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Federal Funds

Ark. Code Ann. tit. 19, ch. 7
in effect

Ark. Code Ann. § 19-7-101 Reports to Legislative Council.

(a) The Secretary of the Department of Finance and Administration shall file quarterly reports with the Legislative Council itemizing and summarizing all contracts or agreements entered into by the Governor with the United States Government, or any agencies or instrumentalities thereof, whereby the State of Arkansas is to participate in any program involving the expenditure of federal funds, whether or not state funds are obligated in connection therewith, with respect to new federal programs, or expansion of existing federal programs which were not in existence or which were not implemented by state participation, at the time of the adjournment of the regular session of the General Assembly and entered into prior to the convening of the next regular session of the General Assembly. (b) The report shall list, with respect to each such contract or agreement: (1) A brief statement of the purposes of the agreement; (2) The amount of federal funds to be expended thereunder; (3) The amount of any state matching funds required in connection with the program, if any; (4) The name of the agency or department that will administer the program; and (5) Such additional information as will enable the members of the Legislative Council to determine the nature and purposes of the agreement.

Ark. Code Ann. § 19-7-102 Legislative review of federal programs.

(a) The Legislative Council shall review the quarterly reports filed by the Secretary of the Department of Finance and Administration as required in § 19-7-101 and shall submit its findings and recommendations to each succeeding regular session of the General Assembly for enabling legislation to implement, restrict, or prohibit the state's participation in any such new federal program or expanded federal program which was implemented by contract or agreement entered into by the Governor subsequent to the adjournment of the preceding session of the General Assembly. (b)(1) In the event the next regular session of the General Assembly shall fail to prohibit or restrict the state's participation in any such new or expanded program implemented by contract or agreement signed by the Governor with the federal government during the interim between the immediately preceding regular session of the General Assembly, then the state may continue to participate in that federal program. (2) On the other hand, if the General Assembly shall restrict or prohibit the state's participation in any such new or expanded federal program implemented by contract or agreement subsequent to the last regular session, it shall be unlawful for the state to continue to participate in, or to expend any state funds in connection with, any such program. All contracts or agreements entered into by the Governor or any department or agency of the state acting under authority of the Governor shall be void, and the state's participation therein shall cease upon the adjournment of the General Assembly or at such later date if a later date for the termination of the state's participation therein has been prescribed by law.

Ark. Code Ann. § 19-7-103 Control of college study programs and basic educational grants.

(a) All state agencies, departments, and institutions receiving public funds are charged with the responsibility of the handling, receipt, and disbursement of these funds within their normal framework as provided by the laws of the State of Arkansas. The control of these funds arising from the federal programs of college work-study programs and basic educational opportunity grants received by the named governmental entities within this subchapter shall be within the daily control of the various administrators of the agencies. (b)(1) The Division of Elementary and Secondary Education shall issue rules for the purpose of administering the funds received for college work-study programs and basic educational opportunity grants for the vocational-technical schools. (2) The Division of Higher Education shall issue rules for the purpose of administering the funds received by state colleges and universities. (3) The administration guidelines for the control of the funds of these two (2) programs shall be treated within the fiscal management laws of the State of Arkansas. (4) Before these rules are implemented, the approval of the Legislative Council and the Legislative Joint Auditing Committee shall be obtained. (c) Any and all agreements made by state agencies with Arkansas Plan, Inc., are declared to be against public policy of the State of Arkansas, with such agreements being null and void. (d) Any public servant who does not comply with the provisions of this section commits a Class A misdemeanor. This offense is classified as noncompliance with this section.

Ark. Code Ann. § 19-7-201 Purpose.

It is the intent of this subchapter to establish mechanisms through which the legislative and executive branches of state government can work together with Arkansas's congressional delegation to strengthen and support the state's relationship with the federal government and to ensure that the state receives all benefits and aid to which it is entitled.

Ark. Code Ann. § 19-7-202 Creation.

(a) There is created within the Governor's office an Office of State-Federal Relations for the State of Arkansas, to be located in Washington, D.C. (b) The executive head of the office shall be the Director of the Office of State-Federal Relations. The director shall be appointed by the Governor, subject to confirmation by the Senate, and shall serve at the pleasure of the Governor. (c) All budgeting, purchasing, and related management functions shall be performed under the direction and supervision of the director. The director may delegate his or her functions, powers, and duties to personnel within the office as the director shall deem desirable and necessary for the effective and efficient operation of the office.

Ark. Code Ann. § 19-7-203 Duties.

The duties of the Office of State-Federal Relations shall include, but not be limited to, the following: (1) Federal Grants: (A) Monitor opportunities for discretionary grants; (B) Identify and comment upon proposed changes in funding formulas; and (C) Keep the Governor's office and state agencies informed on the availability of grants; (2) Federal Regulations: (A) Monitor regulatory developments affecting state government; (B) Support existing and proposed legislation and regulations favoring the interests of the state; and (C) Support the public policy of this state as expressed by the Governor's office, the General Assembly, and agencies, as appropriate; (3) Federal Legislation: (A) Keep the Governor's office, agencies, and the General Assembly informed about proposed legislative developments of critical significance to state government; and (B) Support Arkansas's congressional delegation in efforts to influence federal governmental decisions and policies as they apply to Arkansas; (4) Interstate Cooperation: Facilitate cooperation with other states on issues of mutual concern; (5) Information Clearinghouse: Coordinate the flow of information between state and federal governments; (6) Reporting: Provide regular performance reports to the Governor, the Legislative Council, and the General Assembly to enable evaluation of the effectiveness of the Washington office; and (7) Nongovernmental Funding Sources, Programs, etc: (A) Discover information on all available additional funding and other resources and direct it to the appropriate state agency or person within the state; and (B) Take advantage of all resources available on a nationwide basis that can be beneficial to the state and its citizens.

Ark. Code Ann. § 19-7-401 Sale of public lands generally.

The Treasurer of State is authorized and required, from time to time, to draw for and receive, from the United States Secretary of the Treasury, all sums of money which may accrue to the state on account of the five percent (5%) of the net proceeds of the sale of public lands of the United States lying within the State of Arkansas.

Ark. Code Ann. § 19-7-402 Sale of public domain lands and leases.

(a) Funds received by the Treasurer of State from the federal government on account of the sale of public domain lands from any funds coming to the Treasurer of State from the Taylor Grazing Act, 43 U.S.C. § 315, shall be distributed to the respective counties in which the property is situated. (b)(1) Eighty percent (80%) of the funds of each county shall be distributed to the school districts of the county in ratio to the leased territory or public domain sold within the district. (2) The remaining twenty percent (20%) of the funds for each county shall be credited to the county road fund. (c) The county treasurer shall make distribution of the school districts' portion on an acreage basis or other equitable basis if the data required for making a distribution of funds as provided in this section is not available at the time funds are available for distribution. (d)(1) The Treasurer of State shall distribute that portion of the funds that accrue to the schools to the respective counties and distribute the funds that accrue to the county road funds. (2)(A) It shall be the duty of the county quorum court to provide the county treasurer with a statement showing the distribution of the funds in accordance with law. (B) Thereafter, the county treasurer shall credit the respective school districts with the amounts indicated.

Ark. Code Ann. § 19-7-403 Lease of lands for flood control purposes.

All funds received by the Treasurer of State from the federal government on account of the lease of lands acquired by the federal government for flood control purposes, and distributed by the Treasurer of State to the respective counties, shall be distributed by each county receiving them as follows: (1) Eighty percent (80%) of such funds received by each county shall be distributed to the school districts in the county, with each school district to receive the portion thereof that the flood control acreage in that district bears to the total flood control acreage in all districts in the county; and (2) Twenty percent (20%) of such funds received by each county shall be credited to the county road fund.

Ark. Code Ann. § 19-7-404 Revenues derived from forest reserves.

(a) All money paid into the State Treasury by the federal government from the revenue derived from the forest reserves within this state for the benefit of public schools and public roads, as provided by congressional act, to the amount of fifty thousand dollars ($50,000) or as much thereof as may be so paid in, shall be appropriated as follows: (1) Three-fourths (¾) of the money received by the State Treasury from the federal government from the revenues derived from the forest reserves within this state shall be apportioned to the public schools as provided in § 6-20-218 and Acts 1933, No. 104, § 2 [obsolete]; and (2) The remaining one-fourth (¼) shall be apportioned to the public roads of the respective counties from which the money was derived. (b) The Auditor of State, on the first Monday in September of each year, shall draw his or her warrant on the State Treasury in favor of the county treasurer in each county which has any funds from the forest reserve revenue for the remaining one-fourth (¼) of the money. The county treasurers shall add it to the funds of their respective counties for the improvement of the public roads. The Auditor of State's warrant shall be drawn upon a certified copy of an order of the county court, directing the county treasurer to draw the funds.

Ark. Code Ann. § 19-7-405 Geological and Conservation Federal Fund.

(a) There is created and established in the Treasurer of State's office a fund to be known as the “Geological and Conservation Federal Fund”. (b) Federal funds as may be allotted to the Office of the State Geologist are to be deposited into the fund.

Ark. Code Ann. § 19-7-406 Loans on agricultural products.

It shall be lawful for the Division of Correction and other state institutions and the counties of the state which produce cotton or other agricultural products to participate in government loans made available upon these agricultural products. The superintendent of any such state institution and the county judge of any such county are authorized to enter into the necessary papers to secure the benefits of these government loans.

Ark. Code Ann. § 19-7-409 Proceeds from sale of lumber on military bases.

(a) All moneys received by the Treasurer of State from the United States Government from the sale of lumber and timber products on United States military installations shall be distributed to the respective counties in which the property is situated. (b)(1) Seventy-five percent (75%) of the moneys for each county shall be distributed to the respective school districts of the county in the same proportion that the lumber and timber products sold within that school district have to the total of lumber and timber products sold in the county. (2) The remaining twenty-five percent (25%) of the moneys for each county shall be credited to the county road fund. (3) The county treasurer shall make distribution of the school districts' portions on an equitable basis if the data required for making distribution of funds as provided in this section is not available at the time funds are available for distribution.

Ark. Code Ann. § 19-7-502 Procedure upon availability of unanticipated federal funds.

(a) If new or additional federal funds, new or additional Comprehensive Employment and Training Act, or its successor's, funds, or changes in state use of appropriations for programs combined into block grants from the federal government become necessary, or if new federal programs or new Comprehensive Employment and Training Act, or its successor's, programs are initiated that are not authorized or contemplated in the biennial operations appropriation act for the benefiting state agency and such changes make it necessary that the benefiting state agency employ additional personnel or require additional appropriations to expend these funds in order to carry out the objectives of the federal programs or to meet federal requirements, then the head of the affected state agency is authorized to request the approval of the Governor and the Chief Fiscal Officer of the State, as provided in this section, for additional appropriations of one (1) or more new or additional salaried positions to be utilized by that respective agency. The salary rates for these positions are not to exceed the highest maximum annual salary rate or the highest grade level position authorized in the salary schedule of the requesting agency's biennial appropriation act for operations, as governed by the Uniform Classification and Compensation Act, § 21-5-201 et seq., or its successor. (b) In the case of those agencies, departments, or institutions, that are specifically exempt from the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq., such new or additional employees shall be established at salary rates not to exceed the maximum established in the salary schedule of the biennial operations appropriation act for the respective agency for comparable positions. In no event shall the additional positions exceed the maximum number of positions authorized for the agency in the biennial appropriation act for operations. (c) Whenever the head of a state agency deems it necessary to establish such new or additional appropriations or positions as authorized in this section, he or she shall file with the Governor a written report accompanied by necessary supporting documents. These documents shall set forth the facts, justifications, and circumstances that necessitate such appropriations, the maximum number of positions sought, the titles thereof, and the maximum annual salary rate to be paid each position, a complete line item operations budget for the program, a statement of the expected duration into future years of the federal funds, and whether or not the program is anticipated to eventually be supported either in part or in whole by state revenues. (d) Upon receipt of the report and supporting documents, for unanticipated miscellaneous federal grants, excluding the Comprehensive Employment and Training Act or its successor, the Governor or the Governor's designee shall study it. If he or she shall determine that the new or additional positions or appropriations are being sought in strict compliance with this subchapter, the Governor, after seeking the advice of the Legislative Council or the Joint Budget Committee, may approve or modify the request for such additional or new positions or appropriations as, in his or her judgment, he or she deems necessary. He or she shall forward a copy thereof to the head of the requesting agency and the Chief Fiscal Officer of the State. Upon receipt thereof, the Chief Fiscal Officer of the State shall direct the Auditor of State and the Treasurer of State to establish upon their books of record the necessary appropriation accounts in accordance with the provisions as set out in this section and the applicable classifications of appropriations as enumerated in §§ 19-4-520 — 19-4-525 as amended, or its successor, and in accordance with any federal limitations as may be applicable to the funds which are available. (e) Each even-numbered year the Chief Fiscal Officer of the State shall file with the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, a cumulative report summarizing all appropriations transferred and all additional positions authorized in relation to unanticipated federal funds subject to this subchapter, including without limitation miscellaneous federal grants and miscellaneous workforce investment programs, during the preceding two (2) fiscal years.

Ark. Code Ann. § 19-7-503 Additional procedures and limitations.

In addition to the limitations and procedures established in § 19-7-502 , the following additional procedures and limitations shall be held in strict compliance: (1) All new or additional federal funds or new or additional state funds under the Arkansas Workforce Innovation and Opportunity Act, § 15-4-3701 et seq., expended by the benefiting agency under the authority of any appropriation provided by the General Assembly for such purposes and transferred through the provisions and procedures established in this section shall be deposited into, and expended from, the State Treasury; (2)(A) Appropriations authorized by the General Assembly for such purpose and transferred pursuant to the procedures set out in this section shall be strictly used for the expenditure of the Arkansas Workforce Innovation and Opportunity Act, § 15-4-3701 et seq., grant-in-aid moneys or other federal grant-in-aid moneys received, reimbursements from the federal government, and local or private funds designated as matching funds for these federal projects. (B) Amounts appropriated under subdivision (2)(A) of this section shall be deposited into the State Treasury for the benefit of the State of Arkansas, or any of its agencies, for use in emergency relief needs or for the operation of any Arkansas Workforce Innovation and Opportunity Act, § 15-4-3701 et seq., or its successor's, programs or any other programs approved by the federal government for which no appropriations or insufficient appropriations were provided elsewhere for such purposes; (3)(A) Additional positions authorized under § 19-7-502 shall be paid from the Arkansas Workforce Innovation and Opportunity Act, § 15-4-3701 et seq., funds deposited into the State Treasury for that specific Arkansas Workforce Innovation and Opportunity Act, § 15-4-3701 et seq., or its successor's, program as may be authorized through the provisions of this subchapter or from federal, local, or private funds deposited into the State Treasury for that specific federal program as may be authorized through this subchapter. (B) However, general, special, trust, or miscellaneous state funds may not be used for the purpose of paying salaries of the positions so authorized; (4) The Chief Fiscal Officer of the State may promulgate rules he or she may deem necessary and proper in order to carry out this subchapter; (5) Sections 19-4-1807 and 19-4-1901, or their successors, that establish the federal grants, aid, and reimbursements procedures and federal funds procedures of the General Accounting and Budgetary Procedures Law, § 19-4-101 et seq., shall be strictly complied with; (6) Unless provided elsewhere, all federal funds received by state agencies, departments, boards, and commissions benefiting from the establishment of the biennial operations appropriation acts authorized by the General Assembly for new federal or Arkansas Workforce Innovation and Opportunity Act, § 15-4-3701 et seq., or its successor's, programs shall be deposited into the State Treasury, except when such deposit is expressly prohibited, in writing, as a condition for approval of the grant or reimbursement by the federal grant or agency; and (7) An appropriation as authorized by the General Assembly for new federal or Arkansas Workforce Innovation and Opportunity Act, § 15-4-3701 et seq., or its successor's, programs that the Chief Fiscal Officer of the State transfers or causes to be transferred to the various agencies shall not be utilized for entering into or making payments for personal service contracts.

Ark. Code Ann. § 19-7-504 Recommendation by Governor — Failure to appropriate.

(a) Upon the convening of each regular session of the General Assembly, the Governor shall submit to the General Assembly and shall recommend to the General Assembly the appropriation of the necessary federal or state matching funds, or both, estimated to be necessary with respect to any program during the subsequent fiscal biennium. (b) If the General Assembly shall fail to appropriate funds for any program entered into with the federal government as authorized by the laws of the State of Arkansas, on June 30 following adjournment of the regular session of the General Assembly, the program shall cease to exist, and the State of Arkansas shall no longer participate in the program.

Ark. Code Ann. § 19-7-601 Legislative determination.

It is found and determined by the General Assembly that all governmental units, various nongovernmental organizations, and the general public in the State of Arkansas should have the opportunity to review and comment upon applications for federal funding assistance. The General Assembly further finds that it is desirable that the State of Arkansas pursue the utilization of indirect cost reimbursements available to state agencies from the various federal agencies. It is further found that the state should cooperate with the federal government in the development and utilization of intergovernmental information exchange programs which may be of benefit to the State of Arkansas and to utilize any available federal assistance funds for the furtherance of the purposes of this subchapter.

Ark. Code Ann. § 19-7-602 Definitions.

As used in this subchapter, unless the context otherwise requires: (1) “Executive Order 12372, Intergovernmental Review of Federal Programs” means an instrument signed and placed into effect by the President of the United States on July 14, 1982; (2) “Federal funding assistance” means financial aid available from the various federal government agencies to units of state and local governments, as well as to private for-profit and private nonprofit organizations; (3) “Indirect cost reimbursements” means the reimbursement by a federal agency to agencies of state government for the costs incurred which are necessary for the efficient conduct of a federal grant or contract, as stated in United States Office of Management and Budget Circular A-87, “A Guide for State and Local Government Agencies — Cost Principles and Procedures for Establishing Cost Allocations Plans and Indirect Cost Rates for Grants and Contracts with the Federal Government”; (4) “Office of Intergovernmental Services” means an organizational unit within the Department of Finance and Administration; (5) “Revenue sharing” means payments to units of local government as authorized by the State and Local Fiscal Assistance Act of 1972, as amended; (6) “Review and comment” means the process by which any unit of government, organization, or individual may request to review and provide comments upon any application for federal funding assistance, as limited by other sections of this subchapter; and (7) “State clearinghouse” means that section of the Office of Intergovernmental Services which is designated as the governmental unit responsible for coordinating the review of applications for federal funding assistance, pursuant to Executive Order 12372 and other provisions of this subchapter.

Ark. Code Ann. § 19-7-603 Administration.

The Office of Intergovernmental Services shall be responsible for carrying out the duties and responsibilities of this subchapter.

Ark. Code Ann. § 19-7-604 Federal grants, aids, and reimbursement procedures.

(a) Requests for Federal Grants. (1) All formal applications for federal funds for grants, aids, and reimbursements originated by a state agency, board, commission, department, or institution shall be submitted to the Department of Finance and Administration prior to their submission to the granting source. (2) Applications shall include, in a manner prescribed by the Secretary of the Department of Finance and Administration, a summary of the proposed project. (3) The summary will include the indirect cost rate of the applicant agency, together with a projection of funds to be received as indirect cost reimbursement. (4) The Department of Finance and Administration shall file with the Bureau of Legislative Research a summary of these applications for their review. (b) Preliminary Proposals. (1) Preliminary, preapplication, or informal proposals which may eventually result in a commitment of personnel, space, facilities, or state funds shall be submitted to the Department of Finance and Administration at the time they are submitted to the federal granting agency. (2) In order to eliminate overlap, inefficiency, or a violation of legislative intent, the secretary may require a review of the proposal, soliciting comment from other agencies which might be affected, and may require the suspension of negotiations until the review is completed. (3) The provisions of this subsection shall not be applicable to institutions of higher education. However, a copy of the preliminary proposals shall be submitted to the Department of Finance and Administration for the information of the Department of Finance and Administration. (c) Procedural Requirements. The Department of Finance and Administration shall prescribe procedures relative to preliminary proposals and formal applications for federal grants, aids, and reimbursements. (d) Receipt of Funds. (1) When any state agency receives notification of an award of any federal funds, grants, aids, or reimbursements, including unsolicited funds, the Department of Finance and Administration shall be notified on forms to be prescribed by the secretary. (2) Included on such forms will be a section to report payments from federal funds for indirect cost reimbursements resulting from: (A) Overhead costs of the agency, board, commission, department, or institution; and (B) Overhead costs of state central services allocated to that agency, board, commission, department, or institution through the Statewide Cost Allocation Plan. (3) The Department of Finance and Administration will provide the Bureau of Legislative Research a summary of such notifications for review. (e) State Clearinghouse. (1) The Office of Intergovernmental Services is to function as the state clearinghouse for coordinating the review and comment process relative to applications for federal funding assistance under Executive Order 12372 and other provisions of this subchapter. (2) The Department of Finance and Administration shall be responsible, in consultation with state and local elected officials, for developing procedures to implement the review and comment process for applications for federal funding assistance.

Ark. Code Ann. § 19-7-605 Indirect cost reimbursements.

(a) The Office of Intergovernmental Services shall be responsible for preparation of the Statewide Cost Allocation Plan for the allocation of state central services' overhead costs to the various state agencies who elect to seek reimbursement for them according to the provisions of United States Office of Management and Budget Circular A-87. (b) The Office of Intergovernmental Services also shall: (1) Prepare indirect cost rate proposals on behalf of the state agencies; or (2) Provide assistance as necessary to state agencies that prepare their own indirect cost rate proposals if the state agency elects to seek payment from the federal government for these costs. (c) The Office of Intergovernmental Services shall be authorized to negotiate the statewide cost allocations with the appropriate federal authorities and indirect cost proposals prepared by the Office of Intergovernmental Services with any agency. (d) Any agency that chooses to utilize indirect cost rates according to the provisions of this subchapter shall submit a copy of its indirect cost rate proposals to the Department of Finance and Administration and also a copy of its indirect cost rate agreement after the cognizant federal agency has approved the rate proposal.

Ark. Code Ann. § 19-7-606 Transfer of reimbursements.

The Secretary of the Department of Human Services is authorized to transfer from the Department of Human Services federal funds as designated by the Chief Fiscal Officer of the State to the appropriate state fund account those federal funds recovered as reimbursement for indirect costs which are not required to be transferred to the Constitutional Officers Fund or State Central Services Fund pursuant to this subchapter.

Ark. Code Ann. § 19-7-607 Expenditure of federal funds.

The Department of Finance and Administration is authorized to receive federal funds, enter into contracts with federal agencies, and expend any such funds as necessary to accomplish the duties set out in this subchapter.

Ark. Code Ann. § 19-7-608 Information exchange programs.

The Office of Intergovernmental Services is authorized to cooperate with agencies of the federal government in the development and utilization of intergovernmental information exchange programs which may be of benefit to the State of Arkansas.

Ark. Code Ann. § 19-7-609 Revenue sharing.

The Office of Intergovernmental Services shall be responsible for providing technical assistance to units of local government on matters relating to federal revenue sharing. The Office of Intergovernmental Services is designated as the liaison between the federal Office of Revenue Sharing [abolished] and local governments in Arkansas.

Ark. Code Ann. § 19-7-610 Advice of legislative departments.

It is recognized by the legislative and executive departments of government that some of the executive departments' authority or responsibility as provided in this subchapter should possibly have the legislative departments' concurrence before proceeding with such authority or responsibility. The legislative department, via the Legislative Joint Auditing Committee, the Legislative Council, joint interim committees, interim committees, or subcommittees of the foregoing may request the Secretary of the Department of Finance and Administration to seek the legislative department's advice before exercising certain authority or responsibility as authorized by this subchapter.

Ark. Code Ann. § 19-7-701 Contract services — Advance payment.

(a) In order to provide effective purchased services to the needy citizens of Arkansas, the Secretary of the Department of Human Services is authorized to pay one-twelfth (1/12) of the total amount of a Title XX contract to the service provider on the effective date of the contract. The amount of the advance payment shall be adjusted out of the reimbursement actually earned by the provider during the contract period. (b) This section will be used only after the secretary has conducted a study of the financial condition of the contracting agency to determine if an advance payment is necessary. If the advance is necessary, the secretary shall forward his or her request and the reasons therefor to the Chief Fiscal Officer of the State for approval. (c)(1) If the request is approved, the Chief Fiscal Officer of the State shall loan the necessary amount to the appropriate fund accounts within the Department of Human Services from the Budget Stabilization Trust Fund. (2) However, the balance of any loans made under subdivision (c)(1) of this section during the course of a fiscal year shall be recovered by the department and repaid to the fund by June 30 of that fiscal year.

Ark. Code Ann. § 19-7-702 Minimum program standards.

(a) In order to unify and consolidate standards for services of clients under programs funded by Title XX Social Security funds, the Director of the Department of Human Services shall establish, by July 1, 1980, minimum program standards for the services provided by all government or private agencies under Title XX. (b) In developing these standards, the director will consult with such other agencies, organizations, or individuals as may be appropriate. (c) These standards may be amended by the director from time to time, provided that the terms of the Arkansas Administrative Procedure Act, § 25-15-201 et seq., are complied with.

Ark. Code Ann. § 19-7-703 Loan provision.

(a) It is found and determined that the continued operations of the Title XX Services Program of the Department of Human Services, in accordance with the approved annual operations plan, are, from time to time, seriously impaired by either administrative oversights and delays by the United States Office of Grants Management or by the processes of federal fiscal year conversion. It is further found and determined that such delays in the proper preparation and transmittal of federal grant award authorizations and letter of credit instruments have created unnecessary hardships on the providers of services and the needy citizens of this state. Therefore, upon certification of the pending availability of federal funding by the Secretary of the Department of Human Services, the Chief Fiscal Officer of the State may grant temporary advances, the maximum amount not to exceed five million dollars ($5,000,000), from the Budget Stabilization Trust Fund to the appropriate account of the Department of Human Services so affected by such delays. (b) The Chief Fiscal Officer of the State shall recover within a period of twenty (20) days such temporary advances upon receipt of the grant award authorizations or letter of credit instruments.

Ark. Code Ann. § 19-7-704 Deduction of tax withholding for individual contract providers.

(a) It is found and determined that certain rules and regulations of the Social Security Administration and the Internal Revenue Service require the deduction of Federal Insurance Contributions Act and federal income tax withholding from persons providing services under individual purchase-of-service contracts, who are in fact independent contractors, or employees of the person receiving the service, and that there is presently no provision for payment of Federal Insurance Contributions Act and federal income tax withholding for these individuals. It is further found and determined that the use of individual contracts is necessary to the operation of the Title XIX and Title XX programs, particularly in the areas of day care and services to the elderly. Therefore, whenever the regulations of the Social Security Administration or the Internal Revenue Service require the deduction of Federal Insurance Contributions Act or federal income tax withholding for an individual providing services under a Title XX individual purchase-of-service contract, the Department of Human Services may pay the necessary Federal Insurance Contributions Act tax out of federal funds and state or local donated matching funds and may collect the necessary Federal Insurance Contributions Act and federal income tax withholding as agent for the client receiving the services. (b) Individuals for whom Federal Insurance Contributions Act tax is paid and Federal Insurance Contributions Act and federal income tax withholding is deducted under this section shall not be considered as employees of the state for the purposes of determining eligibility for unemployment compensation or workers' compensation, for the purpose of state income tax withholding, or for any other purposes.

Ark. Code Ann. § 19-7-705 Use of funds.

The Secretary of the Department of Human Services is authorized to use funds earned through service fees, audit settlements, or federal program settlements for operation of the Title XX service program. Any unanticipated federal funding received under this provision will be handled in accordance with the terms of the Miscellaneous Federal Grant Act, § 19-7-501 et seq.

Ark. Code Ann. § 19-7-706 Transfer of funds and appropriations.

(a)(1) The Secretary of the Department of Human Services, in accordance with rules established by the Chief Fiscal Officer of the State, shall have the authority to transfer funds and appropriations from the appropriate division of the Department of Human Services to the various agencies of the department which receive allotments of Title XX funds. These transfers shall be limited to the allotment of funds available to each agency within the department. (2)(A) In the event that funds and appropriations transferred under this section are not fully utilized, they will be available for transfer back to the appropriate division of the department for reallocation. (B) It is further intended that if transfer of appropriations among line items appropriated to the appropriate division of the department becomes necessary for effective operation of the program, these shall be made in accordance with rules established by the Chief Fiscal Officer of the State. However, no such transfer will be used to increase authorization for regular salaries. (b) The Chief Fiscal Officer of the State and the secretary shall cooperate to establish such fund accounts for deposit and disbursement of federal and local Title XX funds as are necessary for the orderly operation of a Title XX services program. The Chief Fiscal Officer of the State and the secretary shall establish procedures for the transfers of funds necessary to make reimbursement to providers or to agency fund accounts in payment for eligible services. These procedures will include provision for use of state matching funds where appropriated by law.

Ark. Code Ann. § 19-7-707 Transfer of retirement benefits.

Any employee who is now a member of any retirement system shall not lose any retirement benefits accrued in the system by the reorganization of the Title XX service program. An employee so affected shall have the option of continuing as a member of the retirement system of which the employee is a member at the time of transfer or to join the retirement system for which the transfer makes the employee eligible. However, the affected employee shall make his or her election within six (6) months from the date of transfer.

Ark. Code Ann. § 19-7-708 Personnel transfers.

No employee transferred as a result of the reorganization of the Office of Title XX Services shall lose status under the Arkansas Rules for Merit Systems Administration as a result of transfer.

Ark. Code Ann. § 19-7-801 Federal lands.

(a) Moneys received by the Treasurer of State from the federal government for a sale, lease, royalty, bonus, or rental of oil, gas, or mineral lands belonging to the federal government and located in this state shall be distributed under this section. (b) Moneys received under subsection (a) of this section by and after September 1, 2008, by the Treasurer of State shall be credited by the Treasurer of State as follows: (1) Fifty percent (50%) of the moneys received shall be credited to the General Revenue Fund Account of the State Apportionment Fund for distribution to various funds that participate in the distribution of general revenues in the respective proportion to each fund, to be used for the purposes under the Revenue Stabilization Law, § 19-5-101 et seq.; and (2) Fifty percent (50%) of the moneys received shall be distributed to the counties in which the federal lands that generate the moneys are located according to federal reports that identify the counties with the federal lands that generate the moneys. Moneys under this subdivision (b)(2) shall be distributed by the Treasurer of State as follows: (A)(i) Sixty percent (60%) of the moneys shall be distributed to the County Aid Fund, to be distributed by the Treasurer of State to the county treasurer of each county that has a school district with a boundary that includes a portion of the federal lands that generate the moneys. (ii) A county is responsible for distributing moneys under subdivision (b)(2)(A)(i) of this section to a school district with a boundary that includes a portion of the federal lands that generate the moneys. (iii) If there is more than one (1) school district with a boundary that includes a portion of the federal lands that generate the moneys within a county receiving these moneys, then each school district in that county shall receive a proportionate share of the moneys based on the school district's portion of the acreage over the total acreage in all districts in that county; (B) Fifteen percent (15%) of the moneys received under this subdivision (b)(2) shall be distributed to the County Aid Fund to be distributed by the Treasurer of State to the county treasurer for credit to the county road funds of the counties to which these moneys are allocated; and (C)(i) Twenty-five percent (25%) of the moneys received under this subdivision (b)(2) shall be distributed to the County Aid Fund for distribution by the Treasurer of State to the county treasurer of the county to which the moneys are to be distributed. (ii) Except as provided under subdivision (b)(2)(C)(iii) of this section, on receipt of the moneys under this subdivision (b)(2)(C), the county treasurer of the county shall distribute the moneys to the county general fund and to the respective cities, towns, school districts, community college districts, and county and municipal libraries in the county in the proportion that each taxing unit shares in the real and personal property taxes collected in the county. (iii) A school district in the county that receives a distribution of funds under subdivisions (b)(2)(A) and (B) of this section and the county road fund that receives a distribution of funds under subdivisions (b)(2)(A) and (B) of this section are not entitled to receive an additional distribution of the funds under this subdivision (b)(2)(C).

Ark. Code Ann. § 19-7-901 Definitions.

As used in this subchapter, unless the context otherwise requires: (1) “Agreement” means a contract and shall include renewals and alterations of the contract; (2) “County judge” means the county judge of any county in this state; (3) “Fund” means, unless otherwise expressed, the government project fund established pursuant to § 19-7-906; (4) “Governing body” means the board, body, or persons in which the powers of a political subdivision as body corporate, or otherwise, are vested; (5) “Political subdivision” means any agency or unit of this state which is authorized to levy taxes or empowered to cause taxes to be levied; (6) “Project” means any resettlement project or rural rehabilitation project for resettlement purposes of the United States located within a political subdivision and shall include the persons inhabiting such a project; and (7) “Service” means such public and municipal functions performed for property in and persons residing within a political subdivision.

Ark. Code Ann. § 19-7-902 Agreements for payments by United States in lieu of taxes.

(a) The county judge of any county in this state is authorized and empowered to make requests of the United States, for and on behalf of the county and the political subdivisions whose jurisdictional limits are within or coextensive with the limits of the county, for the payment of such sums in lieu of taxes as the United States may agree to pay. The county judge may enter into agreements with the United States in the name of the county for the performance of services by the county and such political subdivisions for the benefit of the project and for the payment by the United States to the county, in one (1) or more installments, of such sums in lieu of taxes. (b) Each political subdivision shall participate in such funds in proportion to the prevailing local tax involved on such property.

Ark. Code Ann. § 19-7-903 Determination of payment amounts.

The amount of any payment of sums in lieu of taxes may be based on the estimated cost to each political subdivision, for and on whose behalf the agreement is entered into, of performing services for the benefit of a project during the period of the agreement after taking into consideration the benefits to be derived by the subdivision from the project. However, these sums shall not be in excess of the taxes which would result to the subdivision for the period if the real property of the project within the subdivision were taxable.

Ark. Code Ann. § 19-7-904 Contents of agreement.

Each agreement entered into pursuant to § 19-7-902 shall contain the names of the political subdivisions with respect to which it is consummated and a statement of the proportionate share of the payment by the United States to which each subdivision shall be entitled.

Ark. Code Ann. § 19-7-905 Duplicate copies of agreement.

(a) The county judge shall prepare duplicate copies of each agreement for payment of sums in lieu of taxes and file one (1) with the county treasurer and one (1) with the clerk of the county court. (b) The clerk of the county court shall notify each political subdivision, for and on whose behalf the agreement is executed, that it has been consummated and shall state the share of the payment due under it to which the subdivision is entitled. (c) On or before the date on which any payment of sums in lieu of taxes is due, the county treasurer shall present a bill to the United States, in the name of the county, in the amount of such payment. The county treasurer shall give to the United States a receipt in the name of the county for all payments of sums in lieu of taxes.

Ark. Code Ann. § 19-7-906 Government project fund of county.

(a) The county treasurer shall establish a fund in the county treasury to be known as the “government project fund”. The fund shall contain an account with each political subdivision which is entitled to a share of a payment in lieu of taxes. (b) Whenever payment is received, the county treasurer shall, without any deduction, apportion it to the several accounts in the fund pursuant to the agreement under which the payment is made.

Ark. Code Ann. § 19-7-907 Statement of apportionment — Distribution of funds.

(a) After apportioning any payments to the several accounts, as provided in § 19-7-906, the county treasurer shall prepare, in duplicate, a complete itemized statement of the apportionment, one (1) copy of which shall be filed with the county judge and the other filed with the clerk of the county court. (b)(1) The county judge, by appropriate resolution, shall order the distribution of each subdivision's share of sums in lieu of taxes to the several subdivisions entitled to a share. (2) The clerk of the county court shall thereupon draw warrants upon the county treasurer to the order of the political subdivisions entitled to a share of such payment of sums in lieu of taxes. (3) Whenever such warrant is presented to the county treasurer, he or she shall debit the proper account in the fund and shall pay immediately the amount of such warrant in full, without any deduction, to the political subdivision presenting it, notwithstanding any law providing the order in which warrants shall be paid. (4) The county treasurer shall not honor such warrant unless it is countersigned by the presiding officer of the governing body of the political subdivision. (c)(1) The acceptance by a political subdivision of any warrant delivered pursuant to this section shall be considered as an approval of the agreement under which the payment was received. (2) If any governing body of a political subdivision shall refuse to receive any warrant delivered pursuant to this section, the amount thereof shall be refunded by the county to the United States.

Ark. Code Ann. § 19-7-908 Right of political subdivision to request payment.

(a) If the United States declines to deal with a county judge with respect to any political subdivision whose jurisdictional limits are within or coextensive with the limits of the county, or in the event the jurisdictional limits of a political subdivision lie in more than one (1) county, then that subdivision is authorized to make request of the United States for the payment of such sums in lieu of taxes as the United States may agree to pay. The subdivision is empowered to enter into agreements with the United States for the performance by the subdivision of services for the benefit of a project, and for the payment by the United States to the subdivision, in one (1) or more installments, of sums in lieu of taxes. (b) The amount of the payment may be based upon the cost of performing the services during the period of the agreement, after taking into consideration the benefits to be derived by the subdivision from the project, but shall not be in excess of the taxes which would result to the political subdivision during the period if the real property of the project within the political subdivision were taxable. (c) Whenever any payment is received by a subdivision under an agreement entered into pursuant to this section, the governing body of the subdivision shall issue a receipt of the payment to the United States.

Ark. Code Ann. § 19-7-909 Disposition of funds.

(a) All moneys received by a political subdivision pursuant to § 19-7-907 or § 19-7-908 shall be deposited into such funds or items of a fund as may be designated in the agreement. (b) If the agreement does not make such designation, the moneys shall be deposited into such funds or items of a fund as the governing body of the subdivision shall, by appropriate resolution, direct.

Ark. Code Ann. § 19-7-910 Services of subdivision not to be denied.

In the absence of an agreement for payment of sums in lieu of taxes by the United States as provided in this subchapter, no provision of this subchapter shall be construed to relieve any political subdivision of this state of the duty of furnishing for the benefit of a project all services which the subdivision usually furnishes for the property in, and persons residing within, the subdivision without a payment of sums in lieu of taxes.

Ark. Code Ann. § 19-7-1001 Federal Adult Basic Education Fund.

There shall be established on the books of the Treasurer of State a fund to be known as the “Federal Adult Basic Education Fund”.

Ark. Code Ann. § 19-7-1002 Federal Elementary and Secondary Education Fund.

There shall be established on the books of the Treasurer of State a fund to be known as the “Federal Elementary and Secondary Education Fund”.
Source: Public.Resource.Org / UniCourt, Official Code of Arkansas Annotated, Release 78 (2020) (unicourt.github.io/cic-code-ar)URL: https://unicourt.github.io/cic-code-ar/transforms/ar/ocar/r78/gov.ar.code.title.19.htmlFetched: 11/8/2026

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