In 2000, the Arkansas Biosciences Institute was founded during a statewide planning process for use of the state’s share of the 1998 nationwide tobacco settlement. The voters eventually endorsed the proposed Tobacco Settlement Proceeds Act of 2000 by 64 percent in a referendum in November 2000.

Following the referendum, the Arkansas General Assembly enacted the provisions of that proposal as Acts 1569 through 1580 of 2001. Part of that legislation established the ABI as a consortium of five research institutions: Arkansas Children’s Hospital; Arkansas State University; the University of Arkansas Division of Agriculture; the University of Arkansas, Fayetteville; and the University of Arkansas for Medical Sciences.