AN ACT FOR THE DEPARTMENT OF HEALTH REAPPROPRIATION.

2026 Fiscal Session

Reappropriates up to $114M (cash fund) and $30M (paying account) to the ADH on July 1, 2026 for the main facility replacement, with spending restricted to capital improvements.

Notification that SB70 is now Act 91

Purpose

SB 70 is an act to reappropriate balances from prior capital improvement appropriations for the Arkansas Department of Health (ADH). The bill directs specific funds to be carried forward (reappropriated) to support projects related to replacement of the ADH main facility, with funding to become available on July 1, 2026.

Key Provisions

Reappropriation of Capital Improvement Funds (ADH)

Section 1: Reappropriates up to $114,000,000 to the ADH from the cash fund in the State Treasury, effective July 1, 2026. This amount mirrors the balance of the prior appropriation found in Item (A) of Section 2 of Act 382 of 2025, for the replacement of the ADH main facility.
Section 2: Reappropriates up to $30,031,020 to the ADH, payable from the paying account, effective July 1, 2026. This amount mirrors the balance of the prior appropriation in Item (D) of Section 3 of Act 382 of 2025, also for the replacement of the ADH main facility.

Disbursement Controls (Section 3)

No contract may be awarded, nor obligations incurred, in excess of State Treasury funds actually available, except that agencies may accept and use grants, donations (including federal funds), and unobligated cash income/funds to supplement state funds for financing the project.
The appropriation cannot be used for Maintenance and General Operations (M&O) of the agency.

Compliance with Other Laws (Section 4)

Disbursement must comply with all applicable laws and regulations, including the State Procurement Law, General Accounting and Budgetary Procedures Law, Revenue Stabilization Law, Regular Salary Procedures and Restrictions Act, and related regulations.

Emergency Clause (Section 5)

Declares an emergency to ensure immediate effectiveness on July 1, 2026, to avoid irreparable harm to essential governmental programs and the operation of the ADH.
The act is deemed necessary for the immediate preservation of public peace, health, and safety.

Who/What Is Affected

Agency: Arkansas Department of Health (ADH)

Funding: Specific capital improvement funds designated in prior Act 382 of 2025 (related to the replacement of the ADH main facility)

Constraints:

Funds are restricted to capital improvements related to the facility replacement project.
M&O funds cannot be diverted for these purposes.
Ability to supplement with grants, donations, and federal funds is allowed, subject to applicable laws.

Timeline & Procedural Notes

Effective Date: July 1, 2026

Funding Availability: Funds become available on the effective date, contingent on statutory compliance and state fiscal authority determinations.

Emergency Status: Act includes an emergency clause to ensure immediate effect, reflecting the need to proceed without delay for the facility replacement project.

Potential Impact

Enables continuation or completion of capital improvements related to the ADH main facility replacement by reappropriating existing balances from prior approvals.

Provides a clear framework for financing, including permissible sources (grants, donations, and federal funds) to supplement state funds, while maintaining restrictions on operating expenses.

Ensures legal and procedural compliance in the disbursement and use of funds, reducing the risk of funding shortfalls delaying facility-related work.

Bill