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SB 10

AN ACT FOR THE DEPARTMENT OF COMMERCE - DIVISION OF WORKFORCE SERVICES APPROPRIATION FOR THE 2026-2027 FISCAL YEAR.

2026 Fiscal Session

Provides funding for Unemployment Insurance Modernization and Adult Education, and a temporary framework to consolidate vocational rehabilitation services with federal planning and

Notification that SB10 is now Act 130
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WeVote Research Nonpartisan
Bill Summary · SB 10

Summary of SB 10 (2026 Session, Arkansas) — Amendment No. 1

This document summarizes Senate Bill 10 (SB 10) as amended by Amendment No. 1, introduced in the 95th General Assembly during the Fiscal Session of 2026. The bill concerns appropriations for the Arkansas Department of Commerce, Division of Workforce Services, for the 2026-2027 fiscal year, and includes a transitional/organizational provision related to vocational rehabilitation services.

1) Purpose and Intent

  • Primary purpose: To appropriate funds for the Department of Commerce, Division of Workforce Services (DWS) for the 2026-2027 fiscal year, with specific line items for unemployment insurance modernization and adult education, and to establish transitional authority for consolidating vocational rehabilitation services.
  • The amendment expands the bill to include:
    • Unemployment Insurance Modernization funding.
    • Adult Education funding (cash fund).
    • A transitional authority to consolidate vocational rehabilitation services under a combined agency structure, with related requirements and protections to preserve federal funding and services.

2) Key Provisions and Changes

A. Unemployment Insurance Modernization

  • New appropriation: $10,000,000 (fiscal year 2026-2027).
  • Source: From the Division of Workforce Services Unemployment Insurance Administration Fund.
  • Purpose: To cover personal services and operating expenses for Unemployment Insurance Modernization within the DWS.

B. Adult Education – Cash Fund

  • New appropriation: $2,500,000 (fiscal year 2026-2027).
  • Source: Cash fund deposited in the State Treasury as determined by the Chief Fiscal Officer.
  • Purpose: To fund personal services and operating expenses for the Department of Commerce - Division of Workforce Services - Adult Education.

C. Transitional Authority — Vocational Rehabilitation Services

  • New Section 63 (Special Language) establishing a transitional framework for consolidating vocational rehabilitation services.
  • Key elements:
    • Fiscal year: July 1, 2026, through June 30, 2027.
    • Transition authority for DWS (via Arkansas Rehabilitation Services) to:
    • Submit amendments to the state plan under the Workforce Innovation and Opportunity Act (WIOA) for vocational rehabilitation.
    • Represent to federal agencies that Arkansas intends to operate as a combined vocational rehabilitation agency.
    • Plan, coordinate, and take actions necessary to obtain federal approval for the consolidation.
    • Take actions necessary to implement consolidation prior to statutory amendments.
    • Federal compliance and structure:
    • DWS (Division of Workforce Services) to be the designated state agency for the Rehabilitation Act of 1973 as it existed on Jan 1, 2025.
    • Arkansas Rehabilitation Services (ARS) to remain the designated state agency for VR services under WIOA as of Jan 1, 2025.
    • Services for blind/visually impaired:
    • Maintain a distinct unit within ARS called the Office of Blind Services to continue specialized services.
    • Limitations:
    • Authority solely for fiscal alignment, federal planning, submission, approval, and transition coordination.
    • Does not transfer statutory authority, programs, appropriations, positions, or funding unless authorized by law or further action of the General Assembly.
    • Continuity and protection:
    • Intends to preserve services and federal funding, maintain maintenance-of-effort requirements, and ensure uninterrupted service delivery.
    • Duration: In effect only from July 1, 2026, through June 30, 2027.

D. Renumbering

  • The amendment requires appropriate renumbering of all sections affected by the inserted material.

3) Affected Parties

  • Arkansas Department of Commerce, Division of Workforce Services (DWS):
    • Receives new appropriations for Unemployment Insurance Modernization and Adult Education.
    • Will oversee transitional planning and coordination for vocational rehabilitation consolidation.
  • Arkansas Rehabilitation Services (ARS):
    • Involved in transitional activities toward a combined vocational rehabilitation agency.
    • Must coordinate with DWS and federal agencies to secure approval for consolidation.
  • Individuals served by unemployment insurance programs, adult education programs, and vocational rehabilitation services:
    • Potential changes in funding, administration, and delivery mechanisms during the transition period.
  • Federal partner programs (as applicable under WIOA and the Rehabilitation Act):
    • Arkansas seeks approvals to align its state plan and agency structure with federal requirements.

4) Procedural and Timeline Details

  • Effective window for transitional authority: July 1, 2026, through June 30, 2027.
  • Key actions during transition:
    • Submission of amendments to federal plans.
    • Representation to federal agencies about consolidation plans.
    • Planning and coordination activities to obtain federal approval.
    • Interim actions to implement consolidation, subject to future legislative authorization.
  • Budgetary timing:
    • Unemployment Insurance Modernization: $10,000,000 for FY 2026-2027.
    • Adult Education: $2,500,000 (cash fund) for FY 2026-2027.
  • The amendment was debated, read, and adopted by the Joint Budget Committee in April 2026.

5) Potential Impact and Considerations

  • Operational: Additional funding targeted at modernization and adult education may expand capacity and efficiency in unemployment insurance operations and adult education services.
  • Structural: The transitional authority creates a pathway toward consolidating vocational rehabilitation services, potentially streamlining administration and aligning with federal planning requirements.
  • Federal Compliance: The plan requires careful coordination with federal agencies to maintain funding, eligibility, and maintenance-of-effort requirements.
  • Oversight: The transitional provisions are temporary and designed to preserve service continuity while pursuing a broader organizational change; final statutory changes may occur in subsequent sessions.

Compiled from official sources — confirm details with the bill’s official record.

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