Summary: SB 8 (Arkansas, 2026 Regular Session) – Department of Commerce Appropriation for FY 2026-2027
This bill appropriates and organizes funding for the Department of Commerce (DOC) and its divisions for the fiscal year ending June 30, 2027, across multiple funding streams, with extensive special language provisions to guide operations, transfers, and program administration. The act is framed as an annual appropriations bill with emergency provisions to take effect July 1, 2026.
1) Purpose and Intent
- To provide comprehensive appropriations for the Department of Commerce, covering personal services, operating expenses, grants, and program funding for the 2026-2027 fiscal year.
- To enable shared services staffing for the department and to allocate funds to specific divisions and programs under the Arkansas Economic Development Commission (AEDC), which operates as the department’s economic development arm.
- To establish a framework for transfers, carry-forwards, and special fund provisions to support ongoing and new programs, including grant programs, incentive funds, and disaster recovery.
2) Key Provisions and Changes
A. Shared Services Allocation (Section 1–2)
- Establishes a combined slate of regular employees for the Department of Commerce under a Shared Services model.
- Lists 59 maximum regular positions with specific job titles and pay grade levels (e.g., Secretary of Commerce, Chief of Staff, Chief Financial Officer, CIO, HR, accounting, procurement, communications, IT, legal, and other professional/support roles).
- Appropriation for Regular Salaries and Supporting Costs tied to Shared Services:
- Regular Salaries: $4,400,000
- Personal Services Matching: $1,502,564
- Operations: $500,000
- Conference/Travel: $200,000
- Professional Fees: $100,000
- Capital Outlay: $100,000
- Total: $6,802,564
B. AEDC State Operations and Programs (Sections 3–13)
- Details the AEDC state operation staff and a broader set of programmatic appropriations for the AEDC, including:
- Executive Director, Economic Development Administrators, Project Consultants, Grants Coordinators, Administrative and Support Staff, Rural Services Director, etc.
- Maximum of 68 regular employees for AEDC under State Operations.
- Several line items for program funding (grants, development programs, and infrastructure initiatives).
C. Additional Funding Streams and Programs (Sections 6–12, 14–38, 39–41, and beyond)
The bill allocates funds to numerous programs and funds, including but not limited to:
- Community Development Block Grant (CDBG) – Federal: Grants and operations, with substantial grant funding for community development and disaster-related activity.
- Grants/AIDS (CDBG): $48,261,988
- Storm Recovery Grants: $7,579,614
- Total CDBG Federal: $56,516,042
- CDBG Disaster Recovery: $8,933,441
- Arkansas Acceleration Fund: $5,000,000 for acceleration grants and incentives
- Super Projects: $6,000,000
- New Markets Performance Program: $142,266 (refunds/reimbursements for program fees)
- Quick Action Closing Fund: $75,000,000 (incentives to attract new business and economic development)
- Division of Science and Technology (State Operations):
- Regular Salaries: $394,495
- Grants & Aid (Arkansas Research Match): $1,092,653
- Technology Development: $156,975
- Seed Capital Investments: $292,653
- Arkansas Acceleration Fund Program: $11,600,000
- Total: $13,684,137
- Seed Capital Investment – Cash: Investments: $1,040,000
- Rural Services Division – State Operations:
- Regular Salaries: $154,934
- Grants & Aid – Rural Community Grants: $500,000
- Rural Fire Protection Grants: $900,000
- Total: $1,696,094
- Rural Services Division – Conference Expenses: $150,000
- Fish and Wildlife Conservation Education Program: $850,000 (grants)
- Minority and Women-Owned Business Enterprise (MWBE) Loan Mobilization: $500,000
- Rural Services – Law Enforcement Grants: $5,000,000
- Economic Development Incentive – Payroll Rebate: $37,500,000
- Economic Development Incentive – Recycle Tax Credit: $42,000,000
- Animal Rescue and Shelter Grants: $50,000
- Community Assistance Grant Program: $10,000,000
- Other district and programmatic lines referenced (grants, infrastructure, training, etc.)
D. Special and Flexible Language (Sections 23–41)
- Reallocation of Resources: The Department of Commerce Secretary may request transfers of positions, appropriations, programs, and funds between divisions or units with Governor and Legislative Council/JBC approval; limit of two transfer requests per fiscal year.
- Transfers and Carry Forwards: Includes multiple “Special Language” sections governing carry-forwards, transfers between line items, and reporting requirements to the Legislative Council or Joint Budget Committee. Specific carry-forward rules apply to:
- Industry Training Program
- Technology Development
- Rural Development Set-Aside (CDBG)
- Arkansas Acceleration Fund
- Prominent reporting obligations and pre-approval requirements for transfers
- Foreign Office Operations: AEDC can contract with private/public entities to operate foreign offices to support export and investment, with professional contracts allowed and standard procurement considerations.
- Promotional Items: Establishes a special appropriation line for promotional items with required approvals.
- Grant Review and Allocation: Rural Services Division will certify grant eligibility and allocate Rural Development Set-Aside funds under AEDC rules; annual reporting to the Legislative Joint Auditing Committee.
- Shared Services Funding: A dedicated Shared Services paying account and transfer authority related to the Department of Commerce.
3) Who Is Affected
- Department of Commerce and its divisions (AEDC, Division of Science and Technology, Rural Services Division, etc.)
- AEDC-supported programs and beneficiaries (local governments, rural communities, small businesses, minority and women-owned enterprises, and workforce programs)
- Private sector and non-profit partners participating in grant programs, acceleration funds, and tax credits
- Local law enforcement and animal welfare organizations receiving grants
- Arkansas residents and communities benefiting from CDBG and disaster recovery funding
4) Procedural and Timeline Aspects
- Effective Date and Emergency: The act includes an emergency clause, making it effective on July 1, 2026.
- Oversight and Approval: Transfers of resources between divisions require prior approval by the Legislative Council or Joint Budget Committee and Governor. The Act emphasizes ongoing legislative oversight of flexible funding provisions.
- Carry Forward and Reporting: Carry-forward provisions require agency justification, state budget office reporting, and statutory reporting to the Legislative Council or Joint Budget Committee before budget requests.
- Funding Structure: The bill consolidates multiple funding streams (state operations, federal CDBG funds, private funds) and sets maximum staffing levels by division, with a detailed schedule of positions and pay grades.
Notes:
- The bill language includes many “special language” provisions that are not intended to be codified in Arkansas Code but govern how funds and authorities are managed for the 2026-2027 period.
- The presence of an emergency clause indicates the Legislature treated these appropriations as essential for the operation of the DOC and AEDC beginning July 1, 2026.
