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SB 3

AN ACT FOR THE DEPARTMENT OF SHARED ADMINISTRATIVE SERVICES APPROPRIATION FOR THE 2026-2027 FISCAL YEAR.

2026 Fiscal Session

SB 3 creates a centralized services framework within DSAS, with uniform cost-recovery rates and reporting requirements, effective July 1, 2026.

DELIVERED TO GOVERNOR.
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Bill Summary · SB 3

Summary of Senate Bill 3 (SB 3), 95th General Assembly, Fiscal Session 2026 – Arkansas

Purpose

SB 3 proposes an appropriation for the Department of Shared Administrative Services (DSAS) for the 2026-2027 fiscal year. The bill, as amended, includes adjustments to funding amounts and adds special language authorizing centralized services and specific administrative requirements. The amendment also introduces special language related to centralized services contracts, cost recovery through rates/fees, and data reporting requirements tied to minority-owned business contracting.

Key Provisions (as amended)

1) Appropriation Adjustments

  • The amendment increases two line-item amounts in the bill:
    • An increase from 2,431,672 to 3,131,672 (exact line item context not specified in excerpt).
    • An increase from 14,889,911 to 15,589,911 (exact line item context not specified in excerpt).

Note: The exact programmatic titles corresponding to these line items are not provided in the excerpt, but they are adjustments within the DSAS appropriation for 2026-2027.

2) Special Language: Centralized Services (new Section 42)

  • The Department of Shared Administrative Services may enter into contracts with state agencies or governmental entities to centralize governmental services.
  • The DSAS may establish fair and reasonable rates or fee schedules to recover allowable costs for the centralized services.
  • Billing rates must be applied uniformly to all state agencies or governmental entities receiving substantially similar services.
  • Eligible DSAS units for centralized services:
    • Office of State Procurement
    • Office of Personnel Management
    • Fleet Management Program (within DSAS)
  • Entities may establish estimated billing rates to align with the state budgeting process.
  • Billing adjustments may be made to ensure compliance with:
    • State laws
    • Federal laws
    • State rules and federal regulations
  • Billing adjustments require approval of the Chief Fiscal Officer of the State.
  • Effective period: July 1, 2026 through June 30, 2027 (short-term, tied to the 2026-2027 fiscal year).

3) Special Language – Data and Reporting (Section 43; Code Amendment)

  • Amends Ark. Code § 25-36-104(c) and (d) (data recording/tracking under the Arkansas Economic Opportunity Expansion Act) to require:
    • Each state agency, in its budget report to the Joint Budget Committee, to list all contracts exceeding $50,000 awarded to minority-owned businesses.
    • Each state college/university's finance officer (vice president/vice chancellor for finance) to include in their budget report to the Joint Budget Committee a listing of all contracts exceeding $50,000 awarded to minority-owned businesses.
    • The director to promulgate rules necessary to implement this chapter.
  • Implies ongoing accountability and transparency regarding contracting with minority-owned businesses.

Who is Affected

  • State agencies and governmental entities that may utilize centralized services provided by the DSAS.
  • Office of State Procurement, Office of Personnel Management, and the DSAS Fleet Management Program (as the primary centralized-service providers).
  • State agencies and state colleges/universities, through reporting requirements on minority-owned business contracts.
  • The Chief Fiscal Officer of the State (approval authority for billing adjustments).
  • Minority-owned businesses, via expanded reporting and potential contracting opportunities (transparency and oversight).

Procedural and Timeline Highlights

  • Effective period for the centralized services pricing and billing: July 1, 2026 – June 30, 2027.
  • The amendment was considered in April 2026, with a two-step process:
    • Initial reading and referral, then amendment #1 adopted and engrossed.
    • Re-referred to the Joint Budget Committee for consideration.
  • The bill includes renumbering of subsequent sections as needed to accommodate new text.

Potential Impact

  • Establishes a formal framework for centralizing administrative services across state agencies, potentially improving efficiency and consistency in service delivery.
  • Creates a cost-recovery model through rates/fees for centralized services, with uniform application and oversight by the Chief Fiscal Officer.
  • Increases transparency regarding minority-owned business contracting by requiring broader reporting to the Joint Budget Committee.
  • Short-term fiscal implications (for 2026-2027) due to the adjusted appropriation amounts and the new centralized services program.

If you’d like, I can map the specific line-item numbers to program names or provide a plain-language comparison of pre- and post-amendment funding quantities.

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

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