SB1

Senate Bill 1 creates a new sub-fund within the state’s Restricted Reserve Fund titled the 'Arkansas Reserve Fund Set-Aside.' It mandates the immediate transfer of approximately $710.6 million from the General Revenue Allotment Reserve Fund into this new sub-fund. The bill establishes a process by which the Chief Fiscal Officer of the State can request to distribute these funds to various state agencies and operating funds. Such distributions require the verification of need and formal approval by a two-thirds majority of either the Legislative Council or the Joint Budget Committee. The legislation includes a non-severability clause, meaning if the requirement for legislative oversight is found unconstitutional, the entire act becomes void. The bill aims to provide a mechanism for additional funding for state departments and institutions while maintaining direct legislative control over the allocation of these reserves.