An Act For The Department Of Health - Licensing And Regulation Boards Appropriation For The 2026-2027 Fiscal Year.
Introduced on 4/1/26
Overview
This appropriations bill establishes funding for the personal services and operating expenses of numerous health-related licensing and regulatory boards under the Arkansas Department of Health for the fiscal year beginning July 1, 2026, and ending June 30, 2027. The legislation provides comprehensive budgetary allocations for approximately fifteen professional licensing boards that regulate healthcare practitioners across various disciplines, including nursing, pharmacy, medicine, psychology, physical therapy, optometry, dentistry, social work, and allied health professions. The bill serves as the primary funding mechanism to ensure these regulatory bodies can maintain their statutory obligations to license, regulate, and discipline healthcare professionals while protecting public health and safety. Beyond basic operational funding, the bill includes specialized appropriations for specific programs such as the Arkansas Psychology Board's spinal treatment program, the State Board of Pharmacy's impaired pharmacist program, and the State Board of Nursing's Arkansas Center for Nursing Grant. The legislation also establishes maximum employee counts for each board and authorizes the use of temporary or part-time personnel where necessary to meet operational demands.
Core Provisions
The bill establishes detailed appropriations for each licensing board, broken down into specific categories including regular salaries, personal services matching funds, maintenance and general operations, conference and travel expenses, professional fees, and specialized program funding. The Arkansas State Board of Nursing receives the largest appropriation at $3,766,009, reflecting its role in regulating the state's largest healthcare profession. The Arkansas State Medical Board receives $3,530,353 for its operations. The Arkansas State Board of Pharmacy is allocated $2,323,465, which includes $50,000 specifically designated for an impaired pharmacist program. The Arkansas Psychology Board receives $3,012,373, with notable allocations of $261,610 for long-term attendant care and $772,000 for a spinal treatment program. Smaller boards receive proportionally scaled appropriations, such as the Arkansas Board of Podiatric Medicine at $6,240 and the Arkansas Board of Hearing Instrument Dispensers at $216,978. Each board's appropriation includes authorization for a maximum number of regular employees with specific position classifications under the Uniform Classification and Compensation Act. Several boards are explicitly authorized to employ extra help or part-time personnel, including the State Board of Nursing, State Board of Pharmacy, Board of Dispensing Opticians, and Social Work Licensing Board. The bill includes provisions for fund transfers, notably authorizing the State Board of Nursing to transfer up to $100,000 for a Student Loan Program. All appropriations are effective from July 1, 2026, through June 30, 2027, establishing a clear single fiscal year funding cycle.
Key Points
- Arkansas State Board of Nursing: $3,766,009 total appropriation with authorization for 5,000 in extra help
- Arkansas State Medical Board: $3,530,353 total appropriation
- Arkansas State Board of Pharmacy: $2,323,465 including $50,000 for impaired pharmacist program
- Arkansas Psychology Board: $3,012,373 including $772,000 for spinal treatment program and $261,610 for long-term attendant care
- Arkansas State Board of Optometry: $454,415 total appropriation
- Arkansas State Board of Dental Examiners: $372,734 total appropriation
- Arkansas Board of Examiners in Speech-Language Pathology and Audiology: $259,141 total appropriation
- Arkansas Social Work Licensing Board: $219,417 total appropriation
- Arkansas State Board of Physical Therapy: appropriation with authorization for 2 employees
- Arkansas Board of Dispensing Opticians: $50,000 for operations with extra help authorization
- Arkansas Spinal Cord Commission: $20,000 for operating expenses from federal funds
Implementation
The Arkansas Department of Health serves as the umbrella agency responsible for overseeing the implementation of these appropriations across all constituent licensing boards. Each individual board operates with administrative autonomy within its allocated budget and authorized personnel limits. Funding sources vary by board but primarily consist of cash funds deposited in the State Treasury and the Miscellaneous Agencies Fund Account, derived from licensing fees, examination fees, and other board-generated revenues. The Social Work Licensing Board specifically draws from the Social Work Licensing Fund, while the Spinal Cord Commission utilizes federal funds for its operations. The bill requires at least one board to submit an annual report to the Senate Committee on State Agencies and Governmental Affairs and the House Committee on State Agencies and Governmental Affairs, though comprehensive reporting requirements are not uniformly specified across all boards. All expenditures and personnel actions must comply with the Uniform Classification and Compensation Act, the General Accounting and Budgetary Procedures Law, the Revenue Stabilization Law, and the Regular Salary Procedures and Restrictions Act. The Department of Finance and Administration maintains oversight authority for fund transfers and ensures compliance with state fiscal management requirements. Boards are authorized to hire within their maximum employee limits and may utilize extra help provisions where specifically authorized, providing operational flexibility to address workload fluctuations and special projects.
Legal References
- Uniform Classification and Compensation Act
- General Accounting and Budgetary Procedures Law
- Revenue Stabilization Law
- Regular Salary Procedures and Restrictions Act
- Arkansas Code
Impact
The primary beneficiaries of this legislation are the healthcare professionals regulated by these boards and, indirectly, the citizens of Arkansas who rely on competent, properly licensed healthcare providers. The appropriations enable each board to maintain its core regulatory functions including processing license applications, conducting examinations, investigating complaints, conducting disciplinary proceedings, and maintaining public records of licensure status. The total fiscal impact exceeds $13 million across all boards, representing a substantial state investment in healthcare regulation and public protection. The Arkansas State Board of Nursing's appropriation supports regulation of the state's largest healthcare workforce, while specialized programs like the Psychology Board's spinal treatment program and the Pharmacy Board's impaired pharmacist program address specific public health needs. Administrative burden falls primarily on board staff who must manage licensing databases, process applications, coordinate examinations, investigate complaints, and conduct hearings within allocated resources. The authorization for extra help and part-time employees provides boards with flexibility to manage seasonal workload variations, particularly during license renewal periods and examination cycles. The bill contains no sunset provisions, as these are ongoing operational appropriations that will require renewal in subsequent fiscal years. Expected outcomes include continued professional regulation, maintenance of licensing standards, protection of public health and safety, and disciplinary enforcement against practitioners who violate professional standards. The relatively modest appropriations for smaller boards may create capacity constraints in handling increased application volumes or complex disciplinary cases.
Key Points
- Total appropriations exceed $13 million for healthcare professional regulation
- Direct support for licensing, examination, investigation, and disciplinary functions
- Specialized programs: $772,000 for spinal treatment program, $50,000 for impaired pharmacist program
- Flexibility through extra help authorizations for workload management
- No sunset provisions; annual appropriations require legislative renewal
Legal Framework
The bill operates within Arkansas's constitutional framework for appropriations and state agency operations. The Arkansas Constitution grants the General Assembly exclusive authority to appropriate state funds, and this bill exercises that authority for the specified fiscal year. Each licensing board derives its regulatory authority from specific enabling statutes within the Arkansas Code that establish the board, define its powers and duties, and authorize it to collect fees to support its operations. The appropriations must comply with the Uniform Classification and Compensation Act, which establishes standardized position classifications and salary ranges for state employees, ensuring consistency across state government. The General Accounting and Budgetary Procedures Law governs how appropriated funds may be expended, requiring adherence to state fiscal controls and accounting standards. The Revenue Stabilization Law establishes priorities for state revenue distribution and provides mechanisms for addressing revenue shortfalls. The Regular Salary Procedures and Restrictions Act imposes additional controls on personnel expenditures and salary adjustments. The bill explicitly states that certain special language provisions are not to be incorporated into the Arkansas Code, indicating their temporary, appropriations-specific nature. The legislation does not preempt local authority, as professional licensing is exclusively a state function under Arkansas law. Judicial review of board actions remains available through existing administrative procedure statutes, and the appropriations do not alter substantive licensing requirements or disciplinary standards established in each board's enabling legislation.
Legal References
- Arkansas Constitution (appropriations authority)
- Arkansas Code (board enabling statutes)
- Uniform Classification and Compensation Act
- General Accounting and Budgetary Procedures Law
- Revenue Stabilization Law
- Regular Salary Procedures and Restrictions Act
Critical Issues
The bill presents minimal constitutional concerns as it represents a straightforward exercise of legislative appropriations authority. However, several implementation challenges merit attention. The relatively modest appropriations for smaller boards may prove insufficient if those boards face increased application volumes, complex disciplinary cases, or litigation expenses. The authorization for extra help provides some flexibility, but boards operating at maximum capacity may struggle to maintain service levels or respond to emerging regulatory challenges. The lack of uniform reporting requirements across all boards limits legislative oversight and makes it difficult to assess whether appropriations are adequate or efficiently utilized. The bill's reliance on board-generated revenues through licensing fees creates potential conflicts between revenue generation and regulatory mission, particularly if boards face pressure to increase fees to maintain operations. The specialized appropriations for programs like the spinal treatment program and impaired pharmacist program lack detailed accountability measures, raising questions about program effectiveness and appropriate use of funds. Cost implications extend beyond the direct appropriations, as inadequate board funding could result in licensing delays, reduced complaint investigation capacity, or diminished public protection. The single-year appropriation cycle creates uncertainty for boards attempting to engage in multi-year planning or initiatives. Boards with authorized extra help positions may face challenges recruiting qualified temporary staff in competitive labor markets, particularly for specialized professional positions. The absence of inflation adjustments or cost-of-living increases in the appropriation structure may erode boards' purchasing power over time, necessitating either fee increases or service reductions. Opposition arguments might focus on the adequacy of appropriations, the lack of performance metrics tied to funding, or concerns about regulatory burden on healthcare professionals who ultimately bear the cost through licensing fees.
Sponsors
Calendar
Apr 14
1:00 PM
Apr 15
8:00 AM