AN ACT FOR THE DEPARTMENT OF ENERGY AND ENVIRONMENT - OIL AND GAS COMMISSION REAPPROPRIATION.

2026 Fiscal Session

Arkansas HB 1081 reallocates existing federal and cash funds to complete roof repairs for the Oil and Gas Commission’s Education Center/Warehouse, with strict fiscal controls.

Notification that HB1081 is now Act 104

Purpose

HB 1081 is an appropriation reallocation bill for the Department of Energy and Environment (DE/OGC) in Arkansas. Its primary aim is to reappropriate balances from capital improvement funds for the Oil and Gas Commission, specifically concerning roof repair projects at the Education Center/Warehouse. The bill intends to ensure fiscal continuity and operational readiness for the agency by authorizing use of remaining balances from prior appropriations.

Key Provisions

Reappropriation of Federal Funds (Education Center/Warehouse Roof Repair – Federal):

Effective: July 1, 2026
Funds: Reappropriation of the balance from Item (A) of Section 1 of Act 338 of 2025
Amount: Not to exceed $275,274
Source: Federal funds designated by the Chief Fiscal Officer

Reappropriation of Cash Funds (Education Center/Warehouse Roof Repair – Cash):

Effective: July 1, 2026
Funds: Reappropriation of the balance from Item (A) of Section 2 of Act 338 of 2025
Amount: Not to exceed $296,552
Source: Cash fund deposited in the State Treasury (as determined by the Chief Fiscal Officer)

Disbursement Controls (Section 3):

No contract or obligation may be incurred beyond funds actually available.
Agencies may use grants, donations (including Federal funds), and unobligated cash income to supplement state funds, but existing Maintenance and General Operations funds shall not be used for the purposes of this act.
Compliance with applicable fiscal laws and regulations is required unless otherwise provided by law.

Legislative Intent (Section 4):

Funds disbursed under this act must align with the reasons for enactment, as reflected in agency budget materials and official recommendations/minutes.

Emergency Clause (Section 5):

Declares an emergency to ensure immediate effectiveness on July 1, 2026.
The emergency designation is intended to prevent disruption to essential government operations and reflect constitutional requirements limiting appropriations to one year.

Who Is Affected

Primary Entity: Department of Energy and Environment – Oil and Gas Commission (OGC)

The agency gains access to previously appropriated but unexpended balances (both federal and cash) for the specific roof repair project at the Education Center/Warehouse.

Potential indirect effects on related maintenance/development projects through clarified funding sources and adherence to fiscal controls.

Timeline and Procedural Notes

Effective Date: July 1, 2026

Emergency Status: Act contains an emergency clause to ensure immediate effect upon passage, despite typical one-year limitation on appropriations.

Source Materials: Reappropriations reference the balance of appropriations from Act 338 of 2025 (Education Center/Warehouse roof repair).

Impact Overview

Provides targeted funding to complete or continue roof repair for the DE/OGC Education Center/Warehouse.

Enables use of multiple funding streams (federal and cash) to support the project without increasing the net new appropriation.

Maintains strict fiscal controls while allowing supplementary funding via grants and donations.

Ensures operational continuity of the Oil and Gas Commission by addressing a capital improvement need on an expedited basis.

Bill