Bill Summary – FastDemocracy

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                                               Act 118 of the Fiscal Session
 State of Arkansas
 93rd General Assembly                            A Bill
 Fiscal Session, 2022                                                                   HOUSE BILL 1037
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 By: Joint Budget Committee
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                                      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, 2023; AND FOR OTHER PURPOSES.
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                                                   Subtitle
                           AN ACT TO MAKE AN APPROPRIATION FOR STATE
                           TURNBACK FOR COUNTIES AND MUNCIPALITIES
                           BY THE OFFICE OF THE TREASURER OF STATE
                           FOR THE FISCAL YEAR ENDING JUNE 30, 2023;
                           AND FOR OTHER PURPOSES.
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 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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        SECTION 1. APPROPRIATION - GENERAL REVENUES 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, 2023, the
 following:
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 ITEM                                                                                     FISCAL YEAR
  NO.                                                                                           2022-2023
 (01)   GENERAL REVENUES - CITIES                                                         $29,372,099
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        SECTION 2. APPROPRIATION - SPECIAL REVENUES TO CITIES.                           There is hereby
 appropriated, to the Office of the Treasurer of State, to be payable from the
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 Municipal Aid Fund, for distributing Special Revenues 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, 2023, the following:
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 ITEM                                                              FISCAL YEAR
  NO.                                                                2022-2023
 (01)   SPECIAL REVENUES - CITIES                                  $190,000,000
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        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, 2023, the
 following:
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 ITEM                                                              FISCAL YEAR
  NO.                                                                2022-2023
 (01)   GENERAL REVENUE - COUNTIES                                 $21,428,616
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        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, 2023,
 the following:
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 ITEM                                                              FISCAL YEAR
  NO.                                                                2022-2023
 (01)   SPECIAL REVENUE - COUNTIES                                 $205,000,000
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        SECTION 5. APPROPRIATION - UNANTICIPATED SPECIAL REVENUES.     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 which
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 such monies are allocated by law, by the Office of Treasurer of State for the
 fiscal year ending June 30, 2023, the following:
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 ITEM                                                             FISCAL YEAR
  NO.                                                               2022-2023
 (01)   UNANTICIPATED SPECIAL REVENUES                             $20,000,000
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        SECTION 6. 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, 2023, the following:
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 ITEM                                                             FISCAL YEAR
  NO.                                                               2022-2023
 (01)   DISTRIBUTION TO COUNTIES FOR PROPERTY
        TAX RELIEF                                                $300,000,000
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        SECTION 7. 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, 2023, the following:
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 ITEM                                                             FISCAL YEAR
  NO.                                                               2022-2023
 (01)   DISTRIBUTION TO COUNTIES                                   $2,000,000
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        SECTION 8. 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, 2023, the
 following:
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 ITEM                                                                 FISCAL YEAR
  NO.                                                                   2022-2023
 (01)   DISTRIBUTION TO CITIES                                         $2,000,000
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        SECTION 9. 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, 2021 2022, 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,
 2022 2023 from the balance remaining on December 31, 2021 2022 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,
 2021 2022 shall not be transferred from the Property Tax Relief Trust Fund to
 the cities and counties.
    The provisions of this section shall be in effect only from July 1, 2021
 2022 through June 30, 2022 2023.
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        SECTION 10. SPECIAL LANGUAGE.       NOT TO BE INCORPORATED INTO THE ARKANSAS
 CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW.        COUNTY
 TURNBACK - UNANTICIPATED FUNDS.    The appropriation authorized for General
 Revenue to Counties or any other appropriation as provided by the General
 Assembly for aid to counties may be supplemented, if necessary, by a transfer
 from the appropriation provided for Unanticipated Special Revenues in this
 Act.
    The provisions of this section shall be in effect only from July 1, 2021
 2022 through June 30, 2022 2023.
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      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, 2021
 2022 through June 30, 2022 2023.
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      SECTION 12. SPECIAL LANGUAGE.        NOT TO BE INCORPORATED INTO THE ARKANSAS
 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, 2022 2023 the Agency shall by written statement
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 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, 2021
 2022 through June 30, 2022 2023.
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      SECTION 13. 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
 Budgetary Procedures Law, the Revenue Stabilization Law, the Regular Salary
 Procedures and Restrictions Act, or their successors, and other fiscal
 control laws of this State, where applicable, and regulations promulgated by
 the Department of Finance and Administration, as authorized by law, shall be
 strictly complied with in disbursement of said funds.
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      SECTION 14. LEGISLATIVE INTENT.   It is the intent of the General
 Assembly that any funds disbursed under the authority of the appropriations
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 contained in this act shall be in compliance with the stated reasons for
 which this act was adopted, as evidenced by the Agency Requests, Executive
 Recommendations and Legislative Recommendations contained in the budget
 manuals prepared by the Department of Finance and Administration, letters, or
 summarized oral testimony in the official minutes of the Arkansas Legislative
 Council or Joint Budget Committee which relate to its passage and adoption.
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         SECTION 15. EFFECTIVE DATE.   This act is effective on and after July 1,
 2022.
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                                 APPROVED: 3/3/22
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