Bill Summary – FastDemocracy

Stricken language will be deleted and underlined language will be added.
                                               Act 140 of the Fiscal Session
 State of Arkansas                As Engrossed:        H4/16/24 H4/24/24
 94th General Assembly                            A Bill
 Fiscal Session, 2024                                                                   HOUSE BILL 1023
 4
 By: Joint Budget Committee
 6
                                      For An Act To Be Entitled
                AN ACT TO MAKE AN APPROPRIATION FOR STATE TURNBACK
                FOR COUNTIES AND MUNICIPALITIES BY THE OFFICE OF THE
                TREASURER OF STATE FOR THE FISCAL YEAR ENDING JUNE
                30, 2025; AND FOR OTHER PURPOSES.
12
13
                                                   Subtitle
                           AN ACT TO MAKE AN APPROPRIATION FOR STATE
                           TURNBACK FOR COUNTIES AND MUNICIPALITIES
                           BY THE OFFICE OF THE TREASURER OF STATE
                           FOR THE FISCAL YEAR ENDING JUNE 30, 2025;
                           AND FOR OTHER PURPOSES.
20
21
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
23
        SECTION 1. APPROPRIATION - GENERAL REVENUE TO CITIES.                          There is hereby
 appropriated, to the Office of the Treasurer of State, to be payable from the
 Municipal Aid Fund, for the purpose of distributing General Revenue accruing
 therein for the benefit of municipalities as provided by law, by the Office
 of Treasurer of State for the fiscal year ending June 30, 2025, the
 following:
30
 ITEM                                                                                     FISCAL YEAR
  NO.                                                                                           2024-2025
 (01)   GENERAL REVENUES - CITIES                                                         $29,372,099
34
        SECTION 2. APPROPRIATION - SPECIAL REVENUES TO CITIES.                           There is hereby
 appropriated, to the Office of the Treasurer of State, to be payable from the
     *JAR026*                                                                         04-24-2024 15:41:43 JAR026
     As Engrossed:    H4/16/24 H4/24/24                                         HB1023
 Municipal Aid Fund, for distributing Special Revenues accruing therein for
 the benefit of municipalities as provided by law, by the Office of the
 Treasurer of State for the fiscal year ending June 30, 2025, the following:
 4
 ITEM                                                               FISCAL YEAR
  NO.                                                                2024-2025
 (01)   SPECIAL REVENUES - CITIES                                  $215,000,000
 8
        SECTION 3. APPROPRIATION - GENERAL REVENUES TO COUNTIES.    There is
 hereby appropriated, to the Office of the Treasurer of State, to be payable
 from the County Aid Fund, for the purpose of distributing General Revenue
 accruing therein for the benefit of counties as provided by law, by the
 Office of Treasurer of State for the fiscal year ending June 30, 2025, the
 following:
15
 ITEM                                                              FISCAL YEAR
  NO.                                                                2024-2025
 (01)   GENERAL REVENUE - COUNTIES                                  $21,428,616
19
        SECTION 4. APPROPRIATION - SPECIAL REVENUES TO COUNTIES.    There is
 hereby appropriated, to the Office of the Treasurer of State, to be payable
 from the County Aid Fund, for the purpose of distributing any monies provided
 by Highway Turnback, Severance Taxes to counties, and any other monies
 provided by the Acts of the General Assembly for the benefit of counties, by
 the Office of Treasurer of State for the fiscal year ending June 30, 2025,
 the following:
27
 ITEM                                                               FISCAL YEAR
  NO.                                                                2024-2025
 (01)   SPECIAL REVENUE - COUNTIES                                 $230,000,000
31
        SECTION 5. APPROPRIATION - UNANTICIPATED SPECIAL REVENUES - COUNTIES.
 There is hereby appropriated, to the Office of the Treasurer of State, to be
 payable from the County Aid Fund, for unanticipated monies received from the
 sale or lease of minerals, oil and gas on federal military lands or from
 other unanticipated special revenues, for the transfer to those counties to
                                          2              04-24-2024 15:41:43 JAR026
     As Engrossed:   H4/16/24 H4/24/24                                         HB1023
 which such monies are allocated by law, by the Office of Treasurer of State
 for the fiscal year ending June 30, 2025, the following:
 3
 ITEM                                                             FISCAL YEAR
  NO.                                                               2024-2025
 (01)   UNANTICIPATED SPECIAL REVENUES                            $15,000,000
 7
        SECTION 6.   APPROPRIATION - UNANTICIPATED SPECIAL REVENUES - CITIES.
 There is hereby appropriated, to the Office of the Treasurer of State, to be
 payable from the Municipal Aid Fund, for unanticipated monies received from
 the sale or lease of minerals, oil and gas of federal military lands or from
 other unanticipated special revenues, for the transfer to those cities to
 which such monies are allocated by law, by the Office of Treasurer of State
 for the fiscal year ending June 30, 2025, the following:
15
 ITEM                                                              FISCAL YEAR
 NO.                                                                   2024-2025
 (01)   UNANTICIPATED SPECIAL REVENUES                              $10,000,000
19
        SECTION 7. APPROPRIATION - REAL PROPERTY TAX REDUCTION - COUNTIES.
 There is hereby appropriated, to the Office of the Treasurer of State, to be
 payable from the Property Tax Relief Trust Fund, for distributing funds
 provided by a statewide property tax reduction to counties, by the Office of
 Treasurer of State for the fiscal year ending June 30, 2025, the following:
25
 ITEM                                                             FISCAL YEAR
  NO.                                                               2024-2025
 (01)   DISTRIBUTION TO COUNTIES FOR PROPERTY
        TAX RELIEF                                               $300,000,000
30
        SECTION 8. APPROPRIATION - PROPERTY TAX RELIEF FUND REVENUES
 DISTRIBUTION TO COUNTIES.    There is hereby appropriated, to the Office of the
 Treasurer of State, to be payable from the Property Tax Relief Trust Fund,
 for accruing therein for the benefit of counties to be distributed using the
 formula for the County Aid Fund under §19-5-602(c), by the Office of
 Treasurer of State for the fiscal year ending June 30, 2025, the following:
                                          3               04-24-2024 15:41:43 JAR026
     As Engrossed:   H4/16/24 H4/24/24                                            HB1023
 1
 ITEM                                                                 FISCAL YEAR
  NO.                                                                   2024-2025
 (01)   DISTRIBUTION TO COUNTIES                                       $2,000,000
 5
        SECTION 9. APPROPRIATION - PROPERTY TAX RELIEF FUND REVENUES
 DISTRIBUTION TO CITIES.    There is hereby appropriated, to the Office of the
 Treasurer of State, to be payable from the Property Tax Relief Trust Fund,
 for accruing therein for the benefit of municipalities to be distributed
 using the formula for the Municipal Aid Fund under §19-5-601(c), by the
 Office of Treasurer of State for the fiscal year ending June 30, 2025, the
 following:
13
 ITEM                                                                 FISCAL YEAR
  NO.                                                                   2024-2025
 (01)   DISTRIBUTION TO CITIES                                         $2,000,000
17
        SECTION 10. SPECIAL LANGUAGE.       NOT TO BE INCORPORATED INTO THE ARKANSAS
 CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW.
 DISTRIBUTION OF FUNDS.     Funding provided in Property Tax Relief Fund Revenues
 Distribution to Counties and Property Tax Relief Fund Revenues Distribution to
 Cities of this Act from the Property Tax Relief Trust Fund shall not be
 distributed unless there are sufficient funds in the Property Tax Relief Trust
 Fund as of the date that the Chief Fiscal Officer of the State certifies the
 amount in excess of the required reimbursement to the counties as provided in
 §26-26-310(b)(2)(C)(i).    If there are sufficient funds remaining in the
 Property Tax Relief Trust Fund on December 31, 2023 2024, as certified, the
 Treasurer shall distribute two million dollars ($2,000,000) to counties and
 two million dollars ($2,000,000) to cities for the fiscal year ending June 30,
 2024 2025 from the balance remaining on December 31, 2023 2024 from the
 Property Tax Relief Trust Fund.     The distribution to counties shall be made in
 accordance with the distribution formula in §19-5-602(c).        The distribution to
 cities shall be made in accordance with the distribution formula in §19-5-
 601(b).   The funds attributable to sales and use taxes levied prior to July 1,
 2023 2024 shall not be transferred from the Property Tax Relief Trust Fund to
 the cities and counties.
                                            4                 04-24-2024 15:41:43 JAR026
     As Engrossed:     H4/16/24 H4/24/24                                            HB1023
   The provisions of this section shall be in effect only from July 1, 2023
 2024 through June 30, 2024 2025.
 3
          SECTION 11. SPECIAL LANGUAGE.       NOT TO BE INCORPORATED INTO THE ARKANSAS
 CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW.
 LOANS TO CITIES AND COUNTIES.      On July 1 of each fiscal year, the Chief
 Fiscal Officer of the State shall request a transfer by the State Treasurer
 from the Budget Stabilization Trust Fund to the County Aid Fund and to the
 Municipal Aid Fund to assist the various cities and counties in meeting cash
 flow needs early in the state fiscal year.          The transfer shall be a loan to
 be repaid in equal installments from general revenue distributions each month
 during the fiscal year for which the loan was made and shall be in addition
 to any other loans authorized by law for the County Aid and Municipal Aid
 Funds.     The amount of such loan for each fiscal year shall be $3,517,657 to
 the Municipal Aid Fund and $1,906,079 to the County Aid Fund, or so much
 thereof as may be available in the Budget Stabilization Trust Fund as
 determined by the Chief Fiscal Officer of the State.          Upon such transfer
 being completed, the State Treasurer shall immediately distribute such funds
 to each of the several municipalities and counties in the same manner as
 general revenues are distributed.
 It is the intent of the General Assembly that the Chief Fiscal Officer of the
 State and the State Treasurer shall make every reasonable, and financially
 sound effort to insure that local governments receive the full amount of the
 loan authorized herein on July 1 of each year and that the monies authorized
 for local governments from general revenues be distributed in equal monthly
 payments.
   The provisions of this section shall be in effect only from July 1, 2023
 2024 through June 30, 2024 2025.
29
          SECTION 12.   SPECIAL LANGUAGE.     NOT TO BE INCORPORATED INTO THE
 ARKANSAS CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL, AND TEMPORARY LAW.
 Uncodified Acts 1999, No. 1044, § 9, is repealed.
          RESPONSIBILITY FOR FUNDING.     Beginning on January 1, 2000, each county
 of the State shall be responsible for a portion of the cost of regular
 salaries and personal services matching for deputy prosecuting attorneys who
 are to become state employees as of January 1, 2000. During the monthly
                                              5                 04-24-2024 15:41:43 JAR026
     As Engrossed:    H4/16/24 H4/24/24                                           HB1023
 distribution of general revenues to the counties, the Treasurer of State
 shall retain from each county, one-twelfth (1/12th) of 80% of the amount
 appropriated by each of the counties for salaries and associated fringe
 benefit costs as of January 1, 1999.        The amount retained by the Treasurer of
 State shall be credited to the State Central Services Fund for the partial
 support of the regular salaries and personal services matching costs for
 deputy prosecuting attorneys.    The amount which each county appropriated for
 salaries and associated fringe benefit costs as of January 1, 1999, shall be
 determined by the Division of Legislative Audit of the Legislative Joint
 Auditing Committee and shall be certified to the Treasurer of State on or
 before December 1, 1999.
12
        SECTION 13.   SPECIAL LANGUAGE.     NOT TO BE INCORPORATED INTO THE
 ARKANSAS CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL, AND TEMPORARY
 LAW.   RESPONSIBILITY FOR FUNDING.     Beginning on January 1, 2000, each county
 of the State shall be responsible for a portion of the cost of regular
 salaries and personal services matching for deputy prosecuting attorneys who
 are to become state employees as of January 1, 2000.        During the monthly
 distribution of general revenues to the counties, the Treasurer of State
 shall retain from each county, one-twelfth (1/12th) of 80% of the amount
 appropriated by each of the counties for salaries and associated fringe
 benefit costs as of January 1, 1999.        The amount retained by the Treasurer of
 State shall be credited to the State Central Services Fund for the partial
 support of the regular salaries and personal services matching costs for
 deputy prosecuting attorneys.    The amount which each county appropriated for
 salaries and associated fringe benefit costs as of January 1, 1999, shall be
 determined by the Division of Legislative Audit of the Legislative Joint
 Auditing Committee and shall be certified to the Treasurer of State on or
 before December 1, 1999.
        Effective July 1, 2024, each county shall be responsible for paying
 twenty-five percent (25%) of the prior year's amount retained by the
 Treasurer of State for that county under this section.
        The provisions of this section shall be in effect only from July 1,
 2024 through June 30, 2025.
35
        SECTION 14. SPECIAL LANGUAGE.       NOT TO BE INCORPORATED INTO THE ARKANSAS
                                            6                 04-24-2024 15:41:43 JAR026
     As Engrossed:    H4/16/24 H4/24/24                                        HB1023
 CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW.
 CARRY FORWARD.   At the close of each fiscal year any unexpended funds for the
 County Aid and Municipal Aid line items shall be carried forward and
 distributed pursuant and in addition to the funding formula established under
 A.C.A 19-5-601 and 19-5-602 within forty-five (45) days.
     Any carry forward of unexpended balance of funding as authorized herein,
 may be carried forward under the following conditions:
     (1)   Prior to June 30, 2024 2025 the Agency shall by written statement
 set forth its reason(s) for the need to carry forward said funding to the
 Department of Finance and Administration Office of Budget;
     (2)   The Department of Finance and Administration Office of Budget shall
 report to the Arkansas Legislative Council all amounts carried forward by the
 September Arkansas Legislative Council or Joint Budget Committee meeting
 which report shall include the name of the Agency, Board, Commission or
 Institution and the amount of the funding carried forward, the program name
 or line item, the funding source of that appropriation and a copy of the
 written request set forth in (1) above;
     (3)   Each Agency, Board, Commission or Institution shall provide a
 written report to the Arkansas Legislative Council or Joint Budget Committee
 containing all information set forth in item (2) above, along with a written
 statement as to the current status of the project, contract, purpose etc. for
 which the carry forward was originally requested no later than thirty (30)
 days prior to the time the Agency, Board, Commission or Institution presents
 its budget request to the Arkansas Legislative Council/Joint Budget
 Committee; and
     (4)   Thereupon, the Department of Finance and Administration shall
 include all information obtained in item (3) above in the budget manuals
 and/or a statement of non-compliance by the Agency, Board, Commission or
 Institution.
     The provisions of this section shall be in effect only from July 1, 2023
 2024 through June 30, 2024 2025.
32
      SECTION 15. COMPLIANCE WITH OTHER LAWS.   Disbursement of funds
 authorized by this act shall be limited to the appropriation for such agency
 and funds made available by law for the support of such appropriations; and
 the restrictions of the State Procurement Law, the General Accounting and
                                          7              04-24-2024 15:41:43 JAR026
     As Engrossed:   H4/16/24 H4/24/24                                            HB