Arkansas Legislative Council (ALC)

The. Members in audience welcome to today's legislative council meeting ask if we will i'll stay and be lead in the word of prayer by center history. We have to snearning a meant. Thank you members if you have had time looked your packet looked minutes I would take a motion to prove the minutes last meeting at motion center english second have a second all fiber are that is approved we thank you for that and next up we are going to doctor carlos silver if you come up and we welcome you to give you luckily reporter. Carl silver economists have been let their research think mister chairman and should they represent the april twenty twenty four revenue report our gross collections after we're taking out the deductions we have seven point two billion dollars there is a decline at one point four percent and as we moved out the line you see that we have a five point sixty nine billion dollars on on net available for distribution that's also a decline of five point five percent but as we move to page number two you see here there we had and this is based on february twenty twenty four forecast from a from the agency and at two hundred and fifty point eight billion dollars they have provide a new forecast in may and therefore cast has expect the surplus there of seven hundred and eight billion dollars for the end of the few school year so what had happened there a lot of the the interview during contacts corporating compacts and sales and use tax has been stronger than expected for this fiscal year and that's why we have seen some of those increases and this a growth in the expect a surplus. As we move from page three and page far page four we're gonna see GR total collector that's going to direct your job from page five to page. At nine we gonna see special revenues as we as we looked into this this week what had happened this week and the unemployment are preliminary values have come out which would have shown that arkansas can be seen strong with with the decline there we we had for less month the us at three point nine arkansas throughput for preliminary for numbers for this month had show all of the metro areas had had positive positive changes there all of them and we also have an increase in the label force which is great so that means more people are getting jobs in the state of arkansas with their i'll take any further questions thank you very question that say a missed some of the here a representative baby they did you not put your. Why it was so abnormal i'm sorry but when we welcome you to being a council member so this only do you know you can push that button if you would like to. Senator hammer you are excuse me center king in that seat I just got a couple questions for dfa that. Yeah. Good morning mr chairman jim hutson secretary efa a robert breck death thank you sir to king recognition missed chair just real quickly so back before the budget session you had this projected forecast that was surplus is going to happen and after the session in the end you several hundred million dollars what was the dynamics that changed in that in the amount of time what happened within. A month or so that caused the. Rejected surplus to go extremely more than you thought actual passage of time senator the uh february reforecast was essentially. The may twenty choice twenty twenty three forecast. Taking out of that the anticipated impact of tax cuts and so in the february forecast we want to be conservative that fully knowing yet what the impact of the tax cuts would be as we've can't see get through the tax fouling season number refunds actually going out at the net you know general revenue being available to the state it's continued to be above forecast throughout the spring and will continue to be so the remainder the fiscal year so it's the actual passage of time and actual results were getting closer to the end of the fiscal year so greater clarity of the results will be so that's what changed okay so some but not too much the dynamic serve basically the refines versus the collections and there wouldn't anything that was done to. Just that's the way they're collections and revenue or the collections came in certainly cash the checks to do that the refunds were held or anything there's if it's just a what I mean i'm just asking was there anything to that mean that's happened in the past by the way but i'm not seeing it at this time but i'm just saying refunds that's just the way they came in the mountain and also nepopped up this was the reason yes sir the second question is back several several months ago I ask you about the contract with is it mckescent or mckinney or something out of DC that was signed machinesy yeah I mean I asked you for that and I never received anything this was several several months ago can you go back and look and see if you sent me I definitely was on video here that's in questions about that contract way before even happen did you go see me anything on that. At honestly ripper called top my head if we see anything to you directly not but i'll certainly go go find an insured me out here and said we'll get you something and I never did it maybe you did and I missed it so that's only think you go back and look at that i'd appreciate it yet my apology senator if we fail to do that I would note that the machines he contract came through review and so it was matter public record but we'll make sure you person get a car before that several months ago before even that happened I mean these contracts are happening many times regardless of what anybody says or does but anyway I was just wondering if you did actually send me something several months ago if you go back looking records and see if yes sir I will certainly do so generally if you will send it to a stay up and will be at committee take center keeping extra but you have center chesterfield or scheme center hastered next number just for mr silver I think it's just a million dollar question with I could have asked this offline but what water in are there any indicators you're watching as far as on the economy for things we could be expecting I mean you know I think we've got a special session coming up and just do you have any thoughts indicators that you're watching. Yes sir we we as i've been talking on a club das few months i'm i'm really looking closed on bank corruption and we also looking to volumes and the balances for a credit card car loans and a dilinkency rates that's kind of we're looking at and that tends should be on the national level that's where we're looking closely on on the past few years as we have seen had grown up of forecast and i'll let the agents talk a little bit more what what they they have done hand what they have changed from the february two through the may forecast and as they have taken to account the refunds and they have makes up some adjustments deal with the individual and contacts with funds which had been higher than an expected from the regional forecast then they had makes money changes there are as a as a look into the the report may report from from the agency that there's a lot of the consistencies that we have seen within the bureau and and that slow down by the same time there's some. Someone. We go room if if I can say their s as we're looking to how much has been collected up to. Right now. Center just feel you regular thank you mister chier mine is a point of personal privilege wanted to thank you gentlemen so very much for the work that you do when providing that's what the financial information that we have wanted to think especially my fellow alarm for allowing me to visit with the staff the other day it is amazing. How important it is to check your staff they're valued. And I don't think we do that enough because when people feel value that they will work for you harder and to see that in actuality at the department of finance and administration when it was all current margin agencies with like to think about I just truly depreciate being a part of that and I want to say that to you publicly well thank you ma'am in your presence was a joy to us we were glad you stopped buyer and just real quickly just to share with all the members you know as the chief commercial of the commercial agency. I would say this and I must apple will attest to this you're two things I say whenever i'm speaking to a group of our staff. The first thing I say to them is what you do is incredibly important. I don't care what floor you work on on care how much money you get paid you know to the quote lowest level to the hassle it is all important work for the state of architect and if they were not doing it the same of our console be a little bit less well off. And because what they do is important the second thing i'll always say to them is thank you. I owe them a thank you on a regular basis not trying to do this so thank you for thanking us. Thank you center chest representative retrieves a new recognize thank you mister chair just on the idea of forecast and making sure that we're in lines i'm a little curious what the what you expect to see from a potential revenue impact associated with a recent storms given the location given the matter damage to businesses we've seen still trying to figure out what all that's going to be and how you're taking that into account. Yeah. There may be as a short term impact because I believe the governor did give some grace to those individuals are impacted by the storm so we use could show as an impact in june as far as payments that may have been made men they may be delayed but it as far as any overall impact on on the revenues ongoing we don't expect to see much of a much of them in fact yeah I just adding too that I i'd expect maybe some short term impact on phone larging and typical for small businesses that may have been impacted but then I would expect in real to the short order some offsetting pick up in sales tax related to purchase of construction materials and things like that to repair damage that was that was done okay thank you. Sent to hammer you recognize that mischair the things that you listed in answer to senator hester's question all seemed to resonate around the consumer side of things as far as which you look at and how it's going to impact you know our our future financial condition my question is what do you incorporate in cheer decisions as far as like the national debt the forgiveness of student loans and all those kind of things do they do they play into your consideration what you give us in the way of forecast. So national debt is is a is a long term structural problem with the finances of our country in in it it it is a serious concern or so what south al one may be on it does not tend to impact the near term forecasting it certainly could impact potentially long term interest rates as they're getting priced out there in the market and that can impact people's pocketbooks and directly but the level of national debt does not change what our forecast is on a moft amount of basis from annual basis that is means not important it just doesn't really factor into to the forecasting and second part of question I forgot what was that I think the second part of the question was things like like the the student loan forgiveness and and things that you know may indirectly add to our debt just start on the front line do you guys take that in consideration when you look at our future. It you know I think the way those materialize and kind of get working in an economy you usually sudden in and not really planned I think that's a negative in terms of the national policy keep in mind that in terms of state income tax policy forgiveness of any debt student loan or otherwise is a tax bill income so it's it's not a drain on the interest income tax collections in arkansas as a more general observation what I would say is anytime the federal government creates disincentives for work. That impacts are economy it takes people give it gives people a reason not to be in the work force i'm grateful we have more people working now but you know we don't need for the federal grandmother create head winds for that are then last thing is this when you guys give us the forecast based on what you just gave us testimony where interpret it is. It is kind of in the near future not too far out of future and we we've worked really hard to get reserves built up to where we got a pretty good size cushion. But in your long range planning how how many years out do you go. Like three years and do you ever think that with the national debt and all these other things are you looking five years down the road or six years for the future legislators that may be inheriting that problem and and what is there anything you to do to give us of warning sooner than later or am I just totally off on all it. Well I think if if I could do that real well I probably wouldn't be setting here and I probably make a lot of money on wall street right now II think in terms of we want to differentiate forecasting from planning okay and so we'll forecast out maximum twenty four months the forecast is typically for the banding like the the one that was just released was for the end of this fiscal year and for next year we have in the recent past of looking at tax cuts we have gone out and additional two years unofficially as a forecast but I think it'd be very difficult to to go out any number of years I don't think any of us could have anticipated in two thousand and nineteen where we are today sitting with the surpluses that we have so I think it's difficult to go out probably past twenty four months and I think that's what's the official forecast is it maximum twenty four months are attached. Seeing no other questions thank you gentlemen bay hair thank you doctor sailor for your report that last year a coach air council represent wardlaw has are executive subcommittee report since mc meeting the executive printing met on the following dates march twenty seven a for fourth a for twenty third may second and may thirtieth and reports actions as follows. Reviewed and approved emergency roles for the apartment of commerce and the department of education in the state board of edge of election commissioners all of which have been reported to the members in alternates of alc in accordance with the rules. Received metals adams and lease final report and recommendations rated to the school property insurance thirty authorized bill already enter into an agreement with per night to provide actuary and consulting services to subcommittee related to the school property insurance study in authorized coaches to approve the contract by marcy action. At its meeting yesterday. The subcommittee heard the first report from per night also yesterday review proposals submitted in response to the av services and equipment rf and awarded the contract to ctr the timing constraints to begin the work on the av system and big mac the subcommittee authorized a contract to be approved by mercy action of the policy would make and chairs of alc the emergency action report is in your packet motion to adopt the report mischief. Thank you saying no question and have a motion and take a second half a second our own fire adopting the report say I pose report is adopted next we go to administrate rules committee senator hammer you are. The commissioner the administrative rules subcommittee met on thursday may thirtieth the subcommittee filed three reports for the executive subcommittee concerning the review and approval of emergency worlds and two reports from other alc subcommittees concerning the review of rules the subcommittee received and filed cordle reports by the army corrections in post prison transfer board and the department was requested to return next month to further discuss one of the directives pursued to act five ninety five twenty twenty one the subcommittee received an agency update on outside rule making for twenty twenty one session and filed monthly updates related to the twenty twenty three session one of the one rule was held by the subcommittee for consideration and it's june meeting and one rule was reviewed and approved with objections noted including that of center mr all of the rules were reviewed and approved as noted in the report and I moved for the adoption of the report miss chair n seeing no questions have emotioned over second. And the second hour on favor adapting the rules reports they are posed report is adopted with objection. Ah next up we have employment benefits division center hake you're recognized for that report you hit your button thank you send her as the employee benefits division oversecond commit subcommittee met on wednesday may twenty ninth twenty twenty four the subcommittee discussed and reviewed the rules on voluntary products the sub subcommittee reviewed and approved. Drug formula reports for february two may of twenty twenty four mainstream technologies amendment ebrx UAMS consulting services contract foster and follows through consulting actuaries contract medical recommendations for february and may twenty twenty four and the twenty twenty five rates recommendations director gave an update on the united health care network and the retiree first medicare agn and medicare advantage prescription drug enrollment support pallet and move reduction in the report that you have a second it's second owned EBD reports they are post report is adopted introduced my gear recognized for peer report thank you mischairman the peer subcommittee met on tuesday may twenty eighth the subcommittee reviewed reports i'm sorry receive reports for viewed request and improve the following brace temporary appropriations american rescue plant act preparation in a restricted reserve transfer and move for adoption of the report. The. Saying no questions have motion and the second old favorite post report is adopted center flipped for review. Thank you miss chairman will the review some committee was an interesting one to settle east review so committee met on tuesday reviewed and OSP roll a vehicle lease methods of finance and alternative construction projects discretionary grants and services contracts no items were held since the review meeting a mimo has been received from secretary and leave up to withdrawal from legislative review the solutionary contract which is on page ten and number contract number ten page sixteen of the report and before I make move to make that motion to adopt report I do understand there may be some questions concerning a contract with parts here to tourism with a contract with c j r w and there is an representative from parts and tours in the tear to answer those questions mister chair so. That my position to call them up we will have them come up if you come to the front table and I will hold on my motion until members have a chance to escalate question accidental flipper welcome appreciate you being here if you will each it your mic there can only be too max on it one time you recognize you see up one of the turn no. Good morning mr chair she looks secretary of the department of parks heritage and tourism. Jamie fisher chief financial officer for parks areas in terms of. Susan grab myer chief of staff department of parks here did in tourism welcome got some question statement you had before we take questions. Okay sent her up to mark johnson you are recognized thank you mister chairman secretary lewis good morning good morning I read. The misshroders mimo is here and it's something it jumps out at me it it notes why this miles partnership llp has been deemed to not be considered it said our further consideration I don't know how long further is it perpetually in adam too they talk about the potential loss of institutional knowledge. Now the current contractor has had this contract how many years for a long period of time thirty forty may be correct thirty or forty years so why don't we just do away with this process and just give him a permanent contract if we're not if we're going to go through this charade I mean if you say we've got to have institutional knowledge that means no one would ever be able to come in with some new idea new proposal. Now i'm really we've seen this and some other things we went through it in in review the other day where you have a agencies that get you know okay this is the incumbent agency and so they get a perfect score on one thing and so it doesn't matter what anybody else can do and how much money is involved sooner clark rightly pointed out the other day that if you added up the total amount proposed by the other proposed vendors as opposed to the one it was supposedly scored at the top and it would still be less than the amount that we would have been paying out to the chosen vendor so i'm seeing a similar thing here maybe the numbers don't quite correspond to what happened with the education thing but it's the same kind of thing if if you got your mind might up you know don't confuse me with the facts it sounds like what you're saying how do you justify this I would certainly say when we entered into discussion with miles partnership myself a member of the committee felt that they were gonna be our new contractor when we got into discussions with them specifically into the granular details it became apparent that they were not going to be able to fulfill the contract to the level of expectation that we needed an and in that in that memo that you're referencing that is something that I drafted specifically for the office of state procurement in it. Going through the process of closing discussions with them but what what came a parent specifically through those discussions was that miles partnership we are good company capable of lots of things could not fulfill the contract to the deliberate level of deliverables that we had within the RFP process we found that they were very good at their approach and kind of telling a specific details kind of like the bigger picture but when it came to specific implementation details they could not meet our expectations. In fact in some some pork portions could not even provide us organization charge or staffing structure details as well and so we negotiated all three three contracts that we were in discussion with them but another I expect was related to the transition period and the implementation plan as well and that's where the kind of the institutional aspect kind of comes into play it was not a requirement of the contract that someone has to have institutional knowledge about that but what came apparent is through that transition period of working with them that there were going to be a cost associated with that the amount of staff time and effort but also in the building of keystaff within the state of arkansas for them so they had three people committed to to the staffing levels in and you know what we see what we're used to or what we expect is a larger staff investment I had due to the size of the contract that we have. I can't help but think that in the thirty or forty years at this firm has had this contract they've had some turnover and if it was the same people for that thirty or forty years doing the same thing then you might be able to say there is a whole lot of institutional knowledge there but you know people turn over. And sometimes when you bring in some new blood you get some new ideas and you get so many things I feel like we've come into a static situation is this something that we should consider putting in special language for your department that that you no longer have to go through procurement that you can basically just keep perpetual motion forever I mean this i'm not saying that the current contractor is incompetent not at all i'm just saying it if we're just going to keep doing it based on well they use the ones it's been doing a good job for forty years so we'll just keep doing it that's you know met in sanity is doing the same thing over and over again and expecting a different result and i've talked to people in this industry that just said when we just feel silly even trying to even be against his vendor because you know they've got it politically locked down they've had it in several administrations and it troubles me that we're going through the charade wasting your status time if we're not even going to seriously consider it miss chairman I will stop there thank you thank you miss sector. The. Good your word lower you recognize senator johnson I think it's a miracle we finally found something that we can agree with so you'll bear look out the scars might open his miss patterson here this morning our procurement official can you come the table please. This please don't value so. Good morning just compatters then director of the office of state repairment view will pull you mac closer to. So miss patterson. As we go through these processes. And nah ham i'm a bit. We put out a bed and it's my understanding we split these three bids up and I miss she you're welcome to correct me here when i'm wrong that we split these four contracts up to try to achieve diversity in our advertising contracts is that correct. That's correct okay so we did that and they go out and they take these bids. In somehow two vendors and a perfect scores on technical. And then we go over to the financial side and another company scores better in a thirty percent measure and then we get to negotiations and it's not same company we always ask we don't like them just going to go back to the same one and me why do we have a procurement process if we're not actually going select the vendor that wins the process. And in what me through is this legal that they can just throw mouth in the negotiation period because they don't have an organization organization chart to he said while ago. The short answer is this was followed pursuant to procurement for criminal allows for for cost and proposals to both be evaluated here cost was evaluated as thirty percent as is required by la procurement law also allows after scoring for the event I mean for the agency to take to the discussions process and that was explicitly laid out in the rfp so all parties all vendors were aware of it at the time that they were bidding during the discussions fees and end the orafi itself said that the perspective contractor that the agency may move to the number two vendor the better that had the second lowest had the second highest score the agency determines that it is no longer subset succeptable have been awarded that contract so here the agency followed the price s of what is required under procurement law ultimately the agency through this through the discussions process determined that the arm that miles that the contract with miles was not in the best interest of the state and that is why that the agency decided to move to the to the next spender which was c j r so what determines the best interest of the state opinion. Well I mean of course great are the rf process allows for discussions in allows for proposals there is of course. There is some subjective but you cannot take all subjectivity out of looking at a proposal and and you know laying them by you know side by side especially one that is for marketing advertising I mean there is one of course in nately be some subjectivity that goes into that. Mr are yield for the other members I see the boards pretty little. Thank you and never done this i'm not. Playing sad house and senior is going down sky also so introduced for you regular. Thank you misses yet thank you mister chair and thank you all for being here this morning. I guess I remember when. Chairman wardle and I were. Dealing with these issues of money. And I remember I think it was at one time fifteen percent was that correct mischief. So we moved it up to thirty. Because the people's money is very they don't know anything about granular they know about how much money they're spending uncertain things and I guess I need to have a definition of what granular ears. Ah since you have mentioned sir what does that mean because it sounds like formative rather than objective criteria. And I need a need to understand that I know a lot of these things hand new onces that we deal with but I need to know better what does that mean so if if I could address a couple of points within that first of all related to the the financial aspect of it when when in going through the rfp process and we were looking at scoring when we moved to the second candidate we were able to negotiate the contract or the proposal with c j r w to a rate that's better in closer to white miles partnership it provided in better than what the current rate that we we have with secure was in a part of the original rfp that was not right but that came through negotiations they got it they said well will accommodation in your paid less money and negotiate with this that's not granular that's not the specific details related to the grain of our aspects for related to the transition period so we were asking details about how the transition period would would take place how the office would be set up house staffing would be built to support the contract and work specifically as you ask those questions. West specifically made you think that this company which won the rmp battle and i'm one of those who believes in giving instead folks as much as we can as far as state money and let me be clear about there but I need more specificity so one visiting with them what made you decide they can't do this predicated on what they tell you an example would be access to key leadership we found out through the discussions period is that there see their key staff person jay salures who we have been working through through this process was only going to be accessible to leading this contract for the first year maybe the first couple of years in loss of his act access to him leading this contract that was a major concern for in the contract year we have a contract but how many years initially for three years but but up to seventies. But if you couldn't do a year three then somehow everything's going to go to hell in a bread basket well and that's the other part of it the other concern that we had was the rest of the staffing structure was clearly getting a definition of what the staffing structure would look like that we would hear things back from him specifically like where we can build this or we could do this but didn't have a clear plan of a path forward for us there was lots of ideas lots of big picture kind of concepts but when it came down to really given us the details about how this contract would work on a daily basis. Those cannot be supplied to us the public information that you put in the rap. Was insufficient for you to make a decision. An objective decision about which one of these companies was going to be best because if that was a part of it then you could figure that out on the front end rather than the backing in after miles had been awarded this this contract or had one the rmp battle rather than on the backing in oh we should have asked you this all we should have asked you there and once we started asking you this and there even though it was not a part of the request. For response. You just decided it was why was that not was it not clearly written it was clear in the in the middle that went to miles partnership specifically it outlined in section two point two b three clear lines of communication that criteria was not being met and that's but they won the rfp was that a part of the raft people what you're just staying to me was that written in you need to tell us up will you be able to do this and this because suddenly now that's important but it wasn't important enough to make it a part of the original it was it was a part of the original it was a part of the original r p they read it law on that no there's an interesting aspect to their son and this the speaks specifically to the procurement process is when you're scoring the proposal and when your scoring the presentation you can score a zero five or a ten so there's not a lot of wibble room for new ones in specific things like that so we were able to say that miles could meet that but that's the purpose of discussions as when you enter in discussions you get into those granular details thank you so much i'm not going to be labor the point I just i'm just very very much concerned steal about the curement process because what we're doing to me makes no sense. Ah I understand nuance granular on some level but it should what you want should be a part of your regional statement to those folks and say respond to this evidently they did not have the specificity available to them and it could have been shot it could have been shown on the front end rather than the backing in which makes me really concern is I see it I am one of those forces of believes that and stay out of it something for instance I could even see you saying we're going to give you extra points for being in the street of arkansas state dollar staying at home but this makes no sense to me these last several contracts have made no sense but then it could just be me thank you so very much for taking my questions I appreciate the spam thank you. Central hammer you recognize the commission the first question is going to be for the agency on pay on this hand out that we can give an under number five existing relationships one of the statements is the company's existing relationship ownership representation of other brands such as travel south brand usa etc raised question about potential conflicts of interest what were the conflicts of interest in that day head affiliations with these other groups that let eliminated him. So some of the examples are travel south brand usa caragio group what it what that comes down to july the michael closer trees thank you. Is those relationships you know we're looking for a relationship that's going to be a priority for the state of arkansas is that a a company that that works for us with us is the number one priority one thing that we saw through the RFP process with with miles as they had a more cookie cutter type approach in their in their approach across the brands that they represent and and that was a concern for us but in working closely with the these other tourism entities we want to make sure that we that an agency is working in our best interest at all times ok and so and and II have neither for nor against any either of these groups I just try to get to a standard of fairness so we know everyone has been applied equally cr jw they only they only represent the state of barconsole they have no other clanch no other business. Them that would serve as a conflict also II don't know that specifically i'm not sure if I know all all of who they're clients are but but but you knew who these were that it became a factor in excluding them or take him out of it which you don't know about crjw as far as where they're they have any other interest is that because they're so staffed up the. In your valuation that's so staffed up that's dedicated just to arkansas loan and they don't share that staff time with any other companies they do business with. I'm not sure I don't have a a clear answer for that specifically of of working with them you know one thing that I will say that that really you know made a difference in as we entered when we entered into discussions specifically with cgrw I wasn't for sure that they were going to be our agency of record either it was through discussions that we found that in in in all four of the contract categories in the thing that we do have now with this contract with c GR w that we didn't have before is a partnership with cgrw as long as well as a mile i'm sorry mmg y which is a global renowned company it within the industry and so we have that partnership that they have expanded through this so this this process has allowed us to grow our relationship with them specifically okay but what at last point on this. But you. You don't know if c RJ w has any other affiliations that they would have been excluded just like you did do diligence to find out that this other company had. Uh relationships that you and your conclusion determine is part of the reason why they were taken out of it is that in my misrepresent mistake anything. That that's correct i'll just add one thing to secretary lewis which is travel south brain usa and the other agencies that were noted are larger national organizations that males represents in discussions with miles it was clear that those interest and are participation with those organizations. Was a heighten focus and that was nice necessarily in the best interest of our account and we couldn't quite get a clear answer that the representation of arkansas tourism would be there for most focus that perhaps bring any sa karago and travel south or larger contracts it would present a conflict of interest well that's case in the slide saying to the current if that's the case we probably look at all the other contracts they're affiliated with companies that have relationships on a national worldwide level because based on that reasoning there are some that we may feel would never give us the same attention and in two ms patterns and the solution tree contract less than two percent this one pretty narrow and i'm going back and it may be wrong but recently we had a issue with the dental contract that was awarded through DHS where the margins were so close that they decided just go ahead and well let's had another one or two into the equation that the thing and I know you do on the job but i'd just like to hear your opinion you know somewhere you got a draw a line of black and wife with no green between and it seems like we're getting a lot of gray in it do you have an opinion about that or i'm just getting little bit of a read here that sometimes it seems that there's some variables that are factored into a decision based on your opinion i've got. Going to I don't know exactly what the general contract you're talking about so don't think I can comment about that. Again you know this is what properment allow this is what procurement law allows it allows for discussions to take place and and the point of discussions is is to clarify requirements of the solicitation to have convert to have more specific conversations about you know these things about potential conflicts of interest about whether or not the the vendor is able to meet the very specific needs of the state and it's and that is the purpose of discussions you know of course there are evaluators on every rf and so evaluators are people. So I don't know if you can take I don't think that you know you can take make every contract black and white especially one again that is like an advertising contract that there is going to be some subjectivity of arm of who will provide the best services. Sentrodus manual recognition thank you I think would you hearing the members say at least the way that I see it to is the rfp seems to be flawed me there is five things here that clearly were important to you that didn't wait enough in the to get you to the outcome that you really wanting and I understand that you were in discussions in discussion she found out hey may be the representation in the rp was it quite what we thought it was going to be and I get all that the only thing that I would want to caution is and because I do want people to have the ability to apply you know in bid on this in the future I don't know where this leaves us I was in the committee and so i'd like to hear about that where where that leads is with the current contract if it's awarded if we plan on putting out a new and then my other is is just something i'd like to see because i've heard about it this is a big contract and I think it's part of the reason that you're talking about miles not being staffed up the way the need to be there is really virtually no one else in the state of arkansas that stepped up to a label label to be able to handle this you know with the snap of the fingers and they would need to be awarded the contract and have the ability and the right to build up the proper staffing to make that work so I wouldn't want that peace to be part of any new because it would be just really exclusive and would limit you know who was able to participate but yeah if you can just where where are we because that i've not heard that part yet sure II can I can take that I would say just to the end of your your question there initially even with the transition period and it's changed to a different company that there is there's discussions about that that allow for that they're also cost associated with that in in loss of momentum that could be found through that but those weren't continued really evaluated through this process the process is created to wear it is a fair and equitable process so you're comparing numbers to numbers especially when it comes to the budget component. So that back to the the beginning part of your question specifically is that I would say first of all governor sanders is challenged our department she is placed a value on state parks outdoor recreation the tourism industry within our stay she she has challenged us to double the two percent tourism tax collections over the next uh ten years we have established goals and priorities specifically through the natural state initiative that are outlined for state parks for tourism and across the the natural state with the goals of raising the image of arkansas and promoting our state in a bold and unapologetic way at this process has allowed us to find a contractor to help us meet that goal specifically so where were that currently in and what we're asking for is approval or a review review of this contract so we'll have a contract with c j r w in their partner mg globally renound agency we have an updated contract with new terms new conditions in expectations to better serve the state and work more closely with the department we were able to negotiate a pricing structure that was consistent with the lowest band and better than what we currently have right now in to me what we have is the partnership with c j r w and mgy is kind of the best of both world's approach we have a state company that we've worked with this work with the department for a long period of time has understanding of the state resources but we're bringing in a new partner who has a national international recognition in perspective that is new to our department including specifically they only come and evening origin and that origin company is related specifically to the to the promotion of. A outdoor recreation. In a good. You're asking if it where we are in the agreement where it's an awarded contract okay all right so we took would disregard a miles we've awarded this one the only concern I have is I mean there's a lot of things that were waited to shift things away from miles that weren't waited in the rf which might have been you know given lighted to the other people who are our scores add that could have accelerated and not just c GR w on it too and this is just for the department I would love to know that the amount of money that's actually raised up the short germ reynolds because I think that's doing a ton in the way of growing this two percent and it's just the reality is your collecting taxes on things that were never taxed before in a market that never existed before i'm not sure that it really equates growth as much as new taxation but I would like to go to if you don't mind get misinformation on that thank you. Sent to urban you regularly thank you just quick a few quick questions what's the new expiration date on these four contracts because it's not listed in our paperwork so the initial contract period is for three years and then after that three year period it will be can be renewed on an annual basis for up to seven years so the entire link that the contract is for up to seven years. Okay is there a reason why that was left off of our paperwork. Cause i'm looking at the other contracts and they all have a new expiration date in these four d nights so I and then and then also why why the four and why is that the exact same. Curtain pays to paragraph in each of them what why are there for different and can we get a little bit more specific information as to why which each contract is doing because right now it's just to establish a contract for the arkansas department of parks here to insurance as successfully market. Represent increased public awareness of the natural state etc and that's repeated four times. I do believe that we uploaded some additional attachments that would have provided information I know that that's probably just a snippet of the information that was originally provided but we can certainly go into an overview of each of the categories and what they will do okay well I would like that information III don't like that this was just kind of a cat and pays for each of these for because you've left off the expiration day and the paragraph are just the same regurgitation that leaves us nothing really no no information and then that the other thing I just want to get my numbers right after for the four of these combined total project is one hundred and eighty one million nine hundred ninety nine thousand hundred and ninety nine dollars that correct that would be for the full seven year term these will be twenty six million each year and the initial term be in the the first three years twenty six million each year each and that's combined with the four okay and then just to follow up on some of your questions who is the leadership that you have direct contact with that chrw. So our account executive is catherine the sillus that is our lead but we work closely with a integrated leadership team that includes dare and gray mark rains jill johnson who might live what when it one of the reasons why in negotiations that you wanted the answers that you are given to another member was that you. Decided not to go with the other vendor because you were going to lose direct contact with key leadership key leadership so do you have that direct contact and I mean as there are same standard being applied. Yes between the two of these yes yes very much so and we see that specifically currently with our contract with c j and then and II do think I am wine that has an opinion that this has been a very stale. And. Work for the state of arkansas I have not been impressed at all with their work for the state and and so I am concerned because I do believe that we need to advance this sector of our economy and i'm fully on board and engage with that but but but my my I have what I have seen over the past all these years what I have seen is just a really stale you know doing the same kind of thing not being in tune with what's popular or what's happening I mean i've worked in marketing and to me it's just been so unimpressive and I believe that we have not gotten the best value for our money with this agency and i'll be the first to say that because it has been so frustrating trying to get and working through the years with the department of parks the heritage insurers i'm in that it was under a different leadership not your leadership but it was unresponsive they only wanted to pick and choose certain areas of the state to advertise they were not consistent with all of our state parks across the state of arkansas and it's not just the state parks in the department of a parks here to insurers them that rely on this contract it's not just the state of arkansas that relies on this contract it's all those little bitty communities that are located where their state parks are and they get zero time and attention and zero reckon they they don't even consider those people that are on the ground that know that area the best they don't taught to us they don't consider us and I am live in an area right next to a state park and are advertising has been dismal and that affects my economy of the town I live in and the county our represents and so I am unimpressed with this company and i'll be the first to stay at publicly and I am not just one little bitty rule community. There are a lot of other rural communities that depend on the advertising of your state parks but they take no consideration of the boots on the ground and of the grass routes folks they don't they don't listen to us and then when they do they have treated us and are like little chamber of company this was years and years ago same company though and they they they were just respectful arrogant and didn't listen to them so i'm not impressed I don't I don't like a II think we could could have gotten a lot better service from a lot of different companies out there but I will also say we could have also had our own in house marketing team doing a lot of this for this amount of many and and I think we would have been better served to be honest if we had done that thank you for the matter got in center hickey oregon. Thank you send a rice miss person that your name correct my question is going to be because of something you say now what you understand this is all feel ported toward you all but we're seeing to this across a lot of contract. But mine's gonna go back to the RFP process in the way that that's been handled so fast six years ago time gets away from me and sooner chesterfield had had kind of touched only as she asked the question it seemed like that may be calls used to just be fifteen percent if I remember correctly it was zero percent which was ludicrous so we got in here took a year to rework all of this procurement process and what we did is we understood that if something was so specific and so detailed. That you had to had to give a little bit of leeway of course that a whole lot more would be to technical so we had to put in a minimum of thirty percent but at that time we knew that we could have a fall within this procurement process because it's only as good as the agencies themselves do. So you said that the procurement process was followed and maybe it was to the weather of the wall as four as the thirty percent but it's a minimum of thirty percent and for you and all these other agencies and I guess this is something that we need to start asking on all of these contracts when they come up. What is so specific with this is that marketing advertising personal relations I don't know what this is what is so specific with this tap of business that you think that we need to put seventy percent on technical and put the minimal man for thirty percent is it that detailed in that specific that we shouldn't have had maybe a faity percent on the call saddam a sixty percent or a seventy percent and again we've seen this on some other contracts this week which I also didn't agree with but it seems like to me that we're just using this thirty percent because we put it in legislation and we specifically said at that time that the agencies themselves are going to have to look at each one of these to make sure that these details are right so my question to you is. I want to know whenever you all develop this rfp what was so specific that it only needs thirty percent of cost whenever we were looking at that for just maybe something in the medical field where there was just a or with our health department that was you know so detailed that very few people would understand thank you mail. So like you said thirty percent is the minimum and I think that historically in a military benefit about two months between a month in two months but I think historically there has the the minimum is what has been applied i'm certainly willing going forward to looking at different contracts and and make it a determination about if costs needs to be something more than thirty percent let me stop you if you don't mind mister so did you where you involved in in the development of this process or who at the table was. At this specific rf yes I personally was not involved who was at this table so I was sir then if you don't mind that's not even a question for you again you said that so if you weren't there I want to know the specifics within this rfp of why you did the thirty percent so we weren't closely with the office to state procurement in what of them walking us through the process of determining the the values associated with each of those I don't think there was much of a discussion specific to going beyond thirty percent II think we we place more of an emphasis on writing the criteria specifically in the rfp for the competitive process but they'll get the officer state procurement tell you to use thirty percent. Not that I recall specifically II don't remember for sure in how that discussion came about whether that was the expectation of origins the standard of what is typically done eight. I don't remember a clear discussion on that so you think this type of what what is this card would be marketing advertisement advertising is you think that that is so specific in your personal opinion then so in your personal opinion and I understand that maybe historically here or whatever somebody saying we're using the thirty percent which is wrong. We can't do that where that that's of what's best for this state of arkansas we don't need to be doing that and again it's not just you all this is a cross the board with all of these agencies we need to be looking at each one of these contracts and say and no we think that it needs to be fifty fifty maybe it should be seventy thirty maybe to be sixty forty there should be an explanation of why that's there so. Now i'm going to ask you. Going forward here do you think that this is truly just a thirty percent thirty percent calls tap thing whenever we're talking about a marketing advertising contract for me it seems effective for work where we're at I think we placed more emphasis in working with osp specifically on the presentation if I remember the percentages correctly we placed a higher value on the presentations because of the details that came through those presentations that was at the time of discussion in a looking specific lead into the details for the the proposals that was the most important concept we were looking were at that time I appreciate your comment I don't know that up up would agree with that in any in any since again I think that across here and i'm hoping that maybe there's body i'll start looking at all this across everybody I mean thirty percent is supposed to be something that may be for tower and salos together and so technical in nature that only you know a few people can do it and we have to look at that something like this I would never think we just just require a thirty percent cost thank you sir. Soon to get more than representatives thank you and thank you all for being here so I do have some concerns given some of the fees and in bids that we've seen come through here you know even over the last year if you will but even more recently than that i'm generally agnostic about these things because at the end of the day I trust the process to make sure that you you guys are doing what you're supposed to do and that's why we have the laws in place that we have but I want to make sure the tax dollars are getting the best bang for the buck right so we have to be good steward to that so there's a lot of questions of an asset I just kind of want to pick up a little bit on the RFP. You mentioned the partnership with c r w and the mm give me the acronym again in mgy okay so if that was so important for you to look at was that included in the rapid it was it well as a component like a requirement for correct the new scored no no it was not it we were looking holistically at whatever company came forward so through their presentations in the rfp they presented that as a option or is a proposal that they would be partnering with mg why so if you were looking for some sort of a partnership like that why wasn't that then included it wasn't specifically that that's what we were looking for well not with the i've so i'm i'm saying that that you are company because I i'm sure there's several companies to do this globally right massive marketing agencies but if that's what you were looking for then **** in the rfp and written in that way to make sure that you're getting an apples to apple's comparison if you will that's right and it's it's not uncommon for ad agencies to partners specifically with other companies in insurance in there was a component in the rfp related to reporting any subcontractors or partners within that and so it was included so in that portion of score it was scored over all through the proposal review as well it doesn't re- receive a specific scoring now now the general the general proposal and the general presentation received so but if that if that is so important should have received a score. Either again we were looking at the companies holistically of what they offer specifically I think one thing that made c GR w stand out through discussions was the what we saw the partnership with okay again generally agnostic I just want to make sure we're getting the best value in the best bank for the box and and so it concerns me when I see and and I have questions on on another one that'll be coming up here in just a second I think but this is seems to be a consistent issue that we're seeing here and it's concerning thank you representative you're recognized. Thank you mr chairman so I have a question about the rfp the. The the items that were listed for justification I guess for rejecting giving the contract to miles talks about a transition period and implementation plan staff structure approach to providing top talent and then the existing relationships I guess they have with other customers. How were in or those items included in the rfp or were those the items you did found out after you had discussions with him because my question is how could miles receive a perfect technical score. Really unless the was. Not done well. And these items not be included the transition period the staff structure I would think that goes to experience top talent that's gotta go to experience and solution I mean they get a perfect score yet these items were discovered at some point and not included in the arpy so they were included if you look in in the letter specifically it references the sections of the rfp specifically where that information was not covered in in the presentation phase of so the proposal comes in it's a limited space and time that you're allowed to to cover the the the proposal and then you go into the presentation of when you're in the presentation it's also a limited amount of time that they have to cover that and that's the purpose of discussions is to get into the granular details of how this was specifically work often what we saw through the presentation fees was kind of a high level of review of what what would be covered but the the discussions phase allows you to get into those details specifically and that's when a lot of this came out specifically but it was highlighted in the rfb. Right thank you. Represent him shortly in fact thank you mister chair my question is about the process itself you said they could score a zero five or a tn only. There's a huge difference to me between a zero and a five and again between a five and ten so why is that the scale and who came up with that and why can it not be fixed because why can you not score a three why do you have to take a zero yes and I agree with you that is the process that the opposite state procurement has been using for several years and to answer a question it can be changed. Thank you must change it. The. Uh representative ladyman show. Oh. They never forgot since chair. Thank you mister ribs anymore my question is out of that twenty six million dollars per year I realize we're paying an ad firm to go in place advertisements for us I would like to know how much of that is for the actual replacement of the employee and production of those advertisements versus consulting fees and paying c GR w overhead. So that's going to be the third category of contracts for the media planning and buying an annually that'll be seventeen point four of the twenty six million. Yeah planning about. Yeah and if you're asking about the percentage paid on those so that was one of the things that was negotiated through those discussions and it will be seven percent commission that may be more speci. Representative tosh you recognize actually representative makes foreign I just a real quick question we've had all this discussion all this have young looked at the possibility of bringing these. Positions in house to be able to do this on your own instead of contracting this out and if that would be more cost aventages to the taxpayers of the state. No. One of the as she may need to turn hers off for years to come on. I know through the years topics like that have been discussed it is a very special when it comes to media buying and the relationships that go along with that it's a very specialized type of work and III I just feel that you know we haven't done a formal study to to look at that specifically but I feel like one of the values that we get through working with an ad agency is the buying power that takes place so when are at agency spends several hundred million dollars a year on placing ads they get value associated with that and key placements special deals kind of packages that go along with that there's components of that that when you're if we were trying to work this is the agency specifically we would lose some of those benefits I think if you think about the staff that cgrw and mmg why have it's it's a large number of employees it's a lot to manage this allows the department to focus on the image and branding of the state priorities new facilities and in kind of what direction is going and and let's the adding sea fulfill that for us so we have again we haven't done the study specific to that we could do that but II think it having the expertise of a ad agency in the profession is valuable to us church and i'm again just thrown out food for thought with the department of you know shared services where we're trying to share resources that that might be at least an option to look at going forward i'll just throw it and leave it at that thank you mister chairman. Perhaps any painter you recognize mr motion to your motion make the motion that we not review contracts on twelve one thirteen one fourteen and one fifteen and have the agency work reprocure these contracts. The. Ok you've heard the motions are in discussion on the motion replacer picture motion I make the motion to not review contracts one twelve one thirteen one fourteen and one fifteen so the agency can reprocure these contracts yeah i've got a motion I didn't care for a second I have a second now as they're discussion on the motion. Sooner mackey is your discussion known emotion okay you're setting it so great who's not. Representing perkington new jersey on the motion. The. There thank you. II guess i'm i'm a little confused with this motion I mean we're gonna go we're gonna hold these up and reprocure it but doing this whole discussion I understand that some people have issues with the way we did the r p and maybe with the vendor that was chosen but I didn't hear anyone specifically explained that why the original winner of the was such a valuable vendor at that we have to go and redo this I just I think we're just creating more problems and redoing and going to end up with the same outcome I mean this is someone he's been doing business with the safe over thirty years that we know we trust but it just seems like some honestly feels like some people have an accident and we're just using this process to to mark things up so I just the seams seems odd to me we're just creating more work for the state over the current process that we have control over and have done nothing to rectify a change I mean there's tons of contracts I think it was mentioned by center hickey where their issues and their frustrations with and I agree and I think it's a process we need to improve but suddenly doing this on this advertising contract to me seems there seems silly I mean i'm all for improving our procurement process but I just think we just should approve these and just get the ball rollings but those are just my thoughts and I think a lot other members from the text and receiving from them are very confused by some of the discussion going on right now and so I just wanted to add that to the conversation before revert representative vowed insurance and discussion on emotion you're recognized can we list what those contracts are so I know what we're boating on right now. Director. Of your packet. Number one twelve one thirteen one fourteen one fifteen the service type says professional consultant services thank you so much may i. Represent makes yours on motion you're reckon thank you miss chairman and I guess my question is since we are about to enter peak tourism season here over the next couple of months with your mister permission mister chairman I would be interested in hearing from the agencies what are the practical aspects of us are doing this is going to be weak we're not we're not going take test one to we vote on the motion okay but I mean I don't know how to well unless I know what the practical aspect here if we're going to leave the agency with no advertising at peak you know tourism season and obviously i've got a problem with that if they're still going to be able to promote the state during this time and come back on I might could live with it but II just need further information before I know how to vote on this center mark johnson you recognize thank you mister chairman appreciate my friend rick representative people continue bringing up this a redundancy but we've been doing the same thing for forty something years and it's maybe I should remind the committee while we should consider this motion in the we are good dealing with a new world when this firm first started doing this work for the state of arkansas they actually acquired the firm that had the work they were doing woods brothers agency was acquired by grandfather johnson and it it later became cran for johnson robinson woods are now car cjrb when they did that television equipment was hundreds of thousands of dollars to produce this stuff and and you know now you can do it on one of these literally and so we're we're seeing you know in sanity is doing the same thing over and over again expecting a different result and when we're seeing here with. If this were at two thousand dollar contract at that same hey you know go here we'll figure it out later we're talking about something over a hundred million dollars just like we looked at the other day with with the solution tree and the important service both of those contract I think we need to go back the drawing board and that's in essentially what the motion is is going back to the drawing board and reconsider this thank you mister. Represented wangers on the motion yes are good II just wanted to follow up on representative makes it brought up I feel like for us to be able to take an informed vote. We need to know what the ramifications are of the vote so if there is anybody that can speak to how long a reprocurement process might take that would be beneficial. The. The. Represent paper painter you have emotion on the floor if if you're interested in getting more information you would have the option to temporarily with throw your motion if not we will go ahead with the board on emotion. I'll temporarily mister chair withdraw my motion so that way representative of makes a representative wing could have their questions are answered by the agency and then I will bring that motion back up to representative make sure that you're my motion you're regular thank you miss chairman and i'll go ahead and throw both of our questions about first one would be the practical impact to the agency of delaying this and causing the requirement and then how long would that reprocurement take. The. Sure so speaking to the way that this RFP process was run we started it in february and are now bringing the contract to you at this time so we're looking at a three to four month period we can expedite that but that really shortens the time for review evaluation competitive solicitation and advertisement so I think the fastest we could do it is forty five to sixty days i'd have to consult with osp on that because we did have their executive leadership got us through this process but at a minimum you're looking at another two minutes in this contract does expire at six thirty and that would leave us without an ad agency because we have no further extensions allowed. We might be able to check specifically if there's an option for a month to month continuation I i'm i'm not sure if that's possible or not without some further research. To extend it the current contract we would have to enter into another contract on a months month basis which would require a special procurement. Senate paid when you recognize for a question thank you mister chair i'm over to your left so this paperwork that was handed out shows the dollar amounts I don't know if that's everything or not but i'm not seeing a hundred million dollars worth of contract here so maybe you could answer you know how many dollars is the contract and then second of all just looking at it and doing it my head without calculator. I'm only seeing about four hundred thousand dollars worth a difference in the in the two uh. Respondents you know to offers you can you confirm whether that's right it's twenty six million annually and those amounts very depending on the four categories in over four hundred thousand dollars difference and stay in with our experience vendor versus try and new ground and that's the initial pricing when we went through the discussion phases we mentioned earlier we were able to negotiate better rates we actually c j r w's initial proposal came down over five hundred thousand dollars and then their commission which was originally ten percent is now seven which I would note is we currently pay thirteen percent commission with them so it's almost half of what we're paying so there were some considerable savings that were brought through the discussion process it's twenty six minute million annually this first term of three years will be seventy eight million total the hundred million number of the over hundred would be if we went for those additional extensions which would come before this body for considering and the dollar amount between the two difference between the two vendors is four hundred thousand a year or less it's actually writer savings with c j r w because those were the initial price so now the c j r w would be the less expensive. Okay thank you thank you mister chair. I don't know the number exactly c g w still slightly more than miles partnership but the difference was reduced greatly if I remember correctly it's fifty or sixty thousand dollars difference thank you for you thank you thank you mister. So you're hammering reckless thank you miss chair. Even if we do it if we do what we are about to vote to do which would be to put it back out you're still going to have to and make this mismath miss patterson. You still have to operate into the current procurement laws as long as go operate or the current curement launched we could end up right back where we are too much from now with no difference other than they've taken the input of what people shared today and maybe that might factor your fact not but it's not going to impossibly could not change anything because you can operate outside what you operated under in order to get where we are today is that a correct assessment. Yes that's correct thank you. Soon hickey recognize them well and I hear what you're saying and I heard what some of the other members said about four hundred the four hundred thousand however we're not going to ear fee and if you all decide and if this motion passes I hope you do along with whoever else you know with all these other agencies if you value the call side more then you can be assured it's going to change because if you start if you start putting more weight on the call side of this then that differential is is going to increase greatly because the those people are going to go to factor not only on the technical aspects of it but they're also going to go to focus on the monetary aspects of it so I want to make sure that we all understand whenever we're talking about this the importance the importance of this minimum thirty percent. And the reason from a legislative standpoint how hard that is. To dictate in to put in there because across the state we've got literally thousands and thousands of contracts you all have to come up and maybe you look at what other states do your old because I won't verification on that tap thing that that what percent that should be and again i'm not saying there's a book on that but I think it's kind of a common sense thing that it probably should be more than thirty percent by quite a bit on owner contract such as this so that's what I want I wanna throw that in thank you. Representative back thank you michael i'm the easy one they are so so the question I have is kind of related to center makes i'm a representative makes a question he asked okay you said june thirtieth that see it right so everything ceases june thirtieth. No more ads no more anything. Yeah we wouldn't have a contract under which to continue to process payments for themselves so obviously these these things are scheduled to head it. Time so they would just stop scheduling now so nothing has been scheduled yet you're saying past june thirtieth goes out server thing stats now the other question I have real quick if I may is based upon what you've heard now you're going to go back and do it again to say I would you changing things in the rfp. After a couple of considerations I think we would have to consider that we since we just went through the RFP process and now. All of the information is out there about the different companies that we'd have to kind of think about kind of the competitive process and what that looks like specifically through there I think we can certainly take into consideration the value of senator hickey's comments related to the placement of price in that and II think we could also. Take a look at specific aspects of details of the rfp after going through the process that we we might alter some of that yes. All right because if we're going just go with the same payment and end up with the same result so if you are changed then maybe it is looking at. Sooner urban you recognize just a quick question was the commission part of the rf. We had one commissioner that was on the committee itself calling griffith i'm sorry the amount of commission that they were making was that part of the rfp yes it was part of the. Yes it was part of the scoring component and do we know if that's a standard commission that's paid on these types of things have we done any kind of research I mean i'm just thinking through like construction maintenance meant you know in charge of a name tire construction company or project their commission are their percentages are let a lot less than does yes we have seen this kind of really wide range of commissions the thing that really drove what's the wide miles what's the wildly like five to fifteen percent I would say it's probably you're going to find people within that miles came with a a zero percent commission so that definitely was there winning bed on an hourly basis they were higher which brings us concerns based on all the work that happens that our really was gonna drive a lot of that especially the initial okay but zero percent commission on an advertising buy as significant it airs I also I mean eventually it interrupt a seventeen million dollars advertising by. There were some concerns I think and i'll let show speak to this since he was there about their sustainability with that there was a mistake also on their pricing of website and an oversight that they expressed and that brings us concerned in terms of just the competitive nature they were trying to to wan but they weren't watching their numbers very well and so their price for the entire year was actually their monthly price and so they had to eat that because it was within the the actual rfp process but right but that would have been bid official to asset ya so I mean if they were willing to do that because they fully embraced it that's a sign of integrity in my opinion but anyway II okay and then back to the question that representative I asked you on the zero five ten how exactly where that product is out by rule that that that could be changed could it be changed before like if this motion comes go through and you are able to change that like what's the process of changing that. So to my knowledge the scoring process itself is not contained with and procurement lot or rule I think it's just within art the internal process that osp has been using the the matt process by which these rfp's are currently being developed. I don't see a reason why I don't think that you know a law or rule change will be required to change the scoring from zero five ten so so is that just within hrf it has changed or that across the board for all agencies so I think it can rfps can be developed differently and they can run differently so I think that so it's per rfp so it is so it's the way the rfp is designed which is not consistent across state agencies correct and that's part of the problem that we're facing I think because there's a lot of inconsistency for example we have another contract that's going to probably be discussed where they're not staff debt they're not and they got awarded the contract over the vendor that had been right so there's a huge inconsistency for us is a legislature and so it is very appropriate for us to question because you have different rfps that are being developed and there's no consistency within these rough peace and so you know when this category of parks here to insurers then we find this one which is completely opposite of what we find in dhs or education or you know shared services or whatever that that I think is problematic uh in and really needs to be addressed because there's there's just seems to be inconsistency in the rfp and then the final thing I would say is I think it's absolutely appropriate that we question every ability of the contract and I have a question for staff when it comes to run we're gonna need rap you can accounts are reviewing a contract. There is no limitation is that correct on what we can ask about what we can either review or not review on a contract is that correct that's what i've been told. Which is different from a rule. There's a provision in the arkansas code the law that says the review committee subcommittee can review the propriety of a contract so per priority of a contract means what I think that's a determination for this body so it's a determination of this party so any contract can be reviewed or not reviewed based on our opinion there is no standardization so it is absolutely appropriate for you as a legislator to ask any and all questions about any and all contracts that come before this body and so I just wanted to make that point and you have sole source contracting available to extend month by months most of these contracts are written that you can extend to contract on a permanent basis and so I don't find that to be problematic thank you thank you represent painter back to you miss chairman make motion that that we not review contracts one twelve one thirteen one fourteen one fifteen which is on everybody's packet page seventy four and have the agency reprocure them it is probably most over second have a second. Everybody understand the motion. This. Representative painter with you i'll repeat it again I make mister chair I make the motion to not review contracts one twelve one thirteen one fourteen one fifteen which is on page seventy four of your packet and have the agency re procure them. I've got a request for a substitute motion repair center history I have a substitute motion that we hold this contract over to next month and allowed. Allow this company to come in and speak to us on this. And in really the concern with the the reason for this motion is like this and we are in the middle of tourism season and I would like to mean where that that's my motion hold until next month where they have an option to come and speak to us on this it's interesting your service to motion would would you consider putting referring it back to committee said committee I would that that's my motion to refer it back to subcommittee we members we have a substitute motion you heard from center extra and have most second hole in favor of that say I opposed. Okay the substant motion passes. Okay senator flipper if you will lied we are back to. Chairman flip o two finish up his report members let me stay just a minute central flip out let me state on his report I was told he did mention but I want to clarify. That education department did pull the solution to recontract and that is not a part of the report so central flip of your finish up well that was quick. All right so where the exception of the solution she contract which is contract number ten on page sixteen and the heritage or parks here digit towards them contracts with c j w on page seventy four contracts when twelve do one fifteen I move adoption of the report have emotions second to doctor report I have. A have a. Center. History or recorder if it's in their football would allow I would like I would like to pull AG nine press for a separate discussion and vote would he add that to his motion. You can do that to flip out with it. Yeah it's it's page sixteen of seventy eight number nine. Contract sixteen on paid seventy eight page sixteen one yep page sixteen of seventy eight number ninety nine. Okay members were going to go ahead and vote everything except the adam nan better clear on that. Uh ever motion is second to adopt the report with the exception of out of nine all in favor say I opposed all is adopted except that if the central flip both you addressed it. I just have a questions. You would have questions of procurement come up. Or department of education. The. Please recognize yourself again just compatters in director of sustainable and i'm sorry I was talking I didn't hear what it was about no II haven't asked my question yet so I think this is kind of the opposite of what we were just debating it we we've got a company that's done really well did not win this procurement but really are on on this err side car contract I believe your requirement was that somebody has has done this for a year and i'm hearing that this company has not done it for a year furthermore this the company that we're awarding this contract through said they would need a six month europe to be able to produce and we don't have six months before the next school year is is can you speak to either of those or I can speak to the first I don't know about the six month gear it because that wasn't reviewed by me in the protest but as far as the the the one year so that the rf itself stated that that they that that proposal had to include a comprehensive solution for the administration of the efa program and ltgs. And I think that generally that there is some II guess within this industry there is night a single. I guess click a clear definition of what is. An efa program and at program sometimes they're called microgrants and times they're called efa some called sometimes are called esa's and and even the other vendor in and it's protest conceded that in its constitute consider that point that there isn't just a clear definition that but generally they all do the same thing and they all require the the applicant to upload an application for it to be approved for payments to be collected for for the schools to to be able to receive payments they generally they all do the same thing and so that is what we're required in the in within the procurement and and the company that was awarded that contract did have experience doing that. And your second sorry your second question. And and and also within this protest they all said that about each other okay so so class wallet so that are outside car side car said that about honesty and they all accuse each other of not having the necessary experience I think that because class what had operated here for you know within the past year than they they at least didn't meet that qualification but they all sent that about each other yeah I think ma'am for it for the questions before the department. The. German please identify yourself. Greg rogers department education. Derrill spent department of education assistant commissioner. Surgerish. Yeah so you guys put in there that you wanted somebody with the years experience we know that we've had a great experience with class wallet. Why did you put the one year and what is your definition of the one year because II totally get that right even even we were passed along with here and things e f a s say all those things really in your mount are they all the same do you have an opinion on that. So on the we put at least one year experience it was to what direct patterns and said it was that everyone we were looking for someone who has the ability to do condo this and they're coming away because it is of reimbursement of expenses for educational purposes which we've had those and that they've been doing those and other states for trying to remember all the different michael grants the different literacy grants all the if there's not really one when you say in efa there's only a few states that have had that and other ones have a lot of these microphone grants for as case purposes they do being operating in some way said the rmp for at least years experience in the operating and that's what we're looking for somebody who's been operating grants to pay for educational purposes. Came out my second question i'll be done you know every every time I hear secretarially was speaking he he is speaking about implementing learned with excellence because it's that important to the kids and did this is a huge part of implementing learns you know I hear that this the side car has tin employees versus you know three hundred and something employees back class wallet we had five thousand students used this last year it's it's looking like we will double if not come close to triple I know it caps out of fourteen thousand this next year this has to be done well with excellence are you confident that someone with ten employees can implement as well with excellence. The. Thank you for your question obviously through the procurement processed in the arp that was written we wanted to try to dictate as far as best we could do the the experiences and that we needed for this program to function as you mentioned with excellent scales we understand the importance of this program and so we tried to write the rfp in such a way that it acknowledged the fact that how can you you know the best way that you can for put this program in action and obviously through the scoring and in the types thing that the the side core had one at that one that good at that point. Search your good more you recognize the mischair and and get out I want to follow up on what center estra said on implementing learns because that is that is the goal is of a mine I think many in this chamber and proud to hear that sector leave shares in that wind implement it well and right so that being said I have two questions the first of which is if you read the newspaper this morning you see that we have quite a few efa applicants were expecting more that's great happy for that that someone voted for learns. The issue that I have is going back to center hester's question of or they can is the the one who won the spirit are they gonna be able to handle it and one of the things that i've heard so i'm asking if you know it's true or not is do they have the capacity to deal with issues that might arise do they have the ability to mitigate those specifically one of things i've heard as they don't have a call center to even deal with those things is that true have you heard that because it's concerning to me if that's the case. To the best router knowledge they will be implementing those types of programs in the obviously they were part of the procurement process and they have assured us that we will we will be able to handle the the nadly this year's applicants but going forward in the you know when when we've come universal on twenty five twenty six and we felt like the at this point will we'll have the capacity obviously at this point they're they're they're trying to grow into the program as well and so we do feel like they'll help the capacity at at window when times needed so you answered my question saying that they don't currently have the capacity at this time and they don't i'll take that as an answer they don't have the necessary I guess services to deal and mitigate with these potential in a questions may arise or whatever it is so on the second question and my colleagues and hicky asked me to assess so he didn't have to lied up so we're all thankful now I ask that question he just told me to shut up I think so on the scoring side of this what percentage did you use on the cost. So the way that the rp works is there's not a percentage for cost so we get there's. D technical solution reask and one other than i'm forgetting what it is but there's four different weights that we can give to different on the technical side of it o interview and so we have we went through angulated those different parts on the technical sideway based of weights the price is worth which is the technical size worst seven hundred points when you go to the price the process where three hundred points and the lowest bidder gives those three hundred points and then it's pro rated down to the most expensive one so there was an away that we did on price it is done about what these bitter bidders turn in for their process they're saying they're going to charge for the program. Okay and this was an rf right the price was waited thirty percent so there are there was about a thousand total points three hundred possible for the cost seven hundred possible for the technical score okay thank you mister chairman may have another question later members have got seven in the queue and can stay here all day and i'm fine with it but I want you to stay around we got other business to take care of after this representative thank you mister chair i'll go back to my earlier concern about the scoring of zero five or ten with nothing between i'm wondering if this if we had had a different scale for someone could perhaps earn an eight are perhaps earner three if this would have had a different result in who was chosen because they are going to be using very sensitive data from families and i'm very concerned that they will not be able to handle that. The. In reference to your comments about using since the data the the company that was awarded is in the business seven am obviously they are working with other states in different at the same type of program it's done officially I can ef account it is more more like our ltg grants that we're currently that we implemented this year and so this company does have experience in the we're dealing with their sensitive types information as it relates to the scoring if that that I would have no job. And I would say that if it I was not an evaluator but it as it relates to the scoring I would think that if an evaluator had any second thoughts about. A vendor's ability to to hold since that of data then they would have they would have rated them a five instead of a ten. Sent you doubts in your regular thank you mister chair all the way over here to the side back so this this contract. The vendor is going to be doing something that is critical to the implementation of the efa program and during the first year. To my information and knowledge the vendor that we had. When did the did the implementation flawlessly for the first five or six thousand folks. Has this vendor since we're changing horses here kind of still while this is getting off the ground so to speak does this vendor have experience with a statewide program that will be doing ten thousand plus accounts and all the intricate details I mean have you reviewed the. Uhm. The platform that they're going to be using and the interface that the parents and and the administrators are going to be uploading the invoices and the reimbursement forms and all that's of two to make sure that it works because we can't have something that that false flight on its face in the first year worked flawlessly. Absolutely and thank you for your your comments and III would also like to just share and recognize the fact that we we share your concerns and desire to make sure that this program is run with excellent and serves the families of arkansas and so we feel like that stood the first we have looked at their obviously looked at their process and they do serve other states in a very similar programs that have served tuned to fifteen thousand students and and student families not exactly an infa program but more like a city more like our literacy tutoring grants program so they do have experience running a program with that in one of the benefits of the the current company is that they already had an application process in place is built into their system whereas class while it was more of a funds dispersement and we're needed to add that the second piece of that application process in to I think if that was shown out through the proper process that I was one of the things that in our in our in our since as far as what we were looking at to make sure that we could run the program with excellent is to make sure we had a seamless process from the time family applies to the fire at the time that the response are originally our initia. So there'll be a like an online marketplace for for the the parents to go on say okay we're. We're going to use the the. Account for the such and such expenditures and upload though their receipts are documentation or whatever it is and you're confident that the platform on the background with this vendor is going to be able to process those things seamlessly and process those payments and make sure that the account there's nothing. On the back end that will at. Cause red flags for parents and in a bad experience for them given our current experience we feel like that'll be a strength of this company okay thank you central merchant in your recognize thank you mister chairman. Greg couple questions one was this rebared. Wasn't if someone had been awarded and it was rebated. Yes this this was down to a rebid could you explain why. The first time that we put the procurement out and got the responses back there were questions about the cost pricing on it and we've gone through the last time we wanted to make sure that the percentage all the percentage costs there are taken away from reduced from the available funds the students was included on each one of their pricing sheets and their was some confusion on how they showed that so we stopped the bid the first time in did this rebuild and he had a different result the second time the needed the first time that correct yes so who was who finished on top first time. I don't I don't recall I think I it was either students first or class wallet I think and then audicy was direct believe. Because we went through the first one and the first one didn't include all their pricing and then the second one didn't include all their percentage that they were going to charge the efface and to their pricing and so we went to the third and then the third hadn't included the prossing for the literacy tutoring grants we started over. Okay get some conflicting information from someone by text but I won't bring it up with you or associate myself with what senator hester said this is extremely important that it does seem kind of the just exact opposite of what we just went through on this other procurement that we've got someone's window since you know movie dick was a manner you know and then you've got this one you've got someone totally new but we're dealing with a more call twenty four twenty five the first big year of of. The education freedom accounts down disparaging those that got him for this current school year but this is big and we don't want it to fail but if this is postponed for a month does everything still could it be worked out or with this just totally throw market rancheon in the procurement for school year twenty four twenty five how it either want to be answer there. Thank you at this point we are really at a crucial moment. Delaying the process any longer at this moment we put a key in the system I can appreciate that but going with someone that has made me a little less capacity that is has to rare I worry about the same problems can happening in that so i'm i'm i'm i'm trusting you guys on the it is a center after say it's critically important that you get it right thank you mister. The. Since your gesture feel quick question thank you message here and thank you all for taking my question is then it is secretarial leaver comfortable with this contract. I let I believe so I mean it's we feel like they're based on the information in conversation that we had with them that solid car can't implement this but obviously they're going back to white some of your colleagues who said if there's anything that were private the implementation learns we would and we can have the building in this contract to state to take a step back and look that if we needed to change at that time okay so if we go right ahead and we find out that they aren't they don't have the capacity that you think they have then we have the opportunity. To do something about it yes ma'am that's a part of the contract yes ma'am thank you so very much. Since you're dismay thank you in mind would really be. I'm not sure the process works so students that have already been deemed eligible that are in the program do they reapply every year or are they automatically. You know included as qualified do they need to requalify every year. At this point they were new their application purpose there they stay in the program and unless they choose to withdrawal from from that net and was that process going to look like the i'm assuming that would have been a pretty simple process if we stayed with class wallet. And if we switch to the other vendor who does. Minute since you're switching to psychologist that look like for that individual student. For this past year when we class well it was our father's dispersement all the applications were handled in house okay we would be creative we created our own in house application process and so data had to be transferred rural from our side to flash well it's so at the time of funds to spr. Okay are in so so there you don't see any so that then information is not that princess medical records that sort of thing is not by class while they're still bad warm education okay and in the future is going to be held bath side courses they're going to do the application process or. How is it obviously the stable okay thanks central hamry recognize like the share of quick question like a point personal privilege real quick so other than a really bad PR experience for the governor and for us what's the punitive assessment to this company if they fail and at what point will you recognize failure and what's going to be your plan of action to deal with it. Specifics of the contract but I will to the best of my holiday this this program will not feel. We will not let it feel we are working with the wind sooner program approved by this body we will make sure that this company meets the demands that they put into the contract because we understand the importance of this contract we understand the importance to the statement understanding of ports dark and soft families and so we will not let it feel now whether or not this particular company that they still point if we're on the demand to the contract and we will look at that in the future to make sure that we continue provide services one year to twenty five twenty. Great what about punitive actions against them if they fail what are also recovery plan. So the the the way the program works as it will be on a reimbursement basis okay we'll have to send the invoices as showing the which students have excesses trying to have access to account drawn down eligible expenditures for those fines and go to the reimbursement process that the receipts of the reviewed by darrel's office before any dispatchment was made to all right so they won't get paid until they'll get paid after the fact the whole thing i'd request is I really wouldn't want to read about this in the paper I think it'd be better to uh contact leadership plc so we can be apprised if there's a problem I really don't want to read about it the paper and if start taking calls that way is what i'd request miss chair point personal privilege at quick moment please thank you miss share on behalf of center dismayne senator flipo myself we have three young men if they could stand in the back that are here observing from boy state they are with harding benton and mountain home and and they have come in at a good time because this affects their generation what's going on so thank you and we appreciate your gentleman being in the room today thank you for being here. Represent your guess why you read this thank you mister chairman I guess I would begin by stating that. I would echo some of the same concerns that I heard from senator hester and senator gilmore. And start with the statement of if it ain't bro. Don't fix it. And to this point i've not heard anyone say that the current vendor that his. Handled these transactions up to this point has been a problem is that right. That would be correct. And so to the concerns that. Senator hester raised in center no more raised about capacity. One of the things i've heard you say is that this company operates in other states. But from the information that I have they're actually only operating in one state. And that is the state of tennessee and they may pick up the state of west virginia is that correct. I believe they also operate. Okay. And is it true that they only have twelve employees versus the current vendor that we use that has two hundred employees. To my knowledge i'm not sure exactly how many ploy employees they have to do with their leadership team. Yeah. We we don't necessarily have the knowledge of that I know they're hiring different programs to be too really for it to focus on our account is it they understand as we understand the importance of this program and important success of this program I think to your original question as far as the name don't fix it that. Again when I think when the procurement process was to wait through we were looking for a cat and it desked at the time of the contract class while it didn't have. And and the correct company did. Use this company that only operates in one or two maybe three states you're saying had. Dead. Is that right I said you're saying that this company that only operates in like three states has had some ability to execute that right we believe based on the the contract and within the negotiations of the discussions that we've had with them that they actually what they were. Okay i'm gonna ask mister chairman I have one more question them and I ask on behalf of representative so the she doesn't have to get in the queue and wait that's alright. And this goes specifically to the issue of data security. Was that in the rfp because we're dealing with you know this is again part of the overall concern we're dealing with very since the information you're dealing with people's banking information personally identifiable information. That was data security and the ability to provide proper data security a part of the RFP. Yes sir ok so I had received some information that. Maybe that wasn't a part of the european or maybe it wasn't scored. Add up at a particular. Manner way that it should have been but anyway nevertheless again I just have some concerns we're dealing with you know taxpayer money here and you're talking about a company that's only operated in by your admission it sounds like three states at most. Versus a other companies that have operated in numerous dates in her custom to dealing with taxpayer money this is an important issue and you know again I just have some concerns and so we're to express those thank you for davis you're reading thank you mister chair hours over here sorry thank you I was wondering if within the rfp if you guys required vendors to meet any minimum data security requirements for things like the personally identifiable information. Yes and it does they were they that was part of the rp roses that we went doing it they did have demonstrators that they were I don't know the correct terminology for with their technology did allow for data security and there wouldn't the dad is actually hours and how that data would be house and what security pro calls they go through that was included and they did talk about their in an interview process okay so security or excuse me students first did provide uhm information that they use a third party audit report and show that they've either pass or default best instances as far as industry best and interest industry standards rather. Yes they did indicators that they did meet in its center just now alright thank you in central dots and then we're going up. Right thank you mister chairman just a point of clarification. Earlier you were talking you mentioned student first so student first stand side car aren't one in the same is that correct yes sir okay because of review of their website indicates that they're actually currently doing business and about nineteen states across the us and providing uh essays and tax credit at scholarships and other things so I would I would maybe assert that they have more than ten employees under payroll to hand or search such issues as they arise would you tend to agree. Yeah. Yeah yet I think we we don't like they were not sure how many employees they do we we've been working with their leadership team and we haven't been told how many exactly employees they have or how many dedicator to our account they they have been a response with this far with everything we needed from them uk well as it just a quick review and indicates they're actually doing business in about nineteen states to have a map you can go and review that if you take just a minute thank you send your data thank you mister chair. So also I know the law allows for up to five percent administration feed to the student account. For the vendor that is administering this in your one the vendor was only charging two and a half percent. What does this contract. How much are they going to be charging the student account transaction to its it'll actually be less than what the current vendor in the first year was that okay thank you. Review chairman center flipper thank you miss chairman and unless members of this committee would like to sit around and discuss this from her five or six hours in which i'm certainly willing I would move adoption of the contract they have emotional and a second adopt the item number nine review all in favor say I opposed it is adopted with noted objections. Members next we have some few things that have to be handled on review of communications and i've got a couple of things that this committee has as about a report on we're going to ever short report that i'd like to go and won't take these out of order. Own h seven c. Arkansas economic development commission reasonable real services as a grant that I will require motion for approval of second mountain by her eye posed that's doubted then also I have home number twelve b is the visa state parks is a approval of space or maintenance program funding so I can have a motion I have emotion never second second own verificate I proposed those are adopted their members are. We had to scheme. We do have a report from sector put them dhs on living choices this delaying waiver sector come on up. Please dead face after the record secretary arguments are department. The. First what i'd like to do is correct the date of the letter as it was submitted to your originally we've had april six the letter was actually signed by me on may sixth and we did not catch that. So we would like to correct it on the record here today will be submitting a copy of an updated copy that reflects the accurate date for the record. I'm appearing before you directed by section fifteen of at two thirteen of twenty twenty two reporting to the arkansas legislative council the status of our efforts to increase reimbursement rates under the living choices assisted living waver were continuing continuing the work necessary to implement act one ninety eight of two thousand twenty three which authorizes dhs to establish cost reporting for medicaid funded assisted living facilities. As noted previously myers and stuff are provided a draft report for review a part of completion of the final version on january sixteenth dhs receive the rate study report from myers and stuff for ensured this information with providers the rate study report also was presented to alc hospital and medicaid study subcommittee on february seventh additionally the cost report analysis was posted for public comment with the period ending on february sixteenth dhs compiled the comments and posted responses on march fourth twenty twenty four and the responses are still online if you should if you would like to review them. In october of two thousand twenty three we petitioned the center for medicare medicaid services. For approval to implement the then current are appendix k rates and use for alfree imbursements as the permanent rates for the duration of the living choices waiver those rates are eighty one dollars and fifty nine cents for urban facilities and eighty five dollars sixty seven cents for rural facilities formalcy cms approval of these rates was received on january twenty fourth twenty twenty four with an effective date of march first twenty twenty four dhs has petitioned cms for approval to implement a new rate of eighty six dollars and seventy three cents which represents the highest resulting rate from the rate study report in addition we have engaged providers I am more continued to do so to discuss programmatic and policy change requests that were submitted during public comment cms is currently reviewing the proposed rate amendment and will make a formal determination the public comment period ended may thirteen th we have not yet heard from cms with an update on the rate that we submitted to them. In addition we are continuing to update the living choices provider manual to reflect the cost reporting requirement of act one ninety eight and these changes have been submitted for internal review and we do anticipate seventy submitting those to all see very soon the annual cost reporting for medicaid funded assisted living providers. Will now be completed on an annual basis with determinations from those reports presented to alc for for your consideration. In addition to the contents of the letter submitted last month or a couple weeks ago I wanted to report that we did have some impacts from the tornadoes on some of our facilities in the northwest arkansas area are staff has been on site surveying and working with providers to make sure that any evacuations have happened that any needs are being met are we do have a full list of that that we are glad to provide to this body so you haven't update on which facilities have been impacted but that did include we we have forked with nursing facilities our home and community based supports including our alpha's alcohol and drug treatment programs and are early intervention and adult day treatment programs to make sure that all of those facilities in all of those residents and clients are safe. Last i'd like to just report that we did receive a request from balar on april twenty second for a report a detailed response regarding any of the closures of assisted living facilities during the past two years we did submit that information on may third of where are currently in conversation with one owner who has communicated a change in ownership but that sale has not gone through yet the four facilities I am owned by that individual are continuing to operate as assisted living facilities and they are working to continue be to continue to be operational and that concludes my report and i'm happy to take questions. In our suppose it is a matter of a routine business when you have a change of ownership that that's not necessary in report. A. Above a basil facility change of ownership we will be happy to add that if if it occurs between a sessions between council meetings we can add that I believe we receive notification after we submitted a report but I will find out for you okay and then we keep speaking apatheticals which you addressed at the past will say all that had not happened should anything change in those saleties you all are ready to move on to make sure that residents are safe in south we are we are in communication with that owner and we are we recognize that we will be helping move individuals if necessary. Get members do not see any questions thank you for your report checked but thank you. Members are this I don't think this will take long and i'd like to go ahead and do it right and put it off for another month i'd like to bring out but in in any of these communication reports if you've got questions is always we can do more if you want to bring him to the chairs attention we can do them at a later day I will bring up the department of military to report on something this body was concerned about about progressive how school campus recruiting effort. So I see jeff would come and forward we appreciate you being here and waiting patiently and if you can give us a brief description of where you're act as this body was concerned about it and ask you to report back please stay tuned but if no chief of staff department military. Thank you mister chairman and you'll see that that letter there like to report we've made some great strides particularly I think the efforts of a major general stubs has actually gone out engaged a lot of the schools with a recruiters at the time of the report we were still having issues with two high schools and happy to report money sello they've really worked with them with their principle there and they're really engaged so we think in the fall semester of that will be a good new story unfortunately the only school we're still having issues with in central high school. They've allowed the recruiters to come on post but they they've only been on their twice at lunch they have to stand behind the table they're not allowed to engage the students the students have to engage them. And only should not get don't get the quote wrong I think the principle they're said the students only have limited time she didn't want to waste in their time talking to the recruiters that's kind of where we're at it with central high right now we continue to engage with them we're hoping to make progress there but that's really the only school in the entire state we're having issues with happy to answer any questions it never let the letter that he mentioned because this is not a mandatory report it is owned land but it's not in your packet but you can go on land in documents and find that center hammer you are recognized for question. Thank you and i'm just curious in your conversations with the schools their other organizations I think that have a presence do you know if in your conversations they put the same limitations on those other organizations that have a presence on school like they did you or do you know. Observed I do not know I would hope that they would be put in the same limitations on other people they're doing it tell us. And it was outside that explanation about limited time. Movie was that the only explanation she gave you that that was a recruiter when me that actually engaged with them are a recruiting commander in his team and the ones that have been engaging now they did allow them to do a lunch with the teachers there and so but they keep engaging because really they just want to be able to you know talk to students that come in there to you know to actually try to recruitment of the guard but that was basically explanation was passed along to me alright thank you. Sent her mark dozen. Thank you chairman colonel where i'm over here you are of the generation we remember when there were certain illinois term was in bog at that time but woke universities would try to in. Inhibit rotc from operating home campuses around the country and it's very troubling to me when you say that the the principle it central higher let recruiter come out from behind the desk it engage or table and engage a student this is the first. Place or time that you experience this or aren't anyone in your in the in the part of the military's experience this. Yeah I think we've experienced another areas we will make progress I think you know a lot will be here from the uh being the sign of a fifty year of school teacher I can appreciate it I think a lot of the teachers and some i'm just say there's not a lot of bandwidth in the day there's a lot of requirements and so I think we just the recruiters have done a good job by just doing the human element engaging with the local leadership there at the schools trying to build those relationships and really showing them the benefit of what the guard can do for these high school students long term whether it's helping pay for college helping the mature helping them grow as a person you know enabling them do things like never know they could do before so I think a lot of it's just educating these folks on hey there's a lot of benefit to the national gore and I agree with you a hundred percent in the fact that some of these young people that might be the difference in them being able to obtain higher education and night if they were able to attain some of the financial assistance that comes from from from being in the garden reserve a mischairman it may be appropriate at some time for us to explore this a little deeper and maybe even bring the relevant especially when some public school this were a private school I might not be this adamant about it we can do what they want to certain extension but the fact that when you have a public high school a very high profile public high school that's not being cooperative to our our service men and women in the insight it's really traveling perhaps is something we need to deal with to a little deeper and i'll just leave it at that this morning thank you mister chairman thanks to johnson representative regional new reverse that thing in this chair it's actually interesting that you're here and appreciate you be in here today I was speaking with at an event recently with a recruiter in a bit and county and he was discussing some challenges associated with even having access there in in the bent and they'll school district could you help me understand what are the legal requirements or allowances for rec. Fruiting in schools what kinds of hurdles that you gazza are experiencing what kinds of hurdles that you need need our legislative help with. Sure again I think we've made great progress of this last year but basically she's access and again I think it's just a matter of you know allowing us to get in there and and to have time or that we can engage the students themselves I think that was the most we heard in again it it is just relationship building you know a occasion will have a school that may have a bad experience with the recruiter and that's the matter of you know that's understandable and so then we have to go back and rebuild that relationship you know through their engagements of our senior leaders and our recruiting battalion but I which they access was one secondly I would say the aspect we you know we've made really good grounds there the aspect is not required under our consultant state law but the new as fab is a lot different than the one if you're previously been a lot different now it's online and so it's a it's a free tool for high school students it actually does a diagnostic and kind of also tells you what careers are what locational careers may be good for you the parents can get on there to a portal so it gives a lot more these days than just a you know the old military one that we took a you know back in the you know eighties are dying so it's it's a bottle better tool so we we have some struggles there military will actually come out and and give the task proper do everything for it you know but we have had some struggles with that when we will come a few of those as well the to get it to where we can actually go out in the minister of that test follow mister. Monday could you describe just a little bit better from me from my side when you say access to the student population what is that me. Yeah to us access would mean like again not being told to stay behind a table and not engage the students you know it be you know just like you would expect when you you go anywhere to be able to reach out when you see a student that it's a kind of common buying just you know recruited for good at their job because they love being in the garden just and allowing them to you have to talk to you students no unfathered or you know not schedule the recruiter to be there you know it's seventh period and you know at the end of the day when you know most folks when I was in high school usually gone at the end you know so that it's a actually an opportunity to engage the individuals it may be interesting so just for clarification actually be able to initiate the conversation thank you very much thank you mister words for me to not team more questioned in those who don't know you served in the house. Give me a long time ago two thousand three to two thousand and three by didn't know that it's always nest nor somebody's set in our chairs and understand what we're talking about if I could just say the closing that that are recruiting team is again is still engaging with the central hat principle we do want to build a good relationship there and so they've continued to email call and try to schedule something there so I didn't want to portrait as an adversary relationship we just keep you know we never give up some of the motives in the military so we'll just keep engaging until we can get in there and engage it absolutely I think this membership the concern we show is at what we want to but we we do want to access and we want her young people to have the opportunity to sale thank you for being here today members next the. Last year I had a short is the right to worship safety grant program show and miss current period if you could come forward and gives a short report on that we would appreciate it. The. Yeah. The. Welcome thank you for your patience please then if I yourself for the record and you recognized. Karen perry chief fiscal officer department of public safety so the report we have for the right towership grant we opened it up and january of twenty twenty four we received thirty one applications the request totaled two point one million dollars. Six of these applications met the qualifications and they were awarded a total of two hundred and twenty seven thousand two hundred and twenty seven thousand seven hundred and ninety two dollars in february. And we have a remaining grant balance of two hundred and seventy two thousand two hundred eight dollars and we are going to open that award period up. M probably september. I'd be happy to answer any questions turn to him recorder thank you for those that were turned down where any of them jewish worship centers given the town the tender environment these days. The. I don't know the answer to that I know we have. Four jewish centers that received money I don't know if any of them were turned down if there were others that were turned down i'd like to get that if you want my please and know the basis for which they were turned down and were they are the ones that applied originally being notified that it's been an open backed up so they could reapply or is it on them to find that out I don't know if we're going to notify the arm it's going to be on the website that it's that it's that will be open okay right thank you if you would get that per information to the staff and then I put it not seeing more questions thank you for being here today members we have a isp own j one uh reps in cabinet. If you replace going to address it thank you mr chair representative cabin all couldn't be here so she asked that I please present this to all this is over the fares a discussion around the fair money in the and the live stock show in northwest arkansas and i'd appreciate a good boat. Okay my mother in second adopt our favorite post are last thing chairman would you go dress the june meeting compression passport comprehension resistant more just to make you aware of what could be happening in june with the announcement of the special session that could start as early as june seventeenth through the twenty first. I just want you to be aware to watch the calendar because we still will have the responsibility to excute council that week so we will possibly be scheduling meetings as early as eight am on the seventeenth and we will hold meetings up to the start of the special session and then as soon as his best possession adjourns on wednesday we will start rock back into committees so you will work for long days on those mondays and wednesday so be ready for that and we just wanted to make sure that you were now to watch your calendars. Thank you it's the end of the physical social the physical year we have to get it done representative being regular banking mr tear since he started the meeting by recognizing me to speak I thought i'd in the meeting by thank you the members for lively discussion today and an educational meaning so thank you mister chair thank you member for your hard work I have safe trade poem we are journal.