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Bill

SB 5

AN ACT FOR THE DEPARTMENT OF HEALTH - ARKANSAS TOBACCO SETTLEMENT COMMISSION APPROPRIATION FOR THE 2026-2027 FISCAL YEAR.

2026 Fiscal Session

Allocates $357,456 for 2026-27 to monitor and administer Tobacco Settlement funds, with one staff position and strict transfer and disclosure rules.

Notification that SB5 is now Act 65
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Bill Summary · SB 5

Summary of SB 5 (2026F) – Arkansas

Purpose and intent

This act provides a dedicated appropriation for the Department of Health – Arkansas Tobacco Settlement Commission to monitor, evaluate, and administer program expenditures funded by the Tobacco Settlement Program Fund for the fiscal year ending June 30, 2027. It specifies personnel, operating expenses, and grants related to oversight and evaluation of Tobacco Settlement program accounts.

Key provisions and changes

  • Section 1 – Staffing

    • Establishes a maximum of 1 regular employee for the 2026-2027 fiscal year:
    • Administrative Analyst (Class Code PAS01P) at Grade SGS05
    • Authorized as a single position (1 employee)
  • Section 2 – Appropriation – Operations

    • Provides appropriations to the Department of Health (Tobacco Settlement Commission Fund) for:
    • Regular salaries: $43,881
    • Personal Services Matching: $18,000
    • Maintenance & General Operations:
      • Operating expenses: $42,575
      • Conference & Travel: $3,000
      • Professional Fees: $250,000
      • Capital Outlay: $0
      • Data Processing: $0
    • Tobacco Settlement Grants: $0
    • Total appropriation for 2026-2027: $357,456
  • Section 3 – Special Language (Transfer restrictions)

    • Funds cannot be transferred under Arkansas Code 19-4-513 except as explicitly provided in this act.
    • Applies from July 1, 2025 (2026 fiscal year) through June 30, 2027.
  • Section 4 – Special Language (Transfers of appropriations)

    • Allows agency head to request transfers among certain maintenance and operation budget classifications if needed, using forms from the Chief Fiscal Officer (CFO).
    • Transfers must not exceed the appropriation or funds available; transfers from capital outlay or data processing require law-specific authority, except for certain cost-efficient data processing shifts approved by the Department of Shared Administrative Services.
    • Requires Legislative Council approval for transfer authority usage. If legislative approval is struck down, this section becomes void.
    • Applies from July 1, 2025 (2026 fiscal year) through June 30, 2027.
  • Section 5 – Special Language (Positions funded by Tobacco Settlement)

    • Clarifies:
    • There is no commitment to fund positions funded by Tobacco Settlement if funds are insufficient.
    • State funds will not replace Tobacco Settlement funds without General Assembly and Governor approval.
    • Disclosure of these conditions to new hires and current employees paid from Tobacco Settlement funds.
    • Coverage of these disclosures in employee handbooks or professional services contracts when applicable.
    • Applies from July 1, 2025 (2026 fiscal year) through June 30, 2027.
  • Section 6 – Special Language (Compliance with other laws)

    • Disbursement must comply with existing state fiscal laws and DF&A regulations.
    • Applies for fiscal year 2026-2027.
  • Section 7 – Special Language (Legislative Intent)

    • States general intent that funds be used in line with Initiated Act 1 of 2000, agency requests, executive recommendations, and legislative recommendations.
    • Applies for 2026-2027.
  • Section 8 – Emergency Clause

    • Declares emergency to ensure continuity of operation starting July 1, 2026, enabling immediate effect and avoiding harm from delays.

Who and what is affected

  • Primary agency/board: Department of Health – Arkansas Tobacco Settlement Commission
  • Financial impact: Allocates and constrains funding for the 2026-2027 fiscal year, totaling $357,456, including salaries, operating expenses, and professional fees.
  • Personnel: Potentially 1 administrative analyst (SGS05) for oversight/monitoring purposes.
  • Tobacco Settlement funds usage: Governs how funds may be transferred, used, and disclosed; sets caps and conditions on reliance on Tobacco Settlement funds for staffing.

Procedural and timeline notes

  • Effective period for most special language sections: July 1, 2025, through June 30, 2027.
  • Emergency clause makes the act effective on July 1, 2026, ensuring immediate operation if the session’s timing extends or delays occur.
  • Transfer authority is subject to Legislative Council approval.
  • The act includes standard compliance language with state fiscal laws and accountability standards.

Overall impact

SB 5 allocates a narrowly scoped appropriation package for fiscal year 2026-2027 aimed at monitoring and evaluating Tobacco Settlement program expenditures, including a single designated staff position and specific operating and professional expense allocations. It imposes transfer controls, disclosure requirements for positions funded by Tobacco Settlement, and conformity with broader state fiscal rules, with an emergency clause to ensure timely implementation.

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

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