ALC-JBC Budget Hearings (9a-11:30A)

Going to start at if all the agencies were removed from the room we'll call you guys in when when you just. These three but. Some members are great and get started with our budget hearings we a long process recognize Kevin to go through of the reports and communications. Thank you Mr chairman. Members of the committee we have three books that we put on your desk there in the upper right hand corner of your desk sits the a book which is the legal size red book that is a ten year expenditure history of all the agencies boards commissions and institutions for reference we also have a B. book which is selected statistical data that help that'll have information such is recover general revenue agencies budgets the amount of general revenue and special revenue has a lot of the different information and and also the Arkansas tax handbook is on your desks Mister chairman we have the rules of next. Any questions on the books that are available for the members. Seeing none will move on to the adoption of the rules. with that I'll have Mr Anderson go through the changes in rules and then we'll look for questions in a motion. Thank you Mr chairman this is item see in your packet these are the precession budget hearing rules for the Arkansas Legislative Council meeting with the joint budget committee we have eighty one members the exception the of first of all point out number two says except as otherwise specified in these rules these hearing shall be governed by the rules of Legislative Council. The new language is language three B. which is different from the last previous AOC JVC meeting three V. which says in order to participate in budget hearings a member shall wear mascara ring over his or her mouth except when talking in the microphone or if they're able to maintain is six feet distance or more or except when drinking and also says in this little see in friends the cochairs may refuse to recognize a member who is not wearing a mask in accordance with these rules that's the new rule Mr chairman. Absent Dodson you have a question. Thank you Mr chair question on this if if this. Rule as proposed with the changes not adopted do does the Rule as is without the change govern. Our will. I will address the changes needed to have it passed this morning. So is there portion that you would like to make a motion to full. Yeah I I mean as far as the. Proposed change the rules I don't feel it's necessary in. Would not propose changing the rule as is leave it as is as it has been I guess. So is there a motion. I'll make a motion and a second. House second. All those in favor house sits in early you have a discussion on not our question for resent Dotson yes Mister chair I'd like some discussion as to why Why we would not do what's on paper to some discussion of the motion because this is seen spike a. A common sense way to make sure we're all safe if I'm not concerned about me I or to be concerned about you so I just like to hear some discussion from the maker of the motion. Present Dotson you're recognized to explain. Thank you Mr chair sitting here in this. Glass cubicle. I feel like we've taken fairly serious cautions to ensure that members are as safe as possible and believe just about everybody within I site that I can see through all this glass. Our wearing their masks when they're open about and moving around outside of the glass cubicle so don't feel this is a necessary thing and members. Feel free to a where your mask at will I would encourage it thank you. One Mr chair may I ask about a. A number to us I I. If we are not if we are not in the cubicle and we are not maintaining the six feet difference a more I I'm guess I'm asking the maker of the motion at do you are you are you also meaning that you think is not important that we keep a that we wear the mask if we are not made in maintaining six feet of death of distance but we are not sitting behind these cubicles. Part of the rule and you didn't address that part. Representantes and you're recognized answer questions thank you Mr chair the. This would be a permanent ongoing change that would have to make additional rules in future years four temporary situation I don't necessarily think this is a and something we need to be putting into our rules common sense practice everybody's aware of the the reason for masks and as freedom loving Americans I thank. We're responsible enough to take precautions and we have done so in this body and evidence by looking around you can see that. Quite abundantly obvious that we're taking necessary precautions this additional rule being in the in laws as a in our rules as a mandate I don't think is necessary thank you. Senate bill and I have a number of other members okay go ahead Mr chair I finished I'm sorry I did not yeah could I just give you all time meaning okay I'm finished represent Senator rice you're recognized for a question. I just said you know I think the body his. Functioning of the Legislative Council and and other meetings that that I've attended I would agree with Representative Dotson that we have maintained Lasko safety very well I don't have a problem either way I'm sitting here without a mass I'm speaking directly in the microphone the when somebody purchaser button they're going to be speaking in the microphone and probably not going to have a mass or if you're not going to recognize and let's go cause a problem sitting in this cubicle we're not gonna be six foot space equipment supposed that not taken in consideration in these rules so I would just offer the body I think we can get by without this because technically up that agreed sitting here and I'm drinking. so I don't get into grade school stuff I think we can as a body manage this without this rule. The senator rice center Hendren you're recognized. Thank you Mr chairman of first amazing I didn't write this rule and I appreciate the chairs but now the thought they've done and and the staff to trying to keep us in each other safe. I think the rules are reasonable and I think it's I don't I don't quite understand that logic and the rationale this being used to argue. Against it we say on one hand that everybody's being responsible and on the other hand we need it we we don't need a rule to make everybody be responsible. So if the if the rule is not gonna have any impact because everybody's are already doing it then what's the issue with the rule but I think I've I would contend that to it is necessary if for no other reason to set an example of leadership in the state that it's important to keep each other safe so I I support to I think it's reasonable responsible and I think again we're going to kind of set the tone for how seriously we're taking this by how we conduct our meetings. The sender. Representative fielding you're recognized. This Representative Bentley open represent feeling spot so. I was what's that we're in state of Arkansas the governor's mandates in effect here as much as is anywhere across the state so I think these rules are completely unnecessary we already have a mandate in effect we're here we've got this cubicle between us to protect us I just think they're. Total not needed thank you. Thank you. Senator DISMANG you're recognized. Thank you Mr chairman I and I guess my only part of the discussion would be it's fine if everyone's going to police themselves but at my home we have a high risk child and we do everything we can to try to protect to make sure that we don't bring anything home. And I want to participate I want to be a part of this process but if you know we don't have a rule in place and there's nothing to follow members become lackadaisical in you know in wearing the mask or participating because it's clear from some of the comments there's varying opinions about what we should and should not do regarding a mask. Again I would be fine either way but I do believe this just helps create a standard that we're all gonna be held to a regardless of what our individual viewpoints may be on may I ask or the virus or whatever it may be again I want to participate I want to be able to be here but I don't someone I want someone else's viewpoint prevent me from being able to do that because of my particular situation thank you. Senator Mr Speaker you're recognized. Thank you Mr chairman and I will could echo a lot of the same comments summing up I have mixed feelings with regard to wearing a mask and then also the so the rules but I think it's an important point to consider at my understanding and staff can correct me if I'm wrong because as they were working to develop these rules one of the purposes improv probably the primary purpose of implementing a rule or policy like this is that if there's an outbreak in this committee that the department of health likely would just with this rule in place it with this practice in place that likely only the individuals to either side of you would read be required to be quarantine if we don't have this type of protocol in place then there's a higher likelihood that they would. Maybe take a position that more members should be quarantine so it's it's really this rule and as far as other discussions as we move into the session it's it's more about trying to protect ourselves from the standpoint of being able to conduct our business in the future as senator rice pointed out there's a number of different cabbie ought to this and it's also the way it is structured is not exactly just that a hard and fast rule but I think it's important to consider this is about hopefully being able to maintain a significant number of members who were able to conduct business and so I wanted to make sure that that we were also considering that thank you Mr chair. Speaker us staff confirm your statements are correct. See no further questions would take a vote represent Dawson's motion is to remove the and see from from Adam three minute meeting participation all those in favor say aye. All those opposed. Motion has failed. With that all take a motion for adoption of the rules. I have a motion second all those in favor for the adoption of the presented rules say aye. All opposed. Eyes have it. RC two hands. Our desi three four hands so we'll call the roll. Mister chairman I'm calling the roll is. Okay ms chairman the motion is to call the roll to adopt the rules as presented Representative Boyd. Is he. Not saying Representative Boyd. First alternate represented Crawford. Second alternate represent a very. Representative Coleman. Representative della Rosa. Representatives shall. Represent Cavenaugh. She's. Okay Representative gray. Not saying represent gray first alternate represented Gazaway. Second alternate Representative marsh Davis. I'll Gazaway voted. Representative Gazaway. Okay second alternate record press it by Representative marsh Davis. Represent Hodges. Representative Jett. Representative Ladyman. Representative Tosh. By Representative Holcomb. Representative Richmond. I sing Representative Richmond first alternate represented Burch. Second alternate represented Maddox. Representative Cozart. First alternate Representative Pilkington. Second alternate represent Gonzalez. Representative shepherd. Represent Bragg. Represent fielding. First alternate Representative Watson. Second alternate represented Bentley. Representative Payton. I sing represent them first alternate represented Hillman. Second often restrict Representative Christiansen. Representative love. Present Dotson. Representative Dan Douglas. Representative Lowery. Represent Miller. Saying represented Miller first alternate represent Kelly. Absent wooden. Representative fight. Representative rushing. First alternate represent worn. Representative Lanny Fite. Okay. Okay I we got you. Representative Murdock. Representative Roger Lynch. Represent David first Deborah Ferguson. Second alternate Representative speaks. Representative Deffenbaugh. Alternate Representative petty. Represent Whitaker. Alternate Representative Richardson. Representative back. Representative eaves. Absent house. For okay the alternate present and it. Got you. Representative Mickey. Representative knees garner. Yes Sir represent capp. Representative Andy Davis. Representative Eubanks. Represent Kenneth Ferguson. Representative in the call. Absent gene. Representative Lundstrum. Representative Austin McCollum. Absent they're. Absent solving. Representative are. Present Womack. Senator Bledsoe. I'm sorry. First of senator rice. First alternate Senator garner. Okay prices here senator Clark. Okay as provided vision. Is hereby. Thank. So the local by division three. One. I am Mr chairman this is by division okay. Can you are you want to. Okay I'm I'm continuing Senator Clark. Alternate senator garner. Senator flowers. Senator Malick. Senator eads. Senator Irvin. Senator Blake Johnson. First alternate Senator hill. Senator leading leading sorry. Senator Ballenger. Senator bond. Senator Caldwell. Senator Cheatham. Senator Chesterfield. Senator Cooper. Senator Davis. Senator DISMANG. Senator Elliot. Senator English. Senator Flippo. Senator hammer. Senator Hendren. Senator Hester. Senator Hickey. Senator Ingram yes. Senator mark Johnson. Senator Rapert. Senator sample. Senator Stubblefield. Senator T.. Senator Wallace. Hey. Rules have passed. So with that. We'll move on to our budget. And first on our list is the department of health with the animal recognize Mister Anderson. Thank you Mr chairman we have a spreadsheet for the apartment of health but Mr chairman it with your permission legislative audit is here to go over department of health findings thank you for you get the. Subcommittee before we get started with the with. With the audit reports on explain you how we plan on doing the department of health after all the report Kevin will go through to spray G. if there's any of these boards and commissions that you would want to be pulled out we will hear from that board or commission on Thursday. so Rumer three law that will go through to spread sheets and any member has a question about a certain board commission or wants to see those we will hold those out till Thursday any questions on that. Okay. If you would introduce yourself record and you're ready to continue thank you Mr chairman ensemble into a legislative audit. And relate to the public health we have three boards and commissions that have findings related department health the first one is the board of examiners in counseling this is on page three of your audit findings packet. And they had one finding in the G. thirty eighteen report during the last four months of the fiscal year they didn't to posit checks required on the last day of the month and in addition as of June thirtieth of eighteen the AC held in excess of a hundred seventy five checks totaling over forty six thousand dollars that we're not deposited in a timely manner. So these reports are in your agenda packet so as you flip through your gender you'll find the first one. The next one that we had a finding was a state board of nursing. And I review of employee lump sum payout for bill that one employer received a sickly pay out of seventy five hundred dollars but was only entitled to thirty nine forty five. And that's on page five of the package. And the last one is a board appropriate your medicine this is a two year engagement two thousand eighteen and seventeen. And due to them not have and of very much staff have been very few staff they didn't keep a list of receipts for last renewals and application fees collected and did not reconcile revenues recorded on his books to asus and also they do not make one time the deposit they closed the bank account and had well over two hundred ten thousand dollars that they withdrew in August but they didn't to posit that to the treasure to October that concludes the fines for the department of health. Senator hammer you have a question for audit. You're recognized thank you Mr chair on the one that you just read word states that they did not have adequate staff to know if that's been corrected. The Senator hammer they became part of the department health so I don't know what procedure they put in place over the receding I'm assuming since there under the department health that they were able to segregate those due to the extent they needed to. At all as you want to get in thank you Mr thank you senator. Representative love you're recognized for a question thank you Mr chair and I was on the same Donna Senator hammer so we will be here from the department of health in regards to to to this finding is that what we're saying but in a way to do we need to have department health come right now. We're here from the proper time okay thank you. Thank you. Thank you. So with that Mister Anderson you can go and start on sprint G.. Thank you Mr chairman. There is a legal sized spreadsheet actually there are two of them you'll see in the upper left hand column one says department of health boards and commissions. This bridge she was prepared for you to summarize all of the boards and commissions within the department of health. You'll see the first column lists the border commission itself the second column shows you what page number these are in the manual so for example acupuncture and related technologies is on page forty in your manual. And it continues to summarize going across with historical data you'll see that actual expenditures four thousand two hundred eleven for that entity in twenty twenty the receipts they receive or thirteen thousand they're fund balance at the end of twenty was nineteen thousand you'll see their appropriation I'm continuing to go across right to left their authorized appropriation was eleven thousand and you can see the executive recommendation and the agency request on the last four columns is both for eleven thousand this is the same with each one. Of Mister chair of the committee chooses to adopt this then they would be either executive records request or committee action in the shower pull some out and then adopt some of the others that were ready to do which he won as chairman. Senator hammer thank you Mr chair question to the staff please yes Sir thank you. One of the things that I'm hearing is that there's money being taken out of the cash agencies and boards such be moved over to the Transit shared services. And there's some concern that is going to deplete some of their funds I'm wondering is that accounted for anywhere on this spreadsheet or is that been addressed by staff or in the information was presented to staff was that taking into account any these numbers that are before Senator hammer we are good on department of health but we do have that issue come before us in a few minutes and I will remind you of that in a few minutes alright thank you Mr yes Sir. Any further questions on department health boards and commissions. Is anybody want to pull any out from the audit for questioning. Representative Lynch. Yes I have a request from the Arkansas home inspection board to free up ten thousand dollars for stabilization of their personnel. The ten thousand it's in there for advertisement can't be used for that function. And so this request the chairman of that board. Says ten thousand free the. For advertising it for improving and stabilization of the inspector population in the state is the request. Are you looking under depart departments labor department health purposes under Arkansas home inspection registration board that's labor that's that's labor represent Lynch we haven't made it to that one yet okay thank you but will mark your request. Russia eight. Represented makes. Thank you Mr at question for staff on the Arkansas state medical board they're showing a fund balance of nine thousand nine million. Up almost ten million dollars is that cash on hand sitting in their bank account that they currently have so in other words they spent three million but they've got about three times that amount currently in the bank is that a correct interpretation of that many. Yes Sir that's correct and is that pretty much standard for them to have three times their annual operating expenses and savings. I could go back and do an analysis on that I don't know right off hand okay alright thank you. So seeing no further questions do we have a motion to adopt exactly wreck on these. I have a motion. Second. I have a second all those in favor say aye. Proposed house haven't. So with that we'll move on to the department of labor election board. Okay thank you Mr chairman. You'll see that it is the same spreadsheet same format it just says in the upper left hand corner department of labor licensing boards and commissions there you can see where the boards are listed such is the home inspector registration board there Same format Mr chairman. Representative Jean do you have a motion force. You're recognized represent J.. Yes Mister chairman I move that the exact recommendation with the exception of keeping a separate salary section an appropriation section including keeping current business area and fun center identifiers FOR the department of labor and licensing including the board of commission. And the division of labor and the workers compensation appropriation bill shall be drafted for the twenty twenty one twenty twenty three by any I'm the same structure that we had for the twenty twenty one fiscal year. For the parking of last paper and licensing and it's a motion as a proper motion I do have a question do I have a second for the motion. I have a second Senator Teague did you have a question on the motion. I think it's after the motion. No no okay after the motion after motion art with you would re any up does senator Chesterfield your question on the motion. Yes I will have a of Mister Anderson explain that to you. Thank you Mr chairman the a motion was drafted to address a request that was in the budget manual we're all of these boards and commissions salary section be combined into one. And that the business areas be changed to be combined into one Representative jeans motion is to not do that to leave them as the they are currently drafted to maintain all these boards and commissions was separate salary sections and separate business areas. A so you can see all those salaries for all those boards and commissions. I understand. Senator English you have a question on a motion. Why with all. What we're we're not the motion is to keep them separate. If I could if I could clarify that yes Sir if you remember last fiscal session they were trying to combine all this and we we we as a body up said that for the next fiscal year we would separatum this just continues to keep that separated so we can trace the salaries of the employees of from the legislative body of keeping more simpler. Thank you. Senator hammer do you have a question on a motion or after. Sir. Yes Sir thank you Mr chair I have a question whether it's directed to the Representative Jean through the chair how would you like it. Just ask your question we'll see where we need to go all right thank you. Was it the agencies or whose recommendation was it to combine them all together and you know what the rationale was behind what they were trying to do this is kind of the the department the drive transformation of combining everything and I think the legislative body still has a more comfortable keeping this separately track the salaries follow up Mr you're recognized thank you and by doing it the way that you're proposing is going to keep it more transparent to where we can see it individually by boarding commission instead of it being loop together where is that going to have any effect on the projected savings of the shared service model by doing it the way that you're proposing well the the legislative back on the legislative behalf we don't think so I think the executive could still side show savings where you want to this year for we can we can track it better as a legislative body. Alright thank you Mr. Thank you. See in all that we have a motion and a second all those in favor of the motion say aye. All opposed ayes have it the motion is passed so Mister Anderson will proceed with those being separate. I do have questions now senators Teague. Thank you Mr chairman I am much more observation and that is that we should do away with transformation and go back and then we wouldn't have these issues anybody's interest in pursuing that I'd be happy to discuss that with you. Thank you. Representative Dotson. Thank you Mr chair Since we did that for labor licensing boards and commissions it is that's not something we need to do for the health boards and commissions or is that already. Are they already separate they were already separate meeting request to be in one okay thank you. We we have this motion ready for any department it comes with them combined. The Representative. All right. Miss Kevin let you go through the spreadsheet. Okay thank you Mr chairman this ms chairman do you want to To the committee about some of the issues with the. Receipts verses expenditures can so committee it shall heard Senator hammer speak while ago we do have a problem with certain. Boards and commissions that have exceeded their expenditures verses their receipts We have worked on an amendment for a time period now and not that amendment has been agreed upon with the governor's office and And we're passing it out now what that amendment addresses is that they cannot spend our transfer any more money than the three year average prior to transformation goes back Senator Teague statement while ago. there where leading Levin boards and commissions that would have been negative had we proceeded without this amendment and with that they would have had to come to us to raise their fees for their license holders. So with that we'll go through this and then a Representative all will adopt that amendment if it's the will of the committee. Any questions before we proceed. Okay we're going to proceed through spreadsheet and we'll come back to the amendment that give her by time to read through it. Okay Mister chairman going through the spread sheet to see the first column or the boards and commissions. In the second column you'll see there are two page numbers the reason that is is because. part of the historical data is on the first page and then the request is on the second page listed that was done because regional they were wanting to combine everything that we've done away with that with that motion. You'll see in the next column it says whether they're they're funded through special revenues cash funds or federal revenues and again the historical data has your actual expenses receipt your balances. And then your authorized and then the agency request executive recommendation on the last four columns. Represent of all. I recognize you for your member. Thank you a. Mister chairman so if you look at your amendment the first section identifies boards commissions cannot deficit's been the second one calculations are done individually and cannot be grouped together the third section defines expenditures limits it as a three year average plus transfers out and the fourth section defines revenue collection as a three year average section five can't deficit spend because of transferred section six can't create need to raise fees due to transfers out and seven allows boards commissions to use their funds balances as approved by the General Assembly FOR the capital purchase that do not count against their spending cap and section eight they can do the rules and they can raise or leave their fees. Was proper motion to I have a second. I have a second I do have a question for senator has. Thank you Mr chair. one so we're going to give special exception which I'm not opposed this but we're gonna give special exception to those that have that three year spending of. Mark if the other agencies spend down to where they hit the three year war they automatically fall under this same proposed special language if they spend down will be automatic. As. Yes the answer to that is yes. The amendment would not allow him to deficit's been. If any of the other A let if any of the others outside of that eleven deficit spend this amendment will hold on backed off to come to council for transfer. Okay and then how is that going to affect the shared. Services model given as I understood it they were all supposed to be through special language it was passed they were supposed to be paying their share into the share care services and. Will they be precluded from doing that is this going to be an exception to them because they're in deficit status Sir how's that going to work. Mister chairman if I make of the language will create a cap that prevents any transfers out such as shared services of being more than what they're receipts were. So in other words they can only they can't transfer out or spend more money than they than their average receipts they cannot deficit's been so he can limit shared services if they reach that cap it just depends on each individual border commission how they're spending is versus their receipts. Last question thank you so if St and these others want to get out shared services they could spend down to where they get the threshold of the amendment and they would be out from underneath the responsibility of participating in shared services is that a correct interpretation. I I I guess you could word it that way I I guess the the basic gist is you cannot spend more than your taken in and if you're spending more than you take in and then you won't transfer any out to share services so yes that would I guess that would be correct all right thank you. Centuries you're recognized thank you Mr chair I just wanna make sure I understand fully the the difference on six and eight the if they have the ability still to raise their fees. They have to have some kind of a clarification there to show that is not associated with some kind of transfer that's causing that requests for race. This language was asked to be put in there by the executive to make sure that this wasn't limiting agencies to promulgate rules FOR rags or change their fees this language really never addressed that but with that wanted to be clarified. All of you're recognized just so that they still have the ability is still do that it just there have to some kind of record keeping to show that's not associate with the transfer is listed in number six that is correct okay okay Senator make sure thank you thank you Representative. Thank you Mr thank the kind of addresses my question on number eight but just for clarification. That means this is number eight is basically maintaining the status quo. Yes for everything other than transferred services shared services yes Sir thank you. Senator Hickey recognize. I thank you all may have got close to answering my question mental make a hundred percent sure. With what represent Dotson just said with eight so with shared services. Are they going to be able to take all their money on the front end for. Is this board commission or they're going to do a pro rata share along with their other expenses. I guess I'm a little confused again this first time I've seen this. Yes Sir the way the way it would work is an agency would have their expenditures three year average as a marker and then that would determine how those expenditures verses are receipts with determine if they could even transfer any money out of shares services because they can't deficit spend so they can't transfer more out than their average receipts the expenditure would come first the expenditure cap with the first so if there. Three year average for. Salaries is X. dollars then they can transfer any more than that to shared services is that what we're saying is Sir if they're expenditure average was a million dollars and the receipts was a million one hundred dollars all they could transfer to shared services would be one hundred dollars they couldn't they couldn't exceed their expiry seeds. Okay. Thank you. Thank you Representative Lynch you're recognized for a question yes how does the fund balance play into this some of the that it to see these boards have have very large fund balances and so if they can't exceed their revenues from the licensing and and finds. Will ever be able to use anything of their fund balance which is. Mister chairman if you'd like of that is in number seven and that's a valid point that would have been an unintended consequence of that's addressed in number seven. Which says allows boards and commissions to use their fund balances has approved in this budget process and through appropriation process for capital purchases that do not count against their expenditures so yeah that is a dress from that language but only for capital purchases yes it would not be it's it says not for operating expenses it's accumulated for expenses other than operating expenses such as purchase of vehicles equipment copiers and so forth follow up. So I've got at this board that I've been talking with has a huge problem with turnover. With their inspectors and so it's like revolving door and the reason is they can't structure their personnel policies for retention because they don't have the budget to do it. And they asked me to look at their fund balances see if there was something they could do. To improve their situation I think what we're doing here is we're time their hands. Or they can't change the structure of their their board. Fiscally. Mister Anderson recognized answer. I'm in a I'm I don't mean this to be speaking for against language What I would definitely do your correct is limit possible expenditures so that they don't exceed the receipts and transfers out so I we would be glad to sit down and look with you and examine possible options for that entity as your staff. thank you I think it's that's a reasonable I At the at the if they've got a half million dollars balance and and we're telling them they can't use it for anything except copier. Paper that's that's the I think that's a little. All the rage on our part to anyone that's good thank you chairman. Senator MALOCH you're recognized for a question. Thank you Mr chairman this follows local Representative Lynch as question with respect fund balances that. An engine my question is not whether you get into that too first to transfer to share services or for cap which managers but I'll take the auctioneers licensing board which this year they tell me you know they've had fewer people taking they're continuing education courses that they charge fees for maybe even a few were all licensing but. But a lot of that is related to the pandemic And so there expenditures or a little bit more than a revenue but they do have some fun ballots so. If that's if the revenues are expected increase in the future they are to come back to match their expenditures can can they draw all their fund balance or any of these other agencies A to to sort of get through a tough year if if that's probably what the purpose it was built up for. But it would be for operating expenses this is preclude them from using it in the fund balance for operating expenses center and that's the reason when the language was drafted there was a three year average put in so that that would have a smoothing effect of and also all we would have to do if they had a higher expenditure and they had a fund balances come to peer committee for transfer so you're not precluding them from being able to use that in those unique situations that you are trying to help them from having to raise fees. Because there expenses exceed their receipts okay alright thank you thank you. Representative Ladyman you're recognized. Thank you Mr chair up if funds were asking that they can't deficit spend my question has to do with number nine a why is it limited one year if that's a good idea where we lived one years that just because the budget. The standard language because we come back in a fiscal year and we renew it so with that we do that on almost all special language okay so the reprieve is in your have another question on the spreadsheet what is the POS column there's or maybe I should know that but no. Issue positions number of positions at those agent those cash agencies have thank you. Senator Teague. I'm a little nervous. Well Mister chairman. All so I have a question first for Mister Anderson Mr chairman do they. These funds are raised for specific reasons rye. Yes Sir enter do we not break the rules when we sales tax rate for one purposes can we spent on another purpose yes Sir will was shared services they're supposed to be billing for services that were provided to them so the in that case they would be spending so you're saying affected the the bigger organization bills on far that makes it okay. I prob that's the concept behind shared service yes Sir that they are providing human resource legals whatever for that entity their for their billing that entity for services they received. Thank you Mr. Chairman could we ask Marty or Jill or somebody to comment on that absolutely. We have a denture good to get moved around occasion Mr chairman. She is are recognized thank you senator if I understand your question it's whether they can use monies that are collected for specific person by a board or commission and transfer that per chaired services yes ma'am I think the doubles going to be in the details so that would be an audit issue I think they'd have to track so if part of the revenues that they've collected or for administrative services for HR you know just their operating budget then that we in the transfer those overs for shared services to the department of labor this case they're going to have to track those in some way to show that the revenues are being used for the purposes of there being collected. So if they collect a hundred dollars far the auctioneers board situation center mount use that four operations or whatever and in church service takes twenty of that to operate the bigger agency. Is that the sentencing like the same thing to me. Then seem like using the money for which it was raised. Senator I I think again it's gonna it's facts specific so if the agency can show that they combined administrative services they you know instead of having one for each board each board shares one person five board share one person and it cost a hundred dollars each board gives twenty dollars then that would be an example that that may be okay I mean but again it's it's fact specific and they're gonna have to show how those monies then are used for that board commission in the purposes for which they were collected. Thank you Mr chairman. Yes Sir so could somebody from this creek Dr audit be sure that we're pursuing that it didn't have to happen today. But just to be sure that somebody's on that and that we're gonna be watching for that that's a proper request thank you thank you Mr chairman. Representative Jean you're recognized for a question yes I have a question for Representative Lynch and I may have missed it of what boarding or commission which he could Pacific Lee concerned about Arkansas home inspector registration okay thank you. Representative instead I get that right. Okay. Senator Chesterfield you're recognized for a question. Thank you Mr chair is labor the only division that has all of these boards. Do we abortion come under any other division no no ma'am well so labor is the only one that has a plethora. Part of the licensing boards and all these boards the rest of them we don't have. I'm I'm trying to find out if we need special language for any other group is yes ma'am Mister chairman of. Yes this is that the health department has a bunch of boards and commissions that we've already done they are not transferring money like this is the first entity we ran into that's doing that and we will definitely as we receive all the budget requests we will definitely keep the committee informed of that alright thank you because I don't want Labor Day well at all. Senate senator I hit your button on accident can you hit your. It was an accident. No I just wanna make sure that we have the special language that we need all of these entities that have special boards and commissions so that we're not having to coming in and adopt special language for each and every division of state so that's what I'm trying to find a Senator the original language we had an amendment collected all cash agencies and boards and commissions one of the request we had was to only hit the deficit ones which are all included in labor and licensing. The rest of them had no trouble with shared services. That word in a bar had deficits. That were created because of the transfers yes ma'am I was eleven boards and commissions under labor analyzing that had deficits. But they hadn't had deficits before that's right okay thank you thank you. Senator Elliot you're recognized yeah Mr chair I of I thought I had the figure this out but at the at the top of the page the when this is labeled I'd had decided was just a redundancy Ford says proposed special language for departments. and then we But we point out department of labor. Yes ma'am goes back to my original statement to senator Chesterfield the regional special language language included all cash agencies were under different secretaries. But with some advisement from all other members and. Executive they want us to only include the ones that were deficit so we came back so that's just a misprint will have that correct okay because that that's what was confusing me long way of saying this as another but that's going to be fixed so I let it will be fixed proposed special language for the department of labor may leave off for departments yes ma'am for make a specific okay alright thank you for your. Senator hammer you're recognized for a question thank you Mr do we know if sure services will be charging more to the boards that have sufficient funding in order to make up for the ones that do not have sufficient funding. I'm all that staff answer the question. The way shared services post workers there eight they are only supposed to charge for services rendered I don't know of any provisions to prevent them from over charging other than audit findings. Would be levied against him for doing that. The bi curious no because sure services must have a set budget is well if they were depending on all of the eight boards participating in now eleven are going to be excluded from that what that's going to do to their budget or will they have to trim down their budget because they won't be receiving income from these eleven there being excluded at least at this point in time or is that a legitimate concern That is a concern I've had for about a week and a half now Senator and we will hear from shared services on Thursday and I have that question pre typed okay that is a very valid question okay and then the other question would be well the eleven that are not paying into shared services have access to shared services programs or whatever they is that they would offer because they are not a paying member into it. I think we have a motion common up this going to address the okay alright thank you thank you. Senator Teague recognize you for that motion. Thank you Mr chairman chairman I move that we have the eleven agencies and operated deficit I'm a read them to you Fraser lasting certification Arkansas motor vehicle commission. Our state board of public accountancy Arkansas towing and recovery board auctioneers licensing board. professional bail bond company. state athletic commission state board of barber examiners state board of collection agencies FOR inspection and board of electrical examiners and on I think those are the eleven and operated deficit and I want to ask that they come in Thursday and meet with us. Thank you and at that time Senator hammer will be able to ask those boards and commissions about those services that are being billed to them and how they plan to address that going forward as proper motion to her second. Senator rice you're recognized for a question will those eleven be forewarned to come prepared absolutely help they would already ready but that make sure they have all the information they need absolutely thank you proper motion a second and Senator Teague that includes executive Rick for the following yes I'm not include yes with that are taken on. A. Whose eyes have it motion passes. Thank you Mr chairman. So members we never took a vote on the amendment so I'll go back to the amendment from represent of all. I have a motion and a second all those in favor of adoption senator Hickey so senator Hickey. I guess my my question is is we're going to hear from these. Of what take both center take just said why would we want to go in passes amendment now I agree okay by the the. One of amendment for Thursday after we hear from the eleven boards and commissions. Seeing no further business before lunch we're adjourned. One thirty. All right. What about all round of.