, all as the Stadium Commission in its discretion by resolution shall determine. The said bonds, certificates of indebtedness or other debt obligations shall have all the qualities of negotiable instruments under the laws of the State of Arkansas. The said bonds, certificates of indebtedness or other debt obligations shall be considered as obligations only of the Stadium Commission, and in no event shall they ever be considered a debt for which the faith and credit of the State of Arkansas or any of its revenues are pledged.

SECTION 3. The Stadium Commission is empowered and authorized to provide for the retirement of such bonds, certificates of indebtedness or other debt obligations by a pledge of a portion of the net revenues of the Stadium Commission not otherwise pledged to secure existing debt, specifically including those funds presently pledged to payment of any outstanding 2-¼% War Memorial Stadium Revenue Bonds and also any outstanding War Memorial Stadium Revenue Refunding Bonds.

SECTION 4. This Act shall not create any right of any character and no right of any character shall arise under or pursuant to it, unless and until bonds, certificates of indebtedness or other debt obligations authorized by this Act shall have been actually sold and delivered.

SECTION 5. Interest on all bonds, certificates of indebtedness or other debt obligations issued under this Act shall be exempt from State Income Taxes and principal shall be exempt from Inheritance and Estate Taxes.

SECTION 6. The provisions of this Act are hereby declared to be severable. If any provision shall be held to be invalid or to be inapplicable to any person or circumstances, such holding shall not affect the validity or applicability of the remainder hereof.

SECTION 7. It has been found and is hereby declared by the General Assembly of the State of Arkansas that it is necessary at this time for certain extensions and improvements to be made to War Memorial Stadium, and that in order to accomplish same it is necessary for the Stadium Commission to be expressly authorized to immediately borrow funds for the financing of such improvements in order that same be completed by the 1970 football season; and that these necessary improvements can be accomplished only by the immediate effect of this Act. Therefore, an emergency is declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall be in effect from and after its passage and approval. APPROVED: March 13, 1970.

4. Arkansas Department of Public Safety Building Act — Acts 1977, No. 490 as amended by Acts 1979, No. 1086, §§ 2-5; 1980 (1st Ex. Sess.), No. 7.

SECTION 1. This Act shall be known and may be cited as the “Arkansas Department of Public Safety Building Act”.

SECTION 2. Whenever used in this Act, unless a different meaning clearly appears from the context:

“Act No. 716” means Act No. 716 of 1975, as now in effect or as hereafter amended.

“Agency” or “State agency” means any agency, board, officer, commission, department, division or institution of the State of Arkansas.

“Bonds” means bonds and any series of bonds authorized by and issued pursuant to the provisions of this Act.

“Building” means the Arkansas Department of Public Safety Building, the construction of which is authorized by this Act. As used herein, the term “Building” means a single building or such complex of buildings as may be determined best to serve the needs of the Department including the Crime Laboratory shall refer to and include such related structures, fixtures, and facilities (including, without limitation, parking facilities) as may be determined to be appropriate.

“Construct” means to acquire, construct, reconstruct, remodel, install, and equip any lands, buildings, structures, improvements, or other property, real, personal or mixed, useful in connection with the Building and to make other necessary expenditures in connection therewith, by such methods and in such manner as the State Building Services shall determine to be necessary or desirable to accomplish the powers, purposes, and authorities set forth in this Act.

“Division” means any division, bureau, section, office or officer of the Department.

“Department” means the Department of Public Safety of the State of Arkansas, created by Act No. 38 of 1971, as amended, and any successor agency.

“Pledged revenues” means all revenues authorized by Section 7 of this Act to be pledged for the security and payment of the bonds.

“The State Building Services” means Arkansas State Building Services, being the agency created by Act No. 716, or any successor agency.

SECTION 3. In addition to the powers, purposes, and authorities set forth elsewhere in this Act or in other laws, the State Building Services is hereby authorized and empowered to:

construct the Arkansas Department of Public Safety Building, on a site or sites selected by the State Building Services. In this regard, the State Building Services is authorized to acquire such site or sites, from a State agency or agencies and/or from a private owner or owners, by negotiation or by condemnation as provided by Section 3 of Act No. 716, which acquisition is hereby expressly approved;
arrange for the housing in the Building of the various divisions of the Department including the Crime Laboratory and arrange for the housing of other agencies and of other tenants to the extent that space and facilities may not be needed by the Department from time to time and with reference to other agencies and other tenants to rent, lease or otherwise make available space and facilities upon such terms and conditions and for such rentals and charges, if any, as the State Building Services may determine;
construct or cause to be constructed parking facilities to serve the Building;
obtain the necessary funds for accomplishing its powers, purposes, and authorities from any source or sources, including, without limitation, the proceeds of revenue bonds issued hereunder, funds appropriated and made available under Act No. 716, and funds, if any appropriated for the Building;
purchase, lease, or rent, and received bequests or donations of, or otherwise acquire, sell, trade, or barter, any property, (real, personal or mixed) and convert such property into money and/or other property;
contract and be contracted with;
apply for, receive, accept, and use any monies and property from the Government of the United States of America, any agency, any State or governmental body or political subdivision, any public or private corporation or organization of any nature, or any individual;
invest and reinvest any of its monies (in securities selected by the State Building Services);
take such other action, not inconsistent with law, as may be necessary or desirable to carry out the powers, purposes, and authorities set forth in this Act and to carry out the intent of this Act.

The powers, purposes, and authorities set forth herein shall be carried out in accordance with the duly promulgated policies of the State Building Services Council, under and pursuant to Act No. 716.

SECTION 4. The Department of Public Safety Building shall house the Department including the Crime Laboratory or such facilities and Division thereof as space and facilities will permit from time to time. In addition, to the extent that space and facilities are not at any time needed by the Department, the Building may house such other agencies and other tenants as the State Building Services shall determine.

SECTION 5. (a) The State Building Services is hereby authorized and empowered to issue revenue bonds, at one time or from time to time, and to use the proceeds thereof for defraying the costs of accomplishing all or part of the powers, purposes, and authorities set forth in this Act, paying all incidental expenses in connection therewith, paying the expenses of authorizing and issuing the bonds, establishing a debt service reserve to secure the payment of the bonds, if the State Building Services deems such desirable, and making provision for the payment of interest on the bonds during and for up to one (1) year after construction, if the State Building Services deems such desirable. Bonds outstanding under this Act shall not exceed Six Million Five Hundred Thousand Dollars ($6,500,000) in principal amount.

(b) The bonds shall be authorized by the resolution of the State Building Services Council (“authorizing resolution”). The bonds may be coupon bonds payable to bearer, or may be registrable as to principal only or as to principal and interest, may be made exchangeable for bonds of another denomination, may be in such form and denomination, may have such date or dates, may be stated to mature at such time or times, may bear interest payable at such times and at such rate or rates, provided that no bond may bear interest at a rate exceeding ten percent (10%) per annum, may be payable at such place or places within or without the State of Arkansas, may be made subject to such terms of redemption in advance of maturity at such prices, and may contain such terms and conditions, all as the State Building Services shall determine. The bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration, as set forth above. The authorizing resolution may contain any other terms, covenants, and conditions that are deemed desirable by the State Building Services, including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional bonds and the nature of the lien and pledge (parity or priority) in that event, the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the investing and reinvesting (in securities specified by the State Building Services) of any funds during periods not needed for authorized purposes, and the rights, duties, and obligations of the State Building Services and of the holders and registered owners of the bonds.

The authorizing resolution may provide for the execution by the State Building Services with a bank or trust company within or without the State of Arkansas of a trust indenture. The trust indenture may contain any terms, covenants, and conditions that are deemed desirable by the State Building Services, including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional bonds, and the nature of the lien and pledge (parity or priority) in that event, the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the investing and reinvesting (in securities specified by the State Building Services) of any funds during periods not needed for authorized purposes, and the rights, duties, and obligations of the State Building Services and of the holders and registered owners of the bonds.

(c) The bonds shall be sold at public sale on sealed bids, and notice of the sale shall be published once in a newspaper published in the City of Little Rock, Arkansas, having a general circulation throughout the State of Arkansas, at least twenty (20) days prior to the date of sale, and may be published in such other publications as the State Building Services may determine. The bonds may be sold at such price as the State Building Services may accept, including sale at a discount, but in no event shall any bid be accepted which results in a net interest cost (determined by computing the aggregate interest cost from date to maturity at the rate or rates bid and deducting any premium or adding the amount of any discount) in excess of the interest cost computed at par for bonds bearing interest at the rate of ten percent (10%) per annum. The award, if made, shall be to the bidder whose bid results in the lowest net interest cost.

(d) The bonds shall be executed by the manual or facsimile signatures of the Chairman and Secretary of the State Building Services Council, provided that one of such signatures must be manual. The coupons attached to the bonds shall be executed by the facsimile signature of the Chairman of the Council. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of such bonds or coupons, their signature shall, nevertheless, be valid and sufficient for all purposes. The State Building Services shall adopt and use a seal in the execution and issuance of the bonds, and each bond shall be sealed with the seal of the State Building Services.

(e) There may be issued separate bonds hereunder and separate series within each issue. In any event, the authorizing resolution shall specify the amount of revenues derived from motor vehicle inspection fees identified in subsection (a) of Section 7 to be pledged for the security and payment of bonds authorized hereby.

SECTION 6. (a) It shall be plainly stated on the face of each bond that it has been issued under the provisions of this Act, that the bonds shall be obligations only of the State Building Services, that in no event shall they constitute an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues (within the meaning of Amendment No. 20 to the Constitution of the State of Arkansas) are pledged, and that they are not secured by a mortgage or lien on any land or buildings belonging to the State of Arkansas. No member of the State Building Services Council shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purposes and intent of this Act, unless he shall have acted with a corrupt intent.

(b) The principal of, premiums, if any, interest on, and trustee's and paying agent's fees in connection with the bonds shall be secured by a lien on and pledge of and shall be payable from the pledged revenues, defined in Section 7 hereof. The authorizing resolution or trust indenture shall set forth details of the nature and extent of the lien and pledge, including provision for the use of surplus revenues, if any, for other lawful purposes.

SECTION 7. (a) The principal of, premiums, if any, interest on, and trustees' and paying agents' fees in connection with all bonds issued under this Act shall be secured solely by a lien on and pledge of:

all revenue derived from a fee of forty-one cents ($.41), hereby fixed and levied as an allocation of each fee for the inspection of any motor vehicle pursuant to Act 638 of 1967, as amended, or pursuant to any similar law, provided that the authorizing resolution shall designate the amount of each fee pledged to the bond issued pursuant to said resolution, and
the gross revenues, if any, derived from the leasing or renting to other agencies or other tenants of space in the Building, the pledging of such revenues (collectively the “pledged revenues”) being hereby authorized. All pledged revenues are hereby specifically declared to be cash funds restricted in their use and dedicated and to be used solely as provided and authorized in this Act. Commencing the first day of the month next succeeding the issuance of bonds hereunder and so long as any bonds are outstanding hereunder, the pledged revenues shall not be deposited into the State Treasury and shall not be subject to legislative appropriation but, as and when received (by the Department, by the State Building Services, or by any other State agency, as the case maybe) shall be deposited in a bank or banks selected by the State Building Services, to the credit of funds designated the “Department of Public Safety Building Revenue Bond Fund”, with appropriate identification for separate issues or series. So long as any bonds are outstanding hereunder, all monies in any bond fund shall be used solely for the payment of the principal of, premiums, if any, interest on, and trustees' and paying agents' fees in connection with the bonds, with the maintenance of necessary funds and reserves, except that the authorizing resolution or trust indenture may provide for the withdrawal, for other purposes, of surplus monies, as defined in the authorizing resolution or trust indenture. Nothing in this Section 7 is intended to prohibit the State Building Services from investing monies received hereunder, as provided in this Act.

(b) The State Building Services may use any of the pledged revenues prior to the issuance of any bonds hereunder for defraying costs of accomplishing the powers, purposes, and authorities set forth in this Act.

(c) So long as there are outstanding any bonds issued under this Act, the General Assembly may eliminate or change the fees for the inspection of motor vehicles, under Act No. 638 of 1967, or any subsequent similar law, but only on condition that there is always maintained in effect and made available for the payment of outstanding bonds sources of revenue which produce revenues at least sufficient in amount to provide for the payment when due of the principal of, premium, if any, interest on, and trustee's and paying agent's fees in connection with the outstanding bonds and to comply with all covenants (including, without limitation, the maintenace of funds and revenues) in favor of the holders or registered owners of such outstanding bonds.

SECTION 8. Any authorizing resolution and trust indentures shall, together with this Act, constitute a contract between the State Building Services and the holders and registered owners of the bonds, which contract, and all covenants, agreements and obligations therein, shall be promptly performed in strict compliance with the terms and provisions of such contact, and the covenants, agreements, and obligations of the State Building Services may be enforced by mandamus or other appropriate proceedings at law or in equity. In this regard, in addition to other provisions referred to above, the State Building Services is hereby expressly authorized to include in any authorizing resolution or trust indenture all or any part of the following covenants:

that, to the full extent possible, it will continuously operate the building as a revenue-producing undertaking, including the maintenance of occupancy and use of facilities and space so as to avoid any impairment of the security for the bonds; and
that, to the full extent possible, it will always charge, impose and collect sufficient revenues (including, without limitation, rentals) to meet, as due, all debt service requirements, maintain reserves at proper levels, and otherwise comply with any provisions of authorizing resolutions or trust indentures concerning revenues and funds.

SECTION 9. It has been found by the General Assembly of the State of Arkansas that adequate housing for the Department of Public Safety is essential to the proper administration of any motor vehicle safety inspection program and to motor vehicle and highway safety generally.

SECTION 10. Bonds issued under the provisions of this Act, and the interest thereon, shall be exempt from all State, county, and municipal taxes, except property taxes, and the exemption shall include income, inheritance, and estate taxes.

SECTION 11. Any municipality, or any board, commission or other governing authority duly established by ordinance of any municipality, or the governing authorities, respectively, of the firemen's relief and pension fund, and the policemen's pension and relief fund of any such municipality, or the governing authority of any retirement system created by the General Assembly of the State of Arkansas, or any agency may, in its discretion, invest any of its funds not immediately needed for its purposes in bonds issued under the provisions of this Act, and bonds issued under the provisions of this Act shall be eligible to secure the deposit of public funds.

SECTION 12. The State Building Services is hereby authorized to employ architects to prepare plans, specifications, and estimates of cost for the construction of the Building and to supervise and inspect such construction. After the State Building Services shall have approved the plans and specifications prepared by the architect, it shall proceed to advertise for bids and contract for the construction of the Building in accordance with applicable laws governing the construction of public buildings. In addition, the State Building Services is hereby authorized to engage and pay such professional, technical, and other help as it shall determine to be necessary or desirable in assisting it to carry out effectively the authorities, functions, powers, and duties conferred and imposed upon it by this Act.

SECTION 13. The State Building Services shall include necessary provisions in the authorizing resolution or trust indenture to require the deposit of the proceeds of the bonds, or any series thereof (except amounts for interest or reserves, which may be deposited in the Bond Fund) into a special Construction Fund (“Construction Fund”) which shall be a trust fund in such depository as the State Building Servies shall designate, which depository shall be a member of the Federal Deposit Insurance Corporation, and all monies in the Construction Fund in excess of the amount insured by the Federal Deposit Insurance Corporation must be secured by direct obligations of the United States of America, unless invested in securities specified by the State Building Services. The monies in the Construction Fund shall be used solely for the powers, purposes, and authorities set forth in this Act.

SECTION 14. Bonds may be issued for the purpose of refunding any bonds issued under this Act. Refunding bonds may either be sold or delivered in exchange for the bonds being refunded. If sold, the proceeds may be either applied to the payment of the bonds being refunded or deposited in trust and there maintained in cash or authorized investments for the retirement of the bonds being refunded, as shall be specified by the State Building Services in the authorizing resolution or trust indenture securing the refunding bonds and subject to compliance with the provisions of the authorizing resolution or trust indenture securing the bonds being refunded. The authorizing resolution or trust indentures securing the refunding bonds may provide that the refunding bonds shall have the same priority of pledge as was enjoyed by the bonds refunded. Refunding bonds shall be sold and secured in accordance with the provisions of this Act pertaining to the sale and security of bonds.

SECTION 15. This Act shall not create any right in any bondholder for bonds issued pursuant to this Act, and no right for such bondholder shall arise under it, until bonds authorized by this Act (or the initial issue or series) shall have been sold and delivered by the State Building Services.

SECTION 16. This Act shall be construed liberally. The enumeration of any object, purpose, power, manner, method, and thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods, and things.

SECTION 17. The provisions of this Act are hereby declared to be severable. If any provision of this Act shall be held invalid or inapplicable to any person, firm or circumstance, such invalidity or inapplicability shall not effect the validity or inapplicability of the remainder of the Act.

SECTION 18. This Act shall be complete and sole authority for the accomplishment of the purposes hereof. To the extent that there is a conflict between the provisions of this Act and Act No. 716, the provisions of this Act shall govern. All laws and parts of laws in conflict herewith, except Act No. 716, are hereby repealed to the extent of such conflict.

SECTION 19. The General Assembly hereby finds and declares the present facilities for the housing of the Department of Public Safety are not adequate and that there is an urgent need that the Building be constructed in order that the Department may continue to carry out its responsibilities. Therefore, an emergency is declared to exist and this Act being necessary for the preservation of the public peace, health and safety, shall be effective upon its passage and approval. APPROVED: March 18, 1977.

5. Arkansas State Education Building Expansion Act — Acts 1977, No. 554.

SECTION 1. This Act may be referred to and cited as the “Arkansas State Education Building Expansion Act.”

SECTION 2. Whenever used in this Act, unless a different meaning clearly appears from the context:

“Agency” or “state agency” means any agency, board, officer, commission, department, division or institution of the State of Arkansas.

“Board” means the State Board of Education of the State of Arkansas.

“Bonds” means bonds and any series of bonds authorized by and issued pursuant to the provisions of this Act.

“1969 Bonds” means the State Board of Education of the State of Arkansas Building Revenue Bonds, dated March 1, 1969, authorized by and issued under Act No. 18 of the First Extraordinary Session of the Sixty-Sixth General Assembly of the State of Arkansas, approved February 15, 1968.

“Building” means the State Education Building, located on the State Capitol Grounds, including the structure known as the Arch Ford Education Building. The Building also includes the Expansion.

“Construct” means to acquire, construct, reconstruct, remodel, install, and equip any lands, buildings, structures, improvements, or other property, real, personal or mixed, useful in connection with the Expansion, and to make other necessary expenditures in connection therewith, by such methods and in such manner as the Board shall determine to be necessary or desirable to accomplish the powers, purposes and authorities set forth in this Act in accordance with Act No. 716 of 1975 as and to the extent applicable.

“Division” means any division, bureau, section, office or officer of the Department.

“Department” means the Department of Education of the State of Arkansas.

“Expansion” means any additions, extensions, or improvements to the Building and may include parking facilities to serve the Building and any necessary or appropriate remodeling and improvements to the present Building and its facilities, with appropriate equipment and furnishings, all as determined by the Board.

“Pledged revenues” means all revenues authorized by Section 7 of this Act to be pledged for the security and payment of the bonds.

SECTION 3. In addition to the powers, purposes and authorities set forth elsewhere in this Act, the Board is hereby authorized and empowered to:

Construct an Expansion to the Building on a site or sites selected by the Board. In this regard, the appropriate agency in charge of the lands upon which a site may be selected is hereby authorized and directed to negotiate with the Board and to make available to the Board such lands as may be necessary for a site, including adequate parking area, at such location as will not unreasonably interfere with the needs of other state agencies.
Arrange for the housing of the various divisions of the Department, other agencies as space and facilities may permit from time to time and with reference to other agencies to rent, lease or otherwise make available space upon such terms and conditions and for such rentals and charges, if any, as the Board may determine.
Construct or cause to be constructed parking facilities to serve the Building, including the Expansion, and other agencies and the public having business therein.
Obtain the necessary funds for accomplishing its powers, purposes and authorities.
Purchase, lease or rent and receive bequests or donations of or otherwise acquire, sell, trade, or barter, any property, (real, personal or mixed) and convert into money and/or other property any property not needed or which cannot be used in its then current form.
Refund and/or pay and discharge, or provide therefor, the outstanding 1969 Bond.
Contract and be contracted with.
Apply for, receive, accept and use any moneys and property from the Government of the United States of America, any agency, any state or governmental body or political subdivision, any public or private corporation or organization of any nature, or any indivdual.
Invest and reinvest any of its moneys (in securities selected by the Board).
Take such other action, not inconsistent with law, as may be necessary or desirable to carry out the powers, purposes and authorities set forth in this Act and to carry out the intent of this Act.

The powers, purposes and authorities set forth herein shall be carried out in accordance with the duly promulgated policies of the State Building Services Council, under and pursuant to Act No. 716 of 1975.

SECTION 4. The Building, including after its completion the Expansion, shall house the Department or such facilities and divisions thereof as the Board shall determine. In addition, the Building and the Expansion may house such agencies and others as space and facilities will permit from time to time, as determined by the Board.

SECTION 5. (a) The Board is hereby authorized and empowered to issue bonds, at one time or in series from time to time, and to use the proceeds thereof, together with any other available funds, for financing the costs of constructing the Expansion, together with all expenses incidental to and reasonably necessary in connection therewith, the expenses of the issuance of bonds, the creation and maintenance of reserves to secure the payment of the bonds, if the Board deems it necessary or desirable, and the payment of interest on the bonds, if necessary or desirable, until sufficient funds are available therefor out of pledged revenues.

(b) The bonds shall be authorized by resolution of the Board. The bonds may be coupon bonds, payable to bearer, or may be registrable as to principal only, or may be registrable as to both principal and interest; may contain such exchange provisions; may be in such form and denomination; may have such date or dates; may be stated to mature at such time or times; may bear interest payable at such times and at such rate or rates, provided that no bonds of any series may bear interest at a rate or rates exceeding 10% per annum; may be made payable at such places within or without the State of Arkansas; may be made subject to such terms of redemption in advance of maturity at such times and at such prices; and may contain such other terms and conditions, all as the Board shall determine. The bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration of ownership as set forth above. The authorizing resolution may contain any terms, covenants and conditions that are deemed necessary or desirable by the Board, including without limitation, those pertaining to the creation and maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional series of bonds (and the priority of lien and pledge in that event) and the rights, duties and obligations of the Board and of the holders and registered owners of the bonds, all as the Board shall determine. The authorizing resolution may provide for the execution of a trust indenture, with a bank or trust company located within or without the State of Arkansas, containing the terms, covenants and conditions authorized by this Act.

(c) Bonds issued hereunder shall be sold at public sale on sealed bids. Notice of this sale shall be published in such publication within and/or without the State of Arkansas for such time or times, and information pertaining to the Board and the bonds shall be prepared and distributed in such form and manner and to such prospective purchasers as the Board shall determine to be best designed to obtain the most favorable bidding. The bonds may be sold at such price as the Board may accept, but in no event shall any bid be accepted which results in an interest rate in excess of 10% per annum (treating the amount of any discount as interest). The award, if made, shall be to the bidder whose bid results in the lowest net interest cost, determined by computing the aggregate interest cost at the rate bid and deducting the amount of any premium and adding the amount of any discount. The Board of Trustees of the Arkansas Teacher Retirement System is hereby authorized to enter a bid for the bonds and is hereby authorized, in the event that no bid should be received for the bonds, to negotiate for and purchase the bonds from the Board.

(d) Bonds outstanding hereunder shall not exceed $1,200,000 in principal amount (except as set forth in Section 13 hereof).

(e) Bonds issued hereunder shall be executed by the Chairman of the Board and the Secretary of the Board (by manual or facsimile signatures with at least one manual signature). The coupons attached to the bonds shall be executed by the facsimile signature of the Chairman of the Board. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of such bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes. Each bond shall be sealed with the seal of the Board.

SECTION 6. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this Act. Bonds issued hereunder shall be obligations only of the Board, and in no event shall they constitute an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues (as used in Amendment No. 20 to the Constitution of the State of Arkansas) are pledged. The bonds shall not be secured by a mortgage or lien on any land, building or property belonging to the State of Arkansas. No member of the Board shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into or action taken in carrying out the powers, purposes or authorities of this Act unless he shall have acted with a corrupt intent.

SECTION 7. (a) The principal of, premiums, if any, interest on, and trustee's and paying agent's fees in connection with all bonds issued under this Act shall be secured by a lien on and pledge of all or any part of:

all interest received on revolving loan bonds and revolving loan certificates of indebtedness held in the (Permanent School) Revolving Loan Fund, pursuant to Act No. 384 of 1953, as amended, or any similar law (the revolving loan obligations),
the gross revenues derived from the leasing or renting of space in the Building, and
revenues derived from or attributable to the use of space in the Building, to the extent that such revenues may be pledged (collectively the “pledged revenues”). Such pledged revenues are hereby specifically declared to be cash funds, restricted in their use and dedicated and to be used solely as provided in this Act.

The pledged revenues shall be deposited in a trust fund in the State Treasury designated the “State Board of Education Building Expansion Revenue Bond Fund”, to be appropriated and applied solely to the payment of the principal of, premiums, if any, interest on, and trustee's and paying agent's fees in connection with the bonds and for the creation and maintenance of reserves as specified by the authorizing resolution or trust indenture (the “debt service requirements”), except that moneys may be withdrawn pursuant to the provisions hereinbelow. In the event, however, that at any time while the bonds are outstanding, the General Assembly should fail, prior to June 1 of any odd-numbered year, to appropriate, for the ensuing biennium, all of the pledged revenues to payment of the debt service requirements of the bonds (as set forth in detail in the authorizing resolution or trust indenture), the pledged revenues shall, commencing fifteen days after such June 1, be deposited by the Board, as and when received by the Board, in a bank or banks selected by the Board, and not in the State Treasury, and shall thereupon and thereafter be so deposited, as a trust fund, and applied to payment of the debt service requirements on the bonds (except as set forth hereinbelow). As used in this Act the term “Bond Fund” shall refer and include the Treasury Fund and any other (non-treasury) fund established under this Section 7.

The authorizing resolution or trust indenture may provide that, as and to the extent not required for paying the principal of, premiums, if any, interest on, and trustee's and paying agent's fees in connection with the bonds, or for making deposits to required reserves, moneys shall be released from the pledged revenues and withdrawn from the Bond Fund, for deposit in a special account or accounts of the Board, and used for the purpose of paying costs of operation and maintenance of the Building.

(b) So long as any of the bonds are outstanding, the Treasurer of State shall be authorized and directed to invest (in securities selected by the Treasurer) moneys at any time held in the (permanent school) Revolving Loan Fund as may be necessary to provide for payment of the debt service requirements.

(c) Subject to any covenants and pledges in connection with any outstanding 1969 Bonds, the Board may, if it so desires, use any of the pledged revenues in the Bond Fund prior to the issuance of any bonds hereunder for defraying the costs of accomplishing the powers, purposes and authorities of the Board under this Act. The principal of, premiums, if any, interest on, and trustee's and paying agent's fees in connection with the bonds shall be payable solely from the moneys in the Bond Fund and the moneys required by this Act to be deposited into the Bond Fund. The Board is directed to insert appropriate provisions in the authorizing resolution or trust indenture for the investing and reinvesting of moneys in the Bond Fund (in securities selected by the Board), and all income derived from such investments shall be and become a part of the Bond Fund.

(d) Notwithstanding any provision of this Act, nothing herein shall be construed to authorize the pledging or assignment of any revolving loan bonds or revolving loan certificates of indebtedness now or hereafter pledged to secure payment of any of the Board's Arkansas State Board of Education Consolidated Revolving Loan Bonds issued under the authority of Act No. 59 of 1973, or any similar law hereafter enacted, or Certificates of Indebtedness issued by the Board under the authority of Act No. 479 of 1967, or any similar law.

(e) The Board may require that there be delivered to the Board in connection with the acquisition of all revolving loan obligations a copy of the resolution of the board of directors of the issuing school district authorizing the pledged securities, together with a certificate executed by the president and secretary of the board of directors certifying that the action necessary for the valid authorization and issuance of the revolving loan obligations has been duly taken, setting forth a description of such action, and, in the case of revolving loan obligations secured in whole or in part by a pledge of collections of an ad valorem tax, accompanied by a certificate executed by the county clerk or county clerks of the county or counties in which the issuing school district is located certifying that such tax has been or will be extended for collection and setting out the year in which such collection commenced or will commence. Upon delivery to the Board of such resolution and certificate (or certificates, as the case may be) the revolving loan obligations covered thereby shall be conclusively deemed to be valid, and the validity of such revolving loan obligations shall not thereafter be subject to challenge on any ground. The Board may prescribe the form of the resolution and certificates provided for in this subsection (e).

SECTION 8. All state agencies are hereby expressly authorized to execute and enter into agreements with the Board for leasing or renting of space in the Building when there is space therein over and above the requirements of the Department and the divisions thereof. Such agreements may be upon such conditions, for such terms, for such amounts, and containing such other provisions as may be determined by the Board and the state agency involved to be appropriate and in the best interest of all concerned. All such agreements and all covenants and agreements therein contained on the part of the parties thereto shall be binding in all respects upon the parties thereto and their successors from time to time, including any successor performing the functions exercised by the state agency executing the agreement, in accordance with the terms of such covenants and agreements, and all of the provisions thereof shall be enforceable by mandamus or other appropriate proceedings at law or in equity.

SECTION 9. Each authorizing resolution or trust indenture shall, together with this Act, constitute a contract by and between the Board and the holders and registered owners of the bonds issued hereunder, which contract, and all covenants, agreements and obligations therein, shall be promptly performed in strict accordance with the terms and provisions thereof, and the covenants, agreements and obligations of the Board may be enforced by mandamus or other appropriate proceedings at law or in equity.

SECTION 10. Bonds issued under the provisions of this Act, and the interest thereon, shall be exempt from all state, county and municipal taxes, except property taxes, and this exemption shall include income, inheritance and estate taxes.

SECTION 11. Any municipality, or any board, commission or other governing authority duly established by ordinance of any municipality, or the governing authorities, respectively, of the fireman's relief and pension fund and the policeman's pension and relief fund of any such municipality, or the governing authority of any retirement system created by the General Assembly of the State of Arkansas, or any agency may, in its discretion, invest any of its funds not immediately needed for its purposes in bonds issued under the provisions of this Act, and bonds issued under the provisions of this Act shall be eligible to secure the deposit of public funds.

SECTION 12. The Board is hereby authorized to employ an architect to prepare plans, specifications and estimates of cost for the construction of the Expansion and to supervise and inspect such construction. In addition, the Board is hereby authorized to engage and pay such professional, technical and other help as it shall determine to be necessary or desirable in assisting it effectively to carry out the powers, purposes and authorities conferred and set forth in this Act.

SECTION 13. (a) Unless refunded as hereinafter authorized, the 1969 Bonds, so long as they are outstanding, shall be secured by a prior lien on and pledge of the pledged revenues, and nothing herein shall be construed as impairing their security as provided in the resolution of the Board securing the 1969 Bond.

(b) The Board is hereby authorized, in its discretion, to refund and discharge the outstanding 1969 Bonds, as hereinafter provided. If the Board determines so to proceed, the necessary additional principal amount of bonds to accomplish the refunding shall be issued and proceeds thereof shall be applied by the Board to the payment and redemption (principal, premiums, if any, interest, and fees and expenses) of all of the outstanding 1969 Bonds. Pending surrender of the 1969 Bonds, the necessary moneys shall be deposited in trust in the bond fund established pursuant to the provisions of the resolution authorizing the 1969 Bonds (the “1969 bond fund”). The Board shall invest, or authorize the investment of, the moneys in the 1969 bond fund to the full extent feasible, as determined by the Board, in direct or fully guaranteed obligations of the United States of America. All moneys in the 1969 bond fund shall be used for no other purpose than the payment of the principal, premiums, if any, interest and fees and expenses incurred in connection with the payment and redemption of the 1969 Bonds. Upon deposit in the 1969 bond fund of the moneys provided for herein, the 1969 Bonds shall be deemed to be paid and discharged.

(c) The Board shall include necessary provisions in the authorizing resolution for the bonds issued under this Act, or in the trust indenture, for deposit of the proceeds of the bonds (other than amounts for interest or reserves which shall be deposited in the Bond Fund and the amount, if any, to be deposited pursuant to the provisions of subsection (b) of this Section) into a special Construction Fund (the “Construction Fund”) which shall be a trust fund maintained in such depository as the Board shall designate. The moneys in the Construction Fund shall be used to carry out the powers, purposes and authorities of the Board specified in this Act. The Board shall include appropriate provisions in the authorizing resolution or trust indenture governing the securing of and the investing and reinvesting of moneys in the Construction Fund (in such securities as shall be determined by the Board to be appropriate and as shall be specified in the authorizing resolution or trust indenture).

SECTION 14. There is hereby appropriated, to the Construction Fund, for the purpose of paying the costs of construction of the Expansion and other expenses incidential thereto the following:

the proceeds of the bonds, as set forth herein, not to exceed the sum of $ 1,200,000;
any balance remaining in the 1969 bond fund, after payment and redemption of the 1969 Bonds, not to exceed the sum of $ 500,000; and
any unobligated balance remaining in the FED — National Defense Education Fund, not to exceed the sum of $ 34,906.66.

SECTION 15. Upon the refunding of the 1969 Bonds as authorized by Section 3 hereof, the following shall be repealed and of no further force and effect: (1) Act No. 443 of 1963; (2) Act No. 18 of the First Extraordinary Session of the Sixty-Sixth General Assembly of the State of Arkansas, approved February 15, 1968; (3) Section 13 (a) of Act No. 384 of 1953, as amended.

SECTION 16. This Act shall be construed liberally. The enumeration of any object, purpose, power, manner, method and thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods, or things.

SECTION 17. This Act shall not create any right of any character, and no right of any character shall arise under or pursuant to it, unless and until the bonds authorized by this Act, or the initial series, shall have been sold and delivered by the Board.

SECTION 18. The provisions of this Act are hereby declared to be severable. If any section, paragraph, sentence or clause of this Act shall be held unconstitutional or invalid, the invalidity of such section, paragraph, sentence or clause shall not affect the validity of the remainder of the Act.

SECTION 19. All laws and portions thereof in conflict herewith are hereby repealed to the extent of such conflict.

SECTION 20. It is hereby found and declared by the General Assembly that the Building is inadequate to house the Department and the divisions thereof, with the result that it is impossible properly and efficiently to carry out functions and duties required by law, to the detriment of the public health and safety, and that only by the immediate operation of this Act can these conditions be bettered. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect upon its passage and approval.

6. Arkansas State Department of Health Building Expansion Act — Acts 1977, No. 686, as amended by Acts 1997, No. 250.

SECTION 1. This Act may be referred to and cited as the “Arkansas State Department of Health Building Expansion Act.”

SECTION 2. Whenever used in this Act, unless a different meaning clearly appears from the context:

“Act No. 469” means Act No. 469 of 1965.

“Agency” or “state agency” means any agency, board, officer, commission, department, division or institution of the State of Arkansas.

“Bonds” means bonds and any series of bonds authorized by and issued pursuant to the provisions of this Act.

“1966 Bonds” means the Arkansas State Department of Health Building Commission Revenue Bonds, dated December 1, 1966, authorized by and issued under Act No. 469.

“Building” means the State Department of Health Building constructed and financed under the provisions of Act No. 469, including the Expansion.

“Commission” means the Arkansas State Department of Health Building Commission, established by Act No. 469.

“Construct” means to acquire, construct, reconstruct, remodel, install and equip any lands, buildings, structures, improvements, or other property, real, personal or mixed, useful in connection with the Expansion, and to make other necessary expenditures in connection therewith, by such methods and in such manner as may be authorized by law, and in the case of the acquisition of equipment and other property of a medical, laboratory or technical nature by such method as the Commission shall determine to be necessary or desirable to accomplish the power, purposes and authorities set forth in this Act and without regard to the provisions of other laws pertaining to the construction and acquisition of property by state agencies. The term “construct” also includes payment or provision for expenses incidental thereto.

“Division” means any division, bureau, section, office or officer of the Department of Health.

“Expansion” means any additions, extensions, or improvements to the Building and may include any necessary or appropriate remodeling and improvements to the present Building and its facilities, with appropriate equipment and furnishings, all as determined by the Commission.

“Fees” means the fees confirmed, ratified, fixed and imposed by this Act, as set forth in Section 6 of this Act.

“Fee revenues” means all revenues derived from the fees.

“Pledged revenues” means all revenues authorized by Section 9 of this Act to be pledged for the security and payment of the bonds, being fee revenues and gross revenues derived from the leasing or rental of space.

SECTION 3. In addition to the powers, purposes and authorities set forth elsewhere in this Act, the Arkansas State Department of Health Building Commission is hereby authorized and empowered to:

Construct an Expansion to the State Department of Health Building, on a site or sites selected by the Commission. In this regard, the appropriate state agency in charge of the lands upon which a site may be selected is hereby authorized and directed to negotiate with the Commission and to make available to the Commission such lands as may be necessary for a site, including adequate parking area, at such location as will not unreasonably interfere with the needs of the particular agency or of other state agencies.
Arrange for the housing of the various divisions of the Department of Health and such other agencies as space and facilities may permit from time to time and with reference to other agencies to rent, lease or otherwise make available space upon such terms and conditions and for such rentals and charges, if any, as the Commission may determine.
Construct or cause to be constructed parking facilities to serve the Building, the Expansion and other agencies and the public having business therein.
Obtain the necessary funds for accomplishing its powers, purposes and authorities.
Purchase, lease or rent and receive bequests or donations of or otherwise acquire, and sell, trade, or barter, any property, (real, personal or mixed) and convert into money and/or other property any property not needed or which cannot be used in its then current form.
Refund and/or pay and discharge, or provide therefor, the outstanding 1966 Bonds.
Establish accounts in one or more banks, and thereafter from time to time make deposits in and withdrawals from such accounts.
Contract and be contracted with.
Apply for, receive, accept and use any moneys and property from the Government of the United States of America, any state agency, any state or governmental body or political subdivision, any public or private corporation or organization of any nature, or any individual.
Invest and reinvest any of its moneys (in securities selected by the Commission).
Take such other action, not inconsistent with law, as may be necessary or desirable to carry out the powers, purposes and authorities set forth in this Act and to carry out the intent of this Act.

SECTION 4. (a) In addition to the powers, purposes and authorities conferred by this Act, the powers conferred by and the provisions contained in Act No. 469 except as they may be inconsistent with any of the provisions of this Act, are hereby confirmed, continued, ratified and reenacted, including without limitation the provisions of Act No. 469 pertaining to organization of the Commission, and meetings of the Commission. Members of the Commission may receive expense reimbursement in accordance with Arkansas Code 25-16-901 et seq.

(b) This Act shall constitute the sole authority necessary to accomplish the powers, purposes and authorities set forth herein. The powers, purposes and authorities set forth in this Act may be exercised by or on behalf of the Commission without necessity for the approval of any other agency of the State of Arkansas and without compliance with any other act or law pertaining to such powers, purposes or authorities.

SECTION 5. The Building, including after its completion the Expansion, shall house the Department of Health or such facilities and divisions thereof as the Department of Health shall determine. In addition, the Building and the Expansion may house such others as space and facilities will permit from time to time, as determined by the Commission.

SECTION 6. (a) The fees prescribed in Section 10 of Act 469 (as, in some cases, described in detail in the Vital Statistics Act of 1965, Act No. 471 of 1965, as amended) as now existing or as hereafter amended, are hereby confirmed, ratified, fixed and imposed.

(b) All fee revenues are hereby declared to be cash funds, and shall not be deposited in the Treasury, except as set forth in this Act, but shall be deposited in a bank or banks selected by the Commission. The fee revenues shall be collected and applied as in this Act provided until the principal of, premiums, if any, and interest on all bonds issued under this Act, with trustee's and paying agent's fees, shall be paid or adequate provision made for their payment; provided, however, particular fees may be varied as to amount or new fees substituted or added so long as there is no reduction in gross fee revenues that would have been collected had there been no such change, substitution or addition, and the term “fee revenues” includes the revenues derived from all such fees.

SECTION 7. (a) The Commission is hereby authorized and empowered to issue bonds, at one time or in series from time to time, and to use the proceeds thereof, together with any available funds, for financing the costs of constructing the Expansion, together with all expenses incidential to and reasonably necessary in connection therewith, the expenses of the issuance of the bonds, the creation and maintenance of reserves to secure the payment of the bonds, if the Commission deems it necessary or desirable, and for providing for the payment of interest on the bonds, if necessary or desirable, until sufficient funds are available therefor out of pledged revenues.

(b) The bonds shall be authorized by resolution of the Commission. The bonds may be coupon bonds, payable to bearer, or may be registrable as to principal only, or may be registrable as to both principal and interest; may contain such exchange provisions, may be in such form and denomination; may have such date or dates; may be stated to mature at such time or times; may bear interest payable at such times and at such rate or rates, provided that no bonds of any series may bear interest at a rate or rates exceeding 10% per annum; may be made payable at such places within or without the State of Arkansas; may be made subject to such terms of redemption in advance of maturity at such times and at such prices; and may contain such other terms and conditions, all as the Commission shall determine. The bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration of ownership as set forth above. The authorizing resolution may contain any terms, covenants and conditions that are deemed necessary or desirable by the Commission, including without limitation, those pertaining to the creation and maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional series of bonds (and the priority of lien and pledge in that event) and the rights, duties and obligations of the Commission and of the holders and registered owners of the bonds, all as the Commission shall determine. The authorizing resolution may provide for the execution of a trust indenture, with a bank or trust company located within or without the State of Arkansas, containing the terms, covenants and conditions authorized by this Act.

(c) Bonds issued hereunder shall be sold at public sale on sealed bids. Notice of the sale shall be published in such publications within and/or without the State of Arkansas for such time or times, and information pertaining to the Act, the Commission and the bonds shall be prepared and distributed in such form and manner as to such prospective purchasers as the Commission shall determine to be best designed to obtain the most favorable bidding. The bonds may be sold at such price as the Commission may accept, but in no event shall any bid be accepted which results in an interest rate in excess of 10% per annum (treating the amount of any discount as interest). The award, if made, shall be to the bidder whose bid results in the lowest net interest cost, determined by computing the aggregrate interest cost at the rate bid and deducting the amount of any premium and adding the amount of any discount.

(d) Bonds outstanding hereunder shall not exceed $6,000,000 in principal amount.

(e) Bonds issued hereunder shall be executed by the Chairman of the Commission and the Secretary of the Commission (by manual or facsimile signatures with at least one manual signature). The coupons attached to the bonds shall be executed by the facsimile signature of the Chairman of the Commission. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of such bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes. Each bond shall be sealed with the seal of the Commission.

SECTION 8. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this Act. Bonds issued hereunder shall be obligations only of the Commission, and in no event shall they constitute an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues (as used in Amendment No. 20 of the Constitution of the State of Arkansas) are pledged. The bonds shall not be secured by a mortgage or lien on any land, building or property belonging to the State of Arkansas. No member of the Commission shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into or action taken in carrying out the powers, purposes or authorities of this Act unless he shall have acted with a corrupt intent.

SECTION 9. The principal of, premiums, if any, interest on, and trustee's and paying agent's fees in connection with all bonds issued under this Act shall be secured by a lien on and pledge of the fee revenues and the gross revenues derived from the leasing or renting to others of space in the Building (collectively the “pledged revenues”) and such pledged revenues are hereby specifically declared to be cash funds, restricted in their use and dedicated and to be used solely as provided in this Act. There is hereby created a fund designated “State Department of Health Building Expansion Revenue Bond Fund” (the “Bond Fund”) to be maintained at such depository as shall be specified by the Commission, which fund shall be a trust fund, and after the issuance of any bonds hereunder moneys therein shall be applied solely for the payment of the principal of, premiums, if any, interest on, and trustee's and paying agent's fees in connection with the bonds at maturity and at redemption prior to maturity, except moneys that are withdrawn therefrom pursuant to the subsequent provisions hereof, all as shall be specified and subject to the terms and conditions set forth in the authorizing resolution or trust indenture. The pledged revenues shall not be deposited into the State Treasury, but, as and when received, shall be deposited into the Bond Fund. On March 1, June 1, September 1 and December 1 of each year, if not required for paying the principal of, premiums, if any, interest on, and trustee's and paying agent's fees in connection with the bonds, or for making deposits to required reserves, there shall be released from the pledged revenues and withdrawn from the Bond Fund and deposited, as a special revenue to the credit of the Public Health Fund in the State Treasury, that amount of the pledged revenues equaling the sum of the following:

One-half of the revenues derived from the fee described in Section 10(a)(3) of Act No. 469;
One-fourth of the revenues derived from the fee described in Section 10(a)(5) of Act No. 469;
One-half of the revenues derived from the fee described in Section 10(a)(6) of Act No. 469;
One-half of the revenues derived from the fee described in Section 10(a)(8) of Act No. 469;
One-fourth of the revenues derived from the fee described in Section 10(a)(9) of Act No. 469.

Subject to any covenants any pledges in connection with any outstanding 1966 Bonds, the Commission may, if it so desires, use any of the pledged revenues in the Bond Fund prior to the issuance of any bonds hereunder for defraying the costs of accomplishing the powers, purposes and authorities of the Commission under this Act. The principal of, premiums, if any, interest on, and trustee's and paying agent's fees in connection with the bonds shall be payable solely from the moneys in the Bond Fund and the moneys required by this Act to be deposited into the Bond Fund. The Commission is directed to insert appropriate provisions in the authorizing resolution or trust indenture for the investing and reinvesting of moneys in the Bond Fund (in securities selected by the Commission), and all income derived from such investments shall be and become a part of the Bond Fund.

SECTION 10. All agencies are hereby expressly authorized to execute and enter into agreements with the Commission for the leasing or renting of space in the Building when there is space therein over and above the requirements of the Department of Health and the divisions thereof. Such agreements may be upon such conditions, for such terms, for such amounts, and containing such other provisions as may be determined by the Commission and the agency involved to be appropriate and in the best interest of all concerned. All such agreements and all covenants and agreements therein contained on the part of the parties thereto shall be binding in all respects upon the parties thereto and their successors from time to time, including any successor agency performing the functions exercised by the agency executing the agreement, in accordance with the terms of such covenants and agreements, and all of the provisions thereof shall be enforceable by mandamus or other appropriate proceedings at law or in equity.

SECTION 11. Each authorizing resolution or trust indenture shall, together with this Act, constitute a contract by and between the Commission and the holders and registered owners of the bonds issued hereunder, which contract, and all covenants, agreements and obligations therein, shall be promptly performed in strict accordance with the terms and provisions thereof, and the covenants, agreements and obligations of the Commission may be enforced by mandamus or other appropriate proceedings at law or in equity.

SECTION 12. Bonds issued under the provisions of this Act, and the interest thereon, shall be exempt from all state, county and municipal taxes, except property taxes, and this exemption shall include income, inheritance and estate taxes.

SECTION 13. Any municipality, or any board, commission or other governing authority duly established by ordinance of any municipality, or the governing authorities, respectively, of the fireman's relief and pension fund and the policeman's pension and relief fund of any such municipality, or the governing authority of any retirement system created by the General Assembly of the State of Arkansas, or any agency may, in its discretion, invest any of its funds not immediately needed for its purposes in bonds issued under the provisions of this Act, shall be eligible to secure the deposit of public funds.

SECTION 14. The Commission is hereby authorized to employ an architect to prepare plans, specifications and estimates of cost for the construction of the Expansion and to supervise and inspect such construction. In addition, the Commission is hereby authorized to engage and pay such professional, technical and other help as it shall determine to be necessary or desirable in assisting it effectively to carry out the powers, purposes and authorities conferred and set forth in this Act.

SECTION 15. (a) Unless refunded or defeased as hereinafter authorized, the 1966 Bonds, so long as they are outstanding, shall be secured by a prior lien on and pledge of the fee revenues, and nothing herein shall be construed as impairing their security as authorized by Act No. 469 and as provided in the resolution of the Commission securing the 1966 Bonds.

(b) Subject to the above, the Commission is hereby authorized, in its discretion, to refund or defease the outstanding 1966 Bonds, as hereinafter provided, in which event the moneys, if any, in the construction fund established pursuant to the resolution authorizing the 1966 Bonds shall be transferred to the Construction Fund established pursuant to the provisions of this Act and the moneys in the bond fund established pursuant to the provisions of the resolution authorizing the 1966 Bonds (the “1966 Bond Fund”) shall be transferred to the Bond Fund established pursuant to the provisions of this Act. If the Commission determines so to proceed, the necessary additional principal amount of bonds to accomplish the refunding or defeasing shall be issued and proceeds thereof shall be applied by the Commission to the payment (principal, premiums, if any, interest and fees and expenses) of all of the outstanding 1966 Bonds at maturity or earlier redemption (as the Commission shall determine). The necessary moneys shall be deposited in trust in the bond fund established pursuant to the provisions of the resolution authorizing the 1966 Bonds. The Commission shall invest, or authorize the investment of, the moneys in the 1966 Bond Fund to the full extent feasible, as determined by the Commission, in direct or fully guaranteed obligations of the United States of America. All moneys in the 1966 Bond Fund shall be deemed to be cash funds, shall not be deposited in the State Treasury and shall be used for no other purpose than the payment of the principal, premiums, if any, interest and fees and expenses incurred in connection with the payment of the 1966 Bonds. Upon deposit in the 1966 Bond Fund of the moneys provided for herein, the 1966 Bonds shall be deemed to be paid, defeased and retired.

(c) The Commission shall include necessary provisions in the authorizing resolution for the bonds issued under this Act, or in the trust indenture, for deposit of the proceeds of the bonds (other than accrued interest which shall be deposited in the Bond Fund and the amount, if any, to be deposited pursuant to the provisions of subsection (b) of this Section 15) into a special Construction Fund (the “Construction Fund”) which shall be a trust fund maintained in such depository as the Commission shall designate. The moneys in the Construction Fund shall be used to carry out the powers, purposes and authorities of the Commission specified in this Act. The Commission shall include appropriate provisions in the resolution or trust indenture authorizing and securing the bonds governing the securing of and the investing and reinvesting of moneys in the Construction Fund (in such securities as shall be determined by the Commission to be appropriate and as shall be specified in the authorizing resolution of trust indenture).

SECTION 16. In the event of the refunding or defeasing of the 1966 Bonds as authorized by Section 15 hereof, Sections 11, 13 and 20 of Act No. 469 shall be repealed and of no further force and effect.

SECTION 17. This Act shall be construed liberally. The enumeration of any object, purpose, power, manner, method and thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods or things.

SECTION 18. This Act shall not create any right of any character, and no right of any character shall arise under or pursuant to it, unless and until the bonds authorized by this Act, or the initial series, shall have been sold and delivered by the Commission.

SECTION 19. The provisions of this Act are hereby declared to be severable. If any section, paragraph, sentence or clause of this Act shall be held unconstitutional or invalid, the invalidity of such section, paragraph, sentence or clause shall not affect the validity of the remainder of the Act.

SECTION 20. All laws and portions thereof in conflict herewith are hereby repealed to the extent of such conflict.

SECTION 21. It is hereby found and declared by the General Assembly that the Building is inadequate to house the Department of Health and the divisions thereof, with the result that it is impossible properly and efficiently to carry out functions and duties required by law and required for the proper care of the public health of the inhabitants of the State, to the detriment of the public health and safety, and that only by the immediate operation of this Act can these conditions be bettered. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect upon its passage and approval.

7. Arkansas Revenue Department Building Expansion Acts — Acts 1977, No. 749, as amended by Acts 1997, No. 250.

SECTION 1. This Act may be referred to and cited as the “Arkansas Revenue Department Building Expansion Act.”

SECTION 2. Whenever used in this Act, unless a different meaning clearly appears from the context:

“Act No. 38” means Act No. 38 of the First Extraordinary Session of the Sixty-Fourth General Assembly of the State of Arkansas, approved September 8, 1961, as amended.
“Agency” or “Agencies” means any agency, board, officer, commission, department, division or institution of the State of Arkansas.
“Bonds” means bonds and any series of bonds authorized by and issued pursuant to the provisions of this Act.
“1965 Bonds” means the Arkansas Revenue Department Building Commission Revenue Bonds, dated October 1, 1965, authorized by and issued under Act No. 38.
“Building” means the Revenue Department Building constructed and financed under the provisions of Act No. 38.
“Commission” means the Arkansas Revenue Department Building Commission, established by Act No. 38.
“Construct” means to acquire, construct, reconstruct, remodel, install and equip any lands, buildings, structures, improvements, or other property, real, personal or mixed, useful in connection with the Expansion, and to make other necessary expenditures in connection therewith, by such methods and in such manner as the Commission shall determine to be necessary or desirable to accomplish the authorities, powers and purposes set forth in this Act. This Act shall be the sole authority needed and it shall not be necessary to comply with other laws pertaining to the acquiring, constructing and equipping of public buildings.
“Department” means the Department of Finance and Administration of the State of Arkansas, or any successor or agencies.
“Divisions” means any division, bureau, section, or office of the Department.
“Expansion” means additions, extensions, or improvements to the Building, appropriate remodeling of and improvements to the present Building, and appropriate equipment and furnishings, all as determined by the Commission.
“Fee Revenues” means all revenues derived from the Fees.
“Fees” means the fees confirmed, fixed, ratified, and imposed by this Act.
“Pledged Revenues” means all revenues authorized by Section 10 of this Act to be pledged for the security and payment of the Bonds, being Fee Revenues and gross revenues derived from leasing or rental of space.

SECTION 3. In addition to authorities, powers and purposes set forth in this Act, the Arkansas Revenue Department Building Commission is hereby authorized and empowered to:

Construct the Expansion.
Arrange for the housing of various Divisions of the Department and other Agencies as space and facilities may permit from time to time and with reference to other Agencies to rent, lease or otherwise make available space upon such terms and conditions and for such rents and charges, if any, as the Commission may determine.
Construct parking facilities.
Obtain the necessary funds for accomplishing its authorities, powers and purposes.
Purchase, lease or rent and receive bequests or donations of, or otherwise acquire and sell, trade or barter, any property (real, personal or mixed) and convert into money and/or other property and property not needed or which cannot be used in its then current form.
Refund and/or pay and discharge, or provide therefor, the outstanding 1965 Bonds.
Establish accounts in one or more banks, and thereafter from time to time make deposits in and withdrawals from such accounts.
Contract and be contracted with.
Apply for, receive, accept and use any moneys and property from the Government of the United States or of any state, political subdivision or agency or from any public or private corporation, agency or organization of any nature, or from any individual.
Invest and reinvest any of its moneys (in securities selected by the Commission).
Take such other action, not inconsistent with law, as may be necessary or desirable to carry out the authorities, powers and purposes conferred by this Act and to carry out the intent of this Act.

SECTION 4. (a) In addition to the authorities, powers and purposes conferred by this Act, the authorities, powers and purposes conferred by, and the provisions of Act No. 38, except as they may be inconsistent with any of the provisions of this Act, are hereby confirmed, ratified, continued and reenacted, including, without limitation, the provisions of Act No. 38 pertaining to organization of the Commission, and meetings of the Commission. Members of the Commission may receive expense reimbursement in accordance with Arkansas Code § 25-16-901 et seq.

(b) This Act shall constitute the sole authority necessary for the accomplishment of the authorities, powers and purposes of this Act. The authorities, powers and purposes of this Act may be exercised by or on behalf of the Commission without necessity of approval by any other branch, department, agency, or officer of the State of Arkansas, and without compliance with any other act or law pertaining to such authorities, powers and purposes.

SECTION 5. The Building and the Expansion, after its completion, shall house all or such part of the Department as the Commission shall determine. In addition, the Building and Expansion may house such other Agencies as space and facilities will permit from time to time, as determined by the Commission.

SECTION 6. (a) The following fees and charges fixed and imposed by Section 83 of Act No. 142 of 1949, as amended by Act No. 493 of 1965 (and referred to in Section 10 of this Act) are hereby confirmed, ratified, fixed and imposed:

For each certificate of title, $1.00
For each duplicate certificate of title, $1.00
For noting each lien, $0.50
For transfer of registration, $1.00
For duplicate or substitute registration certificate, $1.00
For duplicate or substitute registration plate, $1.00

(b) Fee Revenues are hereby declared to be cash funds, and shall not be deposited in the Treasury, but shall be deposited in a bank or banks, as determined by the Commission. The Fee Revenues shall be collected and applied as in the Act provided until the principal of, premiums, if any, and interest on all Bonds issued under this Act shall be paid or the required provision made for their payment; provided, however, particular Fees may be varied as to amount or new Fees substituted or added so long as there is no reduction in gross Fee Revenues that would have been collected had there been no such change, substitution or addition, and the term “Fee Revenues” includes the revenues derived from all such Fees.

SECTION 7. (a) There is hereby created a trust fund which shall be designated “Revenue Department Building Expansion Fund” (the “Building Fund”) which shall be maintained by the Commission in such depository bank or banks as may from time to time be designated by the Commission. Commencing on the date of the issuance of Bonds under this Act, there shall be deposited into the Building Fund all moneys received by the Commission from any other source whatever, including, without limitation, Fee Revenues and revenues derived from leasing or renting of space in the Building.

(b) All moneys in the Building Fund shall be used solely, and in the order of priority, as follows:

Beginning on the first day of the month immediately following the month within which Bonds are issued under this Act, and continuing on the first day of each month thereafter until the principal of, premiums, if any, and interest on all Bonds issued under this Act are paid, or the required provision made for their payment, there shall be transferred from the Building Fund and deposited in a trust fund which is hereby created and designated “Revenue Department Building Expansion Bond Fund” (the “Bond Fund”) a sum equal to at least one-sixth (1/6) of the next installment of interest on and one-twelfth (1/12) of the next installment of principal (or Sinking Fund Payment in the case of term Bonds) of all outstanding Bonds and the amounts necessary to provide for trustee's and paying agent's fees, plus such additional amounts, if any, as shall be required to insure that on the next interest paying date and the next principal (or Sinking Fund) paying date there will be sufficient funds in the Bond Fund to pay principal, premiums, if any, and interest then due and plus such additional amounts, if any, as shall be necessary to establish over such period of time and maintain a debt service reserve in the Bond Fund (if the Commission deems it desirable to provide for such reserve) in such amount as the Commission may determine; provided, however, the required deposits for principal need not start until twelve (12) months prior to the first principal (or Sinking Fund) paying date. The Bond Fund shall be maintained by the Commission in such depository bank or banks as may from time to time be designated by the Commission. The moneys in the Bond Fund shall be used for no other purpose than to pay the principal of, premiums, if any, and interest on and trustee's and paying agent's fees in connection with, all outstanding Bonds issued under this Act, at maturity or at redemption prior to maturity.
If and so long as all deposits required by Section 7(b)(1) are properly made, and are fully current, then commencing on the first business day of the month during which deposits are required to be made into the Bond Fund pursuant to the provisions of Section 7(b)(1) and continuing on the first business day of each month thereafter as long as deposits into the Bond Fund are required to be made by the provisions hereof, there shall be withdrawn from the Building Fund and deposited in the State Treasury (and there credited to the Constitutional and Fiscal Agencies Fund) that portion of the moneys in the Building Fund not required to be deposited into the Bond Fund by the provisions of Section 7(b)(1) of this Act.

(c) After the principal of premiums, if any, and interest on all Bonds are fully paid, or the required provision made for their payment, all moneys then remaining in the Building Fund and in the Bond Fund and all moneys received from the Fees shall be deposited in the State Treasury, as a special revenue, and by the State Treasurer credited to the Constitutional and Fiscal Agencies Fund.

SECTION 8. (a) The Commission is hereby authorized and empowered to issue Bonds, at one time or in series from time to time, and to use the proceeds thereof, together with any other available funds, for defraying the costs of Constructing the Expansion together with all expenses incidential to and reasonably necessary in connection therewith, the expenses of the issuance of the Bonds, the creation of all or any part of a debt service reserve, if the Commission deems such a reserve desirable, and for providing for the payment of interest on the Bonds during the Construction and for up to six (6) months thereafter, if the Commission deems such desirable.

(b) The Bonds shall be authorized by resolution or resolutions of the Commission. The Bonds may be coupon bonds, payable to bearer, or may be registrable as to principal only, or may be registrable as to both principal and interest; may be in such form and denomination; may have such date or dates; may mature at such time or times; may bear interest payable at such times and at such rate or rates, provided that no Bonds may bear interest at a rate or rates exceeding ten percent (10%) per annum; may be made payable at such place or places, within or without the State of Arkansas; may be subject to redemption prior to maturity at such times, in such manner and at such prices; may contain such exchange privileges, and may contain such other terms and conditions; all as the Commission shall determine. Subject to provisions as to registration the Bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas. The authorizing resolution may contain any terms, covenants and conditions that are deemed desirable by the Commission, including, without limitation, those pertaining to the creation and maintenance of funds and reserves, the nature and extent of the security, the issuance of additional series of bonds (and the priority of lien and pledge in that event) and the rights, duties and obligations of the Commission and of the holders and registered owners of the bonds, all as the Commission shall determine. The authorizing resolution may provide for the execution of a trust indenture, with a bank or trust company located within or without the State of Arkansas, containing terms, covenants and conditions authorized by this Act.

(c) Bonds issued hereunder shall be sold at public sale on sealed bids. Notice of the sale shall be published in such publications, within or without the State of Arkansas, for such time or times, and information pertaining to the Act, the Commission and the Bonds and their security, shall be prepared and distributed in such form and manner and to such prospective purchasers as the Commission shall determine to be best designed to get the most favorable bidding. The Bonds may be sold at such price as the Commission may determine to accept, but in no event shall any bid be accepted which results in a net interest cost in excess of ten percent (10%) per annum (treating the amount of any discount as interest). The award, if made, shall be to the bidder whose bid results in the lowest net interest cost, determined by computing the aggregate interest cost at the rate or rates bid and deducting the amount of any premium and adding the amount of any discount.

(d) Bonds issued hereunder shall be executed by the Chairman and Secretary (manual or facsimile with one manual required) of the Commission. The coupons attached to the Bonds shall be executed by the facsimile signature of the Chairman of the Commission. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of such Bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes. Each Bond shall be sealed with the seal of the Commission.

SECTION 9. It shall be plainly stated on the face of each Bond that it has been issued under the provisions of this Act. Bonds issued hereunder shall be obligations only of the Commission, and in no event shall they constitute an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues (as used in Amendment No. 20 of the Constitution of Arkansas) are pledged, and the Bonds shall not be secured by a mortgage or lien on any land, building or property belonging to the State of Arkansas. No member of the Commission shall be personally liable on the Bonds or for any damages sustained by anyone in connection with any contracts entered into or action taken in carrying out the authorities, powers and purposes of this Act unless he shall have acted with a corrupt intent.

SECTION 10. The principal of premiums, if any, interest on, and trustee's and paying agent's fees in connection with all Bonds issued under this Act shall be secured solely by a lien on and pledge of the Fee Revenues and the gross revenues derived from the leasing or renting to others of space in the Building (collectively the “Pledged Revenues”), and such Pledged Revenues are hereby specifically declared to be cash funds restricted in their use and dedicated and to be used solely as provided and authorized in this Act. The Pledged Revenues shall not be deposited into the State Treasury, but as and when received, shall be deposited as set forth in and authorized by this Act.

Subject to the condition that there is no violation of the pledge or any covenant of the Commission pertaining to the Outstanding 1965 Bonds, the Commission may use any of the Pledged Revenues prior to the issuance of any Bonds hereunder for defraying costs of accomplishing the authorities, powers and purposes of the Commission under this Act. The principal of premiums, if any, interest on, and trustee's and paying agent's fees in connection with the bonds shall be payable solely from the moneys in the Bond Fund and the moneys required by this Act to be deposited into the Bond Fund.

The Commission is directed to insert appropriate provisions in the authorizing resolution or trust indenture for the investing and reinvesting of moneys in the Bond Fund (in securities selected by the Commission), and all income derived from such investments shall be and become a part of the Bond Fund.

SECTION 11. All Agencies are hereby expressly authorized to execute and enter into agreement with the Commission for the leasing or renting of space in the Building when there is space therein over and above the requirements of the Department and the Divisions thereof. Such agreements may be upon such conditions, for such terms, for such amounts, and containing such other provisions as may be determined by the Commission and the Agency involved to be appropriate and in the best interests of all concerned. All such agreements and all covenants and agreements therein contained on the part of the parties thereto shall be binding in all respects upon the parties thereto and their successors from time to time, including any successor Agency performing the functions exercised by the Agency executing the agreement, in accordance with the terms of such covenants and agreements, and all of the provisions thereof shall be enforceable by mandamus or other appropriate proceedings at law or in equity.

SECTION 12. Each authorizing resolution or trust indenture shall, together with this Act, constitute a contract by and between the Commission and the holders and registered owners of the Bonds issued hereunder, which contract, and all covenants, agreements and obligations therein, shall be promptly performed in strict accordance with the terms and provisions thereof and the covenants, agreements and obligations of the Commission may be enforced by mandamus or other appropriate proceedings of law or in equity.

SECTION 13. Bonds issued under the provisions of this Act, and the interest thereon, shall be exempt from all state, county and municipal taxes, except property taxes, and this exemption shall include income, inheritance and estate taxes.

SECTION 14. Any municipality, or any board, commission or other governing authority duly established by ordinance of any municipality, or the governing authority, respectively, of the Fireman's Relief and Pension Fund and the Policeman's Pension and Relief Fund of any municipality, or the governing authority of any retirement system created by the General Assembly of the State of Arkansas, or any Agency, may, in its discretion, invest any of its funds not immediately needed for its purposes in Bonds issued under the provisions of this Act, and Bonds issued under the provisions of this Act shall be eligible to secure the deposit of public funds.

SECTION 15. The Commission is hereby authorized to employ an architect to prepare plans, specifications and estimates of cost for the Construction of the Expansion and to supervise and inspect such Construction. In addition, the Commission is hereby authorized to engage and pay such professional, technical and other help as it shall determine to be necessary or desirable in assisting it effectively to carry out the authorities, powers and purposes conferred and imposed by this Act.

SECTION 16. (a) Unless refunded or defeased as hereafter authorized, the 1965 Bonds, so long as they are outstanding, shall be secured by a prior lein on and pledge of the Fee Revenues, and nothing herein shall be construed as impairing their security as authorized by Act No. 38 and as provided in the Resolution of the Commission securing the 1965 Bonds. However, subject to the above, all moneys in the Construction Fund established and maintained by the Commission pursuant to the Resolution securing the 1965 Bonds shall be transferred to the Construction Fund into which the proceeds of the Bonds issued hereunder are deposited and used for the Construction of the Expansion.

(b) The Commission is hereby authorized, in its discretion, to refund or defease the outstanding 1965 Bonds, as hereafter provided, in which event the moneys in the Construction Fund established by the Resolution securing the 1965 Bonds shall be transferred to the Construction Fund established pursuant to the provisions of this Act and the moneys in the Bond Fund established pursuant to the provisions of the Resolution authorizing the 1965 Bonds shall be transferred to the Bond Fund established pursuant to the provisions of this Act. If the Commission determines to so proceed, the necessary additional principal amount of Bonds to accomplish the refunding or defeasing shall be issued and proceeds thereof shall be applied by the Commission to the payment (principal, premiums, if any, interest and fees and expenses) of all of the outstanding 1965 Bonds at maturity or earlier redemption (as the Commission shall determine). The necessary moneys shall be deposited in trust in the Bond Fund established pursuant to the provisions of the Resolution authorizing the 1965 Bonds. The Commission shall invest, or authorize the investment of, the moneys in the 1965 Bond Fund to the full extent feasible, as determined by the Commission, in direct or fully guaranteed obligations of the United States of America. All moneys in the 1965 Bond Fund shall be deemed to be cash funds, shall not be deposited in the State Treasury and shall be used for no other purpose than the payment of the principal, premiums, if any, interest and fees and expenses incurred in connection with the payment of the 1965 Bonds. Upon deposit in the 1965 Bond Fund of the moneys provided for herein, the 1965 Bonds shall be deemed to be paid, defeased and retired.

(c) The Commission shall include necessary provisions in the Resolution securing the Bonds issued under this Act, or in the Trust Indenture, for deposit of the proceeds of the Bonds (other than accrued interest which shall be deposited in the Bond Fund and the amount, if any, to be deposited pursuant to provisions of Subsection (b) of this Section 16) into a special Construction Fund (the “Construction Fund”) which shall be a trust fund maintained in such depository as the Commission shall designate. The moneys in the Construction Fund shall be used to carry out the authorities, powers and purposes of the Commission specified in this Act. The Commission shall include appropriate provisions in the Resolution or Trust Indenture authorizing and securing the Bonds governing the securing of and the investing and reinvesting of moneys in the Construction Fund (in such securities as shall be determined by the Commission to be appropriate and as shall be specified in the authorizing Resolution or Trust Indenture).

SECTION 17. In the event of the refunding or defeasing of the 1965 Bonds as authorized by Section 16 hereof, Sections 10, 11, 12, 13 and 15 of Act No. 38 shall be repealed and of no further force and effect.

SECTION 18. This Act shall be construed liberally. The enumeration of any object, purpose, power, manner, method and thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods or things.

SECTION 19. This Act shall not create any right of any character, and no right of any character shall arise under or pursuant to it, unless and until the bonds authorized by this Act, or the initial series, shall have been sold and delivered by the Commission.

SECTION 20. The provisions of this Act are hereby declared to be severable. If any section, paragraph, sentence or clause of this Act shall be held unconstitutional or invalid, the invalidity of such section, paragraph, sentence or clause shall not affect the validity of the remainder of this Act.

SECTION 21. All laws and portions thereof in conflict herewith are hereby repealed to the extent of such conflict.

SECTION 22. It is hereby found and declared by the General Assembly that the Building is inadequate to house the Department and the divisions thereof, with the result that it is impossible properly and efficiently to carry out functions and duties required by law and required for the proper administration of the State Government, to the detriment of the public health and safety and that only by the immediate operation of this Act can these conditions be alleviated. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the preservation of the public peace, health and safety, shall take effect upon its passage and approval. APPROVED: March 24, 1977.

8. Regulatory Agencies Building — Acts 1977, No. 820.

SECTION 1. The Arkansas State Building Services, created by Act No. 716 of 1975 and hereinafter referred to as “State Building Services,” is hereby authorized and empowered to:

Construct and equip a Regulatory Agencies Building, upon the lands acquired in the name of the State of Arkansas by the Arkansas Revenue Department Building Commission pursuant to the provisions of Act No. 151 of 1965 and transferred to the State Building Services under the provisions of Section 6(b) of Act No. 716 of 1975.
Arrange for the housing therein of such boards, commissions, authorities, agencies, departments, and offices of the State, or the component parts thereof (hereinafter referred to as “state agencies”), as the State Building Services shall deem necessary or desirable in the exercise of its authority and the discharge of its responsibilties under the provisions of Act No. 716 of 1975 and this Act.
Construct, cause to be constructed, or make any portion of the lands described in subsection (a) of this Section 1 available for the construction of parking facilities to serve the Regulatory Agencies Building, and to serve other state officers and employees and the public having business with the State. As used in this Act, the term “Regulatory Agencies Building” shall include the parking facilities authorized by this subsection (c).
Obtain the necessary funds for the financing of the objects specified in this Section 1, from one or more of the following sources:
1. Proceeds of revenue bonds as hereinafter in this Act specified.
2. Funds appropriated by the General Assembly to State Building Services for the construction and equipment of the Regulatory Agencies Building; provided that the particular state agencies housed or to be housed therein shall not have the right to select persons to perform architectural or engineering or construction services, notwithstanding the provisions of Section 7(b) of Act No. 716 of 1975.
3. Funds from any other source authorized by Act No. 716 of 1975 or other law, including, without limitation, funds appropriated by the General Assembly to State Building Services not designated to be spent for a particular public building or capital improvement for a particular state agency.
Take such other action, not inconsistent with law, as may be necessary or desirable to carry out the authorities conferred by, and to carry out the intent and purposes of, this Act.

SECTION 2. (a) The State Building Services is hereby authorized and empowered to issue revenue bonds, at one time or from time to time, in the total aggregate principal amount of $4,000,000 and to use the proceeds thereof for defraying the costs of accomplishing all or any part of the authorities and powers set forth in Section 1 of this Act, paying all incidental expenses in connection therewith, paying the expenses of authorizing and issuing the bonds, establishing a debt service reserve to secure the payment of the bonds, if the State Building Services deems such desirable, and making provision for the payment of interest on the bonds during and for up to one year after construction, if the State Building Services deems such desirable.

(b) The bonds shall be authorized by resolution of the State Building Services Council (“authorizing resolution”). The bonds may be coupon bonds, payable to bearer, or may be registrable as to principal only or as to principal and interest, may be made exchangeable for bonds of another denomination, may be in such form and denomination, may have such date or dates, may be stated to mature at such time or times, may bear interest payable at such times and at such rate or rates, provided that no bond may bear interest at a rate exceeding ten percent (10%) per annum, may be made payable at such place or places within or without the State of Arkansas, may be made subject to such terms of redemption in advance of maturity at such prices, and may contain such terms and conditions, all as the State Building Services shall determine. The bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration, as set forth above. The authorizing resolution may contain any other terms, covenants and conditions that are deemed desirable by the State Building Services, including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional bonds and the nature of the lien and pledge (parity or priority) in that event, the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the investing and reinvesting (in securities specified by the State Building Services) of any funds during periods not needed for authorized purposes, and the rights, duties and obligations of the State Building Services and of the holders and registered owners of the bonds.

The authorizing resolution may provide for the execution by the State Building Services with a bank or trust company within or without the State of Arkansas of a trust indenture. The trust indenture may contain any terms, covenants and conditions that are deemed desirable by the State Building Services, including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional bonds and the nature of the lien and pledge (parity or priority) in that event, the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the investing and reinvesting (in securities specified by the State Building Services) of any funds during periods not needed for authorized purposes, and the rights, duties and obligations of the State Building Services and of the holders and registered owners of the bonds.

(c) The bonds may be sold to any one or more retirement systems now existing or hereafter created by the General Assembly of the State of Arkansas, or may be sold at public sale. If sold at public sale, the bonds shall be sold on sealed bids, and notice of the sale shall be published once in a newspaper published in the City of Little Rock, Arkansas, and having a general circulation throughout the State of Arkansas, at least twenty (20) days prior to the date of sale and may be published in such other publications as the State Building Services may determine. In either case the bonds may be sold at such price as the State Building Services may accept including sale at a discount, but in no event shall any bid be accepted which results in a net interest cost (determined by computing the aggregate interest cost from date to maturity at the rate or rates bid and deducting any premium or adding the amount of any discount) in excess of the interest cost computed at par for bonds bearing interest at the rate of ten percent (10%) per annum. The award at any public sale, if made, shall be to the bidder whose bid results in the lowest net interest cost.

(d) The bonds shall be executed by the manual or facsimile signatures of the Chairman and Secretary of the State Building Services Council, provided that one of such signatures must be manual. The coupons attached to the bonds shall be executed by the facsimile signature of the Chairman of the Council. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of such bonds or coupons, their signatures shall, nevertheless, be valid and sufficient for all purposes. The State Building Services shall adopt and use a seal in the execution and issuance of the bonds, and each bond shall be sealed with the seal of the State Building Services.

SECTION 3. (a) It shall be plainly stated on the face of each bond that it has been issued under the provisions of this Act, that the bonds shall be obligations only of the State Building Services, that in no event shall they constitute an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues are pledged, and that they are not secured by a mortgage or lien on any land or buildings belonging to the State of Arkansas. No member of the State Building Services Council shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purposes and intent of this Act unless he shall have acted with a corrupt intent.

(b) The principal of, premiums, if any, interest on, and trustee's and paying agent's fees in connection with the bonds shall be secured by a lien on and pledge of and shall be payable from the revenues derived from the operation of the Regulatory Agency Building (including, without limitation, lease rentals derived from the leasing of space in the Regulatory Agencies Building to the state agencies housed in the Regulatory Agencies Building). The authorizing resolution or trust indenture shall set forth details of the nature and extent of the lien and pledge, including provision for the use of surplus revenues, if any, for other lawful purposes.

(c) The State Building Services shall undertake the necessary investigation and shall make a determination of state agencies which can be housed in the Regulatory Agencies Building and the State Agency Revenues (as hereinafter defined) of each such agency. State Agency Revenues are hereby defined to be those revenues received by each such agency (directly or by way of appropriation) from sources other than the proceeds of taxes as the term “taxes” is ordinarily used. State Building Services and each state agency so found to have State Agency Revenues are hereby authorized to enter into longterm lease agreements (which may have a term of years no less than the period covered by the maturity schedule of the longest maturing outstanding bonds) for space in the Regulatory Agencies Building. In each such agreement, the state agency's commitment to make rental payments for such space shall be payable solely from its State Agency Revenues. State Agency Revenues, to the extent of such rental commitments, shall not be paid into the State Treasury and shall not be subject to legislative appropriation but shall be transferred by each such state agency directly to State Building Services in discharge of that state agency's obligations under its lease agreement. All such State Agency Revenues (to the extent necessary to discharge all committments of state agencies under such lease agreements) are hereby declared to be cash funds restricted in their use and dedicated and to be used solely as provided in this Act. So long as any bonds authorized by this Act are issued and outstanding, State Building Services shall be obligated to select state agencies and enter into such long-term lease agreements, in accordance with its determinations made in accordance with the above provisions, which provide for aggregate rentals not less than the total amount necessary to pay when due the principal of, premiums, if any, interest on, trustee's and paying agent's fees in connection with, and any other fees and expenses required to discharge covenants and obligations in the authorizing resolution or trust indenture securing, all outstanding bonds issued hereunder. Different state agencies may be housed from time to time and lease agreements may be altered, or one agency or lease agreement substituted for another, so long as the aggregate of rentals called for by all outstanding lease agreements with state agencies selected pursuant to provisions hereof at all times while bonds are outstanding hereunder shall be no less than the amount necessary to pay when due the principal of, premiums, if any, interest on, trustee's and paying agent's fees in connection with, and any other fees and expenses required to discharge covenants and obligations in the authorizing resolution or trust indenture securing, all outstanding bonds issued hereunder.

SECTION 4. (a) Any authorizing resolution and trust indenture shall, together with this Act, constitute a contract between the State Building Services and the holders and registered owners of the bonds, which contract, and all covenants, agreements and obligations therein, shall be promptly performed in strict compliance with the terms and provisions of such contract, and the covenants, agreements and obligations of the State Building Services may be enforced by mandamus or other appropriate proceedings at law or in equity. In this regard, in addition to other provisions referred to above, the State Building Services is hereby expressly authorized to include in any authorizing resolution or trust indenture all or any part of the following covenants:

that it will continuously operate the Regulatory Agencies Building as a revenue-producing undertaking, including the maintenance of occupancy and use of facilities and space so as to avoid any impairment of the security for the bonds; and
that it will always charge, impose and collect sufficient revenues (including, without limitation, rentals) to meet, as due, all debt service requirements, maintain reserves at proper levels and otherwise comply with any provisions of authorizing resolutions or trust indentures concerning revenues and funds.

SECTION 5. All moneys received by the State Building Services from the Regulatory Agencies Building (including moneys from leasing or renting of space or facilities therein) are hereby specifically declared to be cash funds, restricted in their use and dedicated and to be used solely as provided in this Act. Such moneys shall not be deposited in the State Treasury and shall not be subject to legislative appropriation but shall be deposited by the State Building Services, as and when received, in such bank or banks as the State Building Services may from time to time select, and secured, invested and disbursed as provided in this Act.

SECTION 6. Bonds issued under the provisions of this Act, and the interest thereon, shall be exempt from all state, county and municipal taxes, except property taxes, and the exemption shall include income, inheritance and estate taxes.

SECTION 7. The Board of Trustees of any retirement system now existing or hereafter created by the General Assembly of the State of Arkansas may, in its discretion, invest its funds in bonds issued under this Act.

SECTION 8. The State Building Services is hereby authorized to employ architects to prepare plans, specifications and estimates of cost for the construction of the Regulatory Agencies Building and to supervise and inspect such construction. After the State Building Services shall have approved the plans and specifications prepared by the architect, it shall proceed to advertise for bids and contract for the construction of the Regulatory Agencies Building in accordance with applicable laws governing the construction of public buildings. In addition, the State Building Services is hereby authorized to engage and pay such professional, technical and other help as it shall determine to be necessary or desirable in assisting it to carry out effectively the authorities, functions, powers, and duties conferred and imposed upon it by this Act.

SECTION 9. The State Building Services shall include necessary provisions in the authorizing resolution or trust indenture to require the deposit of the proceeds of each bond issue (except amounts for interest or reserves, which may be deposited in the Bond Fund) into a special Construction Fund (“Construction Fund”) which shall be a trust fund in such depository as the State Building Services shall designate, which depository shall be a member of the Federal Deposit Insurance Corporation, and all moneys in the Construction Fund in excess of the amount insured by the Federal Deposit Insurance Corporation must be secured by direct obligations of the United States of America, unless invested in securities specified by the State Building Services. The moneys in the Construction Fund shall be used solely for the purposes set forth in Section 1 and Section 2(a) of this Act.

SECTION 10. Bonds may be issued for the purpose of refunding any bonds issued under this Act. Refunding bonds may either be sold or delivered in exchange for the bonds being refunded. If sold, the proceeds may be either applied to the payment of the bonds being refunded or deposited in trust and there maintained in cash or authorized investments for the retirement of the bonds being refunded, as shall be specified by the State Building Services in the authorizing resolution or trust indenture securing the refunding bonds and subject to compliance with the provisions of the authorizing resolution or trust indentures securing the bonds being refunded. The resolution or trust indenture securing the refunding bonds may provide that the refunding bonds shall have the same priority of lien on revenues pledged for their payment as was enjoyed by the bonds refunded. Refunding bonds shall be sold and secured in accordance with the provisions of this Act pertaining to the sale and security of bonds.

SECTION 11. This Act shall not create any right in any bondholder for bonds issued pursuant to this act, and no right for such bondholder shall arise under it, until bonds authorized by this Act (or the initial issue or series) shall have been sold and delivered by the State Building Services.

SECTION 12. The State Building Services shall be responsible for the maintenance, operation, and repair of the Regulatory Agencies Building, and, subject to the provisions of any authorizing resolution or trust indenture securing outstanding bonds, all or any part of the costs of such maintenance, operation and repair may be paid from revenues derived from the Regulatory Agencies Building (including, without limitation, rentals).

SECTION 13. This Act shall be construed liberally. The enumeration of any object, purpose, power, manner, method and thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods and things.

SECTION 14. The provisions of this Act are hereby declared to be severable. If any provision of this Act, shall be held invalid or inapplicable to any state agency, person, firm or circumstances, such invalidity or inapplicability shall not affect the validity or applicability of the remainder of this Act.

SECTION 15. This Act shall be complete and sole authority for the accomplishment of the purposes hereof. To the extent that there is a conflict between the provisions of this Act and Act No. 716 of 1975, the provisions of this Act shall govern. All laws and parts of laws in conflict herewith, except Act No. 716 of 1975, are hereby repealed to the extent of such conflict.

SECTION 16. The General Assembly hereby finds and declares that there is an urgent need to construct and equip a building to meet the space and facilities requirements of state agencies and that this Act is immediately necessary for the accomplishment of such purpose. Therefore, an emergency is declared to exist and this Act being necessary for the preservation of the public peace, health and safety, shall be effective from and after its passage and approval. APPROVED: March 28, 1977.

9. Regulatory Agencies Building — Acts 1979, No. 1102.

SECTION 1. The State Building Services is hereby authorized and directed to construct and equip a State Regulatory Agencies Building to be located on the State Capitol Grounds at a site to be designated by the State Building Services Council, in the manner as authorized in Act 820 of 1977, and in this Act. The General Assembly hereby determines that the construction of such State Regulatory Agencies Building is in the public interest and is necessary to make the services of such Regulatory Agencies more accessible and convenient to the public, and that the implementation of this Act shall proceed without undue delay.

SECTION 2. (a) For the purpose of enabling the Arkansas State Building Services, created by Act 716 of 1975, as amended, to construct a regulatory agencies building as contemplated in Act 820 of 1977, the Chief Fiscal Officer of the State in cooperation with State Building Services, shall conduct a survey of the various occupational, business, and professional licensing boards as enumerated in Title 71 and Title 72 of the Arkansas Statutes, and shall:

determine the adequacy of the buildings and facilities now used to house said agencies;
evaluate the access of said agencies and their books, records, and administrative offices and services with respect to serving the needs and conveniences of the public.
shall inquire of each of such occupational, business, and professional licensing board with respect to the estimated space requirements needed for the efficient operation of their boards and staffs for at least the next two (2) decades, and
determine the fund balances or reserves available for support of each of said boards and commissions which are not required in their day-to-day operation but could be devoted to defray a portion or all of the cost of constructing and equipping the space to be assigned to said boards and commissions in a State Regulatory Agencies Building, to be constructed by the State Building Services as authorized in Act 820 of 1977.

(b) Upon completion of such study, if the Chief Fiscal Officer of the State and State Building Services shall determine it to be in the better interest and convenience of service to the public of this State, and for the efficient operation of the respective boards and commissions and their staffs, to be housed in a regulatory agencies building to be located on the State Capitol Grounds, and further determines that with the funds available to the several boards and commissions and their staffs, to be housed in a regulatory agencies building to be located on the State Capitol Grounds, and further determines that with the funds available to the several boards and commissions, the amount of surplus or reserve funds that could be allocated by said boards toward the cost of constructing and equipping said building, together with the proceeds of revenue bonds to be issued by State Building Services, if any, as authorized in said Act 820 of 1977, would be adequate to construct and build said State Regulatory Agencies Building, he shall designate the boards and commissions and their staffs to be housed in the State Regulatory Agencies Building and shall, after receiving the advice of the Arkansas Legislative Council, recommend to the State Building Services the amount of space to be constructed for their respective uses. Upon receipt of the report from the Chief Fiscal Officer of the State, the State Building Services shall estimate the cost of constructing and equipping said State Agencies Regulatory Agencies Building, and shall apportion to each board and commission the amount of the cost thereof to be paid by each such board and commission by fund transfers as authorized hereinafter, or the amount of their allocated costs to be paid from the proceeds derived from the sale of revenue bonds, and the amount of annual rental payments that would be required to meet their pro rata portion of the debt service requirements of principal and interest and other costs incurred in connection with said bond issue.

(c) If any occupational, business, or professional licensing board is aggrieved by the proposed action of the State Building Services, they may appeal therefrom within thirty (30) days from the date of receipt of the aforementioned certification from the State Building Services, in writing to the Governor, who shall hold a hearing thereon within thirty (30) days and either approve the action proposed by the State Building Services, reject the same, or modify such action in such manner as the Governor deems reasonable and necessary.

(d) Each occupational and professional licensing board shall transfer or pay to the State Building Services from funds belonging to said board or commission, the amount of monies as certified by the Chief Fiscal Officer of the State to the State Building Services as being available from such board or commission, for payment toward the cost of constructing their allocated space in the proposed building. Such transfer shall be made within such time as requested by State Building Services.

The monies received by the State Building Services from the respective occupational, business, and professional licensing boards to be used in total or partial payment of the cost of constructing a State Regulatory Agencies Building to house their respective agencies shall be set aside in a State Regulatory Agencies Building Fund Account to be used together with monies derived from the sale of Revenue Bonds, if any, as authorized by Act 820 of 1977, solely and exclusively for constructing and equipping a State Regulatory Agencies Building in the manner proposed by the State Building Services.

The Arkansas Legislative Council shall be advised monthly by State Building Services as to the progress of constructing this building.

SECTION 3. APPROPRIATION. There is hereby appropriated, to be payable from bond proceeds and fund balances received from regulatory agencies under the provisions of this Act, for constructing, equipping, debt service requirements, and associated costs of providing a State Regulatory Agencies Building, to the State Building Services, the sum of … $4,000,000.00.

SECTION 4. EMERGENCY. It is hereby found and determined by the Seventy-Second General Assembly that many regulatory agencies are located in various places in the State and within the City of Little Rock; that this situation has created confusion and frustration in the minds of the public when they wish to conduct business with any of these agencies; that many of these agencies have part-time staffs and much of their work could be done by a central staff; and that by locating these agencies in a central location both the public convenience and the efficient use of public funds could be better served. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after the date of its passage and approval. APPROVED: April 19, 1979.

10. Oil and Gas Commission Building — Acts 1985, No. 270.

SECTION 1. DEFINITIONS. As used herein, the following words and phrases shall, unless the context herein clearly indicates otherwise, mean:

“Commission” shall mean the “Oil and Gas Commission” established by Act 105 of 1939, as amended.
“Director” shall mean the Director of Production and Conservation of the Oil and Gas Commission, who also serves as ex officio Secretary of the Commission.
“Chief Fiscal Officer of the State” shall mean the Director of the Department of Finance and Administration serving in his capacity as the Chief Fiscal Officer of the State, as authorized by law.
“State Building Services” shall mean the State Building Services as established by Act 716 of 1975, as amended.
“Fee revenues” or “fee revenues of the Commission” shall mean monies derived by the Oil and Gas Commission from assessments imposed by the Commission against each barrel of oil produced and each 1,000 cubic feet of natural gas produced in this State, as authorized by Section 6 of Acts 105 of 1939, as amended, and shall include all other fees authorized by law to be collected by the Commission as hearing fees, drilling fees, annual fees, and all other fees and costs imposed by the Commission to defray the administrative costs of administering the oil and gas laws of this State, which are required by law to be deposited in the Oil and Gas Commission Fund in the State Treasury, as contrasted to tax revenues deposited in the Oil and Gas Commission Fund for the support of the Commission.
“Surplus fee revenues” shall mean:
1. that portion of the balance of funds in the Oil and Gas Commission Fund which accrued thereto from fee revenues, which the Oil and Gas Commission determines may be set aside for the purpose of defraying construction costs and debt service requirements with respect to funds borrowed for the construction and equipping of the building and parking lot to house the Commission and its staff, as authorized in this Act, and
2. shall include that portion of fee revenues estimated to be collected by the Commission during the lifetime of any indebtedness incurred under the provisions of this Act, that the Commission designates to be set aside to defray construction costs and debt service requirements for indebtedness incurred in connection with the construction and equipping of the building and parking lot to house the Commission and its staff, which the Commission determines not to be required to defray annual operating costs of the Commission and its staff, programs, and services.
“Project” or “the project” shall mean the acquisition of land and the construction and equipping of a building and parking lot in El Dorado, Union County, Arkansas, to house the Oil and Gas Commission, its staff and programs and services of the Commission, and shall include all expenses necessary or attendant thereto.
1. A formal resolution shall be adopted by the Commission at a regular or special meeting of the Commission, indicating its intention to implement the provisions of this Act, and such resolution shall be recorded in the minutes of the Commission meeting. The resolution shall set forth the details of the building and facilities to be constructed, the equipment to be acquired, and the proposed Method of Financing of such project.
2. Recommendation in writing by the State Building Services affirming the need for the construction of the building and improvements contemplated in the resolution adopted by the Commission. State Building Services shall, in connection with such building project, perform the respective duties required in connection therewith, as provided in subsection (c) of Section 7 of Act 716 of 1975, and all other duties with respect to such project as required by Act 716 of 1975 or by other laws of this State.
3. Review and approval by the Chief Fiscal Officer of the State of the proposed Method of Financing the project, as provided by law.

SECTION 2. The Oil and Gas Commission is hereby authorized to immediately complete the acquisition of land and to proceed with the development of plans, the advertisement for bids, and the award of contracts for the construction and equipping of a building and parking lot to meet the needs and requirements of the Commission and its staff for a headquarters building, to be located in El Dorado, Union County, Arkansas, for which funds were appropriated by Acts 371 of 1983.

SECTION 3. The following shall be requisite to the completion and acquisition of the necessary land and the construction of such building and parking lot for the Oil and Gas Commission:

SECTION 4. The Commission is hereby authorized to finance the construction cost of the project (acquisition of land, construction and equipping of the building and parking lot), for which funds were appropriated in Act 371 of 1983, as follows:

the use of surplus fee revenues (as defined in this Act) estimated to be available to the Oil and Gas Commission Fund, which will not be required for the day-to-day operation of the Commission;
the use of funds derived from the sale of the present Oil and Gas Commission building, including the land thereupon; and
from funds borrowed by the Commission deemed necessary to supplement other funds available to the Commission for the project, as authorized in Section 5 of this Act.

Provided that, the cost of the project for the acquisition of land, construction, and equipping of the building and the parking lot for the Oil and Gas Commission shall not exceed an aggregate cost of $1,500,000.

SECTION 5. (a) The Oil and Gas Commission is hereby authorized to borrow such funds as may be necessary to supplement monies available to the Commission for the Oil and Gas Commission building construction project from one or more banks or lending institutions in this State, for such duration and at such rate(s) of interest as the Commission may deem to be in the best interest of the early completion of the project.

(b) It shall be plainly stated on the face of the loan instrument(s) that the same has been issued under the provisions of this Act, and that the loan(s) shall be an obligation only of the Oil and Gas Commission, that in no event shall the indebtedness constitute an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues are pledged.

(c) No member of the Oil and Gas Commission shall be personally liable on any such loan(s) or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purpose and intent of this Act, unless he shall have acted with a corrupt intent.

(d) The principal of, interest on, and any indebtedness expenses in connection with such loan(s) shall be secured by a lien on and pledge of the surplus fee revenues belonging to the Oil and Gas Commission, as defined herein, and shall be payable solely from such fee revenue monies.

(e) As long as such indebtedness is outstanding, the maximum rate of assessment fees authorized to be imposed by the Oil and Gas Commission with respect to oil and gas production in this State, and the rate of other fees and costs authorized to be collected by the Commission as now authorized by law, shall not be reduced, provided that, in the event any of such fees or the maximum assessment fee rates are reduced, the General Assembly hereby agrees to authorize additional fees or sources of fees for the support of the Commission at least equal to those that would have been collected by the Commission from assessments and fees now authorized by law, while any such indebtedness is outstanding.

(f) Payment of principal of, interest on, and other costs of indebtedness incurred under this Act may be made from funds appropriated for such project under the provisions of Act 371 of 1983, or from any other funds appropriated for the support, maintenance, and operation of the Oil and Gas Commission.

SECTION 6. Monies derived by the Commission for the support of the project from loans as authorized in Section 5 of this Act shall be deposited in the State Treasury to the credit of the Oil and Gas Commission Fund, unless the loan instrument requires the same to be deposited in a bank account to be available solely for the support of the project, in which event the Commission may establish one or more accounts in banks authorized to do business in this State and deposit the monies derived from the loan therein, in an account to be known as the “ Oil and Gas Construction Account” to be used solely and exclusively within the limits and for the purposes set forth in Act 371 of 1983.

SECTION 7. For the purpose of reducing the estimated amount of funds to be borrowed in connection with such building project, the Oil and Gas Commission is hereby authorized to provide for the sale of the existing building and land belonging to the Commission located in the City of El Dorado, Union County, Arkansas, if the Commission determines that said building and the land upon which the building is located will no longer be required for use by the Commission. The proposed sale of the building may be conditioned upon the purchaser agreeing to lease the building to the Commission at a rental rate acceptable to the Commission for a stated period of time estimated to be required for the construction and equipping of the building to house the Commission and its staff. If the Commission elects to dispose of such building and land, in order to apply the proceeds derived from such sale toward the construction cost of the new facility, the Commission shall certify said fact to the State Building Services and request the State Building Services to provide for the sale of the building in the manner authorized by law, with the net proceeds derived therefrom, after deducting all costs of such sale, to be deposited in the State Treasury to the credit of the Oil and Gas Commission Fund. If the Commission finds it necessary to rent facilities for housing of all or a portion of its staff and services during the course of the construction work, such rental payments may be considered as a part of the construction cost, and payment thereof may be made from monies appropriated for such project under the provisions of Act 371 of 1983, or from any other funds appropriated for the support, maintenance, and operation of the Oil and Gas Commission.

SECTION 8. All laws and parts of laws in conflict with this Act are hereby repealed.

SECTION 9. EMERGENCY. It is hereby found and determined by the General Assembly that the Oil and Gas Commission is housed in an inadequate facility which severely handicaps the Commission's ability to perform its duties as required by law, and that the immediate passage of this Act is necessary to authorize the Commission to proceed with the construction of an adequate building and parking lot to house the Commission and its staff, thereby expediting the Commission's ability to regulate the exploration and production of oil and natural gas in this State. Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval. APPROVED: March 6, 1985.

11. War Memorial Stadium, Remission of Trust Funds — Acts 1985, No. 393.

SECTION 1. The trustee of the trust estate established by the War Memorial Stadium Commission under the trust agreement entered into pursuant to the authority of Act 3 of the Second Extraordinary Session of 1968, approved May 24, 1968, for the purpose of securing the payment of, and of paying, its outstanding War Memorial Stadium revenue bonds, authorized and issued under the provisions of Act 249 of the Acts of the General Assembly, approved March 18, 1947, referred to in said Act 3 as “2-¼% bonds,” and its outstanding War Memorial Stadium Revenue Refunding Bonds, authorized and issued under the provisions of Act 5 of the Acts of the General Assembly, approved August 31, 1961, referred to in Act 3 as “refunding bonds,” is hereby authorized and directed to convert the assets of such trust estate into cash and to remit the entire balance of funds remaining in said trust estate, to the War Memorial Stadium Commission, to be deposited in the War Memorial Stadium Commission Fund in one or more banks in this State, to be used by said Commission for the construction, reconstruction, repair, improvement, maintenance, and operation of the War Memorial Stadium in the manner provided by law.

SECTION 2. After receiving from the trustee the balance remaining in the trust fund established under the authority of Act 3 of the Second Extraordinary Session of 1968, the War Memorial Stadium Commission shall, from funds available to the Commission, indemnify the trustee of such trust estate against any and all liability with respect to War Memorial Stadium revenue bonds or War Memorial Stadium Revenue Refunding Bonds, including any accrued interest thereon, which may be presented for payment by the trustee subsequent to the transfer of the balance of funds to the War Memorial Stadium Commission, as provided in this Act.

SECTION 3. This Act shall repeal only such laws or parts of laws as are specifically in conflict herewith.

SECTION 4. EMERGENCY. It is hereby found and determined by the General Assembly that:

the War Memorial Stadium Commission is in need of additional funds to make expansions, improvements, and repairs to the War Memorial Stadium and is in need of additional operating funds to provide for the protection and safety of the people attending the various attractions held at the Stadium, and that said needs should be met at the earliest possible moment;
the balance of funds now being held by the trustee of the trust estate established pursuant to the trust agreement entered into by the War Memorial Stadium Commission pursuant to Act 3 of the Second Extraordinary Session of 1968 is needed to relieve said conditions;
the owners of outstanding War Memorial Stadium revenue bonds and/or Refunding Bonds have had reasonable and ample opportunity to present the same for payment, and that it is no longer necessary to tie up said funds in accordance with the trust agreement, thereby depriving the War Memorial Stadium Commission of the use of said funds for improving and operating the War Memorial Stadium;
by authorizing and directing the Stadium Commission to indemnify the trustee for any obligations presented for payment in accordance with the trust agreement, said trustee will be held harmless from liability, and the Commission will be authorized to meet the obligations of such payment from monies available to the Commission; and
that the immediate passage of this Act is necessary to accomplish said purposes.

Therefore, an emergency is hereby declared to exist and this Act, being immediately necessary for the preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval. APPROVED: March 18, 1985.

12. Capitol Mall Facility and State Agencies Facilities Acquisition Act of 1991 — Acts 1991, No. 235, as amended by Acts 1991, No. 923.

SECTION 1. This act shall be known and cited as the “Capitol Mall Facility and State Agencies Facilities Acquisition Act of 1991.”

SECTION 2. Definitions. Whenever used in this act, unless a different meaning clearly appears from the context:

“Agency” or “state agency” means any agency, board, office, commission, department, division or institution of the State of Arkansas.
“Bonds” or “revenue bonds” means any bonds, notes, debentures, interim certificates, grant and revenue anticipation notes, interest in a lease, lease certificate(s) of participation or evidences of indebtedness, whether or not the interest on them is subject to federal income taxation.
“The Capitol Mall Facility” or the term “the facility” means those structures contained in the “Facilities — Master Plan — Year 1985” on page 79 of the Arkansas State Capitol Complex Master Plan, as prepared under the direction of the Arkansas Public Building Authority authorized by Act 236 of 1973, dated June, 1974, and any architectural drawings prepared in connection therewith which are on file with State Building Services, to include the following:
1. Building Number 1 under the Legend, entitled “Agency Office, Module A; Visitor Center, 220 Car Garage;”
2. Building Number 2 under the Legend, entitled “Agency Office, Module B;”
3. Building and Facility Number 4 under Legend, entitled “750 Car Garage;”
4. the necessary tie-in to the State Capitol Building and to connect Building Number 3 under the Legend, entitled “Library Archives — Museum Module” now existing, which is commonly referred to as the the “Big Mac” or “Capitol Mall No. 1” Building;
5. such modifications to the aforementioned buildings and facilities, and the architectural drawings prepared in connection therewith, as are deemed necessary to meet current and projected needs;
6. landscaping and other improvements in connection with the project deemed necessary to accommodate the overall architectural and topographical scheme of the State Capitol grounds; and
7. related structures, fixtures, and facilities (including, without limitation, utilities, parking facilities, streets, curbs, gutters, and a maintenance/operations center necessary to accommodate such facility), as may be determined to be appropriate.
8. construction of such additional parking decks and parking facilities that are not identified in the “Facilities — Master Plan — Year 1985” on page 79 of the Arkansas State Capitol Complex Master Plan, which State Building Services deems necessary to meet parking needs on the State Capitol grounds, provided that the construction thereof does not conflict with the basic design and location of proposed buildings and facilities included within the long-range Capitol Complex Master Plan.
“State Building Services” means the public agency known as “Arkansas State Building Services” and the “State Building Services Council”, as established under Arkansas Code § 22-2-101 et seq.
“Construct” means to acquire, construct, reconstruct, remodel, install, and equip any lands, buildings, structures, improvements or other property, real, personal or mixed, useful in connection with buildings and facilities constructed or acquired under this act and to make other necessary expenditures in connection therewith, by such methods and in such manner as the State Building Services shall determine to be necessary or desirable to accomplish the powers, purposes, and authority set forth in this act.
“Authority” means the Arkansas Development Finance Authority created pursuant to Act 1062 of 1985, as amended.

SECTION 3. (a) Capital Mall Facility. In addition to the purposes, powers, and authority set forth elsewhere in this act or in other laws, the State Building Services is hereby authorized and empowered to construct on the State Capitol grounds the Capitol Mall Facility, as defined herein, with construction of new enclosed buildings not to exceed a cumulative gross building area of one hundred thousand (100,000) square feet commenced through calendar year 1992, two hundred thousand (200,000) square feet commenced through calendar year 1994, three hundred thousand (300,000) square feet commenced through calendar year 1996, four hundred thousand (400,000) square feet commenced through calendar year 1998, and five hundred thousand (500,000) square feet commenced through calendar year 2000, with such restrictions to apply to enclosed buildings only and shall not apply to square feet area of parking structures or parking space required in connection with or necessitated by the construction of new buildings or to meet the needs of parking space on the State Capitol grounds; and in furtherance thereof to:

arrange for the housing in the Capitol Mall Facility of state agencies to the extent that space and facilities are available for such purpose, under such terms and conditions and for such rentals and charges as State Building Services may determine;
construct or cause to be constructed streets, curbs gutters, utilities, landscaping, and parking facilities to serve the facility;
purchase, lease, or rent, and receive bequests or donations of or otherwise acquire, sell, trade, or barter, any property (real, personal, or mixed), and convert such property into money and/or other property;
contract and be contracted with;
apply for, receive, accept, and use any moneys and property from the government of the United States of America, provided by the General Assembly, any agency, any state, or governmental body or political subdivision, any public or private organization or corporation, of any nature, or any individual;
take such other actions not inconsistent with law as may be necessary or desirable to carry out the powers, purposes, and authority as set forth herein, in accordance with the duly promulgated policies of the State Building Services as authorized by law.
apply for, receive, accept, and use any monies and property from the government of the United States of America, any agency, any state, or governmental body or political subdivision, any public or private organization or corporation, of any nature, or any individual;
invest and reinvest any of its money (in securities selected by State Building Services);
take such other actions not inconsistent with law as may be necessary or desirable to carry out the powers, purposes, and authority as set forth herein, in accordance with the duly promulgated policies of the State Building Services Council.

(b) In addition to the purposes, powers and authority set forth elsewhere in this act or in other laws, in connection with the construction and equipping of the Capitol Mall Facility, as defined herein, the Authority is hereby authorized:

(1) to obtain the necessary funds for accomplishing the purposes set forth in this act, from any source or sources, including, without limitation, the proceeds of revenue bonds or lease financings as authorized herein, and other funds as may be appropriated or may be available therefor; and

(2) contract and to be contracted with; and

(3) invest and reinvest any of the proceeds of such revenue bonds as provided in such authorizing resolution or trust indenture, hereinafter authorized; and

(4) take such other actions not inconsistent with law as may be necessary or desirable to carry out the powers, purposes and authority set forth herein, in accordance with the duly promulgated policies of the Authority as authorized by law.

(c) Acquisition of Buildings and Facilities. In addition to the purposes, powers, and authority set forth in subsection (a) of this section and as set forth elsewhere in this act or in other laws, the State Building Services is hereby authorized and empowered to acquire buildings and facilities located in the city in which the seat of State Government is located to house state agencies, and repair, remodel, and renovate such buildings and facilities as State Building Services shall deem necessary and appropriate to accommodate state agencies, provided that no single acquisition may exceed a total cost of four million dollars ($4,000,000) in value, whether acquired by purchase, exchange, eminent domain, long-term lease, or other means, exclusive of the cost of repairs, remodeling, and renovation of such buildings and facilities as State Building Services deems necessary and appropriate to accommodate state agencies, provided that the area of the structure of any such existing building or facility is not expanded by more than ten percent (10%) in connection therewith. All property acquired on a specific site shall be considered as a part of a single acquisition. In furtherance of the purposes authorized by this subsection, State Building Services is hereby authorized and empowered to:

(1) exercise the power of eminent domain for the purpose of acquiring buildings and facilities and to otherwise carry out the purposes and intent of this act, with such power to be exercised in the manner provided in Arkansas Code § 22-2-109;

(2) arrange for the housing of state agencies in such buildings and facilities to the extent that space and facilities are available for such purpose, under such terms and conditions and for such rentals and charges as State Building Services may determine;

(3) acquire, construct, or cause to be constructed parking facilities to serve the facility;

(4) receive the necessary funds for accomplishing its powers, purposes, and authority from any source or sources, including, without limitation, the proceeds of revenue bonds issued hereunder and other funds as may be appropriated or made available therefor;

(5) purchase, lease, or rent, and receive bequests or donations of or otherwise acquire, sell, trade, or barter, any property (real, personal, or mixed), and convert such property into money and/or other property;

(6) contract and be contracted with;

(d) It is the intent of this section to authorize State Building Services to undertake, in the manner and subject to the limitations set forth in subsection (a), the construction of the Capitol Mall Facility and that, excepting parking structures, new building construction shall not be permitted under this act except to implement the Capitol Mall Facility as defined in subsection (c) of Section 2 of this act. In addition, it is the purpose of this act to authorize State Building Services to acquire buildings and facilities (“acquired structures”) in the city in which the seat of State Government is located in the manner authorized in subsection (b) of this section and to provide that the repair, remodeling, and renovation of such facilities by State Building Services shall not be considered new building construction if such repair, remodeling, and renovation does not expand the existing structure by more than ten percent (10%) in area. The restrictions contained in subsection (a) of this section with respect to the limitations on the square footage of new construction to be undertaken on the Capitol Mall Facility during each biennium, and the restrictions on the cost of a single “acquired structure” under subsection (b) of this section, shall not apply to the acquisition, construction, or improvement of parking structures or parking areas as authorized under subsection (a) of this section or in connection with “acquired structures” under subsection (b) of this section.

SECTION 4. Revenue Bonds.

Pursuant to the intention of the General Assembly expressed in Arkansas Code Annotated § 15-5-303, the Authority, in co-operation with State Building Services, is hereby authorized and empowered to issue revenue bonds, at one time or from time to time, and to use the proceeds thereof for defraying the costs of accomplishing all or part of the powers, purposes and authorities set forth in this act, pay all incidental expenses in connection therewith, pay the expenses of authorizing and issuing the bonds, establishing a debt service reserve to secure the payment of the bonds, if the Authority deems such desirable, and making provision for the payment of interest and trustee's fees on the bonds. The bonds outstanding under this act may be in such principal amount as the Authority and State Building Services shall determine to be necessary for the accomplishment of the purposes of this act.
The bonds shall be authorized, shall be sold by such means, shall bear such rate or rates of interest, and shall be executed and delivered in such manner as the Authority may determine pursuant to the provisions of Arkansas Code Annotated § 15-5-301 to § 15-5-316, inclusive. The Authority is authorized to enter into such authorizing resolutions and trust indentures as it deems necessary to secure the revenue bonds.

SECTION 5. (a) It shall be plainly stated on the face of each bond that it has been issued under the provisions of this act, that the bonds shall be obligations only of the Authority, that in no event shall they constitute an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues (within the meaning of Amendment 20 to the Constitution of the State of Arkansas) are pledged. No member of the Authority shall be personally liable on the bonds.

(b) The principal of, premiums, if any, interest on, and trustees' and paying agents' fees in connection with the bonds shall be secured by a lien on and pledge of and shall be payable from the pledged revenues, defined in Section 6 hereof. The authorizing resolution or trust indenture shall set forth details of the nature and extent of the lien and pledge, including provisions for the use of surplus revenues, if any, for any other lawful purposes.

SECTION 6. The principal of, premiums, if any, interest on, and trustees' and paying agents' fees in connection with all bonds issued under this act shall be secured solely by a lien on and pledge of the gross revenues derived from the leasing or renting to state agencies or other tenants of space in the Capitol Mall Facility and in the buildings and facilities acquired pursuant to this act and the pledging of such revenues (the “pledged revenues”) is hereby authorized. All pledged revenues are hereby specifically declared to be cash funds restricted in their use and dedicated (and) to be used solely as provided and authorized in this act. Commencing the first day of the month succeeding the issuance of the bonds hereunder and so long as any bonds are outstanding hereunder, the pledged revenues shall not be deposited into the State Treasury and shall not be subject to legislative appropriation, but, as and when received (by the Authority, or by any other state agency, as the case may be) shall be deposited in a bank or banks selected by the Authority, to the credit of funds designated the “Capitol Mall Facility and State Agencies Facilities Revenue Bond Fund”, with appropriate identification for separate issues or series. So long as any bonds are outstanding hereunder, all moneys in any bond fund shall be used solely for the payment of the principal of, premiums, if any, interest on, and trustees' and paying agents' fees in connection with the bonds, with the maintenance of necessary funds and reserves, except that the authorizing resolution or trust indenture may provide for the withdrawal, for other purposes, of surplus monies, as defined in the authorizing resolution or trust indenture. Nothing in this section is intended to prohibit the State Building Services from investing moneys received hereunder, as provided in this act.

SECTION 7. Any authorizing resolution and trust indenture shall, together with this act, constitute a contract between the Authority and the holders and registered owners of the bonds, which contract, and all convenants, agreements and obligations therein, shall be promptly performed in strict compliance with the terms and provisions of such contract, and the covenants, agreements, and obligations of the Authority may be enforced by mandamus or other appropriate proceedings at law or in equity. In this regard, in addition to other provisions referred to above, the Authority is hereby expressly authorized to include in any authorizing resolution or trust indenture all or any part of the following convenants:

that, to the fullest extent possible, State Building Services will continuously operate the Capitol Mall Facility and other buildings and facilities acquired under this act as revenue-producing undertakings, including the maintenance of occupancy and the use of facilities and space so as to avoid any impairment of the security for the bonds; and
that, to the fullest extent possible, State Building Services and the Authority will always charge, impose and collect sufficient rentals and other revenue to meet, as due, all debt service requirements, maintain reserves at proper levels, and otherwise comply with any provisions of authorizing resolutions or trust indentures concerning revenues and bonds.

SECTION 8. Bonds issued under the provisions of this act, and the interest thereon, shall be exempt from all state, county, and municipal taxes, and the exemption shall include income, inheritance, and estate taxes.

SECTION 9. The Authority shall include necessary provisions in the authorizing resolution or trust indenture to provide for the deposit of the proceeds of the bonds pursuant to the provisions of Arkansas Code Annotated § 15-5-209. The Authority may create and establish one or more special funds in such depositories and make such investment as it may designate to provide for the construction, secure the bonds, establish reserves, and fund other necessary functions or activities authorized by the act.

SECTION 10. Refunding Bonds. Bonds may be issued for the purpose of refunding any bonds issued under this act. Refunding bonds may be issued by the Authority pursuant to the provisions of Arkansas Code § 15-5-314.

SECTION 11. No member of the State Building Services Council shall be held personally liable for any act taken by the Council or for any damages sustained by anyone in any contract entered into in carrying out the purposes and intent of this act, unless he (she) shall have acted with a corrupt intent.

SECTION 12. (a) The State Building Services is hereby authorized to supervise and manage the Capitol Mall Facility and the other buildings and facilities acquired pursuant to the authority granted herein and to manage, maintain and repair said buildings and facilities to provide rental space to be made available for the housing of state agencies, departments, boards, commissions and institutions, or other tenants, at such rental rates as deemed necessary:

to provide sufficient funds to enable the Authority to meet, when due, the payment of principal of, interest on, and trustee's and paying agents' fees in connection with all bonds issued under this act;
to enable the Authority to establish and maintain such reserves, and other financial obligations in regard to the bonds issued under the provisions of this act as shall be set forth in any authorizing resolution or trust indenture utilized for that purpose; and
in addition thereto, to pay the costs of utilities, insurance, janitorial supplies and services, building maintenance, upkeep, repair, and remodeling as deemed necessary, including the accumulation of reserves deemed necessary for such purposes as authorized under the provisions of this act, and, in connection therewith, the State Building Services may establish one or more accounts in one or more banks authorized to do business in this state to accomplish such purposes.

(b) The State Building Services is hereby authorized to hire legal counsel of its choice to assist in the administration of this act.

SECTION 13. The following provisions shall apply to the Capitol Mall Facility:

The General Assembly recognizes that the State Building Services has in its possession the original architectural drawings and plans for the construction of the Capitol Mall Facility as developed for and in behalf of the Public Building Authority under the authority of Act 236 of 1973, and the State Building Services is hereby authorized to employ architects to review such plans and to prepare such additional plans, specifications and estimates of costs for the construction of the Capitol Mall Facility as defined herein and the various facilities in connection therewith and to supervise and inspect such construction. After the State Building Services shall have approved the plans and specifications reviewed, modified and prepared by the architect, it may proceed to advertise for bids and award a contract for the construction of the facility in accordance with applicable laws governing the construction of public buildings. In addition, the State Building Services is hereby authorized to engage and pay such professional, technical, and other help as it shall determine to be necessary or desirable in assisting it to carry out effectively the authorities, functions, powers, and duties conferred and imposed upon it by this act.
1. In the event the provisions of this act are implemented, the following-described lands acquired in the name of the State of Arkansas by the Arkansas Revenue Department Building Commission pursuant to the provisions of Act 151 of 1965 and any laws amendatory thereto, shall be transferred by said commission to the State Building Services, to be held in the name of the State of Arkansas, to be used by the State Building Services for the purposes provided in this act, all of said lands being situated in the City of Little Rock, Pulaski County, Arkansas, to wit:
2. In the event revenue bonds are issued for the purpose of constructing the Capitol Mall Facility, as defined herein, the State Building Services shall have jurisdiction and control over the following lands, which include the lands described in subsection (1) of this subsection, located on the State Capitol Grounds, to wit:
3. The State Building Services, on behalf of the State of Arkansas, is hereby granted an easement or license over the State Capitol, the various buildings on the State Capitol grounds, and the State Capitol grounds, for the purpose of installing or relocating utilities, connecting the Capitol Mall Facility to existing structures, and such other purposes necessary and consistent with the Capitol Mall Facility project, as authorized in this act.
4. Expenses incurred in utility installation or relocation and those directly associated with the connection of the Capitol Mall Facility to existing structures on the State Capitol grounds, shall be paid as a part of the project cost.
5. Should it be necessary to relocate the cafeteria now located in the State Capitol Building, to connect the Capitol Mall Facility with the State Capitol Building, the Secretary of State may make necessary arrangements for the cafeteria to be temporarily relocated in the State Capitol Building if the area in the Capitol Mall Facility for the cafeteria is not yet completed for its relocation. The cost of relocation of the cafeteria, if the Secretary of State deems the same to be necessary, shall be defrayed from funds appropriated or provided for the operation and support of the Secretary of State's office.
6. The State Building Services shall coordinate with the affected agencies and the Secretary of State efforts to relocate state agency occupants of existing structures on the State Capitol grounds during construction, into State-owned facilities if available, and to pay any additional rentals for space used to house such state agencies as a part of the cost of the project for the term of the construction of the project unless funds are otherwise provided by the General Assembly therefor.
7. The granite boulder placed June 15, 1936, in celebration of the State's centennial, and the bauxite boulder placed March 1943, honoring the State's contribution to the World War II effort, now located on the site of the proposed Capitol Mall Facility, shall be relocated by the State Building Services to such other areas or sites as may be designated by the Secretary of State. Costs of relocating these monuments shall be considered a cost of the project unless funds are otherwise provided for such purposes.
The State Building Services is hereby authorized to:
1. acquire from the Employment Security Division of the Department of Labor any title and interest in the building it now has or may hereafter acquire, located on the State Capitol grounds, known as the “Employment Security Building”, in exchange for which the Employment Security Division may be granted an advance rental payment credit in an amount to be determined by the value of the building, reduce the division's rental payment for occupancy in the Capitol Mall Facility, or,
2. purchase, on behalf of the State of Arkansas, from the Employment Security Division the building on the State Capitol grounds at a price agreed to by the parties involved. If the building is purchased by the State Building Services, then no relocation costs shall be paid to the Employment Security Division.
1. The State Building Services is hereby authorized to lease additional temporary parking areas near the State Capitol Building during the construction phase of the Capitol Mall Facility project and to provide and operate, if necessary, one or more shuttle buses between such parking areas and the State Capitol grounds. The State Highway and Transportation Department shall assist the State Building Services in ground preparation and surfacing of additional temporary parking spaces as authorized in this act.
2. Upon completion of the construction phase of the Capitol Mall Facility project, the State Building Services shall develop parking regulations which will maintain equitable parking among the tenants of the Capitol Mall Facility and the public, and may establish reasonable rental or other charges for parking therein. The State Capitol Police shall provide the necessary traffic patrols and policing of the Capitol Mall Facility parking areas.
3. The State Building Services is hereby authorized to negotiate with any state agency or department now occupying existing structures on the site of the Capitol Mall Facility and to provide for the relocation of the agency or department during the construction of the Capitol Mall Facility, or may provide compensation for the existing structure(s) should acquisition of the structure(s) be necessary in connection with the project. The compensation paid for acquisition of existing structure(s) must be submitted to and approved by the Governor and the same shall constitute a cost of the Capitol Mall Facility project.
4. The State Building Services, shall, prior to the beginning of the project, develop a proposed master plan of housing state agencies and departments within the facilities of the Capitol Mall project, and shall recommend in such plan the priorities by which space is to be provided for rental by state agencies and departments identified in the plan, and shall submit such plan, together with the recommended schedule of rental payments deemed necessary by the State Building Services to defray the cost of the project on a year-to-year basis, to the Governor for his review and approval, and shall submit a copy thereof to the Legislative Council for its information and review. Upon receipt of such proposed plan the Governor shall review the same and may make such changes therein, including the priorities in providing space for state agencies and departments, as he deems appropriate, and shall endorse his approval thereon.
In furtherance of the construction of the Capitol Mall Facility as authorized in subsection (a) of Section 3, State Building Services is authorized to enter into agreements with the respective Boards of Trustees of the Arkansas Teacher Retirement System, the Arkansas Public Employees Retirement System, and the Arkansas State Police Retirement System for the construction of a building which shall be a portion of the building identified as Building No. 1 contained in the “Facilities — Master Plan — Year 1985” on page 79 of the Arkansas State Capitol Complex Master Plan as defined in subsection (c) of Section 2, deemed adequate for the office space needs of their respective retirement systems for current and anticipated future expansion, provided that:
1. such facilities shall be constructed by the State Building Services in accordance with a contract entered into by the State Building Services Council and the Boards of Trustees of the respective retirement systems setting forth the square footage of space to be allocated to and owned by the respective retirement systems upon completion of this project, with the cost thereof to be defrayed by each of the retirement systems in such manner and under such terms and conditions as may be agreed to by the respective retirement systems and the State Building Services Council;
2. the agreement provides that the facilities shall, during construction and upon completion thereof, be managed by State Building Services in accordance with the provisions of section 22-2-101 and subsequent sections of the Arkansas Code;
3. to manage and rent any surplus space that each of the retirement systems may designate for lease to other state agencies under such terms and conditions, and for such duration, that may be agreed to by the respective retirement systems and State Building Services, with all rental income over and above management costs defrayed by State Building Services to be remitted to the respective retirement systems as income to each of the respective systems.
4. such respective retirement systems may utilize funds available to them for investment purposes for payment to the State Building Services for the cost of construction of the facilities authorized in this subsection, in which event the construction cost of the facilities acquired for the respective retirement systems may be amortized in accordance with the amortization plan for funding their retirement systems, but in no event extending over a period exceeding forty (40) years. The respective retirement systems shall enter into agreements with State Building Services to pay all costs of maintenance, janitorial, and other services as operating expenses for the use of the facilities assigned to the respective retirement systems.

“A tract of land located in the E ½ of S4, T1N, R12W of the 5th Principal Meridian, said tract being located within the limits of the State Office Complex for the State Capitol at Little Rock, Pulaski County, Arkansas, as shown on the map titled Boundary Survey, State Office Complex by Edward G. Smith & Associates dated October 30, 1974, more particularly described as follows:

Commencing at the SW corner of Lot 12, Block 345 of Barton's Subdivision; thence S89 deg. 57'-45W 1430.81 feet to a point; thence North 569.68 feet to the point of beginning; thence West 320.0 feet to a point; thence North 115.0 feet to a point; thence East 320.0 feet to a point; thence South 115.0 feet to the point of beginning, said tract containing .8448 acres more or less.”

“A tract of land located in the E ½ of S4, T1N, R12W of the 5th Principal Meridian, said tract being located within the limits of the State Office Complex for the State Capitol at Little Rock, Pulaski County, Arkansas, as shown on the map titled Boundary Survey State Office Complex by Edward G. Smith & Associates dated October 30, 1974. The tract is more particularly described as follows:

Commencing at the SW corner of Lot 12, Block 345 of Barton's Subdivision; thence S89-57-45W 985.81 feet along the North Boundary of 7th Street to point of beginning; thence continuing S-89-57-45W 445.0 feet to a point; thence North 569.68 feet to a point; thence West 320.0 feet to a point; thence North 115.0 feet to a point; thence East 320.0 feet to a point; thence North 692.27 feet to a point on the South Right-of-Way of the Missouri Pacific RR and the North Boundary of the State Office Complex; thence N54-57E 35.83 feet to a point; thence N88-09E 63.5 feet to a point; thence S 01-56E 18.18 feet to a point; thence North 54-55E 83.29 feet to a point on the South Right-of-Way of West 3rd Street being the North Boundary of the State Office Complex; thence S89-29E 783.47 feet along the South Boundary of 3rd Street to a point; thence S 967.54 feet to a point; thence West 380.0 feet to a point; thence North 200.0 feet to a point; thence West 390.0 feet to a point; thence South 300.0 feet to a point; thence East 270.0 feet to a point; thence South 354.39 feet to the point of beginning, said tract containing 24.04 acres more of less.”

As evidence of this transfer, the Director of the Department of Labor is hereby authorized to execute any instrument or conveyance or contract as the Attorney General of the State of Arkansas shall deem necessary.

It is the intent of this subsection that the Governor shall determine the needs and priorities for locating or relocating state agencies and departments into space in the Capitol Mall project facilities. After the proposed plan is approved by the Governor, the State Building Services shall confer from time to time with the Governor in connection with priorities in the location or relocation of state agencies and departments in said Facility.

SECTION 14. From and after the effective date of this act, no new buildings or facilities to provide office space for State Agencies shall be constructed on the State Capitol grounds unless the same are part of and in conformance with the Capitol Mall Facilities — Master Plan — Year 1985 on page 79 of the Arkansas State Capitol Complex Master Plan as prepared under the direction of the Arkansas Public Building Authority authorized by Act 236 of 1973, dated June 1974, or as contained in such plan as expanded in the Proposed Facilities Master Plan — Year 2000 on page 80 of said Arkansas State Capitol Complex Master Plan. Nothing in this act shall restrict or prohibit the construction of surface parking or parking decks on the State Capitol grounds, provided that parking facilities shall be constructed in areas now utilized as parking or designated as parking on the Arkansas State Capitol Complex Master Plan — Year 1985 or in accordance with the Facilities Master Plan — Year 2000 as prepared by the Arkansas Public Building Authority.

SECTION 15. This act shall not create any right in any bondholder for bonds issued pursuant to this act, and no right of such bondholder shall arise under it, until bonds authorized by this act (of the initial issue or series) shall have been sold and delivered by the Authority.

SECTION 16. This act shall be construed liberally. The enumeration of any object, purpose, power, manner, method, and thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods, and things.

SECTION 17. All provisions of this act of a general and permanent nature are amendatory to the Arkansas Code of 1987 Annotated and the Arkansas Code Revision Commission shall incorporate the same in the Code.

SECTION 18. If any provision of this act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable.

SECTION 19. All laws and parts of laws in conflict with this act are hereby repealed. APPROVED: February 25, 1991.

13. Department of Health Building Expansion Act of 1991 — Acts 1991, No. 1162.

SECTION 1. This act shall be known as the “Department of Health Building Expansion Act of 1991.”

SECTION 2. As used in this act:

“Authority” means the Arkansas Development Finance Authority;
“Authorizing resolution” means the resolution or resolutions adopted by the board authorizing the loan;
“Board” means the State Board of Health of the State of Arkansas;
“Building” means the State Department of Health Building, located on West Markham Street in Little Rock, Arkansas, including the expansion;
“Construction Fund” means the State Board of Health 1991 Building Expansion Construction Fund created pursuant to this act;
“Director” or “State Health Officer” means the Director of the Arkansas Department of Health;
“Construct” or “or construction” means to acquire, construct, reconstruct, remodel, install and equip any lands, building, structures, improvements or other property, real, personal or mixed, useful in connection with the expansion and to make other necessary expenditures in connection therewith, by such methods and in such manner as may be authorized by law, and in the case of the acquisition of equipment and other property of a medical, laboratory or technical nature by such method as the board or the director shall determine to be necessary or desirable to accomplish the power, purposes and authorities set forth in this act and without regard to the provisions of other laws pertaining to the construction and acquisition of property by state agencies. The term also includes payment or provision for expenses incidental thereto;
“Expansion” means the expansion and improvement of the building as provided for herein, including the renovation and alteration of existing properties, real, personal or mixed;
“Fees” means all fees set forth in Ark. Code Ann. 20-7-123, which fees are confirmed and ratified by this act;
“Fee revenues” means all revenues derived from all or any of the fees;
“Loan” means the loan which the board is authorized to effect, from the authority, by the terms of this act;
“Revenue Fund” means the State Board of Health Fee Revenue Fund created pursuant to this act;
“Revenue Loan Fund” means the State Board of Health Fee Revenue Loan Fund created pursuant to this act.

SECTION 3. (a) The expansion shall be constructed. The board is authorized to approve the construction of the expansion and to take such action as may be appropriate to the completion of the expansion and any facilities necessarily related thereto.

(b) Subject to the approval of the board, the plans, specifications and estimates of cost for the expansion shall be approved by the director, and the director is authorized to employ such architects and such other like professional and technical assistance as determined to be necessary for the construction of the expansion.

(c) The board and the director are authorized to take such action as may be appropriate for the construction of the expansion and to the accomplishment of the purposes of this act and may engage such legal, technical and other assistance as determined to be necessary to the construction of the expansion, the effecting of the loan and the accomplishment of the purposes of this act.

SECTION 4. (a) To finance to construction of the expansion, the board is authorized to enter into a loan, from the authority, in the principal amount of not more than six million five hundred thousand dollars ($6,500,000), pursuant to Arkansas Code of 1987 Annotated, Title 15, Chapter 5. The amount and purpose of the loan shall be approved by the board in an authorizing resolution, copies of which shall be maintained in the records of the board and of the authority.

(b) The loan shall bear interest at a rate determined by the rate of interest on funds borrowed by the authority to fund the loan, but not to exceed the lesser of ten percent (10%) per annum or the maximum rate of interest permitted by Amendment No. 60 to the Arkansas Constitution.

(c) The loan shall mature over a period of not more than thirty (30) years.

(d) The board and the director are authorized to execute and deliver such agreements, instruments and other undertakings and writings and to take such action as may be appropriate to evidence the loan and the security therefor and to carry out the purposes of this act.

SECTION 5. The payment and other obligations of the board under and with respect to the loan shall be secured by a pledge of the fee revenues, subject to the terms of this act and the reserved power to release fee revenues as set forth in this act. The loan shall be an obligation of the board only and shall not constitute an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues are pledged. The loan shall not be secured by a lien on any land, building or other property belonging to the State of Arkansas. The loan shall not constitute an indebtedness within the meaning of any constitutional or statutory limitation.

SECTION 6. The fees set forth in Ark. Code Ann. 20-7-123, which are the “fees” for all purposes of this act, are hereby confirmed and ratified.

SECTION 7. (a) Commencing July 1, 1991, and so long as the loan is outstanding, all fee revenues shall be treated as cash funds and shall not be deposited in the State Treasury, except as set forth in this act, but shall be deposited, as and when received, in a bank or banks approved by the board or the director, in an account or accounts of the board designated “State Board of Health Fee Revenue Fund.” All moneys in the Revenue Fund shall, commencing on the date set forth above and so long as the loan is outstanding, shall not be subject to the provisions of Arkansas Code of 1987 Annotated 19-4-801 through 806 and shall be deposited, handled and disbursed as set forth in this act.

(b) Moneys held in the Revenue Fund shall, no less frequently than bimonthly, be withdrawn therefrom and deposited as follows and in the following order of priority:

An annual amount sufficient to provide for principal, interest, servicing fees (if any) and reserve requirements with respect to the loan, but not to exceed the sum of six hundred and fifty thousand dollars ($650,000) per fiscal year:
1. prior to the commencement of the loan, in the Construction Fund; or
2. beginning upon commencement of the loan, in an account or accounts of the board, in a bank or banks approved by the board or the director, designated “State Board of Health Fee Revenue Loan Fund”;
the sum of nine hundred thousand dollars ($900,000) per fiscal year to the Public Health Fund;
the sum of six hundred thousand ($600,000) per fiscal year to the State Health Building and Local Grant Trust Fund;
any balance remaining shall be distributed fifty percent (50%) to the Public Health Fund and fifty percent (50%) to the State Health Building and Local Grant Trust Fund.

(c) Commencing July 1, 1991, and so long as the loan shall be outstanding, all funds held in the Revenue Fund, the Revenue Loan Fund and the Construction Fund shall be deemed to be cash funds, shall not be deposited in the State Treasury and shall be transferred, deposited and applied, as set forth herein, without the necessity of appropriation. All transfers from the Revenue Fund and the Construction Fund shall be made by the director. All transfers from the Revenue Loan Fund shall be made by the director or, with the approval of the director or the board, the authority.

(d) So long as the loan is outstanding, funds held in the Revenue Loan Fund shall be used solely for the purpose of paying and providing for principal of, interest on and servicing fees, if any, in connection with the loan and providing for the creation and maintenance of necessary reserves.

(e) So long as the loan is outstanding, all fees shall be imposed and all fee revenues shall be collected and applied as provided in this act; provided, however, particular fees may be reduced or eliminated so long as remaining fees are increased or new fees are added to the end that the aggregate annual amount of fee revenues shall always equal at least nine hundred thousand dollars ($900,000).

SECTION 8. The proceeds of the loan, other than amounts required to establish required reserves, to pay interest on the loan for a period not to exceed one (1) year or to pay costs of the loan (all of which shall be set forth in written directions executed by the director) shall be deposited, as cash funds, in an account of the board designated “State Board of Health 1991 Building Expansion Construction Fund” and disbursed by the director for the construction of the expansion.

SECTION 9. All moneys held at any time in the Revenue Fund, the Revenue Loan Fund and the Construction Fund shall, to the extent feasible, be invested and reinvested, as directed by the director, in direct obligations of or obligations fully guaranteed by the United States of America (“Government Obligations”) or, with the approval of the authority, in mutual funds composed entirely of Government Obligations.

SECTION 10. The authorizing resolution, and each agreement or other writing executed and delivered pursuant to it or this act, together with this act, shall constitute a contract between the board and the authority, and the obligations of the board may be enforced by mandamus or other equitable or legal remedy. The obligations of the board shall be freely assignable by the authority, provided that the board is notified in writing of any such assignment.

SECTION 11. Neither the director nor any member of the board shall be personally liable on the loan or on account of any of the obligations or action undertaken in connection therewith or for any damages sustained by anyone with respect to any such obligations or action, unless he or she shall have acted with a corrupt intent.

SECTION 12. All provisions of this act of a general and permanent nature are amendatory to the Arkansas Code of 1987 Annotated and the Arkansas Code Revision Commission shall incorporate the same in the Code.

SECTION 13. If any provision of this act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable.

SECTION 14. All laws and parts of laws in conflict herewith, including, without limiting the generality of the foregoing, Act 469 of 1965 (other than Section 10 thereof), Act 686 of 1977 and Ark. Code Ann. 20-7-203(c), are hereby repealed to the extent of such conflict.

SECTION 15. It is hereby found and determined by the General Assembly that the Arkansas Department of Health is critically in need of additional space and that, accordingly, the expansion, which is authorized and enabled by this act, must be constructed as soon as feasible. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health and safety, shall be in force upon its passage and approval.

14. 1995 New Revenue Division Building Act — Acts 1995, No. 725, as amended by Acts 1997, No. 250.

SECTION 1. This act may be referred to and cited as the “1995 New Revenue Division Building Act.”

SECTION 2. Section 7(c) of Act 749 of the General Assembly of the State of Arkansas for the year 1977, is hereby amended to read as follows:

“(c) After the principal of, premiums, if any, and interest on all bonds are fully paid, or the required provision made for their payment, all moneys then remaining in the Building Fund and in the Bond Fund and all moneys received from the fees shall be deposited in the 1995 New Revenue Division Building Fund created by the 1995 New Revenue Division Building Act for payment of bonds to be issued pursuant to the 1995 New Revenue Division Building Act.”

SECTION 3. Whenever used in this act, unless a different meaning clearly appears from the context:

“Act No. 38” means Act No. 38 of the First Extraordinary Session of the General Assembly of the State of Arkansas for the year 1961, approved September 8, 1961, as amended.
“Act No. 749” means Act No. 749 of the General Assembly of the State of Arkansas for the year 1977, as originally approved March 27, 1977.
“Agency” or “Agencies” means any agency, board, officer, commission, department, division or institution of the State of Arkansas.
“Arkansas Development Finance Authority Act” means Act 1062 of the General Assembly of the State of Arkansas for the year 1985, approved May 1, 1985, as amended.
“Authority” means the Arkansas Development Finance Authority.
“Bonds” means any bonds and any series of bonds authorized by and issued pursuant to the provisions of this act.
“Buildings” means the Joel Y. Ledbetter Revenue Department Building constructed and financed under the provisions of Act No. 38 and Act No. 749, any additional buildings previously constructed pursuant to the provisions of Acts No. 38 or 749, and any additional building or buildings or improvements or additions to be constructed for use by the department and authorized pursuant to the provisions of this act.
“Commission” means the Arkansas Revenue Department Building Commission, established by Act No. 38.
“Construct” means to acquire, construct, reconstruct, remodel, install and equip any lands, buildings, structures, improvements, or other property, real, personal or mixed, useful in connection with the buildings, and to make other necessary expenditures in connection therewith, by such methods and in such manner as the commission shall determine to be necessary or desirable to accomplish the authorities, powers and purposes set forth in this act. This act shall be the sole authority needed and it shall not be necessary to comply with other laws pertaining to the acquiring, constructing and equipping of public buildings.
“Department” means the Department of Finance and Administration of the State of Arkansas, or any successor agency.
“Division” means the Revenue Division of the department.
“Expansion” means additional buildings, extensions, or improvements to the buildings, appropriate remodeling of and improvements to the buildings, and appropriate equipment and furnishings for use in the buildings, all as determined by the commission for the principle use of the department.
“Fee Revenues” means all revenues derived from the fees.
“Fees” means the fees provided for in Arkansas Code Section 27-14-602 which have been previously imposed and are paid to or for the benefit of the commission.
“Loans” means one or more loans from the authority to the commission used to construct the expansion as permitted in Section 9 hereof.
“Pledged Revenues” means all revenues authorized by Section 10 of this act to be pledged for the security and payment of the loans and the bonds, being fee revenues and gross revenues derived from leasing or rental of space in the buildings.

SECTION 4. In addition to authorities, powers and purposes otherwise set forth in this act in Act No. 38 and in Act No. 749, the Arkansas Revenue Department Building Commission is hereby authorized and empowered to:

Construct the expansion.
Arrange for the housing in the buildings and the expansion of the division and other offices of the department and other agencies as space and facilities may permit from time to time and with reference to other agencies to rent, lease or otherwise make available space upon such terms and conditions and for such rents and charges, if any, as the commission may determine.
Construct parking facilities related to the buildings or the expansion.
Obtain the necessary funds for accomplishing its authorities, powers and purposes through loans from the authority or from other appropriate sources.
Purchase, lease or rent and receive bequests or donations of, or otherwise acquire and sell, trade or barter, any property (real, personal or mixed) and convert into money and/or other property and property not needed or which cannot be used in its then current form.
Establish accounts in one or more banks, and thereafter from time to time make deposits in and withdrawals from such accounts.
Contract and be contracted with.
Apply for, receive, accept and use any moneys and property from the Government of the United States or of any state, political subdivision or agency or from any public or private corporation, agency or organization of any nature, or from any individual.
Invest and reinvest any of its moneys not required for immediate use, including proceeds from the sale of any bonds, in such manner as the commission shall determine, subject to any agreement with the authority or with bondholders stated in the authorizing resolution or trust indenture relating to such bonds.
Take such other action, not inconsistent with law, as may be necessary or desirable to carry out the authorities, powers and purposes conferred by this act and to carry out the intent of this act.

SECTION 5. (a) In addition to the authorities, powers and purposes conferred by this act, the authorities, powers and purposes conferred by, and the provisions of Act No. 38 and Act. No. 749, except as they may be inconsistent with any of the provisions of this act, are hereby confirmed, ratified, continued and reenacted, including, without limitation, the provisions of Act No. 38 and Act No. 749 pertaining to organization of the commission, and meetings of the commission. Members of the Commission may receive expense reimbursement in accordance with Arkansas Code 25-16-901 et seq.

(b) This act shall constitute the sole authority necessary for the accomplishment of the authorities, powers and purposes of this act. The authorities, powers and purposes of this act may be exercised by or on behalf of the commission without necessity of approval by any other branch, department, agency, or officer of the State of Arkansas, and without compliance with any other act or law pertaining to such authorities, powers and purposes.

SECTION 6. The buildings and the expansion, after completion, shall house all or such part of the division and the department as the commission shall determine. In addition, the buildings and expansion may house such other agencies as space and facilities will permit from time to time, as determined by the commission.

SECTION 7. Ark. Code Ann. § 27-14-606 is amended to read as follows:

“(a) All fees collected under § 27-14-602 shall be deposited in the 1995 New Revenue Division Building Fund as cash funds and shall be used for the repayment of bonds which may be issued by or for the benefit of the Arkansas Revenue Department Building Commission pursuant to the 1995 New Revenue Division Building Act.

(b) All fees collected by the circuit clerk and recorder as required by this chapter shall not be affected by the provisions of this section.”

SECTION 8. (a) Fee Revenues, as and when received by the commission, are hereby declared to be cash funds of the commission, and shall not be deposited in the Treasury, but shall be deposited in a bank or banks, as determined by the commission. The Fee Revenues shall be collected and applied as in this act provided until the principal of, premiums, if any, and interest on all loans from the authority and bonds issued under this act shall be paid or the required provision made for their payment; provided, however, particular fees may be varied as to amount or new fees substituted or added so long as there is no reduction in gross Fee Revenues that would have been collected had there been no such change, substitution or addition, and the term “Fee Revenues” includes the revenues derived from all such fees.

(b) There is hereby created a fund which shall be designated “1995 New Revenue Division Building Fund” (the “Building Fund”) which shall be maintained by the commission in such depository bank or banks as may from time to time be designated by the commission. Commencing on the effective date of this act, there shall be deposited into the Building Fund all moneys received by the commission from any other source whatever, including, without limitation, fee revenues and revenues derived from leasing or renting of space in the buildings or the expansion, subject however, to any prior pledge of such Fee Revenues by the commission for the payment of previously issued bonds.

(c) All moneys in the Building Fund shall be used solely, and in the order of priority, as follows:

To provide for payment of debt service on all loans from the authority and bonds issued under this act, and to fund any other fund or account created pursuant to the authorizing resolution or trust indenture relating to any such loans or bonds.
Any funds deposited in the Building Fund and not required in any fiscal year to be applied to any loans or series of bonds pursuant to Section 8(c)(1) may be withdrawn from the Building Fund and deposited in the State Treasury (and there credited to the Constitutional and Fiscal Agencies Fund).
All loans or bonds issued pursuant to the provisions of this act shall rank on a parity of security as to the amounts deposited in the Building Fund.

(d) After the principal of, premiums, if any, and interest on all loans or bonds are fully paid, or the required provision made for their payment, all moneys then remaining in the Building Fund, and in any fund established with respect to any series of bonds, and all moneys received from the fees shall be deposited in the State Treasury, as special revenues, and by the State Treasurer credited to the Constitutional and Fiscal Agencies Fund.

SECTION 9. (a) The commission is hereby authorized and empowered to cooperate and contract with the authority to cause the authority to issue bonds, at one time or in series from time to time, and to loan the net proceeds of such bonds to the commission to enable the commission to use such proceeds thereof, together with any other available funds, for defraying the costs of constructing the expansion together with all expenses incidental to and reasonably necessary in connection therewith. The commission is authorized to negotiate the repayment of the loans on such terms and conditions as are mutually acceptable to the commission and the authority. The commission is specifically authorized and permitted to pledge and assign to the authority, to secure repayment of the loans and the bonds, the fee revenues and revenues from leasing space in the buildings and the expansion.

(b) The bonds shall be issued by the authority under and subject to the Arkansas Development Finance Authority Act, which shall govern the terms, provisions and manner of issuance of such bonds.

SECTION 10. The principal of, premiums, if any, interest on, and trustee's and paying agent's fees in connection with all bonds authorized under this act may be secured by a pledge of and lien on the loan repayment obligation of the commission to include its pledge of the Fee Revenues and the gross revenues derived from the leasing or renting to others of space in the buildings and the expansion.

SECTION 11. All agencies are hereby expressly authorized to execute and enter into agreements with the commission for the leasing or renting of space in the buildings and the expansion when there is space therein over and above the requirements of the department and the divisions thereof. Such agreements may be upon such conditions, for such terms, for such amounts, and containing such other provisions as may be determined by the commission and the agency involved to be appropriate and in the best interests of all concerned. All such agreements and all covenants and agreements therein contained on the part of the parties thereto shall be binding in all respects upon the parties thereto and their successors from time to time, including any successor agency performing the functions exercised by the agency executing the agreement, in accordance with the terms of such covenants and agreements, and all of the provisions thereof shall be enforceable by mandamus or other appropriate proceedings at law or in equity. Neither the commission nor any agency shall be required to obtain the approval of or consent to any such lease from Arkansas State Building Services. In its discretion, the commission may consult or contract with State Building Services in such leasing activities.

SECTION 12. Each loan agreement, note, authorizing resolution or trust indenture shall, together with this act, constitute a contract by and between the authority, the commission and the holders and registered owners of the bonds authorized hereunder, which contract, and all covenants, agreements and obligations therein, shall be promptly performed in strict accordance with the terms and provisions thereof and the covenants, agreements and obligations of the authority and the commission may be enforced by mandamus or other appropriate proceedings of law or in equity.

SECTION 13. The commission is hereby authorized to employ architects to prepare plans, specifications and estimates of cost for the construction of the expansion and to supervise and inspect such construction. In addition, the commission is hereby authorized to engage and pay such professional, technical and other help as it shall determine to be necessary or desirable in assisting it effectively to carry out the authorities, powers and purposes conferred and imposed by this act. The commission shall consult with State Building Services with respect to the construction of the expansion.

SECTION 14. This act shall be construed liberally. The enumeration of any object, purpose, power, manner, method and thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods or things.

SECTION 15. All provisions of this act of a general and permanent nature are amendatory to the Arkansas Code of 1987 Annotated and the Arkansas Code Revision Commission shall incorporate the same in the Code.

SECTION 16. If any provision of this act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable.

SECTION 17. All laws and parts of laws in conflict with this act are hereby repealed.

SECTION 18. EMERGENCY. It is hereby found and determined by the General Assembly that since 1977 tax collection, driver's services, motor vehicle registration and other duties imposed by law upon the Revenue Division have substantially increased; that the building housing the Revenue Division of the Department of Finance and Administration is no longer adequate to allow the Revenue Division to properly and efficiently to carry out its functions and duties; that services provided to taxpayers may be improved and expanded with the construction and use of an additional building; and, that this act is designed to alleviate the stated problems. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval. APPROVED: March 21, 1995.

15. Highway Construction and Improvement Bonds — Acts 1995, No. 1007.

SECTION 1. TITLE; LEGISLATIVE FINDINGS.

This Act may be referred to and cited as the “Arkansas Highway General Obligation Bond Act of 1995.”
The General Assembly of the State of Arkansas has determined that there is an immediate need for new highways and highway improvements throughout the State of Arkansas in order to provide for the health, safety and welfare of its citizens and others and to promote economic development within the state. The General Assembly has determined that current funding sources for highway construction and improvements are inadequate to meet the needs of the state and that the best way to accomplish such improvements expeditiously is through the issuance of general obligation bonds to finance highway construction and improvements.

SECTION 2. DEFINITIONS. The following terms, as used in this Act, shall have the meanings set forth in this section:

“Act” shall mean this Arkansas Highway General Obligation Bond Act of 1995.
“Bonds” shall mean the State of Arkansas Highway Construction and Improvement General Obligation Bonds, as authorized herein.
“Chief Fiscal Officer” shall mean the Director of the Department of Finance and Administration.
“Commission” shall mean the Arkansas State Highway Commission, created and existing pursuant to Amendment 42 to the Constitution of the State of Arkansas.
“Debt service” shall mean all amounts required for the payment of principal of, interest on, and premium, if any, due with respect to the bonds in any fiscal year, along with all associated costs, including, without limitation, the fees and costs of paying agents and trustees, and remarketing agent fees.
“Designated tax revenues” shall mean
1. portions of taxes collected pursuant to Ark. Code Ann. § 26-57-1101, et seq;
2. taxes collected pursuant to Ark. Code Ann. §§ 26-52-302(c) and 26-53-107(c);
3. portions of taxes collected pursuant to Ark. Code Ann. § 26-56-201(e), if approved;
4. revenues derived from economic growth within Arkansas which is a direct result of highway improvements which are financed by the bonds issued pursuant to this Act; or,
5. any other fees or taxes which are dedicated to the repayment of the bonds, including but not limited to toll road fees and right-of-way lease revenues.
“Highway improvements” shall mean improvements to any of the roadways, bridges, tunnels, rights-of-way, and other capital improvements and facilities appurtenant or pertaining thereto, including costs of acquisition and construction. Highway improvements shall also include the maintenance of highway improvements constructed with proceeds of the bonds.

SECTION 3. AUTHORIZATION; PURPOSES. The Arkansas State Highway Commission is hereby authorized, subject to the approval of the voters at a state-wide election pursuant to Amendment 20 to the Constitution of the State of Arkansas, to issue the bonds in a total principal amount not to exceed three billion five hundred million dollars ($3,500,000,000) for the purposes of (i) accelerating highway improvements in progress or scheduled as of January 1, 1995, (ii) funding new highway improvements not in progress or scheduled as of January 1, 1995, (iii) providing matching funds in connection with federal highway programs, and (iv) paying the costs of issuance of the bonds. The bonds may be issued in one or more series at such times, in such amounts, and bearing such designations as the Commission in consultation with the Chief Fiscal Officer of the State shall determine pursuant to Section 6 hereof.

SECTION 4. IMPROVEMENTS TO BE FINANCED. At least ninety (90) days prior to the calling of an election as set forth in Section 5 hereof, the Commission shall prepare and distribute to the Governor and the Legislative Council a report setting forth in general terms the highway improvements which would be financed if all of the authorized bonds were to be issued and the estimated cost of each highway improvement. Upon receipt of the report described in the preceding sentence, the Governor, after obtaining the advice of the Legislative Council and in accordance with the provisions of Amendments 20 and 42 to the Arkansas Constitution, shall, if he deems it to be in the public interest, by proclamation call an election on the question of issuing the bonds.

SECTION 5. ELECTION.

No bonds shall be issued under this Act unless the issuance of bonds has been approved by a majority of the qualified electors of the state voting on the question at a state-wide election called by proclamation of the Governor. Such election may be in conjunction with a general election or it may be a special election. Notice of such election shall be published by the Secretary of State in a newspaper of general circulation in the state at least thirty (30) days prior to such election, and notice thereof shall be mailed to each county board of election commissioners and the sheriff of each county at least sixty (60) days prior to such election.
It shall not be necessary, in the case of the notice or proclamation for the election, to publish this Act in its entirety, but the notice or proclamation shall state that the election is to be held for the purpose of submitting to the people the following proposition, in substantially the form set forth herein:
The ballot title and the proposition set forth in Section 5(b) shall be submitted by the Secretary of State to the Attorney General for approval in substantially the following form:
The county boards of election commissioners in each of the several counties of the state shall hold and conduct the election, and each such board is hereby authorized and directed to take such action with respect to the appointment of election officials and such other matters as is required by the laws of the state. The vote shall be canvassed and the result thereof declared in each county by such boards. The results shall, within ten (10) days after the date of the election, be certified by such county boards to the Secretary of State, who shall forthwith tabulate all returns so received and certify to the Governor the total vote for and against the proposition submitted pursuant to this Act.
The result of the election shall be proclaimed by the Governor by the publication of such proclamation one (1) time in a newspaper of general circulation in the State of Arkansas, and the results as proclaimed shall be conclusive unless a complaint challenging the election results is filed within thirty (30) days after the date of such publication in the chancery court of Pulaski County.
If a majority of the qualified electors voting on the proposition vote in favor of the issuance of the bonds, then the Commission shall proceed with the issuance of bonds in the manner and on the terms set forth in this Act. If a majority of the qualified electors voting on the proposition vote against the issuance of the bonds, none of the bonds authorized by this Act shall be issued. One subsequent election may be called by the Governor if the proposition fails, but such subsequent election may be held no earlier than six (6) months after the preceding election, but no later than December 31, 1996.

“Authorizing the Arkansas State Highway Commission to issue State of Arkansas Highway Construction and Improvement General Obligation Bonds (the “Bonds”) in a total principal amount not to exceed $3,500,000,000. If approved, such Bonds will be issued in series of various principal amounts from time to time for the purpose of paying the cost of highway construction and improvements in the State of Arkansas. The Bonds shall be issued pursuant to the authority of and the terms set forth in Amendment 20 to the Arkansas Constitution and the Arkansas Highway General Obligation Bond Act of 1995 (the “Act”).

The Bonds shall be general obligations of the State of Arkansas, secured by and payable from the general revenues of the State. The Bonds will be payable first from certain designated revenues, specifically: portions of the proceeds of a five cent per gallon increase in the excise tax on distillate special fuels (diesel and other related products), if such tax increase is approved by the voters, revenues derived from an additional one-half of one percent (½ of 1%) excise tax on gross proceeds or gross receipts (sales tax) and from an additional one-half of one percent (½ of 1%) compensating excise tax (use tax), portions of the proceeds of a wholesale excise tax at the rate of six and one-half percent on motor fuel (gasoline and related products); revenues derived from economic growth directly attributable to highway improvements financed by the bonds; and any other revenues designated by the General Assembly for such purpose.

The wholesale excise tax on motor fuel, the sales tax and the use tax have already been levied, but such taxes will not be collected unless the bonds are hereby approved by the voters. If the bonds are hereby approved, the wholesale excise tax on motor fuel, the sales tax and the use tax will be collected so long as the bonds are outstanding. If the bonds are not hereby approved, such taxes will not be collected. The excise tax of five cents per gallon on distillate special fuels is being submitted to the voters for their approval elsewhere on this ballot.”

“ISSUANCE OF $3,500,000,000 STATE OF ARKANSAS HIGHWAY CONSTRUCTION AND IMPROVEMENT GENERAL OBLIGATION BONDS” On each ballot there shall be printed the title, the proposition set forth in Section 5(b) hereof, and the following: “For issuance of State of Arkansas Highway Construction and Improvement General Obligation Bonds in an amount not to exceed $3,500,000,000 … [ ]” “Against issuance of State of Arkansas Highway Construction and Improvement General Obligation Bonds in an amount not to exceed $3,500,000,000 … [ ]”

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SECTION 6. PROCEDURE FOR ISSUING BONDS. Prior to the issuance of any series of bonds, the following actions shall be taken:

The Commission shall, in consultation with the Chief Fiscal Officer, determine the estimated amount of designated tax revenues to be collected by the state in the remainder of the then current fiscal biennium. The estimated amount of designated tax revenues shall be reported to the Governor.
The Commission shall present a report to the Governor and the Legislative Council, setting forth the specific highway improvements to be financed with the proceeds of such series of bonds, the estimated cost of each of the highway improvements, the amount of bonds necessary to finance such highway improvements, and the estimated amount of debt service required to pay the bonds.
Upon receipt of the reports described in Sections 6(a) and 6(b) hereof, the Governor shall, if he and the Commission determine that the estimated designated tax revenues and any other revenues appropriated by the General Assembly for repayment of bonds will be sufficient to pay debt service on such series of bonds, by proclamation authorize the Commission to proceed with the issuance of such series of bonds.
Once the Governor has issued his proclamation with respect to one or more series of bonds, the Commission shall adopt a resolution authorizing the issuance of such bonds. Each such resolution shall contain such terms, covenants, and conditions as are deemed desirable and consistent with this Act, including, without limitation, those pertaining to the establishment and maintenance of funds and accounts, the deposit and investment of tax collections and of bond proceeds, and the rights and obligations of the state, its officers and officials, the Commission, and the registered owners of the bonds. The resolutions of the Commission may provide for the execution and delivery by the Commission of a trust indenture or trust indentures, with one or more banks or trust companies located within or without the state, containing any of the terms, covenants, and conditions referred to above and other terms and conditions deemed necessary by the Commission, which trust indenture or trust indentures shall be binding upon the Commission and the State, and their respective officers and officials.

SECTION 7. TERMS OF BONDS. The bonds shall be subject to the following terms and conditions:

The bonds shall be issued in series, as set forth herein, in amounts sufficient to finance all or part of the costs of highway improvements described in Section 4 hereof, with the respective series to be designated by the year in which issued and, if more than one series is to be issued in a particular year, by alphabetical designation.
The bonds of each series shall have such date or dates as the Commission shall determine and shall mature, or be subject to mandatory sinking fund redemption, over a period ending not later than thirty (30) years after the date of issue of each series.
The bonds of each series shall bear interest at the rate or rates determined by the Commission at the sale of the bonds. The bonds may bear interest at either a fixed or a variable rate, or may be convertible from one interest rate mode to another, and such interest shall be payable at such times as the Commission shall determine.
The bonds shall be issued in the form of bonds registered as to both principal and interest without coupons; may be in such denominations; may be made exchangeable for bonds of another form or denomination, bearing the same rate of interest; may be made payable at such places within or without the state; may be made subject to redemption prior to maturity in such manner and for such redemption prices; and may contain such other terms and conditions, all as the Commission shall determine.
Each bond shall be executed with the facsimile signatures of the Governor, the Chairman of the Commission, and the Treasurer of the State of Arkansas, and shall have affixed or imprinted thereon the Great Seal of the State of Arkansas. Delivery of the bonds so executed shall be valid, notwithstanding any change in persons holding such offices occurring after the bonds have been executed.

SECTION 8. SALE OF BONDS.

The bonds may be sold in such manner, either at private or public sale, and upon such terms as the Commission shall determine to be reasonable and expedient for effecting the purposes of this Act. The bonds may be sold at a price acceptable to the Commission, which price may include a discount or a premium.
If the bonds are to be sold at public sale, the Commission shall give notice of the offering of such bonds in a manner reasonably designed to notify the public finance industry that such offering is being made. The Commission shall set the terms and conditions of bidding, including the basis on which the winning bid will be selected.
The Commission is authorized to structure the sale of bonds utilizing such financing techniques as are recommended by its professional advisors in order to take advantage of market conditions and obtain the most favorable interest rates consistent with the purposes of this Act. In furtherance of this authorization, the Commission may enter into such ancillary agreements in connection with the sale of the bonds as it deems necessary and advisable, including, without limitation, bond purchase agreements, remarketing agreements, and letter of credit and reimbursement agreements.

SECTION 9. EMPLOYMENT OF PROFESSIONALS. The Commission is authorized to retain such professionals as it deems necessary to accomplish the issuance and sale of the bonds, including, without limitation, legal counsel, financial advisors, underwriters, trustees, paying agents and remarketing agents.

SECTION 10. INVESTMENT OF PROCEEDS. The proceeds from the issuance of the bonds shall, prior to expenditure of such proceeds for the purposes described in this Act, be held, maintained, and invested by the trustee as set forth in a resolution of the Commission or as set forth in any trust indenture securing the bonds.

SECTION 11. GENERAL OBLIGATION.

All bonds issued under this Act shall be direct general obligations of the State of Arkansas, for the payment of the debt service on which the full faith and credit of the State of Arkansas are hereby irrevocably pledged so long as the bonds are outstanding. The bonds shall be payable from the 1995 Arkansas Highway Construction and Improvement Bond Account and general revenues of the state as that term is defined in the Revenue Stabilization Law of Arkansas, Ark. Code Ann. § 19-5-101 et seq., and such amount of general revenues as is necessary is hereby pledged to the payment of debt service on the bonds, and shall be and remain pledged for those purposes.
This Act shall constitute a contract between the State of Arkansas and the registered owners of all bonds issued hereunder which shall never be impaired, and any violation of its terms, whether under purported legislative authority or otherwise, may be enjoined by the Chancery Court of Pulaski County upon the complaint of any bond owner or any taxpayer. The court shall, in any suit against the Commission, the State Treasurer, or other appropriate officer or official of the state, prevent a diversion of any funds pledged in accordance with this Act and shall compel the restoration of diverted funds, by injunction or mandamus. Also, and without limitation as to any other appropriate remedy at law or in equity, any bond owner may, by an appropriate action, including, without limitation, injunction or mandamus, compel the performance of all covenants and obligation of the State, its officers and officials, hereunder.
This Act shall not create any right of any character with respect to the bonds and no right of any character with respect to the bonds shall arise under or pursuant to it, unless and until the first series of bonds authorized by this Act shall have been sold and delivered.

SECTION 12. SOURCES OF REPAYMENT.

Without in any way limiting the general obligation of the State of Arkansas to repay the bonds, the designated tax revenues (as such term is defined in Section 2 hereof) are hereby specifically pledged to the payment of the debt service on the bonds.
Pursuant to certain acts of the 80th General Assembly, the State Treasurer has been authorized to establish in the State Highway and Transportation Department Fund a special account, known as the “1995 Arkansas Highway Construction and Improvement Bond Account,” and shall deposit therein all designated tax revenues. In addition, pursuant to certain acts of the 80th General Assembly, the State Treasurer has been authorized to establish in the State Highway and Transportation Department Fund a special account, known as the Highway Resurfacing and Rehabilitation Account. The Commission is authorized to pledge to the repayment of the bonds the full faith and credit of the State, as provided in Section 11 of this Act, and to grant a lien upon the funds on deposit in the 1995 Arkansas Highway Construction and Improvement Bond Account and the Highway Resurfacing and Rehabilitation Account in the State Highway and Transportation Department Fund.
On or before commencement of each fiscal year, the Commission in consultation with the Chief Fiscal Officer shall determine the estimated amount required for payment of debt service due on each series of bonds issued and outstanding under this Act during such fiscal year, and shall certify such estimated amount to the State Treasurer. The State Treasurer shall then make transfers from the 1995 Arkansas Highway Construction and Improvement Bond Account in the State Highway and Transportation Department Fund to the trustees for each series of bonds, in such amounts and at such times as shall be specified in the indentures, to pay the maturing debt service on each series of bonds issued and outstanding under this Act. The State Treasurer shall make such additional transfers as the Commission shall certify as being required under the indentures to enable the Commission to establish and thereafter maintain with the trustee for each series of bonds a reserve or reserves for payment of debt service on each series of bonds. Upon certification from the Commission, the State Treasurer may also make transfers of designated amounts from the Highway Resurfacing and Rehabilitation Account in the State Highway and Transportation Department Fund to the trustees or to the 1995 Arkansas Highway Construction and Improvement Bond Account for payment of debt service due on each series of bonds issued and outstanding.
The obligation to make transfers from the 1995 Arkansas Highway Construction and Improvement Bond Account in the State Highway and Transportation Department Fund for the payment of debt service on, and, if applicable, a reserve for, each series of bonds shall constitute a first charge against amounts on deposit therein. Funds on deposit in the 1995 Arkansas Highway Construction and Improvement Bond Account in the State Highway and Transportation Department Fund in excess of the amounts required to pay debt service on the bonds and for a reasonable reserve may be used for highway improvements of the Commission, as defined in this Act, and for the redemption of bonds prior to maturity in the manner and in accordance with the provisions pertaining to redemption prior to maturity, as set forth in the trust indentures authorizing or securing each series of bonds.
In the event that there are insufficient amounts in the 1995 Arkansas Highway Construction and Improvement Bond Account in the State Highway and Transportation Department Fund to pay the debt service on bonds issued and outstanding under this Act, or to fund any necessary reserves at the required level, the State Treasurer shall, to the extent permitted by law, transfer additional amounts thereto from the general revenues of the State.
Prior to the beginning of each fiscal biennium, the Chief Fiscal Officer of the State shall determine the portion of revenues attributable to economic growth within Arkansas which is a direct result of highway improvements which are financed by the bonds issued pursuant to this act and certify such amount to the Governor. If such revenues are appropriated by the General Assembly for repayment of bonds, the Treasurer of the State shall then transfer that amount from general revenues to the 1995 Arkansas Highway Construction and Improvement Bond Account.

SECTION 13. INVESTMENT OF REVENUES. Any moneys held in the 1995 Arkansas Highway Construction and Improvement Bond Account in the State Highway and Transportation Department Fund and any fund in the State Treasury created under this Act shall be invested by the State Board of Finance to the full extent practicable pending disbursement for the purposes intended. Notwithstanding any other provision of law, such investments shall be in accordance with the terms of the resolution or trust indenture authorizing or securing the series of bonds to which said fund appertains to the extent the terms of such resolution or trust indenture are applicable.

SECTION 14. REFUNDING BONDS.

The Commission may issue bonds for the purpose of refunding bonds previously issued pursuant to this Act, provided, however, that the total amount of bonds outstanding after the refunding is completed does not exceed the total amount authorized by this Act.
Such refunding bonds shall be general obligations of the State of Arkansas, secured as set forth herein, and shall be secured and sold in accordance with the provisions of this Act.

SECTION 15. TAX EXEMPTION. All bonds issued under this Act, and interest thereon, shall be exempt from all taxes of the State of Arkansas, including income, inheritance, and property taxes as well as income tax on any profit from the sale of the bonds at a profit. The bonds shall be eligible to secure deposits of all public funds, and shall be legal for investment of municipal, county, bank, fiduciary, insurance company and trust funds.

SECTION 16. POWERS OF COMMISSION. All powers granted to the Commission pursuant to this Act shall be deemed in addition to such powers as already exist pursuant to Amendment 42 to the Arkansas Constitution and the laws of the State of Arkansas. No member of the Commission shall be liable personally for any reason arising from the issuance of bonds pursuant to this Act unless such person shall have acted with corrupt intent.

SECTION 17. Ark. Code Ann. § 27-70-209 is hereby repealed.

SECTION 18. All provisions of this act of a general and permanent nature are amendatory to the Arkansas Code of 1987 Annotated and the Arkansas Code Revision Commission shall incorporate the same in the Code.

SECTION 19. If any provision of this act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable.

SECTION 20. All laws and parts of laws in conflict with this act are hereby repealed.

SECTION 21. EMERGENCY. (Failed to be adopted) It is hereby found and determined by the General Assembly that there is an immediate need for the construction and repair of highways and roads within the State of Arkansas and that such a program cannot be accomplished without the issuance of bonds to finance the program. Therefore, an emergency is hereby declared to exist and this Act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after the passage and approval. APPROVED: April 7, 1995.

16. Arkansas Water, Waste Disposal and Pollution Abatement Facilities Financing Act of 1997 — Acts 1997, No. 607.

Publisher's Notes. The question in Acts 1997, No. 607, § 18, noted below, was referred to the voters in the 1998 General Election as “Referred Question No. 1” and received a majority vote in favor of the question. The Water, Waste Disposal, and Pollution Abatement General Obligation Bond Fund is codified at § 19-5-1108.

Acts 1997, No. 607, §§ 1-22, provided:

“SECTION 1. This Act may be referred to and cited as the ‘Arkansas Water, Waste Disposal and Pollution Abatement Facilities Financing Act of 1997’.

“SECTION 2. (a) The Arkansas Soil and Water Conservation Commission is hereby authorized to issue bonds of the State of Arkansas to be known as State of Arkansas Water, Waste Disposal and Pollution Abatement Facilities General Obligation Bonds (the ‘Bonds’), in total principal amount not to exceed Three Hundred Million Dollars ($300,000,000), for the purposes set forth herein. The Bonds may be issued in one or more series as required subject to the conditions and in compliance with the procedures set forth herein.

“(b) The total principal amount of Bonds to be issued during any fiscal biennium shall not exceed Sixty Million Dollars ($60,000,000), unless the General Assembly shall, by law, have authorized a greater principal amount thereof to be issued during a fiscal biennium. Provided further that, before any Bonds may be issued during any fiscal biennium the Commission shall submit to the Governor a written plan (1) setting forth the criteria to be used by the Commission in choosing (A) the Projects to be financed with the proceeds derived from the sale of the Bonds and/or (B) the programs for which funds may be provided by the Commission to finance Projects, and (2) requesting authorization for the projected maximum principal amount of Bonds required to be issued in such fiscal biennium. Upon receipt thereof, the Governor shall confer with the Chief Fiscal Officer of the State concerning whether the annual amount of general revenue funds required to be set aside from the General Revenues of the State, as such term is used in the Revenue Stabilization Law of Arkansas, for payment of debt service requirements in connection with the Bonds during either year of the fiscal biennium in which the Bonds are to be issued, would require moneys from the General Revenues of the State that would work undue hardship upon any agency or program supported from the General Revenues of the State under the provisions of the Revenue Stabilization Law of Arkansas.

“(c) Upon conclusion of such studies, and after obtaining the advice of the Legislative Council thereon, the Governor shall, if he deems the same to be in the public interest, by proclamation, authorize the Commission to proceed with the issuance of the Bonds, in one or more series, up to the maximum principal amount for the fiscal biennium approved by the Governor.

“(d) If the Governor shall decline or refuse to give his approval for the issuance of such Bonds by declining to issue a proclamation approving the issuance, the Governor shall promptly notify the Commission, in writing, and such Bonds shall not be issued. But the Commission may resubmit a request to the Governor for the approval of the issuance of the Bonds. The issue as resubmitted to the Governor shall be dealt with in the same manner as provided for the initial request for authority to issue the Bonds.

“SECTION 3. The Commission may contract with the Authority (1) to act as servicer of any loans made to, or of bonds purchased from, any Local Entities or (2) to perform any other administrative service, activity, undertaking or function of the Commission in connection with the issuance and sale of a particular series of the Bonds. The Commission is authorized to pay the Authority for any services provided by the Authority. Any contract shall be authorized by independent resolutions of the Commission and the Authority.

“SECTION 4. In this Act, unless the context otherwise requires,

“(a) ‘Authority’ means the Arkansas Development Finance Authority and any successor agency or department.

“(b) ‘Commission’ means the Arkansas Soil and Water Conservation Commission, and any successor agency or department;

“(c) ‘debt service’ means principal, interest, redemption premiums, if any, and trustees', paying agents' and dissemination agents' and like servicing fees relative to the Bonds;

“(d) ‘develop’ means to plan, design, construct, acquire (by purchase or, as set forth herein, by eminent domain), own, operate, rehabilitate, lease as lessor or lessee, enter into lease-purchase agreements with respect to, lend, make grants in respect of, or install or equip any lands, buildings, improvements, machinery, equipment, or other properties of whatever nature, real, personal or mixed;

“(e) ‘drainage’ means the removal or diversion of water from lands through natural or artificial means;

“(f) ‘FDIC’ means the Federal Deposit Insurance Corporation, or any successor thereto insuring deposits of commercial banks;

“(g) ‘flood control’ means (1) drainage and flood prevention improvements for protection from water-induced damages, (2) adjustments in land use and facilities designed to reduce flood damage from overflow or backwater due to major storms and snowmelt, and (3) facilities designed to collect and convey runoff from rainfall or snowmelt to natural watercourses or previously-modified natural waterways;

“(h) ‘General Revenues of the State’ means the revenues described and enumerated in Subchapter 2 of the Revenue Classification Law of Arkansas or in any successor law;

“(i) ‘irrigation’ means the production or transportation of water for agricultural uses through artificial or natural conveyances for watering of crops or other agricultural products;

“(j) ‘Local Entity’ means any nonprofit corporation, or any county, municipality, conservation district, improvement district, drainage district, irrigation district, levee district, regional water distribution district, public facilities board, rural development authority, regional wastewater treatment district, regional solid waste management district, rural water association or school district in the State or any agency or instrumentality of any of the foregoing, or any agency or instrumentality of the State, including the Commission;

“(k) ‘Nationally recognized rating agency’ means Moody's Investors Service, Inc., Standard & Poor's Ratings Group, or any other nationally recognized rating agency approved by the State Investing Office;

“(l) ‘Person’ means any Local Entity or any individual, corporation, trust, limited liability company or partnership;

“(m) ‘Pollution abatement’ means reduction, prevention, recycling, control or elimination by appropriate methods of contamination or pollution, or other alteration of the physical, chemical or biological properties, of any land or waters of the State, or of such discharge of any liquid, gaseous or solid substance as will or is likely to create a nuisance or render any land or waters of the State harmful or detrimental or injurious to public health, safety or welfare of individuals, or to domestic, commercial, industrial, agricultural, recreational, or other legitimate beneficial uses, or to livestock, wild animals, birds, fish or other aquatic life;

“(n) ‘Prior Acts’ means, collectively, Act No. 496 of 1981, as now or hereafter amended, codified as A.C.A. § 15-22-601 et seq., and Act No. 686 of 1987, as now or hereafter amended, codified as A.C.A. § 15-22-701 et seq.;

“(o) ‘Project’ or ‘Projects’ means any lands, buildings, improvements, machinery, equipment, or other property, real, personal or mixed, or any combination thereof and programs using such property, developed in pursuance of all or any of the purposes of this Act, including but not limited to the following: (1) the production, impoundment, treatment and transportation of water, (2) the collection, treatment and disposition of waste, (3) pollution abatement programs, (4) drainage or flood control facilities, (5) irrigation facilities, (6) the preservation and development of wetlands, and (7) any facilities authorized by or pursuant to the Prior Acts. Included are Projects for agricultural, administrative, research, residential, recreational, commercial and industrial purposes and Projects for the use and benefit of Local Entities, the Commission and other Persons. Included are facilities and improvements which are necessary, ancillary or related to those enumerated;

“(p) ‘Project Costs’ means all or any part of the costs of developing any Project, costs incidental or appropriate thereto including, without limitation, all costs to the Commission associated with the development or operation of any Project in a supervisory capacity, and costs incidental or appropriate to the financing thereof, including, without limitation, capitalized interest, costs of issuance of and appropriate reserves for the Bonds, loan or commitment fees, loan or grant administration fees and costs for engineering, legal, and other administrative and consultant services;

“(q) ‘Revenue Classification Law of Arkansas’ means Act No. 808 of 1973, as now or hereafter amended, codified as A.C.A. § 19-6-101 et seq.;

“(r) ‘Revenue Stabilization Law of Arkansas’ means Act No. 750 of 1973, as now or hereafter amended, codified as A.C.A. § 19-5-101 et seq.;

“(s) ‘State’ means the State of Arkansas;

“(t) ‘State Apportionment Fund’ means the fund by that name created by Subchapter 2 of the Revenue Stabilization Law of Arkansas or in any successor law;

“(u) ‘State Investing Office’ shall mean the State Treasurer for the investment of any funds established on the books of the State Treasury, and the Commission and/or the Authority for the investment of any funds held outside the State Treasury.

“(v) ‘Water’ means any waters of the State, including surface water and ground water;

“(w) ‘Waste’ means any liquid or solid produced as an undesirable byproduct of any activity; and

“(x) ‘Wetlands’ means land that (1) has a predominance of hydric soils, (2) is inundated or saturated by surface or ground water at a frequency and duration sufficient to support a prevalence of hydrophytic vegetation typically adapted for life in saturated soil conditions, and (3) under normal circumstances does support a prevalence of such vegetation.

“SECTION 5. (a) The Bonds shall be issued, in series, as set forth herein, in amounts sufficient to finance or refinance all or any part of Project Costs with the respective series to be designated in alphabetical order and/or by the year in which issued.

“(b) Each series of the Bonds shall have such date as the Commission shall determine and shall mature or be subject to mandatory sinking fund redemption as determined by the Commission, over a period ending not later than thirty-five (35) years after the date of the Bonds of each series. Pending the issuance of Bonds hereunder, the Commission may issue temporary notes, maturing not more than five (5) years from the date of issuance, to be exchanged for or paid from the proceeds of Bonds at such time as the Bonds may be issued.

“(c) Each series of the Bonds shall bear interest, whether or not subject to federal income taxation, at the rate or rates accepted by the Commission. Interest shall be payable at such times as the Commission shall determine.

“(d) The Bonds may be issued in such form; may be in such denominations; and may be made exchangeable for Bonds of another form or denomination, bearing the same rate of interest and date of maturity; may be made payable at such places within or without the State; may be made subject to redemption prior to maturity in such manner and for such redemption prices; and may contain such other terms and conditions, all as the Commission shall determine.

“(e) The Bonds shall have all the qualities of negotiable instruments or securities under the laws of the State, subject to the provision for registration of ownership.

“SECTION 6. Bonds issued under this Act shall be issued for the purpose of financing (on a temporary or permanent basis), refinancing and developing one or more Projects, and the proceeds of the Bonds shall be applied to the payment of Project Costs and the costs and expenses of issuance of the Bonds, or in connection with a Project refinancing, the repayment of indebtedness incurred to pay Project Costs or for refunding of Bonds as provided in Section 14.

“SECTION 7. (a) The Bonds shall be authorized by resolution of the Commission. Each such resolution shall contain such terms, covenants, and conditions as are deemed desirable, including, without limitation, those pertaining to the establishment and maintenance of funds and accounts, to the deposit and investment of revenues and of Bond proceeds and to the rights and obligations of the State, its officers and officials, the Commission and the registered owners of the Bonds. The resolution of the Commission may provide for the execution and delivery by the Commission of a trust indenture or trust indentures, with one or more banks or trust companies located within or without the State, containing any of the terms, covenants, and conditions referred to above, which trust indenture or trust indentures shall be binding upon the State, and its agencies, officers and officials, to the extent set forth in this Act.

“(b) Any resolution or trust indenture adopted or executed under this Section shall provide that power is reserved to apply to the payment of debt service on the Bonds issued or secured thereunder all or any part of the revenues which may be derived from any Project financed by such Bonds or financed by the Commission or the Authority in some other manner; and, to the extent of such revenues which the Commission elects to apply to debt service, to release from any requirement of such resolution or trust indenture other revenues and resources of the State, including, without limitation, the General Revenues of the State required to be transferred under Section 12 hereof.

“SECTION 8. Each Bond shall be signed with the manual or facsimile signatures of the Governor, the Chairman of the Commission and the Treasurer of State, and shall have affixed, imprinted or lithographed thereon the Great Seal of the State. Interest coupons attached to the Bonds, if any, shall be signed with the facsimile signature of the Treasurer of State. Delivery of the Bonds and coupons so executed shall be valid, notwithstanding any change in persons holding such offices occurring after the Bonds have been executed.

“SECTION 9. The Bonds may be sold in such manner, either at public or private sale, and upon such terms as the Commission shall determine to be reasonable and expedient for effectuating the purposes for which the Commission was created. The Bonds may be sold at the price the Commission determines acceptable, including sale at a discount. The Commission may employ administrative agents, fiscal agents, underwriters, architects, accountants, engineers and legal counsel and may pay them reasonable compensation from the proceeds of the Bonds. The fees of any trustee or paying agent, as well as the costs of publication of notices and of printing of the Bonds, official statements and other documents relating to the sale of the Bonds, the fees of any rating agency and other reasonable costs of issuing and selling the Bonds incurred by the Commission and the Authority may be paid from the proceeds of the Bonds.

“SECTION 10. (a) The proceeds from the sale of the Bonds, together with all revenues derived by the Commission (i) from any Project financed or refinanced under this Act and appropriated, allocated or otherwise set aside by the Commission for the payment of the Bonds and (ii) from any other Project and appropriated, allocated or otherwise set aside by the Commission for the payment of the Bonds, shall be deposited by the recipient thereof, as received, into trust funds either established in the State Treasury, or into accounts established outside the State Treasury in the name of the Commission or the Authority, to accomplish the purposes of this Act, in amounts or portions as set forth in the resolution or trust indenture authorizing or securing the Bonds issued to finance or refinance the development of Projects. There is hereby established as a trust fund in the State Treasury an account designated as the Water, Waste Disposal and Pollution Abatement Facilities Bond Fund (the ‘Bond Fund’), which is being created to provide for payment of all or a part of the debt service on Bonds issued under this Act.

“The Treasurer of the State is authorized and directed to establish separate accounts and subaccounts within the Bond Fund to correspond to the applicable series of Bonds. In addition, there may be created in the State Treasury such other funds, accounts or subaccounts as the Commission may determine to be necessary to accomplish the purposes of this Act.

“(b) All procedures and methods for the application of proceeds of any series of Bonds to the financing or refinancing of Project Costs shall be set forth in writing, which writings shall be maintained as a part of the records of the Commission. Such procedures and methods may include, but are not limited to, the following:

“(1) Development of Projects to be owned, operated and maintained by the Commission;

“(2) Grants to Local Entities and the Commission;

“(3) Loans to Local Entities or Persons or the purchase of bonds or other general or special obligation debt of Local Entities;

“(4) Development of Projects to be leased to or operated by Local Entities;

“(5) Development of Projects to be purchased, at one time or by installment purchase, by Local Entities;

“(6) Establishment of funds, including revolving funds (i.e., funds for the lending of money to Persons to be repaid into such funds) for the development of Projects;

“(7) Matching of proceeds of Bonds with moneys provided by Local Entities, or other Persons;

“(8) Matching of moneys provided pursuant to other laws, including Arkansas Code of 1987 Annotated Title 15, Chapter 22, Subchapter 5; Title 15, Chapter 22, Subchapter 8; Title 14, Chapter 230, Subchapter 1; Title 15, Chapter 5, Subchapter 10; and Title 15, Chapter 5, Subchapter 9; and

“(9) Establishment of funds to refund or refinance Bonds issued under this Act, bonds issued under the Prior Acts and the bonds or other debt of Local Entities which were incurred for the purpose of paying Project Costs.

“(c) Any arrangements undertaken pursuant to (b), above, whereby a Local Entity will administer funds composed in whole or in part of proceeds of Bonds shall include provision for the auditing, no less frequently than annually, of such funds.

“(d) The proceeds from the sale of the Bonds, together with all revenues derived by the Commission (i) from any Project financed or refinanced under this Act or (ii) from any other Project and appropriated, allocated or otherwise set aside by the Commission for the payment of the Bonds, may be invested and reinvested by the State Investing Office in any of the following:

“(1) direct obligations of the United States of America (including obligations issued or held in book-entry form on the books of the Department of the Treasury) or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America;

“(2) bonds, debentures, notes or other evidences of indebtedness issued or guaranteed by any United States government agencies provided, however, such obligations are backed by the full faith and credit of the United States of America;

“(3) senior debt obligations issued or guaranteed by United States government agencies (non-full faith and credit agencies);

“(4) money market funds investing exclusively in the investments described in clauses (1) through (3) of this subsection (d);

“(5) certificates of deposit providing for deposits secured at all times by collateral described in clauses (1) through (3) of this subsection (d). Such certificates must be issued by commercial banks whose deposits are insured by the FDIC and whose collateral must be held by a third party, and the State Investing Office, or assigns, must have a perfected first security interest in the collateral;

“(6) certificates of deposit, savings accounts, deposit accounts or money market deposits, all of which are fully insured by the FDIC;

“(7) bonds or notes issued by the State or any municipality, county or school district, community college district or regional solid waste management district in the State, or any agency or instrumentality thereof;

“(8) investment agreements with financial institutions or insurance companies which are rated in one of the two highest rating categories of a nationally recognized rating agency;

“(9) repurchase agreements providing for the transfer of securities from a dealer bank or securities firm (seller/borrower) to the State Investing Office (buyer/lender), and the transfer of cash from the State Investing Office to the dealer bank or securities firm with an agreement that the dealer bank or securities firm will repay the cash plus a yield to the State Investing Office in exchange for the securities at a specified date. Repurchase agreements must satisfy the following criteria:

“(A) Repurchase agreements must be between the State Investing Office and a dealer bank or securities firm described as follows:

“(i) Dealers with at least $100 million in capital, or

“(ii) Banks whose deposits are insured by the FDIC.

“(B) The written repurchase agreement contract must include the following:

“(i) Securities which are acceptable for transfer are those listed in clauses (1) through (3) of this subsection.

“(ii) The term of the repurchase agreement may be up to 30 days.

“(iii) The collateral must be delivered to the State Investing Office, trustee (if trustee is not supplying the collateral) or third party acting as agent for the trustee (if the trustee is supplying the collateral) before/simultaneous with payment (perfection by possession of certificated securities);

“(iv) Valuation of Collateral: The securities must be valued weekly, marked-to-market at current market price plus accrued interest. The value of collateral must be equal to 103% of the amount of cash transferred by the State Investing Office to the dealer bank or security firm under the repurchase agreement plus accrued interest. If the value of securities held as collateral declines below 103% of the value of the cash transferred by the State Investing Office, then additional cash and/or acceptable securities must be transferred and held by the State Investing Office; and

“(10) any other investment authorized by State law.

“SECTION 11. The Bonds shall be the direct general obligations of the State, for the payment of debt service on which the full faith and credit of the State are hereby irrevocably pledged so long as any such Bonds are outstanding. The Bonds shall be payable from the General Revenues of the State, and such amount of General Revenues of the State as is necessary is hereby pledged to the payment of debt service on the Bonds, and shall be and remain pledged for such purposes.

“SECTION 12. On or before commencement of each fiscal year, the Chief Fiscal Officer of the State shall determine the estimated amount required for payment of all or a part of the debt service on the Bonds issued under this Act during such fiscal year and deduct therefrom the estimated moneys to be available to the Commission from other sources to determine what amount of General Revenues of the State will be required. The Chief Financial Officer of the State shall certify such estimated amount to the Treasurer of State. The Treasurer of State shall then make monthly transfers from the State Apportionment Fund to the Bond Fund, of such amount of General Revenues of the State as shall be required to pay the maturing debt service on Bonds issued under this Act.

“The obligation to make monthly transfers of General Revenues of the State from the State Apportionment Fund to the Bond Fund shall constitute a first charge against such general revenues of the State prior to all other uses to which such general revenues of the State are devoted, either under present law or under any laws that may be enacted in the future; provided however, that to the extent other general obligation bonds of the State may have been issued or may subsequently be issued, all such general obligation bonds shall rank on a parity of security with respect to payment from general revenues of the State.

“Moneys credited to the Bond Fund shall be used only for the purpose of paying debt service on the Bonds, either at maturity or upon redemption prior to maturity, and for such purposes the Treasurer of State is hereby designated Disbursing Officer to administer such funds in accordance with the provisions of this Act.

“Moneys in the Bond Fund over and above the amount necessary to insure the prompt payment of debt service on the Bonds, and the establishment and maintenance of a reserve fund, if any, may be used for the redemption of Bonds prior to maturity in the manner and in accordance with the provisions pertaining to redemption prior to maturity, as set forth in the resolution or trust indenture authorizing or securing the Bonds.

“SECTION 13. All Bonds issued under this Act, and interest thereon, shall be exempt from all State, county and municipal taxes, including income, inheritance and property taxes. The Bonds shall be eligible to secure deposits of all public funds, and shall be legal for investment of bank, fiduciary, insurance company, trust, and public funds.

“SECTION 14. (a) Bonds may be issued under this Act for the purpose of refunding any outstanding bonds issued pursuant to this Act or to refund any outstanding bonds of the Commission issued pursuant to the Prior Acts. The Commission shall not be required to include Bonds issued pursuant to this Section in any written plan submitted to the Governor under Section 2(b) of this Act, and such Bonds shall not be subject to the requirements for the approval and proclamation of the Governor as set forth in Section 2(c).

“(b) The refunding bonds may be either sold for cash or delivered in exchange for the outstanding obligations. If sold for cash, the proceeds may be either applied to the payment of the obligations refunded or deposited in irrevocable trust for the retirement thereof either at maturity or on an authorized redemption date.

“(c) Refunding bonds shall in all respects be authorized, issued, and secured in the manner provided for the bonds being refunded, and shall have all the attributes of the refunded bonds. To the extent that the refunding bonds are not in a greater principal amount than the outstanding principal amount of the bonds being refunded, the principal amount of such refunding bonds shall not be subject to the $300,000,000 limit set forth in Section 2 (a) or the $60,000,000 limit set forth in Section 2(b) of this Act.

“(d) The resolution or trust indenture under which the refunding bonds are issued shall provide that any refunding bonds shall have the same priority of payment as was enjoyed by the obligations refunded thereby.

“SECTION 15. The Commission, in addition to powers conferred under other laws, shall have the power under this Act to take such action as may be appropriate to carry out the purposes of this Act, and including the power:

“(a) to develop Projects;

“(b) to operate and maintain Projects;

“(c) to acquire absolute title to and use for any purpose and at any place, water stored in any reservoir, or other impoundment;

“(d) to acquire, collect, impound, store, transport, distribute, sell, furnish and dispose of water to any person at any place;

“(e) to purify, treat and process water;

“(f) to assist Local Entities in the preparation of their premises for the use of water furnished by the Commission and to construct upon such premises Project properties of any kind and character and, in connection therewith, to receive, acquire, endorse, pledge, hypothecate and dispose of notes, bonds, and other evidences of indebtedness;

“(g) to use the bed of any watercourse without adversely affecting existing riparian rights, any highway or any right-of-way, easement or other similar property rights, or any tax forfeited land owned or held by the State or by any political subdivision thereof;

“(h) to provide loans and grants from Bond proceeds or Project revenues to Local Entities and to authorize Local Entities to make loans to other Persons, for payment of Project Costs in order for the Local Entity receiving such funds to develop a Project;

“(i) to purchase with Bonds proceeds or Project revenues bonds or notes from a Local Entity in order to provide funds for payment of Project Costs in order for the Local Entity receiving such funds to develop a Project, and to enter into note and bond purchase agreements in connection therewith;

“(j) to appropriate amounts from Bond proceeds to satisfy State matching requirements for federal grants, subsidies and revolving loan funds established by the Congress of the United States for the purpose of facilitating water, waste disposal, pollution control, abatement and prevention, drainage, irrigation, flood control and wetlands projects;

“(k) to appropriate amounts from Bond proceeds for the matching of moneys provided pursuant to other laws, including particularly, without limitation, Arkansas Code of 1987 Annotated Title 15, Chapter 22, Subchapter 5; Title 15, Chapter 22, Subchapter 8; Title 14, Chapter 230, Subchapter 1; Title 15, Chapter 5, Subchapter 10; and Title 15, Chapter 5, Subchapter 9;

“(l) to construct or cause to be constructed, lease as lessee, lease as lessor, and in any manner acquire, own, hold, maintain, operate, sell, dispose of, exchange, mortgage, or lend with respect to all or any part of any Project;

“(m) to acquire, own, hold, use, exercise, sell, mortgage, pledge, hypothecate, and in any manner to dispose of franchises, rights, privileges, licenses, rights-of-way and easements necessary, useful, or appropriate for the exercise of the powers or implementation of the purposes set forth in this Act;

“(n) to sell and convey, mortgage, pledge, lease as lessor, enter into lease-purchase agreements with respect to, and otherwise dispose of all or any part of any Project or other properties, tangible or intangible, including, without limitation, franchises, rights, privileges, licenses, rights-of-way and easements;

“(o) to have and exercise the right of eminent domain for the purpose of acquiring lands (the fee title thereto or any easement, right-of-way or other interest or estate therein) for Projects or portions thereof, by the procedure now provided for condemnation by municipal corporations by Act No. 269 of 1957, as now or hereafter amended, codified as A.C.A. § 18-15-401 et seq.;

“(p) to make or accept gifts or grants of moneys, services, franchises, rights, privileges, licenses, rights-of-way, easements or other property, real or personal or mixed;

“(q) to make any and all contracts necessary or convenient for the exercise of the powers or implementation of the purposes set forth in this Act;

“(r) to fix, regulate and collect rates, fees, rents or other charges for making any loan or commitment under this Act, for performing accounting and loan servicing duties relating to such loans and for the use of any properties or services furnished by the Commission, and with respect thereto the Commission shall not be subject to the jurisdiction or control of the Arkansas Public Service Commission;

“(s) to require audits of all accounts related to construction, operation, or maintenance of any Project funded by this Act;

“(t) to take reasonable actions necessary to insure that debt service requirements are met;

“(u) to refinance loans made by the Commission from whatever source to Local Entities in order to develop a Project;

“(v) to provide loans from Bond proceeds or Project revenues to Local Entities for the purpose of refinancing indebtedness of the Local Entity incurred for the purpose of developing a Project;

“(w) to purchase with Bond proceeds or Project revenues bonds or notes from a Local Entity in order to provide funds to refinance indebtedness incurred by a Local Entity for the purpose of developing a Project; and

“(x) to take such other action as may be appropriate to accomplish the purposes of this Act.

“SECTION 16. This Act shall constitute a contract between the State and the registered owners of all Bonds issued hereunder which shall never be impaired, and any violation of its terms, whether under purported legislative authority or otherwise, shall be enjoined by the courts at the suit of any bondholder or any taxpayer. The courts shall, in like suit against the Commission, the Treasurer of State, or other appropriate agency, officer or official of the State, prevent a diversion of any revenues pledged hereunder and shall compel the restoration of diverted revenues, by injunction or mandamus. Also, and without limitation as to any other appropriate remedy at law or in equity, any bondholder may, by an appropriate action, including without limitation, injunction or mandamus, compel the performance of all covenants and obligations of the State, its officers and officials, hereunder.

“SECTION 17. (a) This Act shall not create any right of any character and no right of any character shall arise under or pursuant to it, unless and until the first series of Bonds authorized by this Act shall have been sold and delivered.

“(b) The issuance of Bonds authorized by this Act shall not impair or affect any outstanding bonds of the Commission issued pursuant to the Prior Acts.

“SECTION 18. No Bonds shall be issued under this Act except by and with the consent of a majority of the qualified electors of the State voting on the question in substantially the form described in this Section at the general election of 1998 unless the Governor shall, by proclamation, call a special election to be conducted prior thereto. If the question is presented at the general election of 1998, notice thereof shall be published by the Secretary of State by one insertion in a newspaper of general circulation in the State at least sixty (60) days prior to the general election, and notice thereof shall be mailed to each county board of election commissioners and the sheriff of each county at least sixty (60) days prior to the general election.

“If a special election is called by the Governor, the proclamation thereof shall be made at least sixty (60) days prior to the date fixed by such proclamation for the election, and notice of the special election shall be given by publication of the proclamation for one insertion in one newspaper of general circulation published in each county in the State not less than thirty (30) days prior to the date of such election. If there is no newspaper regularly published in a county, the proclamation may be published in any newspaper having a general circulation in the county. It shall not be necessary, in the case of the notice or proclamation for the election, to publish this Act in its entirety, but the notice or proclamation shall state that it is issued for the purpose of submitting to the people substantially the following question:

“Shall the Arkansas Soil and Water Conservation Commission be authorized to issue General Obligation Bonds under the authority of the Arkansas Water, Waste Disposal and Pollution Abatement Facilities Financing Act of 1997 in total principal amount not to exceed Three Hundred Million Dollars ($300,000,000), in series from time to time in principal amounts not to exceed, without prior approval of the General Assembly, Sixty Million Dollars ($60,000,000) in any fiscal biennium, for the financing and refinancing of the development of water, waste disposal, water pollution control, abatement and prevention, drainage, irrigation, flood control and wetlands projects to serve the citizens of the State of Arkansas, which Bonds shall be secured by a pledge of the full faith and credit of the State of Arkansas?

“Whether the question is presented at special election or at the general election of 1998, the title of this Act shall be the ballot title, and there shall be printed on the ballot the proposition as stated above, and the following:

“FOR Issuance of State of Arkansas Water, Waste Disposal and Pollution Abatement Facilities General Obligation Bonds

“AGAINST Issuance of State of Arkansas Water, Waste Disposal and Pollution Abatement Facilities General Obligation Bonds

“The county boards of election commissioners of the several counties of the State shall hold and conduct the election, and each such board is hereby authorized and directed to take such action with respect to the appointment of election officials and such other matters as the law requires; and the vote shall be canvassed and the result thereof declared in each county by such several county boards. The results shall within ten (10) days after the date of the election be certified by such county boards to the Secretary of State who shall forthwith tabulate all returns so received by him and certify to the Governor the total vote for and against the proposition submitted as in this Section provided.

“The result of the election shall be proclaimed by the Governor by publication one time in a newspaper published in the City of Little Rock, Arkansas, and the results as proclaimed shall be conclusive unless attacked in the courts within thirty (30) days after the date of such publication.

“SECTION 19. If a majority of the qualified electors voting on the question shall vote for the issuance of the Bonds, the Commission shall proceed with the sale and the issuance of the Bonds as provided in this Act. If a majority of the qualified electors voting on the question vote against the issuance of the Bonds, none of the Bonds authorized by this Act shall ever be sold or issued, and all provisions of the Act shall be of no further effect.

“SECTION 20. The authority to issue bonds under Section 2 of this Act in an aggregate principal amount not to exceed Three Hundred Million Dollars ($300,000,000) shall be reduced by the principal amount of bonds issued for non-refunding purposes under the Prior Acts after the effective date of this Act.

“SECTION 21. If, for any reason, any Section or provision of this Act shall be held to be unconstitutional or invalid for any reason, such holding shall not effect the remainder of this Act, but this Act, insofar as it is not in conflict with the Constitution of the State or the Constitution of the United States, shall be permitted to stand, and the various provisions of this Act are hereby declared to be severable for that purpose. Any case involving the validity of this Act or involving the Bonds issued hereunder, shall be deemed of public interest and shall be advanced by all courts and heard as a preferred cause, and all appeals from judgments or decrees rendered in such cases must be taken within thirty (30) days after rendition of such judgment or decree.

“SECTION 22. (a) This Act shall be liberally construed to accomplish the purposes thereof. This Act shall constitute the sole authority necessary to accomplish the purposes hereof, and to this end it shall not be necessary that the provisions of other laws pertaining to the development of public facilities and properties and the financing thereof be complied with.

“(b) This Act shall be interpreted to supplement existing laws conferring rights and powers upon the Commission, and the rights and powers set forth herein shall be regarded as alternate methods for the accomplishment of the purposes of this Act.

“(c) Nothing set forth in this Act shall be construed to repeal or to reduce the powers conferred by the Prior Acts.”

17. Department of Arkansas State Police Headquarters Facility and Wireless Data Equipment Financing Act — Acts 1997, No. 1057.

Publisher's Notes. Acts 2015, No. 856, § 1, provided:

“Legislative intent — Repeal of Acts 1997, No. 1057.

“(a) (1) It is the intent of the General Assembly to update the Department of Arkansas State Police Headquarters Facility and Wireless Data Equipment Financing Act as established by uncodified Acts 1997, No. 1057, by repealing Acts 1997, No. 1057, and enacting this act.

“(2) It is not the intent of the General Assembly to:

“(A) Affect any bonds issued under Acts 1997, No. 1057; or

“(B) Allow the existence of bonds issued under Acts 1997, No. 1057, to impair the effectiveness of this act or the authority given under this act.

“(b) Acts 1997, No. 1057, is repealed.”

See the Department of Arkansas State Police Headquarters Facilities and Equipment Financing Act, § 12-8-601 et seq.

18. The Steel Mill Project — Acts 2013, No. 1084, §§ 1-8.

SECTION 1. Legislative findings and intent.

The General Assembly finds that the:
1. Creation of jobs and economic growth are critical to improving the lives of the citizens of the State of Arkansas; and
2. Arkansas Economic Development Commission has submitted for approval of the General Assembly a proposal to issue general obligation bonds of the state to provide financing for a large economic development project.
The General Assembly further finds that:
1. The proposed project between the State of Arkansas and Big River Steel, LLC is a qualified project under Arkansas Constitution, Amendment 82, and the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq., and Big River Steel, LLC qualifies as an eligible business under the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq.;
2. The proposed uses of the bond proceeds described in the Amendment 82 Agreement qualify as financing for infrastructure or other needs within the meaning of Arkansas Constitution, Amendment 82, and the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq.; and
3. Arkansas Constitution, Amendment 82, authorizes the General Assembly to issue bonds bearing the full faith and credit of the State of Arkansas if the prospective employer planning an economic development project is eligible under the criteria established by law.
This act is intended to authorize:
1. The issuance of bonds under the authority granted to the General Assembly under Arkansas Constitution, Amendment 82; and
2. Under Arkansas Constitution, Amendment 82, and the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq., the execution and implementation of the Amendment 82 Agreement and other provisions necessary to carry out the Amendment 82 Agreement.
As provided under the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq., this act includes the:
1. Authorization for the issuance of bonds bearing the full faith and credit of the State of Arkansas as authorized under Arkansas Constitution, Amendment 82;
2. Authorization of the agreement between the State of Arkansas and the Big River Steel, LLC;
3. Creation of a sales tax exemption for natural gas and electricity for Big River Steel, LLC; and
4. Extension of the waste reduction, reuse, or recycling equipment tax credit.

SECTION 2. Big River Steel Project bonds issued under Arkansas Constitution, Amendment 82.

As used in this section:
1. “Amendment 82 Agreement” means the unexecuted document titled “Amendment 82 Agreement between the State of Arkansas and Big River Steel, LLC” submitted to the General Assembly and as found in Section 8 of this act; and
2. “Project” means the acquisition, development, construction, and operation of a mini-mill steel manufacturing facility by Big River Steel, LLC, on a site in Mississippi County, Arkansas, that is identified more specifically in the Amendment 82 Agreement.
1. The General Assembly finds that the project qualifies as a large economic development project for which the issuance of general obligation bonds is authorized under Arkansas Constitution, Amendment 82, and the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq., and is of the nature intended by the electors of the state to be financed with bonds under Arkansas Constitution, Amendment 82.
2. The General Assembly approves the terms of the Amendment 82 Agreement between the State of Arkansas and Big River Steel, LLC, and authorizes the execution of the Amendment 82 Agreement in substantially the same form as presented to the General Assembly but with such changes as shall be approved by the officers executing the Amendment 82 Agreement on behalf of the state.
1. The General Assembly authorizes the Arkansas Development Finance Authority to issue general obligation bonds of the State of Arkansas in an amount not to exceed one hundred twenty-five million dollars ($125,000,000) in the aggregate.
2. The bonds authorized under subdivision (c)(1) of this section:
  1. Are direct general obligations of the State of Arkansas;
  2. Bear the full faith and credit of the State of Arkansas; and
  3. Are payable from gross general revenues or special revenues appropriated by the General Assembly.
The authority shall issue the bonds in accordance with the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq.
1. The Arkansas Economic Development Commission and the authority may implement the Amendment 82 Agreement consistent with this act, Arkansas Constitution, Amendment 82, and the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq.
2. If a provision of this act or of the Amendment 82 Agreement conflicts with any provision of the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq., the provisions of this act and the provisions of the Amendment 82 Agreement control.

SECTION 3. Sections 4 through 7 of this act shall be known and may be cited as the “Amendment 82 Big River Steel Project Tax Provisions”.

SECTION 4. Definitions.

As used in sections 4 through 7 of this act:

“Invested” includes, but is not limited to, expenditures made from the proceeds of bonds, including interim notes or other evidence of indebtedness, issued by a municipality, county, or an agency or instrumentality of a municipality, county, or the State of Arkansas, if the obligation to repay the bonds, including interest thereon, is a legally binding obligation, directly or indirectly, of the taxpayer;
“Production, processing, and testing equipment” includes machinery and equipment essential for the receiving, storing, processing, and testing of raw materials and the production, storage, testing, and shipping of finished products, and facilities for the production of steam, electricity, chemicals, and other materials that are essential to the manufacturing process but which are consumed in the manufacturing process and do not become essential components of the finished product; and
“Qualified manufacturer of steel” means any natural person, company, or corporation, and any holding company of any of the foregoing, engaged in the manufacture, refinement, or processing of steel whenever more than fifty percent (50%) of the electricity or more than fifty percent (50%) of the natural gas consumed in the manufacture, refinement, or processing of steel is used to power an electric arc furnace or furnaces or continuous casting equipment in connection with the melting, continuous casting, or rolling of steel or in the preheating of steel for processing through a rolling mill or rolling mills, or both.

SECTION 5. Certification required.

To claim the benefits of this act, a taxpayer must obtain a certification prior to March 31, 2016, from the Director of the Arkansas Economic Development Commission certifying to the Revenue Division of the Department of Finance and Administration that the taxpayer:
1. Is a qualified manufacturer of steel;
2. Operates a steel mill in Arkansas which began production after January 1, 2013; and
3. Has invested after January 1, 2013, and prior to December 31, 2015, more than five hundred million dollars ($500,000,000) in the steel mill, and the investment expenditure is for one (1) or more of the following:
  1. Property purchased for use in the construction of a building or buildings or any addition or improvement thereon to house the steel mill;
  2. 1. Machinery and equipment to be located in or in connection with the steel mill.
    2. Motor vehicles of a type subject to registration shall not be considered as machinery and equipment; and
  3. Project planning costs or construction labor costs, including:
    1. On-site direct labor and supervision, whether employed by a contractor or the project owner;
    2. Architectural fees or engineering fees, or both;
    3. Right-of-way purchases;
    4. Utility extensions;
    5. Site preparation;
    6. Parking lots;
    7. Disposal or containment systems;
    8. Water and sewer treatment systems;
    9. Rail spurs;
    10. Streets and roads;
    11. Purchase of mineral rights;
    12. Land;
    13. Buildings;
    14. Building renovation;
    15. Production, processing, and testing equipment;
    16. Drainage systems;
    17. Water tanks and reservoirs;
    18. Storage facilities;
    19. Equipment rental;
    20. Contractor's cost-plus fees;
    21. Builders' risk insurance;
    22. Original spare parts;
    23. Job administrative expenses;
    24. Office furnishings and equipment;
    25. Rolling stock; and
    26. Capitalized start-up costs related to the construction as recognized by generally accepted accounting principles.
To continue to claim the benefits provided under Section 7 of this act after December 31, 2018, a taxpayer shall:
1. Obtain an annual certification from the Director of the Arkansas Economic Development Commission certifying to the Revenue Division of the Department of Finance and Administration that the taxpayer meets the requirements of subsection (a) of this section; and
2. Employ at least three hundred (300) individuals in the management, operations, and maintenance of the steel mill at an average wage equal to or in excess of seventy thousand dollars ($70,000) in cash compensation per calendar year.

SECTION 6. Exemption from taxes.

Beginning on the date that production, processing, and testing equipment are first in operation, sales of natural gas and electricity to a qualified manufacturer of steel that is certified under Section 5 of this act shall be exempt from the gross receipts tax levied by the Arkansas Gross Receipts Act of 1941, Arkansas Code § 26-52-101, et seq., the Arkansas Compensating Tax Act of 1949, Arkansas Code § 26-53-101 et seq., and any other state or local tax administered under those acts.

SECTION 7. Recycling tax credits.

1. 1. A qualified manufacturer of steel that has been certified under Section 5 of this act after January 1, 2013, and prior to December 31, 2020, and that has qualified for the income tax credit for the purchase of waste reduction, reuse, or recycling equipment provided by Arkansas Code § 26-51-506, may carry forward any unused income tax credit earned under § 26-51-506 for a period of fourteen (14) consecutive years following the taxable year in which the credit originated.
  2. However, if a qualified manufacturer of steel is not certified under Section 5(b) of this act, the carry-forward period allowed under subdivision (a)(1)(A) of this section shall be reduced by one (1) year for each year that the qualified manufacturer of steel does not obtain certification under Section 5(b) of this act.
2. Income tax credits that would otherwise expire during that period shall be claimed first.
1. As used in subdivision (a)(1) of this section, the term “waste reduction, reuse, or recycling equipment” as defined in § 26-51-506 shall include production, processing, and testing equipment used to manufacture products containing recovered materials.
2. The provisions of § 26-51-506(d)(4) shall not apply.
3. However, the qualified manufacturer of steel shall make a good faith effort to use recovered materials containing Arkansas post-consumer waste as a part of the materials used.
1. Except as provided in subdivision (c)(2) of this section, the refund provisions of Arkansas Code § 26-51-506(f) shall not apply to a qualified manufacturer of steel that has been certified under Section 5 of this act.
2. The qualified manufacturer of steel shall refund the amount required under subdivision (c)(3) of this section if within three (3) years of the taxable year in which the credit originated:
  1. 1. The waste reduction, reuse, or recycling equipment is removed from Arkansas, disposed of, or transferred to another person, or the qualified manufacturer of steel otherwise ceases to use the required materials or operate in accordance with § 26-51-506 or this section.
    2. Reorganization transactions, changes of ownership and control, and sales and transfers of waste reduction, reuse, or recycling equipment among affiliates which do not constitute sales or transfers to a third-party purchaser shall not be considered disposals, transfers, or cessations of use for purposes of § 26-51-506 or this section; or
  2. The Director of the Arkansas Department of Environmental Quality finds that the qualified manufacturer of steel has operated the waste reduction, reuse, or recycling equipment in a manner which demonstrates a pattern of intentional failure to comply with final administrative or judicial orders which clearly indicates a disregard for environmental regulation.
3. If the provisions of subdivision (c)(2) of this section apply, the qualified manufacturer of steel shall refund the amount of the allowed tax credit claimed by the qualified manufacturer of steel which exceeds the following amounts:
  1. Within the first taxable year, zero dollars ($0.00);
  2. Within the second taxable year, an amount equal to thirty-three percent (33%) of the amount of credit allowed; and
  3. Within the third taxable year, an amount equal to sixty-seven percent (67%) of the credit allowed.
4. Any refund required by subdivision (c)(2)(A) of this section shall apply only to the credit given for the particular waste reduction, reuse, or recycling equipment to which that subdivision applies.
5. A qualified manufacturer of steel that is required to refund part of a credit pursuant to this section shall no longer be eligible to carry forward any amount of that credit which had not been used as of the date the refund is required.
6. A qualified manufacturer of steel aggrieved by a decision of the Director of the Arkansas Department of Environmental Quality under this section may appeal to the Arkansas Pollution Control and Ecology Commission through administrative procedures adopted by the commission and to the courts in the manner provided in Arkansas Code §§ 8-4-222 — 8-4-229.
In the case of a qualified manufacturer of steel that is:
1. A proprietorship, partnership, limited liability company, or other business organization treated as a proprietorship or partnership for tax purposes, the amount of the credit determined under this section for any taxable year shall be apportioned to each proprietor, partner, member, or other owner in proportion to the amount of income from the entity which the proprietor, partner, member, or other owner is required to include in gross income or as otherwise provided for in the applicable ownership or operating agreements if at least one of the proprietor, partner, member or other owner of the organization is a public retirement system of the State of Arkansas;
2. A Subchapter S corporation, the amount of credit determined shall be apportioned to each Subchapter S corporation shareholder in proportion to the amount of income from the entity which the Subchapter S corporation shareholder is required to include as gross income or as otherwise provided for in the applicable articles of incorporation or bylaws if at least one of the shareholders is a public retirement system of the State of Arkansas; or
3. An estate or trust:
  1. The amount of the credit determined for any taxable year shall be apportioned between the estate or trust and the beneficiaries on the basis of the income of the estate or trust allocable to each; and
  2. Any beneficiary to whom any amount has been apportioned under this section shall be allowed, subject to the limitations contained in this section, a credit under this section for that amount.

SECTION 8. Amendment 82 Agreement Between The State Of Arkansas And Big River Steel, LLC.

AMENDMENT 82 AGREEMENT Between THE STATE OF ARKANSAS And BIG RIVER STEEL, LLC Dated as of MARCH , 2013 AMENDMENT 82 AGREEMENT

THIS AMENDMENT 82 AGREEMENT (“Agreement”) is made and entered into by and between the State of Arkansas (the “State”); and Big River Steel, LLC, a limited liability company organized pursuant to the laws of the State of Delaware (the “Sponsor”).

W-I-T-N-E-S-S-E-T-H

For valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

Definitions . For purposes of this Agreement, the following terms and variations thereof (including the singular, plural, and possessive and the past, present, and future tense) shall have the following meanings:
Project . Subject to the terms and conditions of this Agreement, the Sponsor shall: (a) acquire, develop, construct, and operate the Facility at the Project Site; (b) satisfy the Investment Requirement prior to the expiration of the Preliminary Period; (c) achieve the Position Creation Requirement prior to the expiration of the Preliminary Period; and (d) maintain the Position Creation Requirement during the Test Period. The Facility shall be acquired, developed, and constructed as generally described in the Development Plan.
Investment Requirement .
Position Creation Requirement . Prior to the expiration of the Preliminary Period, the Sponsor shall achieve the Employment Target and the Compensation Target through either Direct Positions or Independent Direct Positions. During the Testing Period, the Sponsor shall maintain the Employment Target and the Compensation Target through either Direct Positions or Independent Direct Positions. The New Full Time Positions required by the Position Creation Requirement shall include those Direct Positions and Independent Direct Positions designated by the Sponsor. The Employment Target and the Compensation Target may be satisfied through a combination of Direct Positions and Independent Direct Positions which constitute Full Time Positions during the calendar year in question.
Time Periods .
Amendment 82 Financing .
Disbursement .
Training Benefits . The Commission shall assist the Sponsor in recruiting and training employees and independent contractors who shall work at the Facility or on the Project Site. The Commission and the Sponsor shall enter into the Training Agreement regarding the assistance to be provided to the Sponsor. Subject to the terms and conditions of this Agreement and the Training Agreement, the Commission shall fund up to Ten Million Dollars ($10,000,000.00) by payment or reimbursement of costs and expenses paid or incurred by the Sponsor for training activities and facilities with respect to the employees and independent contractors who shall work at the Facility or on the Project Site. The funds disbursed to, or for the benefit of, the Sponsor for such training activities and facilities shall be in addition to the Amendment 82 Financing described in this Agreement and shall be spread equally over a period of two (2) years based on a schedule of on-the-job training determined by the Sponsor in consultation with the Commission. The assistance to be provided by the Commission pursuant to the Training Agreement shall include the following support services: (a) recruitment advertising for new employees; (b) securing the use of facilities for accepting applications and interviewing new employees; (c) reproduction of training manuals; (d) reimbursement of compensation to instructors for on-the-job training (up to, but not to exceed actual hourly rate of pay); (e) on-site training facility space; and (f) reimbursement for train-the-trainer expenses, including reasonable expenses of travel. Requests for reimbursement shall provide the Commission, at a minimum, with the information described in paragraphs I(A) and I(B) of the form of Training Agreement.
Other Incentive Programs .
Joint Marketing Agreement . The Commission and the Sponsor shall enter into the Joint Marketing Agreement whereby each shall commit to spend up to One Hundred Fifty Thousand Dollars ($150,000.00) per calendar year for each of three (3) years beginning no later than twelve (12) months after the Closing Date, to market and advertise steel companies based in the State to out-of-state suppliers, vendors, and customers for the purpose of marketing the State as the right place for out-of-state suppliers, vendors, and customers to locate their business or to market or consume the products produced by steel companies based in the State. The expenditures by the Commission with respect to the Joint Marketing Agreement shall be in addition to the Amendment 82 Financing described in this Agreement.
Consequences of Unsatisfied Obligations .
Conditions of the State . In addition to all other conditions set forth in this Agreement and the Amendment 82 Requirements, the obligations of the State pursuant to this Agreement shall be subject to the satisfaction of following conditions on or before the Closing Date:
Conditions of the Sponsor . In addition to all other conditions set forth in this Agreement and the Amendment 82 Requirements, the obligations of the Sponsor pursuant to this Agreement shall be subject to the satisfaction of following conditions on or before the Closing Date:
Due on Sale .
Confidentiality and Non-Disclosure . The Parties recognize that certain information and records provided by the Sponsor to the Commission or the Authority include trade secrets or other information which, if disclosed, would give advantage to competitors of the Sponsor, or include records related to the Sponsor's planning, site location, expansion, operations, product development or marketing (collectively, “Confidential Business Information”). Such records are generally exempt from public disclosure under the terms of the Arkansas Freedom of Information Act, A.C.A. § 25-19-101 et seq. Neither the Parties to this Agreement nor any Related Entity, affiliate, or representative of any Party, shall make any disclosure of Confidential Business Information without the prior written consent of any other Party; provided however, that a Party may make such a disclosure without the consent of any other Party if the disclosure is: (a) compelled by legal, accounting, or regulatory requirements applicable to and beyond the reasonable control of the Party; (b) necessary to proceed with the intentions and agreements contained in this Agreement as they specifically relate to any Related Entity, affiliate, or representative of any Party; (c) necessary to obtain legislative approval of the undertakings set forth in this Agreement; or (d) required under applicable law binding upon the disclosing Party. The Party making a disclosure described in (c) of this Section 15 shall give prior written notice of the proposed disclosure to the other Party. The Party making a disclosure described in (a) or (d) of this Section 15 shall give prior written notice of the proposed disclosure to the other Party if the disclosing Party can do so and still comply with the requirement or law compelling the disclosure; otherwise the disclosing Party shall give written notice contemporaneously with or as soon as reasonably practicable following the disclosure.
Incentives Not Accepted . To the extent that the Sponsor shall not accept for whatever reason any portion of the funds or economic incentives set forth in this Agreement, neither the State, the Commission, nor the Authority shall have any obligation to replace the value of the funds or economic incentives not accepted, inclusive of the value of any matching funds, with other funds or economic incentives.
Public Reporting Requirements . The Sponsor acknowledges and agrees to comply with the public reporting, monitoring, auditing, and other reporting requirements of the Act set forth in A.C.A. §§ 15-4-3206 (2011 Revision), 15-4-3221 (2011 Revision), and 15-4-3224 (2011 Revision). The Sponsor shall reasonably cooperate with the State by providing such documents, records, and other information to the State as may be necessary to comply with the public reporting, monitoring, auditing, and other reporting requirements of the Act set forth in A.C.A. §§ 15-4-3206 (2011 Revision), 15-4-3221 (2011 Revision), and 15-4-3224 (2011 Revision). The Sponsor shall reasonably cooperate with all audits and verifications by the State, including without limitation the Commission and the Authority, of all accounts related to the construction, operation, and maintenance of the Project. The Sponsor shall maintain and make available all documents, records, and other information pertaining to items contained in the terms and conditions of this Agreement for annual audit by the Chief Fiscal Officer, and upon request, but no more often than annually, by the Office of Economic and Tax Policy or a Person retained by the Office of Economic and Tax Policy. The Sponsor shall comply with all auditing and reporting requirements of any state or federal regulatory agency or other Governmental Authority that may have jurisdiction over the Sponsor. The Sponsor shall cause all Related Entities of Sponsor who receive Amendment 82 Financing to comply with the reporting requirements of the Act set forth in A.C.A. §§ 15-4-3206 (2011 Revision), 15-4-3221 (2011 Revision), and 15-4-3224 (2011 Revision).
Reporting of Independent Direct Positions . The Sponsor shall cause each Person that employs or contracts with an individual holding an Independent Direct Position to provide to the State such documents, records, and other information as may be necessary to comply with the audit requirements of the Act, including those set forth in A.C.A. §§ 15-4-3206 (2011 Revision). For the purposes of Sections 4 and 11 of this Agreement no position or job may be counted as an Independent Direct Position unless the person who employs or contracts the individual holding such position or job fully complies with the State's requests for information necessary to comply with the audit and reporting provisions of the Act.
Representations and Warranties . In order to induce the State to enter into this Agreement, the Sponsor hereby represents and warrants to the State as follows:
General Covenants . In addition to the covenants of the Sponsor set forth elsewhere in this Agreement, the Sponsor covenants and agrees as follows:
General Provisions .

“Act” shall mean and refer to the Arkansas Amendment 82 Implementation Act, A.C.A. § 15-4-3201 et seq., as amended through 2012.

“Actual Project Capital Expenditures” shall mean and refer to the total of: (a) the Qualifying Site Preparation Costs, including Piling Costs, and the Infrastructure Costs actually invested by, or on behalf of, the Sponsor at the Project Site; and (b) any amounts paid by or received from the City of Osceola, Arkansas or Mississippi County, Arkansas with respect to the acquisition and lease of the Project Site.

“Advantage Arkansas Agreement” shall mean and refer to a Financial Incentive Agreement with the State for job creation tax credits as required pursuant to A.C.A. § 15-4-2705.

“Advantage Arkansas Program” shall mean and refer to the job creation tax credit program established by the Consolidated Incentive Act.

“Agreement” shall mean and refer to this Amendment 82 Agreement.

“Amendment 82” shall mean and refer to Amendment 82 to the Constitution of the State of Arkansas of 1874.

“Amendment 82 Financing” shall mean and refer to the funds to be provided by the State to, or for the benefit of, the Sponsor pursuant to the Grants and the Incentive Loan and the funds allocated to the reasonable and necessary closing costs and expenses of the State.

“Amendment 82 Requirements” shall mean and refer to the provisions of Amendment 82 and the Act, and other requirements imposed by legislation approving this Agreement.

“Announced Controlling Party” shall mean and refer to the Person who shall be proposed to be the successor to the Sponsor with respect to the Project following a Change of Control Event.

“Authority” shall mean and refer to the Arkansas Development Finance Authority or any other agency of the State which succeeds by statutory enactment to the rights and obligations assigned to the Authority pursuant to this Agreement.

“Bonds” shall mean and refer to the general obligation bonds issued by the State pursuant to the Amendment 82 Requirements in an amount not exceeding One Hundred Twenty-five Million Dollars ($125,000,000.00) for the Amendment 82 Financing.

“Capital Commitments” shall mean and refer to: (a) the written commitments obtained by the Sponsor for private equity investments; (b) various other forms of capital including term loans and working capital financing; (c) written commitments obtained by the Sponsor for infrastructure; (c) incentives from the State including the Amendment 82 Financing and the incentives described in Section 8, but not those incentives described in Sections 9 and 10; (d) other incentives including amounts paid by or received from the City of Osceola, Arkansas or Mississippi County, Arkansas with respect to the acquisition and lease of the Project Site; and (e) other forms of financing, exclusive of the Amendment 82 Financing.

“Capital Commitment Documents” shall mean and refer to any documents evidencing the Capital Commitments and any such other documents, records, and other information as are reasonably necessary to describe the nature, terms and conditions, and amount or value of the Capital Commitments.

“Change of Control Event” shall have the meaning set forth in the Inter-Creditor Agreement that, when taken as a whole, is no less favorable to the State than a definition which includes the following events: (a) the sale or disposition of all or substantially all of the assets of the Project to a Non-related Entity; and (b) all such other events as may be defined in the Inter-Creditor Agreement.

“Chief Fiscal Officer” shall have the meaning set forth in the Act.

“Closing Date” shall mean and refer to the date of the issuance of the Bonds.

“Commission” shall mean and refer to the Arkansas Economic Development Commission or any other agency of the State which succeeds by statutory enactment to the rights and obligations assigned to the Commission pursuant to this Agreement.

“Compensation Target” shall mean and refer to an average annual compensation with respect to the Direct Positions and Independent Direct Positions designated by the Sponsor of Seventy-five Thousand Dollars ($75,000.00) per year, excluding any non-cash benefits.

“Confidential Business Information” shall have the meaning set forth in Section 15.

“Consolidated Incentive Act” shall mean and refer to the Consolidated Incentive Act of 2003, A.C.A. § 15-4-2701 et seq., as amended.

“Department” shall mean and refer to the Arkansas Department of Finance and Administration.

“Development Plan” shall mean and refer to the plans attached to Exhibit 1.

“Direct Positions” shall mean and refer to those employees: (a) who shall be designated by the Sponsor; (b) who shall hold Full Time Positions; and (c) who shall work directly for the Sponsor or a Related Entity at the Facility or on the Project Site.

“Employment Target” shall mean and refer to at least five hundred twenty-five (525) New Full Time Positions through either Direct Positions or Independent Direct Positions at the Facility or on the Project Site.

“Escrow Account” shall mean and refer to any interest earning escrow account administered by the Escrow Agent pursuant to an Escrow Agreement.

“Escrow Agent” shall mean and refer to any Person appointed by the State as an escrow agent with respect to funds or items to be held or disbursed by the State pursuant to the terms and conditions of this Agreement.

“Escrow Agreement” shall mean and refer to any escrow agreement with any Escrow Agent.

“Exhibit” shall mean and refer to an exhibit specifically referred to in this Agreement that shall be either attached to this Agreement or delivered by a Party in conjunction with the execution and delivery of this Agreement.

“Facility” shall mean and refer to the Mini Mill steel manufacturing facility and all related buildings and infrastructure to be acquired, developed, constructed, and operated at the Project Site as generally described in the Development Plan.

“Financial Incentive Agreement” shall mean and refer to the financial incentive agreements described in the Consolidated Incentive Act.

“Full Time Position” shall mean, when referring to a position or job, a position or job filled for at least nine (9) months during a calendar year with an average of at least thirty (30) hours of work each week.

“General Assembly” shall mean and refer to the Senate and the House of Representatives of the State.

“Governmental Authority” shall mean and refer to any executive, legislative, or judicial branch, or any agency, department, board, commission, council, court, tribunal, official, task force, or other authority exercising governmental powers of the United States of America or the State.

“Governor” shall mean and refer to the Governor of the State.

“Grants” shall mean and refer collectively to the cash grant for Qualifying Site Preparation Costs as described in Section 6.2 and the cash grant for Piling Costs as described in Section 6.3.

“Incentive Loan” shall mean and refer to the loan of money as described in Section 6.4.

“Incentive Loan Collateral” shall mean and refer to that part of the Infrastructure described in Exhibit 2 and all accessions, substitutions, and replacements thereto or thereof, whether now owned or hereafter acquired and all proceeds thereof whether of the same or different class.

“Incentive Loan Documents” shall mean and refer to the promissory note, security agreement, mortgage, financing statement, fixture statement, and other documents entered into between the Authority and the Sponsor with respect to the Incentive Loan.

“Independent Direct Positions” shall mean and refer to those employees and independent contractors of Non-related Entities who shall be designated by the Sponsor and who hold Full Time Positions at the Facility or on the Project Site with the primary objective of providing any of the following products and services necessary to the operation, maintenance, or repair of any part of the Project: (1) slag handling operations; (2) oxygen and hydrogen production operations; (3) roll shop operations; (4) maintenance shop operations; (5) scrap handling and processing operations; (6) material management operations; (7) logistic operations; (8) site maintenance; or (9) any other support services at the Facility or on the Project Site as approved by the Commission.

“Infrastructure” shall mean and refer to the buildings, fixtures, machinery, and equipment acquired, developed, constructed, and operated at the Project Site and includes the Facility.

“Infrastructure Costs” shall mean and refer to the costs and expenses paid or incurred by, on behalf of, the Sponsor with respect to the acquisition, development, construction of the Infrastructure at the Project Site, but shall not include any amounts paid by or received from the City of Osceola, Arkansas or Mississippi County, Arkansas.

“Inter-Creditor Agreement” shall mean and refer to the inter-creditor agreement among the Authority and all Senior Term Lenders to the Project and all other Persons who may claim any interest in the Incentive Loan Collateral and certain other Persons.

“Investment Requirement” shall mean and refer to the obligation of the Sponsor, as described in this Agreement, to make a minimum capital investment of One Billion Twenty-three Million Five Hundred Ninety Thousand Dollars ($1,023,590,000.00) in Actual Project Capital Expenditures.

“Investment Threshold” shall mean and refer to the investment by the Sponsor of a minimum of Two Hundred Fifty Million Dollars ($250,000,000.00) in Actual Project Capital Expenditures for the use and benefit of the Project at the Project Site.

“Joint Marketing Agreement” shall mean and refer to the joint marketing agreement to be entered into between the Commission and the Sponsor prior to the Closing Date.

“Letter of Commitment” shall mean and refer to the letter of commitment entered into pursuant to the Amendment 82 Requirements between the Commission and the Sponsor as of January 28, 2013.

“Mini Mill” shall mean and refer to the steel manufacturing facility to be acquired, developed, constructed, and operated at the Project Site as generally described in the Development Plan.

“New Full Time Position” shall mean and refer to a permanent Full Time Position at the Facility or the Project Site that was created after the date of this Agreement.

“Non-related Entity” shall mean and refer to any Person that shall not meet the definition of a Related Entity.

“Office of Economic and Tax Policy” shall mean and refer to the Office of Economic and Tax Policy of the Arkansas Bureau of Legislative Research.

“Party” shall mean and refer to either or both of the State and the Sponsor.

“Person” shall mean and refer to any Party, individual, entity, corporation, company, association, limited liability company, joint venture, general partnership, limited partnership, organization, Governmental Authority, revocable trust, irrevocable trust, estate, personal representative, executor, trustee, receiver, liquidator, or other person.

“Piling Costs” shall mean and refer to those Qualifying Site Preparation Costs directly related to that part of the Facility on which the Mini Mill shall be situated and that shall be necessary for subsurface stabilization of the Mini Mill. “Piling Costs” include costs and expenses related to piling, subsurface stabilization, engineering, grading, footers, dewatering, excavation and foundation preparation, all installation, material and labor costs and expenses directly related to the foregoing, and all other necessary subsurface stabilization costs and expenses incidental to the Piling Costs.

“Position Creation Requirement” shall mean and refer to the obligation of the Sponsor, as described in this Agreement, to achieve and maintain the Employment Target and the Compensation Target.

“Preliminary Period” shall mean and refer to a term of thirty-six (36) months commencing on the Closing Date and continuing until the third anniversary thereof.

“Project” shall mean and refer to the acquisition, development, construction, and operation of the Facility at the Project Site in a manner that shall satisfy the Investment Requirement and that shall achieve and maintain the Position Creation Requirement.

“Project Site” shall mean and refer to the location of the Project in Mississippi County, Arkansas as described in Exhibit 3.

“Qualified Amendment 82 Project” shall have the meaning set forth in the Act.

“Qualifying Site Preparation Costs” shall mean and refer to the following costs and expenses of the Project at the Project Site: removal of trees, removal of structures, site clearing activities, grubbing, grading, environmental remediation costs, excavation and other earthwork, fill dirt, compaction, erosion control, installation of drainage and storm water detention, fencing, installation of temporary and permanent internal roads, footers and building foundations, on-site rail installation, on-site public infrastructure improvements or construction, engineering costs, and any other costs and expenses incidental to the Project that shall be eligible for Amendment 82 Financing and that shall be approved by the State.

“Recycling Credit Legislation” shall mean and refer to an act to extend the carry-forward of the income tax credit pursuant to the Recycling Equipment Tax Credit Program from three (3) years to fourteen (14) years for steel mills that newly invest at least Five Hundred Million Dollars ($500,000,000.00) in connection with a facility located in the State of Arkansas and that create at least three hundred (300) New Full Time Positions paying an annual average wage of at least Seventy Thousand Dollars ($70,000.00).

“Recycling Equipment Tax Credit Program” shall mean and refer to the program with such name established under A.C.A. § 26-51-506.

“Related Entity” shall have the meaning set forth in A.C.A. § 15-4-3202 (24) (2011 Revision).

“Repayment Calculations” shall mean and refer to the formulae set forth in Section 11 and Section 14 to be used if the Sponsor shall fail to satisfy the Investment Requirement and to achieve and maintain the Position Creation Requirement as set forth in this Agreement.

“Repayment Penalties” shall mean and refer to the penalties payable by the Sponsor as determined by the Repayment Calculations.

“Request for Disbursement” shall mean and refer to a request by the Sponsor with respect to a disbursement of the Grants or the Incentive Loan in the form to be reasonably approved by the State and the Sponsor.

“Senior Term Lenders” shall mean and refer to those senior secured term lenders to the Project who shall be required to join as a party to the Inter-Creditor Agreement, as reasonably determined by the Authority and the Sponsor.

“Sponsor” shall mean and refer to Big River Steel, LLC, a limited liability company organized pursuant to the laws of the State of Delaware.

“State” shall mean and refer to the State of Arkansas.

“Tax Back Program” shall mean and refer to the investment tax incentives program established by the Consolidated Incentive Act at A.C.A. § 15-4-2706.

“Termination Date” shall mean and refer to June 30, 2014.

“Test Date” shall mean and refer to the date on which the Preliminary Period shall expire and the anniversary of such date during each year of the Testing Period.

“Testing Period” shall mean and refer to a term of fifteen (15) years commencing upon the expiration of the Preliminary Period and continuing until the eighteenth (18th) anniversary of the Closing Date.

“Training Agreement” shall mean and refer to the training agreement to be entered into between the Commission and the Sponsor with respect to the assistance to be provided by the Commission to the Sponsor in the recruitment and training of employees and independent contractors.

“Utility Tax Legislation” shall mean and refer to an act to provide a full exemption of state sales taxes associated with the sale of natural gas and electricity for use directly in the manufacturing process of steel mills that newly invest at least Five Hundred Million Dollars ($500,000,000.00) and create at least three hundred (300) New Full Time Positions paying an annual average wage of at least Seventy Thousand Dollars ($70,000.00).

3.1. Capital Commitments . The Project shall require a minimum capital investment at the Project Site in Actual Project Capital Expenditures of at least the Investment Requirement. The Sponsor shall satisfy the Investment Requirement by no later than the expiration of the Preliminary Period. Prior to the Termination Date, the Sponsor shall raise Capital Commitments in the form of private equity investments of a minimum of Three Hundred Million Dollars ($300,000,000.00), and the Sponsor shall obtain other Capital Commitments.

3.2. Escrow of Capital Commitments . When the Sponsor shall have raised such minimum of Capital Commitments in the form of private equity investments and shall have obtained such other Capital Commitments to satisfy the Investment Requirement as described in Section 3.1, the Sponsor shall: (a) deposit into escrow with the Escrow Agent cash or irrevocable letters of credit with a total value of at least Three Hundred Million Dollars ($300,000,000.00); (b) provide a written summary to the Commission and the Authority of the other Capital Commitments as shall be necessary to satisfy the Investment Requirement; and (c) provide a copy of all of the Capital Commitment Documents to the Commission and the Authority. The Sponsor shall reasonably cooperate with the Commission and the Authority with respect to any review of the Capital Commitment Documents. If the Commission and the Authority shall reasonably determine that the Capital Commitments and the proceeds of the Bonds shall not provide the Sponsor with sufficient financial capability to satisfy the Investment Requirement by the expiration of the Preliminary Period, the Commission and the Authority shall provide written notice thereof to the Sponsor within five (5) business days from the receipt of the Capital Commitment Documents, and the Sponsor shall have until the Termination Date to raise Capital Commitments in the form of private equity investments and to obtain other Capital Commitments to satisfy the Investment Requirement. If the Commission and the Authority shall reasonably determine that the Capital Commitments and the proceeds of the Bonds shall provide the Sponsor with the sufficient financial capability to satisfy the Investment Requirement by the expiration of the Preliminary Period, the Commission and the Authority shall send written notice thereof to the Sponsor and the Closing Date and the issuance of the Bonds shall be scheduled for a date within fifteen (15) calendar days after receipt of all the Capital Commitment Documents by the Commission and the Authority.

3.3. Local Investment . Prior to the expiration of the Preliminary Period, the Sponsor shall use its reasonable efforts to spend Two Hundred Fifty Million Dollars ($250,000,000.00) for products and services from vendors and suppliers based in the State.

5.1. Closing Date . The Parties anticipate that the Closing Date shall occur prior to December 31, 2013, but the Closing Date may occur on any date prior to the Termination Date.

5.2. Project Schedule . The acquisition, development, and construction of the Project by the Sponsor is currently scheduled to commence promptly following the Closing Date, and is currently scheduled to be substantially completed within twenty-four (24) months after the Closing Date. The Sponsor currently anticipates that commercial production by the Facility shall commence approximately twenty-four (24) months after the Closing Date.

5.3. Termination . In the event the conditions to Closing set forth in Sections 12 and 13 of this Agreement shall have not been satisfied or waived on or before the Termination Date, either the State or the Sponsor may send written notice of termination to the other Party and thereafter the Parties shall have no further obligations pursuant to this Agreement and the Sponsor shall no longer be required to satisfy the Investment Requirement and to achieve and maintain the Position Creation Requirement.

5.4. Preliminary Period . The Preliminary Period is intended to be the period during which the acquisition, development, and construction of the Project shall be completed. The Sponsor shall satisfy the Investment Requirement and shall achieve the Position Creation Requirement not later than the expiration of the Preliminary Period.

5.5. Testing Period . The Testing Period is intended to be the period during which the compliance with the Position Creation Requirement may be evaluated and during which the Repayment Penalties may be imposed. The Sponsor shall maintain the Position Creation Requirement during the Testing Period.

5.6. Other Periods . Except as provided in this Agreement with respect to the Investment Requirement and the Position Creation Requirement, the Sponsor shall comply with the terms and conditions of this Agreement commencing as of the date of this Agreement and continuing until the expiration of the Testing Period. The Sponsor hereby waives any right to extend any time period specified in this Agreement as set forth in A.C.A. § 15-4-3206.

6.1. Bonds . Subject to the terms and conditions of this Agreement and the Amendment 82 Requirements, the State shall provide funding from the Amendment 82 Financing to, or for the benefit of, the Sponsor in an aggregate amount up to One Hundred Twenty Million Dollars ($120,000,000.00). The Amendment 82 Financing shall be funded through issuance of the Bonds in an amount not exceeding One Hundred Twenty-five Million Dollars ($125,000,000.00) in the aggregate. The Bonds shall be in such denominations and series and upon such terms and conditions as determined by the Authority, in its sole and absolute discretion. The Bonds shall be direct general obligations of the State for the payment of debt service on which the full faith and credit of the State shall be pledged. The Bonds shall be payable from gross general revenues or special revenues appropriated by the General Assembly.

6.2. Grant for Qualifying Site Preparation Costs . From the proceeds of the Bonds, the State shall fund to, or for the benefit of, the Sponsor a cash grant in the amount of Fifty Million Dollars ($50,000,000.00) for payment or reimbursement of Qualifying Site Preparation Costs.

6.3. Grant for Piling Costs . From the proceeds of the Bonds, the State shall fund to, or for the benefit of, the Sponsor an additional cash grant in an amount up to Twenty Million Dollars ($20,000,000.00) for reimbursement of Piling Costs. Reimbursement by the State for Piling Costs shall be: (a) on a matching basis in which the State shall reimburse the Sponsor one-half (½) of eligible Piling Costs paid by the Sponsor; and (b) the maximum amount of Piling Costs to be reimbursed by the State shall be limited to not more than Twenty Million Dollars ($20,000,000.00) out of a total of Forty Million Dollars ($40,000,000.00) or more of Piling Costs.

6.4. Incentive Loan . Subject to the terms and conditions of this Agreement and the Incentive Loan Documents, the Authority shall make the Incentive Loan to the Sponsor as follows:

Amount Funded; Principal Amount . In order to fund the Incentive Loan and in consideration of the Sponsor's promissory note evidencing the Incentive Loan, the Authority will make available from the Bond proceeds the sum of Fifty Million Dollars ($50,000,000.00) for disbursement to the Sponsor under Section 7 hereof. The promissory note evidencing the Incentive Loan shall be in a principal amount equal to Fifty Million Dollars ($50,000,000.00).
Incentive Loan Collateral . The proceeds of the Incentive Loan shall be used solely for the engineering, design, procurement, installation, fabrication, and erection of the Incentive Loan Collateral and related purposes. The Incentive Loan shall be secured by a first priority, perfected, purchase-money lien and security interest in the Incentive Loan Collateral subject to the terms and conditions of the Inter-Creditor Agreement.
Debt Service . Interest will accrue on the Incentive Loan at the rate payable on the Bonds issued to fund the Incentive Loan, beginning twenty-four (24) months after the Closing Date. The payment of principal and interest due on the Incentive Loan shall be structured as nearly as possible to correspond with debt service payments due on the Bonds issued to fund the Incentive Loan (excepting interest accruing on such Bonds during the first twenty-four (24) months following their date of issuance, which shall be fully borne by the State). The first payment of debt service on the Incentive Loan is projected at this time to be due from the Sponsor on the first day of the thirtieth (30th) month following the Closing Date. A debt service schedule detailing the semiannual debt service payments due on the Incentive Loan (and the principal and interest components thereof) will be attached to the promissory note evidencing the Incentive Loan. In no event shall the total debt service payments due on the Incentive Loan or the net present value of such payments exceed the total debt service payments, or the net present value of such payments, due on the Bonds issued to fund the Incentive Loan. For purposes of determining the net present value of such total debt service payments, the total debt service payments will be discounted at a rate equal to the lesser of the true interest cost on the Bonds issued to fund the Incentive Loan or the rate agreed upon by the Authority and the Sponsor with respect to the Bonds issued to fund the Incentive Loan.
Term . The Incentive Loan shall have a term of twenty (20) years commencing on the Closing Date.
Prepayment . The Sponsor may prepay the Incentive Loan in whole or in part without penalty at any time beginning twenty-four (24) months after the Closing Date. The portion of any repayment in part that is attributable to principal shall be applied to satisfy principal component(s) of the Bonds issued to fund the Incentive Loan being redeemed in connection with the prepayment and the Authority shall promptly thereafter provide a revised debt service schedule for approval by the Sponsor and attachment to the promissory note. In the event the Sponsor meets the conditions in this Section 6.4(e) and the Sponsor elects to prepay the Incentive Loan in full prior to the expiration of forty-eight (48) months after the Closing Date, the prepayment amount shall be equal to Forty-five Million Dollars ($45,000,000.00) million less any principal amount of the Incentive Loan previously paid by the Sponsor plus any accrued interest on the Incentive Loan outstanding through the prepayment date. To qualify for the discount of the prepayment amount, both of the following conditions must be met: (1) within four (4) years after the Closing Date the Sponsor shall have obtained Capital Commitments, as audited and verified by the Commission and Authority, of at least Five Hundred Million Dollars ($500,000,000.00) (in addition to the Investment Requirement) with respect to an expansion of the steel mill operations of the Sponsor at or near the Project Site; and (2) construction of such expansion shall have commenced prior to the date of the receipt of the prepayment by the State.

6.5. Other Costs . An amount up to Five Million Dollars ($5,000,000.00) may be funded through the Bonds for the purpose of paying reasonable and necessary closing costs and expenses of the State, in the sole and absolute discretion of the Authority, including those that relate to the issuance of the Bonds and including costs and expenses due to those trustees, agents, underwriters, attorneys, advisors, and consultants performing services on behalf of the State in connection with the Project. The Sponsor shall not be responsible for any of such costs and expenses.

6.6. Related Entities . In the event that the Sponsor may elect for any part of the Amendment 82 Financing to be paid to or received by a Related Entity to the Sponsor, the Sponsor shall notify the Commission and the Authority. As a prior condition to the payment or receipt of any part of the Amendment 82 Financing, such Related Entity of the Sponsor shall execute and deliver a joinder to this Agreement in which such Related Entity shall agree to comply with all of the terms and conditions of this Agreement.

7.1. Investment Threshold . Prior to any disbursement of funds by the State with respect to the Grants or the Incentive Loan, the Sponsor shall provide written confirmation to the Commission and the Authority that the Sponsor has achieved the Investment Threshold by investment of a minimum of Two Hundred Fifty Million Dollars ($250,000,000.00) in Qualifying Site Preparation Costs, Piling Costs, and Infrastructure Costs. The Commission and the Authority shall have the right to audit and verify the investment of the Investment Threshold before disbursing funds to, or for the benefit of the Sponsor, with such audit and verification to be conducted in a timely manner. After the Investment Threshold shall have been achieved, the Actual Project Capital Expenditures that comprise the Investment Threshold may be eligible for reimbursement through a disbursement from the Grants or the Incentive Loan, as applicable.

7.2. Generally . All funds to be disbursed by the State with respect to the Grants and Incentive Loan shall require the prior approval of the Commission and the Authority. All funds to be disbursed by the State with respect to the Grants and the Incentive Loan shall be disbursed to, or for the benefit of, the Sponsor, for payment or reimbursement of qualified project costs and expenses permitted by the Amendment 82 Requirements with such qualified project costs and expenses to include Qualifying Site Preparation Costs, Infrastructure Costs, and any other costs and expenses incidental to the Project that shall be eligible for Amendment 82 Financing and approved as eligible by the State. The disbursement of funds with respect to the Incentive Loan shall also be subject to the terms and conditions of the Incentive Loan Documents.

7.3. Procedure . Subject to the terms and conditions of this Agreement, the Grants and the Incentive Loan shall be disbursed by the State to, or for the benefit of, the Sponsor in one (1) or more disbursements. The Sponsor may request a disbursement from the Grants or the Incentive Loan by submitting a Request for Disbursement to the Commission and the Authority. The Request for Disbursement shall specify the requested source of funding from either the Grants or the Incentive Loan. A Request for Disbursement shall include an itemization of each cost and expense for which the Sponsor may request payment or reimbursement. In support of a Request for Disbursement, the Sponsor shall provide a copy of all receipts, invoices, bills, statements, checks, payments, orders, correspondence, notices, and other documents sent, received, or exchanged with respect to each cost and expense identified in the Request for Disbursement. The Sponsor shall provide the State with full access to all documents, records, and other information in the possession of or available to the Sponsor that may relate to each cost and expense identified with respect to a Request for Disbursement. The State may audit and verify all such documents, records, and other information and may take all other reasonable actions to verify that each cost and expense identified with respect to a Request for Disbursement shall have been actually paid or incurred by the Sponsor, the reasonableness of the nature and amount of the cost and expense, and whether the cost and expense may be properly characterized as Qualifying Site Preparation Costs, Infrastructure Costs, Piling Costs, or other costs and expenses incidental to the Project that shall be eligible for Amendment 82 Financing. Upon completion of the audit and verification by the State of the costs and expenses identified in a Request for Disbursement, the Authority shall send a Notice of Payment to the Sponsor setting forth the amount approved by the Commission and the Authority to be disbursed by the State with respect to the costs and expenses identified in a Request for Disbursement and the source of funding from either the Grants or the Incentive Loan. Within five (5) business days after the date of a Notice of Payment, the State shall cause the amount set forth in the Notice of Payment to be disbursed to, or for the benefit of, the Sponsor by wire transfer to the account of the Sponsor designated in the Request for Disbursement.

7.4. Eligible Costs and Expenses . A Request for Disbursement may request reimbursement of Qualifying Site Preparation Costs, Infrastructure Costs, Piling Costs, and other costs and expenses incidental to the Project that shall be eligible for Amendment 82 Financing. A Request for Disbursement may include only such costs and expenses that constitute Qualifying Site Preparation Costs, Infrastructure Costs, Piling Costs, and other costs and expenses incidental to the Project that shall be eligible for Amendment 82 Financing. With respect to any cost and expense that shall not constitute Qualifying Site Preparation Costs, Infrastructure Costs, or Piling Costs, the State shall determine whether such other cost and expense shall be incidental to the Project and whether such cost and expense shall be eligible for Amendment 82 Financing. A Request for Disbursement may not include any cost or expense that shall have been included in any prior Request for Disbursement. All Requests for Disbursement must be submitted by the Sponsor to the State no later than twenty-four (24) months after the Closing Date.

9.1. Advantage Arkansas Program . The Sponsor may be eligible for a job creation income tax credit provided pursuant to the Advantage Arkansas Program. The Advantage Arkansas Program provides an income tax credit against a portion of State income tax liabilities based upon a percentage of the annual payroll paid to the new full time permanent employees hired as a result of an approved project. To receive the income tax credit of the Advantage Arkansas Program, the Sponsor must enter into a Financial Incentive Agreement. The tier of the county in which the approved project is located determines the qualifying payroll threshold, as well as the income tax benefit calculation. Counties are segmented into four (4) tiers based on poverty rate, population growth, per capita income, and unemployment rate. Based on the location of the Project Site, the Sponsor may be entitled to an income tax credit up to four percent (4%) of the total taxable wages paid to new full time permanent employees hired after the date of the Financial Incentive Agreement. The annual payroll thresholds of the new employees must be met within twenty-four (24) months following the date the Financial Incentive Agreement is signed by the Commission. Employees must be taxpayers of the State to qualify for the credit. The income tax credit begins in the year in which the new employees are hired and is earned each tax year for a period of five (5) years. Any unused credits can be carried forward for nine (9) years beyond the year in which they were earned. The Sponsor may apply the credit to its State income tax liability, not to exceed fifty percent (50%) of the total income tax liability for a reporting period. The income tax credit provided by the Advantage Arkansas Program is also conditioned upon the satisfaction of the requirements of the Consolidated Incentive Act.

9.2. Tax Back Program . The Sponsor may be eligible for a refund of state and local sales and use taxes provided pursuant to the Tax Back Program. The Tax Back Program provides for a refund of a portion of state and local sales and use taxes paid on certain purchases of material used in the construction of a building or buildings and on purchases of taxable machinery or equipment to be located in or in connection with such building or buildings. To qualify for the refund provided by the Tax Back Program, the Sponsor must: (a) invest a minimum of One Hundred Thousand Dollars ($100,000.00); (b) execute the Advantage Arkansas Agreement within the appropriate time as required by applicable law; and (c) submit a completed application accompanied by a local endorsement resolution from the city, county or both where the Project Site is located and which authorizes the refund of its local taxes to the Sponsor. The refund shall not include the portion of the sales tax dedicated to the Educational Adequacy Fund described in A.C.A. § 19-5-1227 and the Conservation Tax Fund as described in A.C.A. § 19-6-484. These two (2) exceptions reduce the refund by one percent (1%). Currently, the State sales tax rate is six percent (6%), and therefore, the refund of State taxes shall be based upon five percent (5%) of the eligible taxable purchases. The refund of local taxes shall be based on the sales tax rate for the city and county where the Project Site is located. The refund provided by the Tax Back Program is also conditioned upon the satisfaction of the requirements of the Consolidated Incentive Act.

9.3. Recycling Equipment Tax Credit Program . The Sponsor may be eligible for an income tax credit provided pursuant to the Recycling Equipment Tax Credit Program. The Recycling Equipment Tax Credit Program provides for an income tax credit for thirty percent (30%) of the cost of eligible equipment and installation costs and expenses. Eligibility for the Recycling Equipment Tax Credit Program is determined by the Arkansas Department of Environmental Quality. If the Sponsor otherwise qualifies for the Recycling Equipment Tax Credit it may also qualify under the Recycling Credit Legislation to extend the carry-forward of the income tax credit pursuant to the Recycling Equipment Tax Credit Program from three (3) years to fourteen (14) years for steel mills that newly invest at least Five Hundred Million Dollars ($500,000,000.00) and create at least three hundred (300) New Full Time Positions paying an annual average wage of at least Seventy Thousand Dollars ($70,000.00).

9.4. Utility Tax . The Sponsor may be eligible for a reduced rate of sales taxes with respect to purchases of electricity and natural gas used directly in the manufacturing process. The Utility Tax Legislation will provide a full exemption of sales taxes associated with the sale of natural gas and electricity for use directly in the manufacturing process of steel mills that newly invest at least Five Hundred Million Dollars ($500,000,000.00) and create at least three hundred (300) New Full Time Positions paying an annual average wage of at least Seventy Thousand Dollars ($70,000.00).

9.5. Machinery & Equipment Tax Exemptions . The Sponsor may be eligible for an exemption from state and local sales and use taxes with respect to purchases of machinery and equipment used directly in manufacturing for a new manufacturing facility or to replace existing machinery and equipment for a manufacturing facility. Machinery and equipment required by the State's laws to be purchased for air or water pollution control shall be also exempt.

11.1. Generally . The Sponsor shall pay to the State certain amounts to be determined by the applicable Repayment Calculations set forth in this Section 11 in the event the Sponsor shall fail to: (a) satisfy the Investment Requirement prior to the expiration of the Preliminary Period; (b) achieve the Position Creation Requirement prior to the expiration of the Preliminary Period; and (c) maintain the Position Creation Requirement during the Test Period. The total amount to be paid by the Sponsor pursuant to any or all of the Repayment Calculations shall not exceed the maximum amount of the lesser of: (i) Seventy Million Dollars ($70,000,000.00) or (ii) the total amount disbursed by the State pursuant to the Grants. Any amounts determined to be due from the Sponsor to the State pursuant to this Section 11 shall be paid by the Sponsor to the State not later than thirty (30) days following the receipt of written notice by the Sponsor from the Commission. In no case shall the Sponsor be entitled to additional funds from the State as a result of the Repayment Calculations.

11.2. Repayment Calculation — Investment Requirement . If, at the expiration of the Preliminary Period, the Sponsor has made or caused to be made Actual Project Capital Expenditures of less than One Billion Dollars ($1,000,000,000.00), the Sponsor shall pay to the State an amount equal to one-half of one percent (0.50) of the difference between One Billion Dollars ($1,000,000,000.00) and the Actual Project Capital Expenditures.

11.3. Repayment Calculation — Employment Target . If, at the expiration of the Preliminary Period, and continuing through the Test Period, as measured annually on the Test Date, the Sponsor has not achieved and maintained the Employment Target, but employs at least fifty-five (55) individuals in Direct Positions and Independent Direct Positions, the Sponsor shall pay to the State an amount calculated as follows: (i) the total amount disbursed by the State pursuant to the Grants divided by fifteen (15) and further divided by two (2); (ii) minus the ratio of the total qualified Direct Positions and Independent Direct Positions to five hundred twenty-five (525), multiplied by the quotient obtained in (i). With respect to the first calculation pursuant to this Section 11.3 on the first Test Date at the expiration of the Preliminary Period, the Employment Target may be satisfied through a combination of Direct Positions and Independent Direct Positions which are filled on a full-time basis of at least thirty (30) hours per week for a period of four and one-half months (41/2) months during the six (6) months prior to the first calculation pursuant to this Section 11.3.

11.4. Repayment Calculation — Compensation Target . If, at the expiration of the Preliminary Period, and continuing through the Test Period, as measured annually on the Test Date, the Sponsor has employed a minimum of fifty-five (55) total full-time Direct Positions and Independent Direct Positions, but has not met the Compensation Target, the Sponsor upon written notice shall pay to the State an amount calculated as follows: (i) the total amount disbursed by the State pursuant to the Grants divided by fifteen (15) and further divided by two (2); (ii) minus the ratio of the average annual compensation of all those Direct Positions and Independent Positions as designated by the Sponsor to Seventy-five Thousand Dollars ($75,000.00), multiplied by the quotient obtained in (i). With respect to the first calculation pursuant to this Section 11.4 on the first Test Date at the expiration of the Preliminary Period, the average annual compensation shall be calculated by using the amount of compensation paid during months thirty-one (31) through thirty-six (36) after the Closing Date to full-time Direct Positions and Independent Direct Positions designated by the Sponsor and then multiplied by two (2).

11.5. Repayment Calculation — After Preliminary Period . If, at any time after the expiration of the Preliminary Period, as measured annually on the Test Date, the Sponsor shall not maintain a minimum of fifty-five (55) total full-time Direct Positions and Independent Direct Positions, the Sponsor shall pay to the State an amount calculated as follows: (i) the total amount disbursed by the State pursuant to the Grants; (ii) minus the product of the total amount disbursed by the State pursuant to the Grants divided by fifteen (15) multiplied by the number of years, beginning after the end of the Preliminary Period, the Sponsor has employed at least fifty-five (55) total Direct Positions and Independent Direct Positions; (iii) minus any amounts previously paid by the Sponsor pursuant to the Repayment Calculations set forth in Sections 11.2, 11.3, and 11.4.

11.6. Tax Incentive Penalties . The repayment obligations described in this Section 11 shall be in addition to any provisions of the State's laws pertaining to repayment, recalculation, or penalties in the event the Sponsor shall receive a benefit or economic incentive, including the Amendment 82 Financing described in this Agreement, for which the Sponsor shall later be deemed to have been ineligible.

11.7. Other . In the event that the Sponsor shall fail to comply with the terms and conditions of this Agreement other than those terms and conditions relating to the Investment Requirement and the Position Creation Requirement, the Sponsor may also be subject to penalties or remedies permitted by applicable law.

12.1. Negotiation and execution of all documents pertaining to the issuance of the Bonds on terms and conditions satisfactory to the State.

12.2. Negotiation and execution of the Incentive Loan Documents on terms and conditions satisfactory to the State.

12.3. Satisfactory completion of the actions required by the Governor, the General Assembly, the Commission, the Authority, the Department, and all other officials pursuant to the Amendment 82 Requirements.

12.4. Any special legislation required for any of the economic incentives described in this Agreement, including the Recycling Tax Legislation and Utility Tax Legislation, shall have been approved by the General Assembly and the Governor.

12.5. Negotiation and execution of the Inter-Creditor Agreement on terms and conditions satisfactory to the State.

12.6. Negotiation and execution of the Escrow Agreement for the Capital Commitments on terms and conditions satisfactory to the State.

12.7. The closing of all transactions in connection with the Capital Commitments.

12.8. The Bonds shall have been sold and delivered by the Authority on terms and conditions satisfactory to the State.

12.9. All of the covenants and obligations that the Sponsor is required to perform or to comply with pursuant to this Agreement on or prior to the Closing Date shall have been performed and complied with in all material respects.

13.1. Satisfactory negotiation and execution of all documents pertaining to the issuance of the Bonds.

13.2. Negotiation and execution of the Incentive Loan Documents on terms and conditions satisfactory to the Sponsor.

13.3. Negotiation and execution of the Advantage Arkansas Agreement, the Escrow Agreement with respect to the Capital Commitments, the Financial Incentive Agreement, the Joint Marketing Agreement, the Training Agreement, and all other contracts specifically identified in this Agreement on terms and conditions satisfactory to the Sponsor.

13.4. Satisfactory completion of the actions required by the Governor, the General Assembly, the Commission, the Authority, the Department, and all other officials pursuant to the Amendment 82 Requirements.

13.5. Any special legislation required for any of the economic incentives described in this Agreement, including the Recycling Tax Legislation and Utility Tax Legislation, shall have been approved by the General Assembly and the Governor.

13.6. Approval by the Sponsor of the Capital Commitments and the closing of all transactions in connection with the Capital Commitments.

13.7. Negotiation and execution of an agreement between the Sponsor and Mississippi County, the City of Osceola, Arkansas or another local entity for the acquisition and lease of the Project Site on terms and conditions satisfactory to the Sponsor.

13.8. Issuance of the relevant Governmental Authorities of the State of all required environmental, construction, and operating permits prior to the Closing Date.

13.9. Negotiation and execution of a satisfactory long-term electrical power contract for the Facility on terms and conditions satisfactory to the Sponsor.

13.10. All of the covenants and obligations that the State is required to perform or to comply with pursuant to this Agreement on or prior to the Closing Date shall have been performed and complied with in all material respects.

14.1. No Assumption . If a Change of Control Event is announced by the Sponsor and the Announced Controlling Party shall not agree in writing to assume all of the rights and obligations of the Sponsor pursuant to this Agreement and all related agreements executed in connection with the Project, the Sponsor shall, upon written notice by the Commission and the Authority, cause the Announced Controlling Party to pay to the State prior to consummation of the Change of Control Event an amount calculated as follows: (i) the total amount disbursed by the State pursuant to the Grants; (ii) minus the product of the total amount disbursed by the State pursuant to the Grants divided by fifteen (15) and then multiplied by the number of years beginning after the end of the Preliminary Period, the Sponsor has employed at least fifty-five (55) total Direct Positions and Independent Direct Positions; and (iii) minus any amounts previously paid by the Sponsor pursuant to the Repayment Calculations set forth in Section 11 as a result of failing to achieve and maintain the Employment Target or the Compensation Target.

14.2. Assumption Subsequent to Investment Requirement Being Met . If a Change of Control Event is announced by the Sponsor subsequent to the Investment Requirement having been satisfied and the Announced Controlling Party shall agree in writing to assume all of the rights and obligations of the Sponsor pursuant to this Agreement and all related agreements executed in connection with the Project, but the Commission and the Authority reasonably determine that the Announced Controlling Party is unlikely to achieve and maintain the Employment Target or the Compensation Target, the Sponsor shall, upon written notice by the Commission and the Authority, cause the Announced Controlling Party prior to consummation of the Change of Control Event to fund an Escrow Account in an amount calculated as follows: the product of the total amount disbursed by the State pursuant to the Grants divided by fifteen (15) and then multiplied by the number of years remaining until the expiration of the Test Period divided by two (2) with such years remaining until the expiration of the Test Period to be no greater than fifteen (15). In any year in which the Announced Controlling Party shall fail to achieve and maintain the Employment Target or the Compensation Target, the Commission and the Authority shall withdraw an amount from such Escrow Account equal to the amount determined pursuant to the applicable Repayment Calculations for that particular year. If the Announced Controlling Party maintains the Employment Target and the Compensation Target for the three (3) consecutive years following the later of the Change of Control Event and the end of the Preliminary Period, all amounts in the Escrow Account shall be released and returned to the Announced Controlling Party. The rights of the State upon a Change of Control Event will include, among other rights, the proportional right to vote alongside all other Senior Term Lenders on matters related to any Change of Control Event. The Commission and the Authority shall not have the right to seek the establishment of the Escrow Account if a majority of the Senior Term Lenders inclusive of the State but not including those affiliated with the Sponsor or the Announced Controlling Party, commit in writing to permit assumption of their respective debts by the Announced Controlling Party on the same or substantially similar terms and conditions as those in existence immediately prior to the execution of definitive documents related to the Change of Control Event. A majority of the Senior Term Lenders shall be determined by the amounts due by the Sponsor to each such Senior Term Lender inclusive of the State but not including those affiliated with the Sponsor or the Announced Controlling Party immediately prior to the execution of definitive documents related to the Change of Control Event.

14.3. Assumption Prior to Investment Requirement Being Met . If a Change of Control Event is announced by the Sponsor prior to the Investment Requirement having been met and the Announced Controlling Party shall agree in writing to assume all of the rights and obligations of the Sponsor pursuant to this Agreement and all related agreements executed in connection with the Project, but the Commission and the Authority reasonably determines that the Announced Controlling Party is unlikely to achieve and maintain the Employment Target or the Compensation Target, the Sponsor shall, upon written notice by the Commission and the Authority, cause the Announced Controlling Party, prior to consummation of the Change of Control Event, to fund the Escrow Account in an amount calculated as follows: the product of the total amount disbursed by the State pursuant to the Grants divided by fifteen (15) and then multiplied by the number of years remaining until the expiration of the Test Period with such years remaining until the expiration of the Test Period to be no greater than fifteen (15). In any year during the Test Period in which the Announced Controlling Party shall fail to achieve and maintain the Employment Target or the Compensation Target, the Commission and the Authority shall withdraw an amount from the Escrow Account equal to the amount determined pursuant to the applicable Repayment Calculations for that particular year. If the Announced Controlling Party shall achieve and maintain the Employment Target and the Compensation Target for the six (6) consecutive years following the later of the end of the Preliminary Period and the establishment of the Escrow Account, all amounts in the Escrow Account shall be released and returned to the Announced Controlling Party. If the Announced Controlling Party shall fail to achieve and maintain the Employment Target and the Compensation Target for the three (3) consecutive years following the later of the end of the Preliminary Period and the establishment of the Escrow Account, all amounts in the Escrow Account shall be released to the State and shall become the property of the State and neither the State, the Commission, nor the Authority shall have any obligation to make any of such funds available to the Announced Controlling Party or any other Person. The Commission and the Authority shall have the right to seek the establishment of the Escrow Account whether or not a majority of the Senior Term Lenders commit in writing to permit assumption of their respective debts by the Announced Controlling Party on the same or substantially similar terms as those in existence immediately prior to the execution of definitive documents related to the Change of Control Event.

14.4. Assumption Prior to End of Availability of Economic Incentives . If a Change of Control Event is announced by the Sponsor, any economic incentives, including proceeds from the Amendment 82 Financing, set forth in this Agreement that have not been previously made available to the Sponsor prior to the announcement of the Change of Control Event shall no longer be available to either the Sponsor or the Announced Controlling Party. If the announced Change of Control Event shall not be consummated and no more than nine (9) months have elapsed since the Change of Control Event was first announced and the Sponsor provides written notice that the announced Change of Control Event shall not be consummated, any economic incentives, including proceeds from the Amendment 82 Financing, set forth in this Agreement that have not been previously made available to the Sponsor shall be reinstated and shall be available to the Sponsor as set forth in this Agreement, to the extent consistent with applicable law.

19.1. Names . The correct legal name of the Sponsor is “Big River Steel, LLC”.

19.2. Organization of the Sponsor . The Sponsor is a limited liability company duly organized, validly existing, and in good standing pursuant to the laws of the State of Delaware. The Sponsor is duly licensed and qualified as a foreign limited liability company with the State.

19.3. Authorization . The Sponsor has full power and authority to execute and deliver this Agreement and to perform the obligations of the Sponsor pursuant to this Agreement. The Sponsor has duly authorized the execution, delivery, and performance of this Agreement. This Agreement constitutes the valid and legally binding obligation of the Sponsor enforceable in accordance with its terms and conditions. The undersigned officer of the Sponsor is the lawful agent of the Sponsor with the authority to execute and deliver this Agreement.

19.4. Purpose . The funds disbursed to, or for the benefit of, the Sponsor pursuant to the Grants shall be used by the Sponsor solely for purposes of the Qualifying Site Preparation Costs and the Infrastructure Costs. The funds disbursed to, or for the benefit of, the Sponsor pursuant to the Incentive Loan shall be used solely for the engineering, design, procurement, installation, fabrication, and erection of the Incentive Loan Collateral and related purposes.

19.5. Non-contravention . Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated by this Agreement shall: (a) violate any applicable law including the Amendment 82 Requirements; (b) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create the right to accelerate, terminate, modify, cancel, or require any notice pursuant to the Capital Commitment Documents and any other material contract or lease to which the Sponsor may be a party or by which the Sponsor may be bound or to which the Incentive Loan Collateral may be subject; or (c) violate or conflict with the articles of organization, the operating agreement, and other governing documents of the Sponsor.

20.1. Change of Name . The Sponsor shall not change its legal name unless the Sponsor shall have provided advance notice to the Commission and the Authority at least ninety (90) days prior to the change of its name.

20.2. State of Organization . The Sponsor shall not change the jurisdiction of the organization of the Sponsor unless the Sponsor shall have provided advance notice to the Commission and the Authority at least ninety (90) days prior to the change of its jurisdiction.

20.3. Eligible Business . The Sponsor shall qualify as an “eligible business” as defined in the Consolidated Incentive Act prior to the receipt of the Amendment 82 Financing.

20.4. Environmental . The Sponsor shall cause the Project to comply with the relevant environmental standards of applicable law. It is also intended that representations shall be made by the Project's primary technology provider that its technology meets the relevant environmental standards of the World Bank Group.

20.5. Employment Laws . The Sponsor agrees to comply with all relevant and applicable employment laws.

21.1. Governing Law . This Agreement shall be governed by and interpreted pursuant to the laws of the State without regard to principles of conflicts of laws that would require or permit the application of the laws of a state other than the State.

21.2. Interpretation . This Agreement shall be interpreted as follows: (a) as though the Parties shared equally in the negotiation and preparation of this Agreement; (b) gender or lack of gender of any word shall include the masculine, feminine, and neuter; (c) singular shall include plural and plural shall include singular; (d) the words “include” and “including” mean, in addition to any regularly accepted meaning, “without limitation” and “including but not limited to”; (e) references to Sections refer to Sections of this Agreement; (f) subject headings, captions, and titles shall not affect the interpretation of this Agreement; (g) as a solicitation for offers until this Agreement shall have been executed and delivered by all Parties; (h) the definition of any term in this Agreement shall apply to all uses of such term whenever capitalized; and (i) any Exhibits to this Agreement shall be incorporated into this Agreement as though fully set forth word for word in this Agreement.

21.3. Business Day . If any provision of this Agreement shall require the performance of an obligation or the exercise of a right on a date that shall be a legal holiday pursuant to applicable law, a Party may postpone the performance of such obligation or the exercise of such right until the next business day pursuant to applicable law.

21.4. Currency . Any reference to dollars or money in this Agreement shall mean legal tender of the United States of America. Any amount required to be paid by a Party pursuant to this Agreement shall be paid by check or electronic transfer payable to the order of the Party to receive such amount.

21.5. Time for Performance . Time shall be of the essence.

21.6. Brokers . The State shall not be obligated for the payment of any broker, agent, consultant, finder, or other Person engaged by the Sponsor. The Sponsor shall not be obligated for the payment of any broker, agent, consultant, finder, or other Person engaged by the State.

21.7. Expenses . Except as provided in this Agreement, each Party shall pay all expenses incurred by such Party with respect to: (a) the negotiation, preparation, execution, delivery, and performance of this Agreement; and (b) the transactions contemplated by this Agreement.

21.8. Force Majeure . A Party shall bear no responsibility or liability for non-performance of obligations under this Agreement caused by, and during the duration of, major events beyond its reasonable control, such as an act of God, emergency, fire, casualty, lockout or strike, unavoidable accident, riot, war, terrorism, financial market disruption, computer virus or similar threat, or other force majeure. A Party affected by such a major event shall send written notice to all Parties of the nature and extent of the major event within sixty (60) days after the occurrence of the major event and again within sixty (60) days following the conclusion of the major event.

21.9. Notice . All notices, demands, requests, and other communications required by this Agreement shall be in writing and shall be delivered to a Party by either: (a) personal delivery; (b) overnight delivery service with delivery costs and expenses prepaid and receipt of delivery requested; (c) certified or registered mail with postage prepaid and return receipt requested; or (d) by electronic mail to the persons then holding the titles below. All notices, demands, requests, and other communications permitted or required by this Agreement shall be delivered to the Parties at the following addresses unless another address shall be designated by a Party by notice pursuant to the provisions of this Section:

If to the State: Office of the Governor State Capitol Room 250 Little Rock, Arkansas 72201 AND Office of the Attorney General 323 Center Street, Suite 200 Little Rock, Arkansas 72101 AND Arkansas Department of Finance and Administration Office of the Director 1509 West Seventh Street, Suite 401 Little Rock, Arkansas 72203-3278 AND Arkansas Economic Development Commission Attn: Executive Director 900 West Capitol Avenue, Suite 400 Little Rock, Arkansas 72101 AND Arkansas Development Finance Authority Attn: President 900 West Capitol Avenue, Suite 310 Little Rock, Arkansas 72101 If to the Arkansas Economic Development Commission Commission: 900 West Capitol Avenue, Suite 400 Little Rock, Arkansas 72101 AND Arkansas Economic Development Commission Attn: Bryan Scoggins 900 West Capitol Avenue, Suite 400 Little Rock, Arkansas 72101 bscoggins@ArkansasEDC.com If to the Authority: Arkansas Development Finance Authority Attn: President 900 West Capitol Avenue, Suite 310 Little Rock, Arkansas 72101 If to the Sponsor: Big River Steel, LLC Attn: Mr. John Correnti Chairman and Chief Executive Officer 1425 Ohlendorf Road Osceola, Arkansas 72370

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21.10. Amendment . This Agreement may be modified or amended only by a subsequent written agreement executed and delivered by all Parties in accordance with the requirements of the Act. The course of dealing and the course of performance among the Parties shall not modify or amend this Agreement in any respect.

21.11. Waiver . The provisions of this Agreement may be waived only by a subsequent written agreement executed and delivered by all Parties. Any delay or inaction by a Party shall not be construed as a waiver of any of the provisions of this Agreement. A waiver of any provision of this Agreement: (a) shall not be construed as a waiver of any other provision of this Agreement; (b) shall be applicable only to the specific instance and for the specific period in which the waiver may be given; (c) shall not be construed as a permanent waiver of any provision of this Agreement unless otherwise agreed by all Parties in a subsequent written agreement executed and delivered by all Parties; (d) shall not affect any right or remedy available to a Party; and (e) shall be subject to such terms and conditions as provided in a subsequent written agreement executed and delivered by all Parties.

21.12. Binding Effect . The Parties executed and delivered this Agreement with the intent to be legally bound to its provisions. This Agreement shall inure to the benefit of, shall be binding on, and shall be enforceable by the heirs, successors, and assigns of the Parties.

21.13. Third Party Beneficiary . The Parties do not intend to create any rights pursuant to this Agreement for the benefit of any third party beneficiary except as expressly provided in this Agreement.

21.14. Severability . Each provision of this Agreement shall be severable from all other provisions of this Agreement. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. If any provision of this Agreement shall be determined to be invalid or unenforceable by a Governmental Authority in any litigation among the Parties, such provision shall be amended, without further action by the Parties, to the extent necessary to cause such provision to be valid and enforceable.

21.15. Remedies . The remedies provided in this Agreement and the Act shall be cumulative and not exclusive of any remedies otherwise available to the Parties pursuant to applicable law.

21.16. Conflicts . If there shall be an irreconcilable conflict between the provisions of this Agreement and the provisions of any other document with respect to the transactions contemplated by this Agreement including the Formal Proposal and the Letter of Commitment, the provisions of this Agreement shall prevail and the conflict shall be resolved by reference only to the provisions of this Agreement. To the extent there may be an irreconcilable conflict between the Amendment 82 Requirements and the provisions of this Agreement, the Amendment 82 Requirements shall prevail. To the extent there may be an irreconcilable conflict between the requirements of the Consolidated Incentive Act and the provisions of this Agreement, the requirements of the Consolidated Incentive Act shall prevail.

21.17. Entire Agreement . This Agreement contains the entire agreement of the Parties on the subject matters of this Agreement, and any oral or prior written understanding on the subject matters of this Agreement shall not be binding on the Parties. Each Party represents, warrants, and covenants that such Party has not been influenced to enter into this Agreement by any Person and has not relied on any representation, warranty, or covenant of any Person other than as set forth in this Agreement.

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EXECUTED and DELIVERED as of March , 2013.

THE STATE

THE STATE OF ARKANSAS

By: Governor, Mike Beebe

By: President Pro Tempore of the Senate,

Michael Lamoureux

By: Speaker of the House of Representatives,

Davy Carter

By: Chief Fiscal Officer and Director of the

Department of Finance and Administration,

Richard Weiss

By: Director of the Arkansas Economic

Development Commission,

Grant Tennille

By: President of the Arkansas Development

Finance Authority, Mac Dodson

THE SPONSOR

BIG RIVER STEEL, LLC

By: Chairman and Chief Executive Officer,

John Correnti

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EXHIBIT 2 INCENTIVE LOAN COLLATERAL

Hot Mill Complex Buildings Including Siding, Roofing, Roof Monitors, Mandoors, Overhead Doors and Grouting 001 Meltshop 002 Tunnel Furnace Building 003 Hot Mill / Roll Shop Building Total $44,100,000

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Cold Mill Complex Buildings Including Siding, Roofing, Roof Monitors, Mandoors, Overhead Doors and Grouting Total $30,000,000

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Total Collateral Value for Incentive Loan = $74,100,000

EXHIBIT 3 PROJECT SITE

ALL OF SECTION 19, SOUTH OF HWY 198, containing in the aggregate 485 acres, more or less. THIS PORTION OF SECTION 19 IS LESS AND EXCEPT THE W½ OF THE W½ being 155 acres, more or less.

THE S½ and the E½ of the NE¼ OF SECTION 20, containing 383 acres, more or less.

ALL OF SECTION 21, containing 452 acres, more or less. LESS AND EXCEPT LEVEE AND RIVER EROSION, containing 150 acres, more or less.

THE NW¼ OF SECTION 22, LESS AND EXCEPT RIVER EROSION, containing 67 acres, more or less.

THE NE¼ NE¼ OF SECTION 29 WEST OF LEVEE containing 29 acres, more or less; and THE N½ OF SECTION 29 EAST OF LEVEE containing 166 acres, more or less.

THE N½ OF SECTION 30, containing in the aggregate 210 acres, more or less. THIS PORTION OF SECTION 30 IS LESS AND EXCEPT THE W½ OF THE NW¼ containing 80 acres, more or less; AND ALSO LESS AND EXCEPT A PARCEL IN THE SE ¼ SE ¼ being 47 acres, more or less.

ALL OF THE ABOVE SECTIONS ARE IN TOWNSHIP 12 NORTH, RANGE 11 EAST of the Osceola District of Mississippi County, Arkansas.

Containing in the aggregate 1792 acres, more or less.

SECTION 9. EMERGENCY CLAUSE. It is found and determined by the General Assembly of the State of Arkansas that unemployment levels within this state are unacceptably high; that additional incentives are needed to encourage the location and expansion of manufacturing facilities within this state and to provide additional job opportunities for our citizens; that this act is designed to provide the incentives needed to encourage certain manufacturers to locate their facilities within this state thereby creating additional job opportunities for our citizens; that the development and completion of a mini-mill steel manufacturing facility by Big River Steel, LLC is important to the economic health of the state and its citizens; and that this act is immediately necessary because any delay in the effective date of this act will delay completion of the mini-mill steel manufacturing facility by Big River Steel, LLC and the creation of new jobs in the state. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on:

The date of its approval by the Governor;
If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or
If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.

19. The Steel Mill Project — Acts 2013, No. 1476, §§ 1-8.

SECTION 1. Legislative findings and intent.

The General Assembly finds that the:
1. Creation of jobs and economic growth are critical to improving the lives of the citizens of the State of Arkansas; and
2. Arkansas Economic Development Commission has submitted for approval of the General Assembly a proposal to issue general obligation bonds of the state to provide financing for a large economic development project.
The General Assembly further finds that:
1. The proposed project between the State of Arkansas and Big River Steel, LLC is a qualified project under Arkansas Constitution, Amendment 82, and the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq., and Big River Steel, LLC qualifies as an eligible business under the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq.;
2. The proposed uses of the bond proceeds described in the Amendment 82 Agreement qualify as financing for infrastructure or other needs within the meaning of Arkansas Constitution, Amendment 82, and the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq.; and
3. Arkansas Constitution, Amendment 82, authorizes the General Assembly to issue bonds bearing the full faith and credit of the State of Arkansas if the prospective employer planning an economic development project is eligible under the criteria established by law.
This act is intended to authorize:
1. The issuance of bonds under the authority granted to the General Assembly under Arkansas Constitution, Amendment 82; and
2. Under Arkansas Constitution, Amendment 82, and the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq., the execution and implementation of the Amendment 82 Agreement and other provisions necessary to carry out the Amendment 82 Agreement.
As provided under the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq., this act includes the:
1. Authorization for the issuance of bonds bearing the full faith and credit of the State of Arkansas as authorized under Arkansas Constitution, Amendment 82;
2. Authorization of the agreement between the State of Arkansas and the Big River Steel, LLC;
3. Creation of a sales tax exemption for natural gas and electricity for Big River Steel, LLC; and
4. Extension of the waste reduction, reuse, or recycling equipment tax credit.

SECTION 2. Big River Steel Project bonds issued under Arkansas Constitution, Amendment 82.

As used in this section:
1. “Amendment 82 Agreement” means the unexecuted document titled “Amendment 82 Agreement between the State of Arkansas and Big River Steel, LLC” submitted to the General Assembly and as found in Section 8 of this act; and
2. “Project” means the acquisition, development, construction, and operation of a mini-mill steel manufacturing facility by Big River Steel, LLC, on a site in Mississippi County, Arkansas, that is identified more specifically in the Amendment 82 Agreement.
1. The General Assembly finds that the project qualifies as a large economic development project for which the issuance of general obligation bonds is authorized under Arkansas Constitution, Amendment 82, and the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq., and is of the nature intended by the electors of the state to be financed with bonds under Arkansas Constitution, Amendment 82.
2. The General Assembly approves the terms of the Amendment 82 Agreement between the State of Arkansas and Big River Steel, LLC, and authorizes the execution of the Amendment 82 Agreement in substantially the same form as presented to the General Assembly but with such changes as shall be approved by the officers executing the Amendment 82 Agreement on behalf of the state.
1. The General Assembly authorizes the Arkansas Development Finance Authority to issue general obligation bonds of the State of Arkansas in an amount not to exceed one hundred twenty-five million dollars ($125,000,000) in the aggregate.
2. The bonds authorized under subdivision (c)(1) of this section:
  1. Are direct general obligations of the State of Arkansas;
  2. Bear the full faith and credit of the State of Arkansas; and
  3. Are payable from gross general revenues or special revenues appropriated by the General Assembly.
The authority shall issue the bonds in accordance with the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq.
1. The Arkansas Economic Development Commission and the authority may implement the Amendment 82 Agreement consistent with this act, Arkansas Constitution, Amendment 82, and the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq.
2. If a provision of this act or of the Amendment 82 Agreement conflicts with any provision of the Arkansas Amendment 82 Implementation Act, § 15-4-3201 et seq., the provisions of this act and the provisions of the Amendment 82 Agreement control.

SECTION 3. Sections 4 through 7 of this act shall be known and may be cited as the “Amendment 82 Big River Steel Project Tax Provisions”.

SECTION 4. Definitions.

As used in sections 4 through 7 of this act:

“Invested” includes, but is not limited to, expenditures made from the proceeds of bonds, including interim notes or other evidence of indebtedness, issued by a municipality, county, or an agency or instrumentality of a municipality, county, or the State of Arkansas, if the obligation to repay the bonds, including interest thereon, is a legally binding obligation, directly or indirectly, of the taxpayer;
“Production, processing, and testing equipment” includes machinery and equipment essential for the receiving, storing, processing, and testing of raw materials and the production, storage, testing, and shipping of finished products, and facilities for the production of steam, electricity, chemicals, and other materials that are essential to the manufacturing process but which are consumed in the manufacturing process and do not become essential components of the finished product; and
“Qualified manufacturer of steel” means any natural person, company, or corporation, and any holding company of any of the foregoing, engaged in the manufacture, refinement, or processing of steel whenever more than fifty percent (50%) of the electricity or more than fifty percent (50%) of the natural gas consumed in the manufacture, refinement, or processing of steel is used to power an electric arc furnace or furnaces or continuous casting equipment in connection with the melting, continuous casting, or rolling of steel or in the preheating of steel for processing through a rolling mill or rolling mills, or both.

SECTION 5. Certification required.

To claim the benefits of this act, a taxpayer must obtain a certification prior to March 31, 2016, from the Director of the Arkansas Economic Development Commission certifying to the Revenue Division of the Department of Finance and Administration that the taxpayer:
1. Is a qualified manufacturer of steel;
2. Operates a steel mill in Arkansas which began production after January 1, 2013; and
3. Has invested after January 1, 2013, and prior to December 31, 2015, more than five hundred million dollars ($500,000,000) in the steel mill, and the investment expenditure is for one (1) or more of the following:
  1. Property purchased for use in the construction of a building or buildings or any addition or improvement thereon to house the steel mill;
  2. 1. Machinery and equipment to be located in or in connection with the steel mill.
    2. Motor vehicles of a type subject to registration shall not be considered as machinery and equipment; and
  3. Project planning costs or construction labor costs, including:
    1. On-site direct labor and supervision, whether employed by a contractor or the project owner;
    2. Architectural fees or engineering fees, or both;
    3. Right-of-way purchases;
    4. Utility extensions;
    5. Site preparation;
    6. Parking lots;
    7. Disposal or containment systems;
    8. Water and sewer treatment systems;
    9. Rail spurs;
    10. Streets and roads;
    11. Purchase of mineral rights;
    12. Land;
    13. Buildings;
    14. Building renovation;
    15. Production, processing, and testing equipment;
    16. Drainage systems;
    17. Water tanks and reservoirs;
    18. Storage facilities;
    19. Equipment rental;
    20. Contractor's cost-plus fees;
    21. Builders' risk insurance;
    22. Original spare parts;
    23. Job administrative expenses;
    24. Office furnishings and equipment;
    25. Rolling stock; and
    26. Capitalized start-up costs related to the construction as recognized by generally accepted accounting principles.
To continue to claim the benefits provided under Section 7 of this act after December 31, 2018, a taxpayer shall:
1. Obtain an annual certification from the Director of the Arkansas Economic Development Commission certifying to the Revenue Division of the Department of Finance and Administration that the taxpayer meets the requirements of subsection (a) of this section; and
2. Employ at least three hundred (300) individuals in the management, operations, and maintenance of the steel mill at an average wage equal to or in excess of seventy thousand dollars ($70,000) in cash compensation per calendar year.

SECTION 6. Exemption from taxes.

SECTION 7. Recycling tax credits.

1. 1. A qualified manufacturer of steel that has been certified under Section 5 of this act after January 1, 2013, and prior to December 31, 2020, and that has qualified for the income tax credit for the purchase of waste reduction, reuse, or recycling equipment provided by Arkansas Code § 26-51-506, may carry forward any unused income tax credit earned under § 26-51-506 for a period of fourteen (14) consecutive years following the taxable year in which the credit originated.
  2. However, if a qualified manufacturer of steel is not certified under Section 5(b) of this act, the carry-forward period allowed under subdivision (a)(1)(A) of this section shall be reduced by one (1) year for each year that the qualified manufacturer of steel does not obtain certification under Section 5(b) of this act.
2. Income tax credits that would otherwise expire during that period shall be claimed first.
1. As used in subdivision (a)(1) of this section, the term “waste reduction, reuse, or recycling equipment” as defined in § 26-51-506 shall include production, processing, and testing equipment used to manufacture products containing recovered materials.
2. The provisions of § 26-51-506(d)(4) shall not apply.
3. However, the qualified manufacturer of steel shall make a good faith effort to use recovered materials containing Arkansas post-consumer waste as a part of the materials used.
1. Except as provided in subdivision (c)(2) of this section, the refund provisions of Arkansas Code § 26-51-506(f) shall not apply to a qualified manufacturer of steel that has been certified under Section 5 of this act.
2. The qualified manufacturer of steel shall refund the amount required under subdivision (c)(3) of this section if within three (3) years of the taxable year in which the credit originated:
  1. 1. The waste reduction, reuse, or recycling equipment is removed from Arkansas, disposed of, or transferred to another person, or the qualified manufacturer of steel otherwise ceases to use the required materials or operate in accordance with § 26-51-506 or this section.
    2. Reorganization transactions, changes of ownership and control, and sales and transfers of waste reduction, reuse, or recycling equipment among affiliates which do not constitute sales or transfers to a third-party purchaser shall not be considered disposals, transfers, or cessations of use for purposes of § 26-51-506 or this section; or
  2. The Director of the Arkansas Department of Environmental Quality finds that the qualified manufacturer of steel has operated the waste reduction, reuse, or recycling equipment in a manner which demonstrates a pattern of intentional failure to comply with final administrative or judicial orders which clearly indicates a disregard for environmental regulation.
3. If the provisions of subdivision (c)(2) of this section apply, the qualified manufacturer of steel shall refund the amount of the allowed tax credit claimed by the qualified manufacturer of steel which exceeds the following amounts:
  1. Within the first taxable year, zero dollars ($0.00);
  2. Within the second taxable year, an amount equal to thirty-three percent (33%) of the amount of credit allowed; and
  3. Within the third taxable year, an amount equal to sixty-seven percent (67%) of the credit allowed.
4. Any refund required by subdivision (c)(2)(A) of this section shall apply only to the credit given for the particular waste reduction, reuse, or recycling equipment to which that subdivision applies.
5. A qualified manufacturer of steel that is required to refund part of a credit pursuant to this section shall no longer be eligible to carry forward any amount of that credit which had not been used as of the date the refund is required.
6. A qualified manufacturer of steel aggrieved by a decision of the Director of the Arkansas Department of Environmental Quality under this section may appeal to the Arkansas Pollution Control and Ecology Commission through administrative procedures adopted by the commission and to the courts in the manner provided in Arkansas Code §§ 8-4-222 — 8-4-229.
In the case of a qualified manufacturer of steel that is:
1. A proprietorship, partnership, limited liability company, or other business organization treated as a proprietorship or partnership for tax purposes, the amount of the credit determined under this section for any taxable year shall be apportioned to each proprietor, partner, member, or other owner in proportion to the amount of income from the entity which the proprietor, partner, member, or other owner is required to include in gross income or as otherwise provided for in the applicable ownership or operating agreements if at least one of the proprietor, partner, member or other owner of the organization is a public retirement system of the State of Arkansas;
2. A Subchapter S corporation, the amount of credit determined shall be apportioned to each Subchapter S corporation shareholder in proportion to the amount of income from the entity which the Subchapter S corporation shareholder is required to include as gross income or as otherwise provided for in the applicable articles of incorporation or bylaws if at least one of the shareholders is a public retirement system of the State of Arkansas; or
3. An estate or trust:
  1. The amount of the credit determined for any taxable year shall be apportioned between the estate or trust and the beneficiaries on the basis of the income of the estate or trust allocable to each; and
  2. Any beneficiary to whom any amount has been apportioned under this section shall be allowed, subject to the limitations contained in this section, a credit under this section for that amount.

SECTION 8. Amendment 82 Agreement Between The State Of Arkansas And Big River Steel, LLC.

AMENDMENT 82 AGREEMENT Between THE STATE OF ARKANSAS And BIG RIVER STEEL, LLC Dated as of MARCH , 2013 AMENDMENT 82 AGREEMENT

W-I-T-N-E-S-S-E-T-H

For valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

Definitions . For purposes of this Agreement, the following terms and variations thereof (including the singular, plural, and possessive and the past, present, and future tense) shall have the following meanings:
Project . Subject to the terms and conditions of this Agreement, the Sponsor shall: (a) acquire, develop, construct, and operate the Facility at the Project Site; (b) satisfy the Investment Requirement prior to the expiration of the Preliminary Period; (c) achieve the Position Creation Requirement prior to the expiration of the Preliminary Period; and (d) maintain the Position Creation Requirement during the Test Period. The Facility shall be acquired, developed, and constructed as generally described in the Development Plan.
Investment Requirement .
Position Creation Requirement . Prior to the expiration of the Preliminary Period, the Sponsor shall achieve the Employment Target and the Compensation Target through either Direct Positions or Independent Direct Positions. During the Testing Period, the Sponsor shall maintain the Employment Target and the Compensation Target through either Direct Positions or Independent Direct Positions. The New Full Time Positions required by the Position Creation Requirement shall include those Direct Positions and Independent Direct Positions designated by the Sponsor. The Employment Target and the Compensation Target may be satisfied through a combination of Direct Positions and Independent Direct Positions which constitute Full Time Positions during the calendar year in question.
Time Periods .
Amendment 82 Financing .
Disbursement .
Training Benefits . The Commission shall assist the Sponsor in recruiting and training employees and independent contractors who shall work at the Facility or on the Project Site. The Commission and the Sponsor shall enter into the Training Agreement regarding the assistance to be provided to the Sponsor. Subject to the terms and conditions of this Agreement and the Training Agreement, the Commission shall fund up to Ten Million Dollars ($10,000,000.00) by payment or reimbursement of costs and expenses paid or incurred by the Sponsor for training activities and facilities with respect to the employees and independent contractors who shall work at the Facility or on the Project Site. The funds disbursed to, or for the benefit of, the Sponsor for such training activities and facilities shall be in addition to the Amendment 82 Financing described in this Agreement and shall be spread equally over a period of two (2) years based on a schedule of on-the-job training determined by the Sponsor in consultation with the Commission. The assistance to be provided by the Commission pursuant to the Training Agreement shall include the following support services: (a) recruitment advertising for new employees; (b) securing the use of facilities for accepting applications and interviewing new employees; (c) reproduction of training manuals; (d) reimbursement of compensation to instructors for on-the-job training (up to, but not to exceed actual hourly rate of pay); (e) on-site training facility space; and (f) reimbursement for train-the-trainer expenses, including reasonable expenses of travel. Requests for reimbursement shall provide the Commission, at a minimum, with the information described in paragraphs I(A) and I(B) of the form of Training Agreement.
Other Incentive Programs .
Joint Marketing Agreement . The Commission and the Sponsor shall enter into the Joint Marketing Agreement whereby each shall commit to spend up to One Hundred Fifty Thousand Dollars ($150,000.00) per calendar year for each of three (3) years beginning no later than twelve (12) months after the Closing Date, to market and advertise steel companies based in the State to out-of-state suppliers, vendors, and customers for the purpose of marketing the State as the right place for out-of-state suppliers, vendors, and customers to locate their business or to market or consume the products produced by steel companies based in the State. The expenditures by the Commission with respect to the Joint Marketing Agreement shall be in addition to the Amendment 82 Financing described in this Agreement.
Consequences of Unsatisfied Obligations .
Conditions of the State . In addition to all other conditions set forth in this Agreement and the Amendment 82 Requirements, the obligations of the State pursuant to this Agreement shall be subject to the satisfaction of following conditions on or before the Closing Date:
Conditions of the Sponsor . In addition to all other conditions set forth in this Agreement and the Amendment 82 Requirements, the obligations of the Sponsor pursuant to this Agreement shall be subject to the satisfaction of following conditions on or before the Closing Date:
Due on Sale .
Confidentiality and Non-Disclosure . The Parties recognize that certain information and records provided by the Sponsor to the Commission or the Authority include trade secrets or other information which, if disclosed, would give advantage to competitors of the Sponsor, or include records related to the Sponsor's planning, site location, expansion, operations, product development or marketing (collectively, “Confidential Business Information”). Such records are generally exempt from public disclosure under the terms of the Arkansas Freedom of Information Act, A.C.A. § 25-19-101 et seq. Neither the Parties to this Agreement nor any Related Entity, affiliate, or representative of any Party, shall make any disclosure of Confidential Business Information without the prior written consent of any other Party; provided however, that a Party may make such a disclosure without the consent of any other Party if the disclosure is: (a) compelled by legal, accounting, or regulatory requirements applicable to and beyond the reasonable control of the Party; (b) necessary to proceed with the intentions and agreements contained in this Agreement as they specifically relate to any Related Entity, affiliate, or representative of any Party; (c) necessary to obtain legislative approval of the undertakings set forth in this Agreement; or (d) required under applicable law binding upon the disclosing Party. The Party making a disclosure described in (c) of this Section 15 shall give prior written notice of the proposed disclosure to the other Party. The Party making a disclosure described in (a) or (d) of this Section 15 shall give prior written notice of the proposed disclosure to the other Party if the disclosing Party can do so and still comply with the requirement or law compelling the disclosure; otherwise the disclosing Party shall give written notice contemporaneously with or as soon as reasonably practicable following the disclosure.
Incentives Not Accepted . To the extent that the Sponsor shall not accept for whatever reason any portion of the funds or economic incentives set forth in this Agreement, neither the State, the Commission, nor the Authority shall have any obligation to replace the value of the funds or economic incentives not accepted, inclusive of the value of any matching funds, with other funds or economic incentives.
Public Reporting Requirements . The Sponsor acknowledges and agrees to comply with the public reporting, monitoring, auditing, and other reporting requirements of the Act set forth in A.C.A. §§ 15-4-3206 (2011 Revision), 15-4-3221 (2011 Revision), and 15-4-3224 (2011 Revision). The Sponsor shall reasonably cooperate with the State by providing such documents, records, and other information to the State as may be necessary to comply with the public reporting, monitoring, auditing, and other reporting requirements of the Act set forth in A.C.A. §§ 15-4-3206 (2011 Revision), 15-4-3221 (2011 Revision), and 15-4-3224 (2011 Revision). The Sponsor shall reasonably cooperate with all audits and verifications by the State, including without limitation the Commission and the Authority, of all accounts related to the construction, operation, and maintenance of the Project. The Sponsor shall maintain and make available all documents, records, and other information pertaining to items contained in the terms and conditions of this Agreement for annual audit by the Chief Fiscal Officer, and upon request, but no more often than annually, by the Office of Economic and Tax Policy or a Person retained by the Office of Economic and Tax Policy. The Sponsor shall comply with all auditing and reporting requirements of any state or federal regulatory agency or other Governmental Authority that may have jurisdiction over the Sponsor. The Sponsor shall cause all Related Entities of Sponsor who receive Amendment 82 Financing to comply with the reporting requirements of the Act set forth in A.C.A. §§ 15-4-3206 (2011 Revision), 15-4-3221 (2011 Revision), and 15-4-3224 (2011 Revision).
Reporting of Independent Direct Positions . The Sponsor shall cause each Person that employs or contracts with an individual holding an Independent Direct Position to provide to the State such documents, records, and other information as may be necessary to comply with the audit requirements of the Act, including those set forth in A.C.A. §§ 15-4-3206 (2011 Revision). For the purposes of Sections 4 and 11 of this Agreement no position or job may be counted as an Independent Direct Position unless the person who employs or contracts the individual holding such position or job fully complies with the State's requests for information necessary to comply with the audit and reporting provisions of the Act.
Representations and Warranties . In order to induce the State to enter into this Agreement, the Sponsor hereby represents and warrants to the State as follows:
General Covenants . In addition to the covenants of the Sponsor set forth elsewhere in this Agreement, the Sponsor covenants and agrees as follows:
General Provisions .