DHS office would receive fiscal-year spending authority

The Department of Human Services Secretary’s Office would be allowed to use listed amounts for employees, operations, services, construction, and other expenses. The provisions cover the Secretary’s Office, including regular employees, up to 28 temporary or part-time workers, operating costs, building work, data services, and purchased services. Spending would be limited to the listed appropriations, available funds, and other state fiscal and purchasing laws. The regular employee limit for operations would be 643 positions, in addition to the separately listed Secretary position. The office could use up to $12,000 to buy evidence in investigations of illegal food stamp or EBT card use only with approval from the Chief Fiscal Officer. Information that identifies people involved in those transactions would be exempt from the Arkansas Freedom of Information Act. The main appropriations and staffing authority would cover the fiscal year ending June 30, 2027, and the emergency clause states that the act would take effect July 1, 2026.

The DHS secretary would be able to request transfers of positions, appropriations, and funds within or between DHS units. The authority would cover DHS divisions, offices, sections, and units, including transfers for Medicaid, facilities, grants, court-ordered payments, administrative costs, mandates, and client services. The Governor, Chief Fiscal Officer, and Legislative Council or Joint Budget Committee would generally have to approve transfers before they take effect. DHS could submit no more than four resource-reallocation requests in a fiscal year, and unforeseen-purpose transfers would be limited to 5% of the department’s authorized appropriations, funding, and positions. Medicaid support could not be moved to an account that does not directly support Medicaid. Funds and positions for the Angela R. consent decree, developmental-disability community grants, and the five Human Development Centers would receive the protections stated in the section. The transfer authority would apply from July 1, 2026, through June 30, 2027; emergency procedures could allow some requests before full legislative approval, with later reporting.

A legislative subcommittee would review DHS operations and require reports on its recommendations and implementation. The review would examine DHS policies, staffing, spending, revenues, divisions, and service providers, with priority for Shared Services, Children and Family Services, and County Operations. The subcommittee could receive input from the Attorney General’s Medicaid Fraud Unit and the Department of Inspector General. DHS would report monthly on implementation, and the subcommittee would review and approve steps tied to its recommendations and goals. The preliminary report would include recommendations, measures, and expected completion timelines. The review would begin when the Legislative Council co-chairs direct it; the preliminary report would be due within six months of the subcommittee’s first meeting, and the final report would be presented at the final Legislative Council meeting of the 95th General Assembly.