Arkansas Legislative Council (ALC)

I have to order and first of your stand with me will recognize reps in him codes art latest word birth. Like this chair which i'll please rise with me do you have any father we come to you today or just thank you for all the many blessings that you offer each and every day we thank you for what you do for our families are friends with thank you to do the state we thank you for everyone here that helps to make this state run the legislators all the other people round our staff and things lord we just ask that you would just watch overreach and everyone where situation bless the business of this committee to day lord that everything will be in what you would have to be lord go with us and protect us and keep us and we give you the glory to praise and jesu. Thank you and members we appreciate you being here today if you make you the seats get set out what we're doing that I want to recognize my. Go chair has a birthday to day but I have already vetoed the singing of happy birthday happy birthday representative jeff word love. Okay members you have a copy of the minutes if you've had done a look over those i've got a motion to approve a second second own fibre I minutes or approved last meeting. The. And next time and adam day we have a presentation from sector humans mcdonald if you will make your way to the. Table. We appreciate you being here today and you hit that button on your microphone give us you are official yes you're not recognized he mcdonald's secretary of commerce could be with you this morning senator rice represent a board law happy birthday. Like negotiating it started will you are recognized okay thank you think you've all got a powerpoint slide in in your packet hopefully you do i'm not going to go through a page turn i'm going to save you a little save you from death by power point today but. We'll just go through some uh page that I have starting off with who we are I think pretty much all of you know what commerce does but. Our purpose and why why were here is there. Number one kind of growth growth the arkansas economy the top line. Really accelerate demand driven work force development. Protect arkansas consumers through a balance regulatory climate. Efficiently infectively implement federal and state work for services programs and of course be good stewards trustworthy storage of the. Of the taxpayers taxpayers the taxpayer's revenues so that's why that that's our purpose our department make up is pages four and five real brief comments you all know we made a change or are had a change of chief of staff were excited that jim hudson was able to move on and and become a head of dfna so were excited for him my new chief establish allison hatfield she started with us in january as general council and is now cheaper stale so if you haven't met her I know you'll be impressed she's got a impressive resume worked. In the as a clart for justice one of the justices of the supreme court for last twelve years part of that. Clarked for eastern district federal district court part of that corporate council walmart so she's very good at what she does and I know what you'll be impressed when. If you haven't had the opportunity to visit with her we have nine divisions. We have the or chart you can see there plus commerce leadership including state broadband officers. As of august first we have eleven hundred and twenty eight full time employees. About sixty five percent of those from dws twenty three percent from our regulatory agencies banking securities and insurance. And the remaining twelve percent split between advert aedc osd office of skills development heronatics and waterways. The eleven twenty eight is always a moving number there's a number of vacancies that are that have been posted so especially in dws and the arkansas reabilitation services so that number will go up but it always fluctuates. Um some maybe some some some key points in the economic development and work force development space the first six months of the projects that adc has been working on as of the end of july believe hundred eleven hundred and two new jobs have been created by the projects that we've worked. Average wages over twenty eight dollars an hour so were approaching sixty thousand dollars annual salary that's helping us move the per capital income in arkansas up so it's a good thing of those projects there is one point two billion dollars of capital investment. The last legislative session you all supported a ten million dollars sight infrastructure fund so we're excited about that to support sites all over the state with infrastructure needs that they need to fill those sites up that will go those dollars will be available january twenty twenty four. Mm. We also were were elevating and increasing our focus and support of archboardship in the state. It's always it's always been a focus but I think we can do more as a state we're not we don't want to duplicate what the other entrepreneurship support organizations in the state do but we want to support what they do and create more help create more of them all across the state. With that way we we just created the article so entered entrepreneurship support organization and combined the science and technology division as well as the minority women own business division all under one leader and that one leader is as prawns are crane so that was announced a month or so girl so we're getting that started and movement. The. Small business credit initiative ssbcr you may have heard of that that several months ago it are consultants allocated eighty two million dollars from the federal government and how specifically for building out a couple things supporting small business some more supporting venture capital in the state ninety percent of those dollars were actually trying to get a hundred percent of those dollars to support small businesses entrepreneurs in the in the state of arkansas with those dollars will be spent work force development. With office of skills development everything we do. Is demand driven in other words whatever employees want what they're seeking we're supporting the employer so it's gotta be demanded. Or we're not or not doing it and we will partner of course with training institutions to your colleges all across the state most recently you probably saw a couple of weeks ago the steel academy that we worked hand in hand win with uh the steel producers in northeast are concerned they were also five. To your colleges that partnered in that effort so real excited about that and we hope that's an example of some of the things that we want to be able to do to that was demand riven they got a huge demand. For skilled labor foresteal like like many employers across the state so that was specifically strategically targeted to the steel industry skills development grants last year. We ordered five million dollars of grants and fiscal year twenty twenty three and trained fifty four hundred workers. A year to date fiscal year the date we've already spent committed and awarded one point two million grants. In grants and twenty three hundred workers are trained so we're really upscale and make it an impact and up skill on the the work force in the state of arkansas. Also expanding apprenticeships aligned again with industry demand and of course were also work in hand in hand with mike rogers and the chief as chief work force cabinet the officer of the state. Some some continuous improvements on the in canada inside baseball commerce stuff that we're working on. Work into work and have a more more shared services within commerce we're not there yet it's going to take a while all within the guidelines that were required. But for example commerce with all of its divisions most of those divisions had. I'll just take communications what i'm talking about shared services basically talk about five or six functions shared human resources. It communications. Procurement legal. Within commerce within all those divisions most of those divisions had individual communication professionals and. Not necessarily real coordinated and what we've done as we've pulled out those communication professionals and reported them in one organization. Which is headed by clark codbill clark used to run aedc marketing and communication so he now runs marketing and communications for all of commerce. We can do more we can do a more communications better quality communications. With less less resources so that's the focus for example we had fifty social media accounts. Well that's not going to continue some of those accounts really weren't active. Uh not used very professionally so we're or tightening everything up making it much more efficient much more focused. Similar look similar message from communication from all commerce and of course they they will they will support all the commerce divisions. Strategic planning and goal setting. I heard you guys talk a little bit about. The performance evaluation system couple days ago I agree with you it's it's not a very good system we are in commerce all my direct reports. For the next twelve months we have got specific goals and objectives I will measure their performance based on how how they perform. On specific goals and objectives on how you how we're moving the business how we're are you completing tasks are we finishing the agent initiatives how are you working on your key process initial key key process indicators things like that we want ultimately push. Cascade that throughout the organization but it's it's basic goal setting one or one which were which were doing. May have seen a couple days ago on them seven ninety six hold they they can see as we've eliminated a hundred and ninety nine surrendered a hundred and ninety nine vacancies. We've implemented some more rigorous. Approval mechanisms on contracts for example in a contract over two hundred and fifty thousand dollars. There has to be a business case developed it has to be present to me and key people on my staff you're well aware we've transferred tannef to dhs. Effective august first. We also consolidated banking and securities per legislation that you all approved the slight session that was effective august first as well we're seeing a little bit of a efficiencies there. Uh we expect mid september. Boston consultant group has agreed to come in and I want they do a pro probable study but almost pro bono to do a strategic alignment and review. Of a of all of commerce departments so we expect that to start probably in september some time and september probably a six to eight week engagement so excited to get that started we will also do a for my direct reports we're going to implement a three hundred and sixty degree survey probably many of you are aware of what that is but if you're not. It's basically. Myself and my direct reports will get confidential feedback from our respective direct reports on how how we are as leaders. You know basic basic staff is stuff that this is done in the in the business community. Uh in as it's common that we're working through that to make sure that that happens before the end of the year it will help us help us be better better leaders all of us. Also trying to in our performance evaluation we want to do more with employee development. Not only are we evaluating employees performance but we want to have a conversation with them. What it what do they need from a developmental perspective you know some time that's maybe reading a book that that is important to the can help grow a certain scale that they've need the master better sometimes it's being engaged in a cross functional team within commerce but we want to place more emphasis on that as well as employee safety. A lot of our employees drive a lot of miles. And and I don't think we emphasize another on making sure that they're safe. Leave the leave your office to get to your meeting and time so you don't have to speed you know follow the speed limit use your seatbelt basic blocking and tackling. That's that's an objective for my direct reports that were that we want are we have an aspiration to have no accidents within within commerce so things like that we think we're important to to focus on. Little bit about dwess. Internal and next dump we've done a little bit of reorganization move the internal and external operations under one leader corny trailer we think that will help a little bit in terms of making sure the right hand knows what the left hand is doing better greater focus on improving hold times for call centers that that is a continuing process and of course the ui modernization effort is is huge you all know that very complex project we recently put together a steering committee at my level jonathan adkins myself chief the staff keep keep players on my executive team with the project planning team will meet monthly we've had our first meeting well we'll get on that rhythm to meet monthly to uh. Make sure we look at schedule we know look at scope we look at um budget you know basic. Basic management one or one stuff so to stay on top of things also doing the same thing with broadband and i'm establishing a steering committee for broadband as well also getting on that monthly monthly rhythm. And lastly i'll say that. Within a dbs there is a lot of effort. On work force development work for services we want to we've had a couple of meetings with all of the leaders of the local work force development boards and the state work force development board. To get better results at the end of the bottom line we've got to get better results the wheel of dollars that are allocated to the state. About fifteen million dollars a year the results are not good. How they can be better and where we are or sort of heavy heavy in a compliance mode. And while we have to comply with the doll rules. We've also got to get results in terms of getting the right populations training. And ultimately get them jobs so more to come on that excuse me that that's a big project it's hard to do that or organize and they have been answering your questions. Thanks sick dermat now that number people applied to in before start images ask you appreciate a full court press on the broadband in rural arkansas that uh is desperately wondered kitchen with register we have people that are moving in from out of state that are driving into town to be able to do business that they thought they would be able to do from their home and they moved in and so they're continued to push first up we have repeatedly make sure you are recognized for questions the sector they wish german way overheard you're far far right so sector thank you for your report sounds like a lot of good things happening over at commerce question that I have is on page four of your power point we have got the commerce the divisions listed there and your leadership. I notice you'll have a division of arkansas wine produces I don't think I have ever heard of that division doesn't look like there's any leadership there so i'm wondering is is that a defunct division what are they do is that something we need to get rid of is ready employees what's kind of the story behind that i'll do my best to explain it. I've i've made since there is zero employees on that it's it's all volunteer hender it is a yet as a result of some legislation back when they. Well and. When the grocery stores want to sell so why a certain percentage of of the tax I believe went to fund the wine whine producers and there is a probably million in a half two million dollars that have been accumulating in an account that the state controls. And it's ultimately four I mean i've talked to one of the post family members. Excuse me. And you know. They don't really have a strategy at this stage of the game in the terms if talking about maybe building a tourist wine tourist center that has not been done yet though so in your opinion is that something we should probably face now and get rid of our do you think it still has a old gentleman governmental function that we need to continue with it. It's a good question I think. Long term there's opportunity there for tourism you know if you look at what frederick's texas has done. Long term that's turned down to a kind of a tourist mecca. So but we're talking about you know years and years I think for something like that happen and you have to help significant private investment to do that thank you thank you thank you currently have six on the board represent the new recognize thank you chairman secretary over here when i'm curious about the office of small business and entrepreneurship one of the things that was curious better is at any time what will could we get a report from that department on how many new businesses have been log you know have started and arkansas how many have received government contracts the job grow things like that you know I know in a lot of states a lot of new job breath comes from entrepreneurs and that sort of thing and obviously I think that we're a great case study of entrepreneurs who have come in made businesses and you know fortune five hundred companies so i'm really sad about theirs i'm glad there's been a new focus put on this but I just was curious are we gonna get any sort of report on kind of the state of entrepreneurship in arkansas and can I help maybe guide us into things we need to do to help encourage more entrepreneurship and more small business your annually aedc provides a report and i'll am looking at clinton to see whether or not do we do it provide any information as representative was asking so she does with business small businesses or other burners that der we've developed we can certainly get to the numbers that never that we track thank itself okay resume lady when you regular thank you miss chairman sector in mcdonald I really like your report I think it's a good report i'm glad to see we're taking a business approach to europe the apartment instead of flavor of the month and I think we'll improve their but my question is. You mentioned something that really raised my interest when you talked about things you're doing to increase the per capital income in arkansas we have a big problem with that I believe there is a report it comes out every year call state of the state's report and in there we're in the mid forties as for as per cabinet income but in the growth in per capital income where in the mid thirties so we're we're advancing that we're still way down so one way to do the ad is to focus on increasing that per capital income by bringing in higher paying jobs such as corporate headquarters new businesses aren't below ship as a representative billington mention because those are higher paying positions people make more money doing that and you talked about how you had increased that some can you talk a little more in detail about you know what can you do to continue to grow that per campaigning income I believe that we should be written this might go nationally but I think we're to be radio california in new york for corporations because we are much better so can you give me any details on how are you going to do that well it you know we have target or targeted industries there's about nine targeted new districts with an aedc and manufacturing really any manufacturing today is is going to drive up that I shouldn't say paul but most of the manufacturing today because of the tight work force demand. We're seeing wages wages increase enters as you say that's looking at knowledge based high educated work force recruiting people from other states is important. We do have I think i've got a bullet in the power point slide about a talent attraction strategy that we've talked about. We haven't got it traction on that right now but I think we can we need to do more northwest arguments has done a great job in terms of their work life works here campaign where they targeted particular markets across the country. Denver the west coast austin. To recruit high tech talent and they be pretty effective at it now they've they've also given them a bike and I think maybe a stipend also recruit. Don't think the state could go that far but a little rock has also done some good work in terms of recruiting folks that have an arkansas connection as a state. We need to be in that game to recruit we can't we don't have time we don't have the time. To solve our work force challenges from growing all from within we've got to do that plus we got a recruit the blue caller and white color so and I think we can do more or work on on that and I think you know it's not just promoting the economics. To recruit people you have to recruit also quality life. And we got a great quality life we got the the economic supporters but also a great a great state. Thank you for your focus on it. Search king. Thank you did you recommend just want to like we had a conversation speak issue my district and I won't appreciate meeting with me and clarify in this data center crypto money thing that looking at the next session about I mean as far as running to be able to separate out of there to make sure that we separate those two the data centers that's not. No I mean they're they're too different things okay thank crypto miners and then data centers are very different art thank you very much up. Reps and about you recognize thank you mr chair and you can have touched on it but priding really go as steep as what I have questions on on the new system for the pay raises so my question he is at first I think the bell code never did work and it didn't work well and it really heard a lot of the employees state employees and state of arkansas so i'm wondering I will this new system be fair between the admin and the field personnel will it be a fair system in that aspect and when will it be up and running well I really wasn't talking about the pay system although it does need to be worked on I think is barne hill mention that the other day that we need to evaluate the piece system. And I have my opinions I have expressed my opinions and I think tss team was working on that with other members of the cabinet the governor's office. To get us where it's not so difficult to now hire folks from the market and have us more competitive I think there's always going to be a difference between total compensation they have to look at total compensation are just salary and between private sector and state but I think we can do more we can do better we can we can look at those pay scales but we also have to have a performance evaluation system that is it's hard to do but it can be done that's implemented consistently across state agencies not everybody's a five. Are not everybody's a three and to your point about the bell curve. You know I would say that everything and more a lot of things in life the disnormal distribution is a bell curve and and we can need to reward people and accordingly to their performance that's that's that's my that's my. Do you given my background I know others have different views but but I think we need to do more of that and I think the state can do more than thank you and go to reward law has some information yes represent value tss sectorate ts which is where miss belt barney works will report in october so we can alert them that that needs to be a subject to the report and october nub able to question them at that point on the place system centre hammer you recognize that machine I know situate implemented at three sixty degree survey for all commerce leadership my question is will you take it below the leadership level down to all levels so that all employees will have a chance to participate in that process whilst not implemented yet okay where we're trying to get the right system but I want to start it my level in and my direct reports level us get that work and first and then you'd you at least want to go down to the manager level but that you eventually like to see supervisors as well okay then the second thing is the is in the past I think has had a challenge in recruiting talent which can have a critical opponent I think to what you do over there because touches a lot of points what about recruitment of talent for the disservices and for those individuals that have that skill said are you are we being competitive where you feel like we're getting close competitive or how was that shapener john then asking would probably be best to answer that but I did see some analysis that the assessor that and some of our higher higher skilled higher graded dis positions that we were better in terms of we were more justice we're getting close to being competitive with the market ten and one let's say i'd like to ask you to consider working with dhs. A good discussion several years ago was when the steel mails were going in open northeast arkansas about trying to draw correlation between the reduction of people's dependency upon government services as associated with increased pay to represent a layman's point a while ago if there were some way that two departments could work together to see as we improve are we seen the needle move as far as people be more dependent on government services cause I think that would help in the dhs world and the medicaid budget and other things and i'd just simply make that request maybe that conversation currently we we do need to look at that yeah they will do art thank you thing the sure thank you centre chesterfield. Thank you so much message here and you get to see a one of my great concerns of the salaries that occur even within divisions and as we look at personnel one of the things that are. Our fault in the field are having difficulty with years I don't really know how i'm being judged. In order to get the merit pay and you've got a plethora of divisions within your thing you're round. What i'd like to know years does each division evaluate start predicated on the same new bricks because you have those rubrics available but some individuals use rubric one two three and others might use four five or six i'd think we need some consistency so that people know what to do in order to big considered meritorious assort you considering that as you look at staffing yeah that the rubber that you're referencing in the perform here so I am interpreting your question okay the the performance evaluation system that we currently use. Really does not provide a means to ebay weight specific goals and objectives that the employees are meeting it's million more other rating one through five on particular competencies. Now some companies is you're important but but there's competencies such as. You know professionalism you come and reward you know attendance of financial acumen customer service customer relationships there's probably twenty five or thirty of them and the the process. My understanding I wouldn't hear when when the year. The agreements between management and the employee they agree on less measure you on the following competencies. Okay now that may be that's different for another employee there should be some commonality within departments certainly but but again that's that's the old system that's the current system but I think we're moving from that system and I want to focus on. Specific goals and objectives that that department whether it's insurance. Where there is department work for services. What do you do what are your activities where is that department what is the goals and objectives of that of that department. And it must they must be aligned and it must be a line all the way to the top of the apartment for commerce that's needed that's part of the evaluation that we want to do with the bus and consulting group are we all aligned. Are we looking at the measures consistently in our are those measures consistent or a line to the various goals that we want to accomplish all across comma so that sounds in great deal more objective than the subjective way that we're currently doing it yeah you want to certainly want to be as objective have those measures and currently a smart measure smart goals specific measurable achievable. I don't know I can't remember what they are standing for but but you want to have your never going to take the all the subjectivity out of performance review it so it's a human thing and and so but you want to try to be as objective as possible with with the goals that you set for. Every employee in the organization so within each one of those divisions you will have a different set of standards predicated on the work. That is a signed in that particular division is that what you're telling that yeah that's all right thank you thank you mister they could send retest feel like doing it now thank you for being here we appreciate your updated leadership characters and thank you for your report thank you for being here members next up we have a doctor sale but it's going to give us our july revenue report. Looked at down on line four below adjusted general revenues and the last line you're going to see increasing corporate contacts refunds and an interview during contacts with funds that was expected and even when you take danger consideration you're gonna see there is an unincreased there of two point one percent compared to july twenty twenty two for a total net available for distribution at five hundred and fifty three point three million dollars as we look at page number two we have a community of deviation form their forecast which is just one month but we about forecast f fifteen point nine million dollars. As we move on page number three each page number five you're talking about this there general revenue collected which was mostly driven by grocery sea taxes crowd this month and from peace to page nine who have special revenues with their i'll take any further questions begoing this I want to have any report thank you thank you center keying you're recognized like mister and I will go into things talk about the revenue that the dfa forecasters become up for a quick question that's all again. The. Or anybody mr bay or anybody. Yeah. Your wheel state your name possession in your recognized. From breakfast defend. Witness gloveline with the fa economic analysis the tax research two quick questions one is in i've talked about previous things about power we're spending to merchant specially with economy and everything in the spinning levels but so the recent news tasks and foods closing plants cut off growers in engrowers contracts put them out of business. You know that be in a big company in arkansas culture economy i'm in it it's there's nothing rosy about any of it in the future does that in the reemergence of colbert now it is adding that that worry you guys is looking forward about your spending plans. This is more economic forecast question and a budget question mister bray so as far as the spending that's already been set there was said in the in the session you know we did keep per growth at the roadside kind of the normal amount of just under three percent but but those are those numbers are set for the fiscal year twenty four obviously if there's a downturn if things that are happening in a tisor and agricultural industry in general and that's something that will have to be taken into the count in the fiscal session next year or that's already happened i'm just saying and looking at economic forecast I mean these are not good news things force looking forward the second thing is on internet sales tax i've been asking for the figures of what is the total collected i'm not asking for who individually collects the tax whether it's joe's bait tackle shop or walmart amazon what is the total figure that we receive from internet sales as the what i'm on. Um I don't have any numbers on what the internet sells text brings you not have to talk with someone in the cells tax dell department took out which you can give me those figures of what the total internet sales that I mean we get on beer marijuana bet and everything else i'll want to see what I can get for you on that yes so you're going to get me an answer is that yes okay thank you. Ribs in a makes you recognize thank you again i'm over here far far right I had a constituent contact me here in the last month that said that they had student loans that were forgiven and down in contacting DF and a a game over here to your far far right and in contacting the bureau that is a taxable event for the state so if someone had a hundred thousand dollars and student loans at a hundred thousand dollars an income according to the state you're looking at a five thousand dollars tax hit do we have and I don't expect you to have this but can you all find out from the federal guard from it how much and student loans were forgiven in the state and what the potential tax implication is to our constituents for this year i'm afraid if that's a large number that may be something that we may need to look at a little more detail so that our citizens aren't hit with huge tax bills that they weren't anticipating this year. The. What will have to look at that and see what kind of numbers wouldn't come up with we'll get back with you on there thank you. Ribs in begin regular. Thank you mister chair discussion as you may may want to get to this information to me later but but. Is it passport to county by county and are concerned to receive the sky pig backs a little bit out the server kings say that that the internet sales tax out are going into these different counties in if if not explain to me why it is not as often the way back to the uh because I think that would be valuable data to the counties into the city circus I doubt you're so we don't really know if our cells tax are going up in this city this could just be a result of the the county tax that the excuse me the internet tax coming in and dumping in so I think it'd be a valuable tool for them in terms of their planning. Yeah whether or not I think that can be broken down bike by city or county II suspect it probably could but but i'm not familiar with the. If you were tracked charlie collins on the commissioner revenue definitely would you repeat the question please there i've had my local city like the mayors and sense of they want to get more granular with their sales tax numbers because no it helps them planning and where we're just you know because some have new revenue coming up from sales text but they don't know whether it was actually. It is my understanding that they don't they don't know whether or not that tax came from an internet cell that was in the county are in their city or something like that so could we get a more granular with that report as far as they are concerned to allow them to be able to you know use that information for planning so yeah yet yes her representative back here here be two things that I would share the first ones in answer to the question about separating internet sales collections versus other sales collections so we do not get an internet seals specific sales text collection so what happens is a business they may have online they may have bricks and mortar they may have army channel we get all of that from the business as their sales tax so we can't distinguish for a given business what came from the internet and what didn't ask you know the was a business that had no internet at all obviously we could assume that one was you know just traditional and might be another business it's out of state with no physical buildings here you could assume that businesses was all internet but we don't break that out there's no requirements. From the incoming perspective to have that broken out that that would be point number one point number two with regard to the cities and counties we have a tool which breaks out there sales tax receipts by what's called standard industry codes or sic codes so they can look and see what percentage came from wholesalers what percentage came from different business types that tools updated regularly it's online we actually have a little tough sheet that can teach and educate we like to get that sent out to the cities and counties i'm happy to send a copy of that talk sheet to the committee so that the members here can have it as well it addresses other issues that are relevant to cities and counties as well like the process for changing a sales tax and other things but yes sir we understand it's important to give them information they need. Follow. Well. I sold at this I understand you're saying that there is no actual way that we can tell. To get it really good hard numbers fars separate those internet taxes out versus the non internet telestax yes sir that is crack we do not have when company xyz sends us their sales tax there was no breakdown so we get that entire business all in one thing yes sir do do we know if other states do that. Or is that is that is typical II do not know where a member of something called streamlined sales tax consortium that has some common allergies and terms of how things are done that would suggest to me that what we do is typical but i'll have to research that and get back with you thank you so much centre just for your records thank you mr chair dapa silver on page three where it says medical mirror one implementation fine and medical marijuana tax am I missing something i'm not seeing the figures that go with their own page for no ma'am and in an agent I need take a look into there no matter where you are correct there's no numbers here I need your looking to that you could have just been a not having been moved towards did the right line here and if there is some some funds they are i'll definitely know so I thought that so much I appreciate it. Okay man names disappeared to thank you all for your test money thank you next day we'll have a per sub committee report from a coach order law taken restaurant the executives are committee met on thursday august twenty fourth and approved the procedures of the arkansas firearms and seal carrier law study to be conducted by the alc game efficient staples subcommittee some committee heard an update and response to the education of silly property insurance consulting services rfp and will meet in september to select a consultant subcommittee also authorize bill or to move forward with a contract for the construction of secure walkway this walkway will be built inconjunction with the air conditioner room just being built by a sector states to provide air conditioning to the north end of the capital the money that is is being used to pay for the skirt walkway as money has been appropriate since two thousand nine a rate of two million dollars per year. The way the contraction will take place there be a two million dollars expense the first year and all just short of that two million a second year to pay for the fleet project. We will also be having in this report we will give me giving policy making sub committee the final authority to approve that contract in his meeting next tuesday in addition to some could be made recommendation lc extend the deadline for the completion of the code of arkansas rules project to december thirty first two thousand twenty four a move for adoption of the report. I have a motion to have a second however. Question a reps and new crawford you reckon a thank you mister chair I was just wondering about the reasoning for the procedure for the firearms and can seal carry study. Er can someone tell me the reasoning for that there was a meeting with the state police and game for subcommittee back in june there. June seventeenth and in that meeting there was a lot of concerns brought up of last day were convoluted and one law gave permission for one and two last gave no permission for the same so I think it's important that the subcommittee used the next year and a half and go through all of our done laws in the state and simplify that and make it more accessible and easier for the common man of arkansas to be able to understand it. Um as you saw this week attorney general tim griffin is also feeling the same way he had a number of legislators reach out him for attorney general opinion so they've noticed app and he put together working group as well and we vowed to work together through council and attorney general's office to make sure that we can fix this for the people of arkansas okay once the steady is completed will it be approved by alc or will I absolutely the study if you read the rules that were adopted yesterday they were they will make recommendations for legislation that will come to council and december two thousand twenty four before the twenty five session and those bills would then be drafted in members names and then be presented in the session for the option and some will and some won't get adopted obviously but the council will bless that book of bills before it goes out thank you just me central patent you recognize. Thank you mister chair can you go over to get exactly the makeup of the committee that you're talking about he's going be on the committee it's already made up as the arkansas game and fish and state police subcommittee. Okay thank you yet circummedia available saying no more questions had motion is second on the executive so committee report all in favor I opposed and report his approved next her per we got her standing committees rules committee is. A representative evans are you given that. Centre hammers given that you recognize their dream they come as chair the administrative rules socommittee met on thursday august twenty fourth the subcommittee filed a report of the exactly a subcommittee concerning his july approval for emergency will pursue it to act five ninety five twenty twenty one to subcommittee received agency updates on outstanding roommaking and reproved a request for exclusion of one act from the five ninety five reporting requirements i'll rules were reviewed and approved as no did in the report and i'd move for the adoption of the report you have a motion in a circuit saying no questions are in favor I opposed to and report is adopted. Were you going to number four on employment benefits division centre hickey move you've got that report sure thank you mister chair the employee benefits subdivision oversight committee metal wins the august twenty third twenty twenty three the sub committee approved an amendment to revise the timeline of the dabites measurement problems thirty the subcommittee reviewed and approved the employee benefits divisions drug formulary recommendations report in the subcommittee reviewed and approved the premium rate for the twenty twenty four plan year the subcommittee received updates from the arkansas pharmacies association and moved for adoption of the report of emotion in the circumstance of questions on fabric opposed to the report is adopted a higher education center service recognized to give that report. Thank you mister chair the higher education subcommittee met on thursday august twenty fourth twenty twenty three the subcommittee heard testimony from the arconsider version of higher education regarding teacher the teacher academy scholarships and credentials for the arkansas public institutions mr chair move our adoption of this report and I have a another motion after this if you are okay with their okay we have a motion for adoption of the report is given to have a second. Second old favorite adopted reports they eye opposed. What is your thank you mister chair we didn't meet on this we briefly touched on it the other day and committee but I moved alc authorized to higher education subcommittee to conduct a steady regarding diversity equity and inclusion as related to institutions of higher education in the state to be concluded by twelve thirty one twenty four. It would be a proper motion that do have discussion do have a second on emotion and travel going to discussion central chest failure recognize thank you so much mister chiera no it's somewhat surprising to folks that I would second that motion but i'm as interested in. Rip sound for so many years and finding out what we're how we are doing smaller is making sure that the colleges in universities across the state are inclusive of all people I think we need to know what they're doing and how will they're doing I don't have the same amount of seller as my colleague does on this issue but having decegreated an institution i'm i'm quite interested to see what the demographics are of our colleges in universities because it is important that we allow every citizen in this state possible to hear a shattered equality public education and sell with it I want to know what the numbers are saying across institutions are in this date and would urge you to book for this motion I know that's not what you expected me to do but it is what i'm doing thank you mr chairman I refined you if I take exception to the labelling of a zellot yeah this is good information for all the people of arkansas and if we're looking for the betterment and the benefit of all the people in the state then the lady labeling as a zellot I think it's an appropriate. But yes i'm all for everyone in the state taking an opportunity and all the legislators have in the opportunity to discuss this issue thank you mister chairman. Saying no other question we have emotion a second on the floor that central solvent i'll in favor opposed. Motion purchase. The next step we have the huawei commission review and advisory representative mcnair you are recognized give that report thank you mister chair the highway commission review and advisory subcommittee met thursday august twenty fourth twenty twenty three of two thirty and magnet. Subcommittee heard testimony and discussed the following items report of june july and august twenty twenty three monthly update today or see efficiency study recommendations rules for implementation. Quarterly land conveyances report and twenty twenty three fourth quarter report on the progress of each highway construction project of ten million dollars or more the subcommittee reviewed the following item. The pero's contract with garver llc for construction and maintenance activities reporting system for the implementation of the efficiency's thirty rural recommendation number three. I moved for approval of the report. Okay saying no question have got emotion to have second have second hour on favorite I was report is adopted thank you representing me now next lottery overseas century and believe here giving that. Your yes sir thank you mister chair i'm presenting this report today the lottery oversight subcommittee met monday august twenty first twenty twenty three at two pm and room magbe the subcommittee reviewed the following reports the work force chair and student status academic challenge student status and are considered a vision of higher education grants find a net proceeds trust fine. The subcommittee held the following items the directors report writing the activities and operations of the offer of the office of the arkansas lottery and the financial report on the administration of the arkansas academic challenge scholarship problem for air flat twenty twenty three. Mr chair of anyone also know why we held these reports i'll be happy to explain otherwise I move for adoption. You have a motion in the second single question zone in favor I a report is adopted thank you centre hookie next app occupation last review center english has been working on the double time this week center english you recognize for your report. And on monday august twenty first two thousand and twenty three and thursday august twenty fourth two thousand and twenty three to receive reports on occupational authorizations from the following entities on state board of public accountancy arkansas state board of license here for professional engineers and professional surveyors arkansas board of examiners in counseling in marriage and family therapy department of financial administration office of driver services arkansas department of health office of preparedness and emergency response in the arkansas social work licensing board I move we approve this budget. I have a motion in the second saying no questions on favorite I posed thank you central english for that report we are going to number twelve owned appear report sent to dismaying you recognized. Thank you miss chairman of the peer subcommitting there on tuesday up or august a twenty second september receive reports for viewed reports a request and improve the following bridge temporary appropriation cares act preparation american rescue plan act appropriation infrastructure investment and jobs act preparation in restricted reserve fund transfers one item in the report see one is on hold this was a request for six hundred twenty eight thousand in a european preparation by DHS to expand the public health work force in the bla's peer moved to refer this item the house in senate public health committees for discussion to make a recommendation appear by next month's meeting and move for adoption of the report have a motion in a second i'll in favor for the report I mean they pouched. They have a little bit weeks sorry in my phone report is adopted senator flipper will you recognize to give the alc report. Thank you mister chairman the reuse of committee met on tuesday august twenty second review to gender items including most grants and contracts two motor vehicle leases were approved no items were held and I move adoption of the report. I have emotional second favorite report to eye post. Got a question represented barry is that on this report don't care how to get montore the report is adopted representative bear if you'll go ahead and pull again now for the personnel reports check thank mission with the personal submitted met on wednesday and review the request submitted the report as items one through sixteen with the exceptions were noted the committee approved a motion to hold the item twelve. As a request for a merit increase over the maximum sorry but the grade for the arguments all pbs director till there's resolution within legislative audit regarding audit findings at pbs and move to adopt the report at the proper time with the exception of item twelve which is held in submitting. Okay motion and they have a second taken out in favor I both thank you general wary for that report members next step we have in review of communications on the arbso teacher retirement system if there is any questions would bring somebody up if not be there chance to look over there though we will have a first. If the director why will you come on it. The. Welcome back in your new row my coacher has a question for a law thank you and thank you for being her director looking at this it's always something that I worry about when we become a equity partner ownership can you explain to me just really quick these four and why you think these are okay and a good idea and and I mean I understand the west right was a big deal and it's a huge deal for conway and arkansas also if you could walk through that with us and just make us feel comfortable with the equity partner certainly I think mr and more quiet are teacher retirement system so let me address the west draw coffee company first that was the case where we had an opportunity to join our much larger investment involving other very sophisticated investors course was drex probably traded as norks are company and so we have size a good chance to get in at a good price because we were off to discount for a purchase of that stock we purchase it ten dollars a share I checked a day's trading at twenty a share and based on our review as well as the review and consultants they think that were struck as a good path for and so should see some good return on that investment in the years to come and saw that with public stocks with all that was a good investment on the harbor it's very small equity investment are mainly investment there is we're making a loan on some tax credits and they will receive from the state based on their activity so as they start getting their plan constructed by equipment employee in individuals they'll be able to access some economic available tax cuts we are loaning money on those tax cuts and then we'll be repaid from the expressive tax cuts tax credit and will be repeating those tax credits but under the law in order to be eligible to purchase those tax credits we had to have a negative investment sir that's why we made a smaller equity investment as though we met those criteria in the statute. Okay. Thank you. Seeing no other questions and take a motion have a motion to prove second taken out by her own a say I imposed per as passed and we go into be now there any questions. I have a motion to buy as every second on favor on beats they I posed thank you for being here. Members of there is anything in the other last before we go to the page if you've got any questions only those things in requiring. Uh presentation in the report is a department of human services we've got secretary platinum here and welcome heard come up. They have a mother reported on sisters living facility reimbursement rights and. Any other pertinent information you'd like share with the sector but good morning christie patten secretary dhs thank you for having me back here again for the report on a sister living facility rates. Teachers always has a lot of information to share. Would like to report that the status of our efforts to increase reimbursement rates under the living choices assisted living waiver in the july meeting of alc I noticed that dhs would be dispersing two million dollars for support of assisted living facilities as bridge funding to assist with continuous operations while dhs implements the cost reporting required by admit 19 2023 to qualify to receive funding as we reported in july. Of alfs would have to agree to a test that they both incurred operating losses during the cover teen public health emergency and they also would have to agree to submit to a financial review by d h most of the alps chose to i'm sorry assisted living for solutions chose to comply with these requirements to receive the money there were five assisted living facilities that did not return at a station forms they are listed in the letter but i'll go ahead and read them off for the record autumn home care facilities and rogers bent involve assisted living in bentonville new care assisted living in cabinet stone haven't seen your living in my mel and fax room in brian they actually declined to receive funds they were the only ones who actively declined. The funds were distributed on august tenth to the alps who met the requirements for disbursement there is a small balance of eighty four thousand dollars due to the facilities that decline funding we are continuing the work necessary to implement at one ninety eight of twenty twenty three which authorizes dhs to establish cost reporting for medicaid funded assisted living facilities. Um and in addition we continue our broadbase review of the entire medicate system and programs and we will bring forth recommendations later this year to ensure the long term sustainability of the program that concludes to report for this month. Thank you sector button. I've got hers and see thirty year recognized for question over here that's maybe thanks to thank you so much is there any way because you just write or off a bunch of information and I really am a very visual person and I kind of like to see it written is there any way that you can supply like where you mentioned five facilities that did not they didn't want money they didn't but how much did the other ones get you said there is a leftover of a hundred and eighty four thousand can I can I just have something visual a chart with numbers that amounts to each one of these facilities how much they received yes we can we can supply the payment summary thank you but not seeing any more questions thank you sector button for your board appreciate that thank you very much members are we will remain your next month it is where the counter road round is september eleventh through the fifteenth so view that watch that then no with that we are journal.