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Arkansas Legislative Council (ALC)

July 21, 2023 ·9:00 AM ·Room A, MAC ·1:14:31
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Representive road would you open this up with morning prayer please Sir. I would stand. Or thank you for this day thank you for the business affairs that will be tending to today grant each representative and senator wisdom to do beyond our own best ability to its to be led by you lord and I pray for safety for all those being impacted by the storms and travel of the legislators and all those gathered today we thank you praise you for all that you've done for us and all that you're going to do we pray this in Jesus name amen I met with. Thank you represent road. Members are you would need motion on last month's a minutes. So moved I have a second. Second all those of favour say aye. All opposed ayes have it members out objection we're going to pull the peer report to do next representative Cavenaugh you're recognized for thank you Mr chair the peer committee met on Tuesday July the eighteenth the subcommittee received reports reviewed request and approve requests for the following various temporary appropriations American rescue act appropriations infrastructure investment and jobs act appropriation restricted reserve funds transfers and the state Central Services Fund deduction amount I move for adoption report and I'll have a separate motion after the vote on the report that's proper motion seeing no questions do I have a second. Second all those in favor say aye. All opposed Is have it says here your second motion president Cavenaugh I'm moved for suspension of the rules to take up a supplemental agenda agenda with a restricted reserve fund transfer requests for the insurance department sorry it is kind of early and country came out. We have the real representative Cavenaugh. All right that's proper motion the second. Thank you all those in favor say aye. All oppose ayes have it let's hear the motion mistaken on the insurance department request a transfer of one hundred ninety thousand four hundred seventy one dollars and ninety three cents the funds were cut will cover thirty percent of the increase in the cost of property insurance premiums of eight charter schools this master matches the actions taken in Pierre on Tuesday for public schools representatives of the department are here to answer any questions at the proper time I moved for approval of their transfer. Proper motion seeing no questions. Do I have a second. Set I have a second all those of favour say aye. All closed eyes have it members I will go ahead and hear from department of parks and tourism but I just wanna let you that we're going to have to go back and look at that the report of a second time but while data is being collected will go ahead and go to The interim secretary Louis to here to parks tourism report. If you would just introduce yourself for the record and you are recognized to give your report. Thank you Mr chair my name is Shea Lewis I'm the interim director of the Arkansas department of parks heritage and tourism. Get my notes together. So I'm excited to be able to provide an up to you update to you today about the Department of Parks heritage and tourism and some of the things that are taking place as well as our responsibility levels across the department I have to begin though with this when speaking about art or Department speaking specifically about our employees who they are and the work that they do on a daily fate basis they embody these core values they complete and fulfill our mission through these core values in the work that they do on a daily basis from our uniform park Rangers to our museum professionals to our welcome center travel consultants are professionals that staff or central administration insured services staff all go above and beyond on a daily basis to take care of our great state. And our guest and visitors to our state ally. So within the department we have three major divisions Arkansas state parks department of Arkansas heritage and the department of tourism and each have very specific missions that all relate to each other. we are entrusted with amazing historical natural and cultural resources that represent our state well in in each division uniquely supports those opportunities along with recreational opportunities as well. So Arkansas state parks is our largest division we have fifty two state parks in forty eight counties that cover over fifty five thousand acres last year alone we had over eight point nine million visitors to Arkansas state parks and economic impact of over a billion dollars through those. Our state park system covers lots of diversity in the types of resources that we interpret and and experiences that we offer we have a time in mind that many of you are familiar with we have four lodges two hundred cabins thirty camper cabins seventeen hundred campsites in even a bed and breakfast at historic Washington state park we have four monument trail systems two golf courses one radio show and airport nineteen waste water treatment plants we have a large administrative support side of what it takes to run and operate the state parks across that across the state. we also take care of the fifty four thousand seat stadium in war Memorial Stadium as well this year is are centennial twenty twenty three is the centennial of Arkansas state parks if you haven't had a chance to get out in Arkansas state parks this year I would encourage you to visit one pick up a passport you have to get outside to get in through our passport program you can collect the passport stamps at each of our locations and and through your visits you can earn rewards for your visits five visits twenty five visits in all fifty two you can earn our rewards along the way we've already had over a hundred people complete that challenge this year with the successful event. The next division I'll speak to about is our tourism division. In the work that they do our Arkansas stir is improves the state's economy by promoting travel enhancing the image of the state that is the challenge that we have to Arkansas tourism the tourism is also responsible for fourteen welcome centers found across our state at the entry points on major highways that are visited by millions of people each year but the primary responsibility of the tourism division includes branding marketing and promotion of our state and of course with the goals of increasing travel and relocation to the state of Arkansas you can see some of the points here on the screen that are related to the tourism industry and it being the second largest industry with art it within Arkansas and the in the the weight and value that the tourism industry carries within our great state. The Division of Arkansas heritage is a complicated program and Division with lots of varying programs that they offer. It was created in nineteen seventy five to preserve and promote Arkansas's natural cultural heritage as a source of pride and enjoyment for all so the the the logo's that you see on the top of the screen the two rows there are related to specific programs that fall under the department of heritage Arkansas arts council historic preservation program A. N. H. C. Arkansas natural heritage commission and the Arkansas archives so a large part of what the department of heritage does is related to collection management this division is is entrusted with some of the state's most important cultural resources that we preserve and protect. I through the archives and through the museum's that I'll talk about in just a moment they administer over seven different grant programs including the a and C. R. C. grant program as well they're also responsible for historic preservation at Jake wolf House as well as the the for museums that you see delta cultural center historic Arkansas museum the Old State House Museum and mosaic Templars cultural center as well. Heritage is also responsible for seventy nine natural areas that conserve the state's original landscapes as well as special programs such as the Arkansas food hall of fame the capital's owning district commission and main street Arkansas. A new part of our department is the office of outdoor recreation this office of outdoor recreation has a very specific purpose of leveraging the state's natural asset assets to grow that outdoor recreation economy this office is continuing to promote the state and new ways leverage opportunities for new initiatives work with industry partners and works closely with the department of commerce in the promotion of our state and welcoming new businesses and and new vendors to our state they also support an outdoor recreation grants program that adds resources to communities across the state through advocacy research technical assistance and grant funding and throughout the year many of the communities or in your districts have received grants through this outdoor recreation program continues to be positive support. Another's a program within the Department of Parks heritage tourism is also keep Arkansas beautiful the work that they do to help promote promote keeping our state. Known as the natural state. We have been working closely with the governor's office this year and our first gentleman related to the natural state initiative in the program that's taking place there we're moving forward with opportunities owns adjacent to for state parks partnership with commerce on the management of associated tax credits and identifying opportunities to leverage partnerships through this program as well. So what I would like to close with this is I would say Arkansas as a prime destination for outdoor enthusiasts from across the globe we have a fine state and I feel like it is an honor to lead this this department and the work that we do on a daily basis I'll be glad to take any questions you may have. Representative may where you're recognized for a question thank you so much Mister chair I have this conversation a few years ago and I probably haven't done proper follow up with the state parks department but something that we're seeing trending in other states are all terrain wheelchairs available at state parks and just wanted to see if that still conversation if there's some state parks that do have all terrain wheelchairs so that people with mobility challenges can enjoy this great state yes thank you for that question we have an internal policy that allows alternative mobility devices at certain locations in certain trails that can accommodate those trails we have just a recently applied for a grant to the national so say state parks directors related to at acquiring an action track chair a type of mobility device for localized state park is a trial program to introduce that opportunity for for those with disabilities that is a priority for us we're looking at many ways to improve access and improve our facilities for those that need additional so would this be at a chair that if you went to like you know you may have your own wheel chair obviously but you go to the state park and now suddenly you're going to face more challenges you could borrow the chair from the law judge or wherever it might be house to use that to go out on some of these trails as you're saying that's and would that be at every state park we we or our initial our national approaches to just place one et localized State Park to kind of establish how the program would work but it would be exactly it is that someone could come to the visitor center and use that chair as they needed on the trails local I. state park is situated well for the trails in the to proctor free our our great location for that it's also in. Environmental and educational park that supports that it would also provide access to upon where we allow fishing as well and so our goal would be to eventually grow that program other states such as Georgia state parks have really expanded that were also looking at a nonprofit partner to help coordinate that that helps improve opportunities for those with disabilities okay I'm sorry one more follow up questions I just it kind of a statement is that a lot of the beaches have these chairs as well that that go on the beaches and when I have a daughter in a wheelchair and so when we look at what beach we're gonna go to that's the first thing we do is we see is available and is it free you know that there's no cost to you is that that that's a benefit to going there and I think that it does attract people so that's right thank you and I encourage you to continue down that path thank you were also looking at I think called mobility maps that you put on your beaches that allow those that are in there disabled are in wheelchairs to be able to access the beach in a in a more proper through the sand so we're working on those as well thank you. Thank you miss Lewis and I appreciate your presentation thank you members I think we've got a motion to expunge the up a report Senator Hester you're recognized. Members I'm sorry I wasn't prepared when we went to the pier but I give you a brief exclamation I'm gonna make a motion here to expunge peer in and and there's a reason on B. seven we have a one point eight million dollar grant going to some outdoor stuff in Russellville but that that's that's a great thing that I support the issues they just got a twenty four million dollar federal grant this week and I think after some discussion with by Senator Davis that money can be better used at at at at at for another local project over there on the other side of the river And Dardanelle so this is a good thing Russell just got twenty four million dollar federal grant and so I'm gonna ask that we expunge over which peer past removed B. seven and then we'll bring it back next month of with with a different spin on it a little bit less money so that is the that's the ask in so with that I make a motion that we expunge the vote by which the peer report passed as proper motion of second of second all those of favour say aye. All opposed us have it now let's hear your motion to pull B. seven out of the report I make a motion that we past the peer report with the exception of B. seven as proper motion drive second. Second all those of favour say aye aye All opposed us have. So members with that we'll move on to the Secretary ward with the department of agriculture for his report. Secretary of you would introduce yourself and record and I would hope somewhere in your report you have a good news for us on fair funding. Yes Sir west ward from the Arkansas department of culture and I appreciate that and I guess maybe I'll just start right there or and I know we've had conversations with with several of you all probably the majority on this room about fair funding and is something we continue to work on I I appreciate the the interest from from the legislative members I think it is a a testament to just how important agriculture is and and getting youth involved in agriculture and livestock shows and agricultural events as part of the part of the fair process and it is something we continue to work on and so under that we we shared some of the historic funding with bill or I don't know if you haven't received that be more than happy to to send that to to any of you and and talking to rich with with specific questions but one thing that we try to do with that report was to show how how the funding has changed over the last years really really going back to two thousand eighteen and there there have there have been variances and I know that that is very frustrating FOR you all has as members its it's it's been challenging to implement from a department standpoint and and also of course gets a lot of a feedback and and input from from people who are or the recipients of that funding and so I would say we from the Department Sanborn is as as much of you as what want to see some consistency on the fair funding and and get that situated once and for all every every year about this time usually in July first at the start of the fiscal years when we make those spare funding payments and that's usually when we start getting phone calls either is not enough for or whatever a broad range of things and the the some of the history there that you're probably familiar with a couple years ago to a district fairs junior livestock shows FFA four H. rodeo funding all of that was stripped out which cause an increase in funding to the county fairs we added back in the the district fairs junior livestock shares this year which cause that funding to to do. Rob for county fairs and so that's that's because some banks and I understand that and get that another part of that was a couple years thanks to this for the legislature two point two point two five million dollars with the county district fairs a lot of that was in response to COVID so there was a there was an increase in funding that went out over the last couple years and so whenever whenever you get used to that for a couple years and then that funding drops it certainly creates a lot of uh questions and concerns there that's that's the. A brief description of that we're we're committed to working with each of you all and and finding a long term solution for that but would certainly be happy to answer any questions of about their funding now if if you if you want or or we can move under support. I think if you saw my board is very important we do it now chairman rice you're recognized. thank you Mr were not have appreciate you can you know this we we discussed but just so I got a speakers members nine speak for themselves too but this state is basically ever County in Arkansas we have people that don't. Thank you county fairs reporters used the vote you and I and the rest of us that are wanting this no these are young people that are willing to work that put months and months into that and it also older people that that they displayed it fired all in in what while it may not be the bigger I county fair doesn't have a car that goes with anymore that's that's fine with me we're focused on the fire but we raised tens of thousands of dollars across the state for youth programs to support our youth in these and and again we are facing inflation all of us are county fairs are to so while I want to be judicious without we spend our money. this is something it's really important I think that's what you're hearing I hope the executive branch years that in it's been I think very Would be very easy to fix this pretty soon if we can get focused on thank you Mr. Thank you senator Johnson you're recognized. The. West what. What compelled to put all those back in that had been taken out. All right yes Sir from from from the district general officer chairs one's ever added back in this this for this current fiscal year or what was the same same as what we're hearing from the county so it's the the conversation has kind of shifted to the other side so it it when when those districts engineer last sections were taking out the we we start getting a lot of phone calls from them from legislative members as well on on trying to find a way to help get them some additional funding support that that's what because that that for them to be added back in this year so what is the. A line item funding for. You have how much it is no no what's it what's it for for for mayors yes Sir it's says for years I think I'm have to look at the description within a budget this is fair funding so whenever you go outside of fairs. Has that in line with the law. There are I think that's I think that's a very good point zero I really do what you have that has that history of of the funding included junior livestock shows FFA four H. the rodeo queen that it had the high school rodeo search it had several different things in there that were a little bit different from fares that were historically funded so I would I would be absolutely in favor of changing that like whether it says specifically fairs only fairs to be recipients or if that's broader language for use agricultural events of some something like that to clarify that were we would be one hundred percent support of of of image and I don't disagree with that but I think each one needs its own and fares are different than the shows that's just you know getting those kids ready for for those. For years and and the state fair and I like it needs its own online item and Missouri with the. Decreasing the funding for the fares whenever that's what that line items for concern regedit his or. Representative Vaught you're recognized thank you Mr chair. So just so we're clear my amateur that I'm understanding correctly there's two different pots that were affected not just one pot of money that was affected correct one pot is construction which we try to work on during session which I think needs to be part of the budget every year that you all received that gets divvied out to our county fairs and then the other pot was the pot of money that was for the actual rodeo. Fares so forth and so on so I know that there was a large sum of money that was sent to a white B. which was money that was taken away from each one of our fairs to find which I thought when we were voting for that shame on me that it was new money and not being stripped from a county fairs Hey why he is not a fair correct the drug is just a livestock show right do they charge a fee for those students are or those people to be able to show their I believe it and we don't do that any other fair correct I can't say specifically but I I know that I most do not not right that's what I understand to so we took money from our county fairs to give to a livestock show which already charges people to participate in that livestock show I think there's a. Problem with that in the fact that it took away from our county fairs so I don't think I don't I wanted to make sure everybody here understood that we're talking about two different pots of money that actually got taken away from the county fairs not just one set of moneys but two different pots I look forward to us trying to fix this and make sure that it's in the budget from now on and I would agree with the senator Johnson I think it's important port that we do our county fairs before we start just doing livestock shows thank you. Yes if I may be just coming quickly on that I'm I would agree that the where the funding comes from is a board a very confusing so there there's general revenue funding there had been a separate part of general revenue funding that came through a department commerce real services in the past that was consolidated there's funding that comes directly from the port and find some inspiration to state players I think it's of a county tourism taxes I'm not real sure and then there's also the separate construction bonds which is usually either development enhancement fund rainy day fund another sort of making of so there's different pots of money which makes it more confusing and when one changes shifts everything around have what one hundred percent agree it's at the very top using a different pots of funding of where that's coming from can I have a follow up Mister chair A. Y. E. is it done by a private organization or private. It is yes ma'am it's a it's a private individual that percent sure one of they've got a lot of sponsorship and support but that's yes ma'am and again I I'll have no problem with a Y. E. but again we're talking about a private some then that's private versus something that's for all of our counties and all the students thank you Sir. Representative Richmond you're recognized. Thank you Mr. Over here west right here yes Sir I'm sitting next to the column because I always set where I have cover in case something goes terribly wrong cover concealment support that's right what you you know that. That every aw heck wipes wherever at a boy. And this is a big all heck as far as I'm concerned because it's it's really cause problems in my district with some of the fares that we have an and one of my biggest beef is that they didn't see this coming nobody told them the money that they had been relying on and had been pretty consistent was certainly going to get hit by one third you know nine thousand dollars drops down the six thousand dollars that's significant they had no heads up on this thing And so that's really put them in a bad situation can you tell me you you have a time line is the money that they're used to getting I'm talking about the one part that they would have right now. That money how are they going to get that money sometime this summer what are we talking about well hopefully we'll get it fixed by the time you know we get around to twenty twenty six or something like that. Yes Sir sue I I would say you know we we try to work with their managers association and other entities addresses we cannot share information that that's available and sometimes we may not have all the answers all all the time and I I I get that that creates some frustration on I'm not knowing what's coming and and and that's on us and we'll do a better job of that but as as far as the funding that's that's available for this fiscal year it was distributed the first week of July so July six I think it's when that actual distribution went out you're there or you want want to talk to your representative Bob mentioned that other construction funding yeah that was a separate part of money that arise different and met their that has currently not been approved they're they're just not there's not that funding be sitting there but the funding that's been available for this fiscal year has been distributed okay so what I'm hearing follow up Mr. So what I'm hearing is that three thousand dollars that My Fair did not receive. They're not going to receive this year. Absent some other mechanism that's that's correct. Yes Sir okay thank you. Centerman you're recognized thank you actually I'll get with you off. At other than this but I do want to look at the formation of county fair board somehow their forms and accountability though for these funds I think that's really important because we do have we do have some instances where you have a little bit of disconnect between your county fair board in your ACT teachers and those ACT teachers are trying to get their students ready for shows and sometimes there has been some dysfunction I would say and and so I really want to see how we can explore working with our ACT teachers in our high schools and this Act programs particularly when they're trying to get their County another livestock ready for the shows and how we can coordinate better with those high school art programs with our fair boards because I think there's some dysfunction there so that's just something I just wanted to bring to your attention that I think we need to look at and structure and how we can create create a little bit more symbiotic relationship there with those high school programs and the fair board's thanks. Senator Payton you're recognized thank you Mr so. My colleagues have done a great job asking the questions I had on my mind but I would like a better explanation on the construction money is of I understand what you just said about the fair money not going to be made whole vote what are we expecting on the construction money is it going to be a match from the last fiscal year is it going to be less or what. I don't have a very good answer for you on that and at this time Sir will be born every follow up with you but because it does require approval outside of outside of just the departments to so that your revenue funding that that comes directly to us we can we can distribute that the construction funding a is separate so would that is so if I could ask on the construction money if it requires approval then there's a request obviously that's being made. Is that request the same as last go round or have you broaden the recipients in the request of you have increased the amount of money in the request what is coming with the request and and that would be something we'd be happy to work with you on on how that would specifically need to be worded to I know I know there's a lot of concerns and so we. If there is gonna be additional funding we want to make sure that that answers as many concerns as we can. If I could the follow up Mr. So I grew up doing horse shows and and. Rodeos in I did not participate in the fair but there is a huge huge difference between a fair and a horse show or rodeo or play day of. The county fairs are where our school children. that live on the farm and work on the farm. Can show their peers. Exactly what they've been doing you know when they show up for school muddy boots and things like that I may get a little look at sideways but when they go the county fair they're the star of the show then their their peers get to see that it's a very very important part of of the rule communities and I do not want to see the fairy quieted with the livestock shows and rodeos and horse shows of there's a huge difference and and for that line item to say fairs I don't think you should have been any discrepancy in what we meant when we funded fairs thank you thank you Mr. So. To follow Senator Payton there. I think the the more proper weight asked that question is can you explain to us what happened and peer in June with the request you guys at sure sure can sue there were there were several conversations during the legislative session on on fixing fair funding session came to came to a close and and that had been fixed as far as the appropriation bill on a designating specifically who would receive the funding so we we submitted a letter to peer was I think dated in April and with just a a potential distribution and so submitted that with where I think the letter even says were that's just a starting point we're happy to adjust that however of the legislature thought was was needed and so submitted that in April Jean Pierre was when that was reviewed that have the starting point of distribution on their. No changes were made from that Jean Pierre and and that's that's on us for not being more clear on on where that many I'm interrupted there but how many meetings did you have with leadership appear or leadership of the legislature on that. Starting point as you use of terms to to talk about it was I would say would say individual meetings leadership but just individual members that that we knew that that was coming out and and and probably could've been more specific on here's a specific date here's a specific time we we had told people that it was being submitted to appear for review and that's where we could have done a better job of saying okay June I think June sixteenth it's so so numbers members of the legislature that knew that there was fairs and we're going to lose money going into this fire season I don't know that it was that specific surgery I think that status of kind of meetings that have to take place yes or and when an agency is going to move money because of a new entity and not add new moneys as representative Vaught alluded to those meetings have to take place of the legislature is prepared for those constituents to call and say this this and this and then they can explain to their constituency Hey this new fair came along with this new show came along whatever that definition that's been talked about all morning but those meetings did take place and. Senator Rice so myself wasn't prepared for those calls that we got from our membership sitting here today our constituents at homes and we lost twenty four hundred dollars this year because they added a new program available and understand that those are things that have to take place for people to be prepared. These are Senator Teague you're recognized. Thank you Mr so this A. Y. E. issue you know sell things like they'll say and turtle on a fence post it got there who specifically was it you that specifically made sure that they were funded in this who was who is the people involved to put that in the funding ventures there were there was a request to add it included as part of the discussion for distribution that that's how it ended up in that letter to did you have that sense bequest main square is it who made the request in in who specifically approved and signed off on it was you. So the Jean Pierre AS a or C. signed off on that one distribution but it was the the discussions during the session out I mean I'll tell you Mr Jeffrey hall with the person you ask for that inclusion as part of consideration so he met with you yes Sir and then you put it in their quest I got to the peer immunity IG before got to peer you put in the request and you're the you're the sole responsible person for put in that in approving that we we submitted it as a as a starting point for discussion C. say we who is we who is who are the services the department of agriculture and your the department records yeah my name on the letter yes or who else in the Department back coach besides yourself approved a the to get this money. I I'll take full responsibility for that okay that's what I read okay. Our. Senator Stubblefield you're recognized thank you Mr chairman Wes up what's largest industry in our state agriculturists or large center stage agricultural how many of these kids that participate in these fares are real kids what percentage would use I don't have a specific number but I was a a large majority of a probably close to a hundred percent right yes Sir who have worked all year of spending thousands of dollars on feeding supplies and working by their sales learning to be responsible learning to take care of animals learning a lot of things that they'll use later on in life. to me this is a slap in the face to rule kids. By pulling this money way from these rules these these county fairs I have one in every one of my counties. And I saved hundreds of kids who work all year long sweating and and taking care of these animals and then all of a sudden in a place where we spend millions of dollars on things that we don't even know where the we're going. We pull this money away from the small fires taking away from real kids. And to me that there is nothing more than a slap in the face to rule to rule Arkansas. And I just want you know that's how I feel about it. Thank you senator. Representative Cavenaugh you're recognized thank you Mr chair. Secretary ward my question is is simple when we gave this money to a private entity it's actually a private individual isn't it that one person runs this I would have to double check other specifically organized but it is an individual that has that started and and preceptor on how many other private individuals do we give state funds to like this they're they're the only one that received. Okay thank you. Senator Hester you're recognized. So I'm I'm just a little bit familiar with so this because I've said some meetings early on in during the request but like how many years were. I understand we're talking about rule or whatever but like it's that my guess is the same student raising the same cal or the same she like how many how many I guess a use are participating in both programs that's a great question I don't have that number we could we could have worked to find that out and ensure that back to the legislature really I I think of we've heard a lot of I think it's the same use right showing the same cal both places doing the same thing. Now I'm Senate meeting on this and session but that's where our I believe. It is the same student doing the same thing couple times probably. Senator Johnson you're recognized. Senator Hester a show is like a practice for the fair. And the bill have entry fees and that's whenever they'll practice and and this is we have funded a practice for for those that that and every county where most counties who have for years we'll have a show and we don't fund all. That's that's the difference here is we have funded a practice in this not just Arkansas Arkansas individuals that are part of this. Due to the location of court that meant the the construction funds lows one time funds would not normally go out. This year with the. This would be the year for the distribution asserts every other year and this would be a start of it by annual budget process of the start of this fiscal year this current fiscal year would be the usual year the last year that they got it was two years ago and you're saying those that has not been funded that's correct. And there's no funding mechanism as of right now and and we could that happen. I would have to I'd have to work with the with partner finds ministration on on the probate process as well as would be a lower on on how to submit that request but it has not been submitted yet but we would be more than happy to to work on that who is Jeffrey hall. He's an individual that's been involved in agriculture industry I believe that he is friends with the guy who puts on the share when he's he's the one that initiated the discussion. Is employed by the state is not concerned. So how does he have to be able to access you. just the same way any any other individual would and I say it started during the legislative session it was a request for consideration and what what a promise of funding I never promised and binding told him that we would we would match that as well as anyone else that was asking for funding and I'm AT and I'm not this is not all on you because those list come by us but. We get that and about a thousand other emails understand also in in our documentation and the and the I think we can do a better job and and and you also in communications whatever these things come out absolutely let's was worth one at least get that construction filed may hold for those those fairs and and see if we can find the funds for those fares to be made whole in their in their efforts thank you Sir. Senator Johnson I don't want to turn this into the construction fair money discussion but we had a lot of meetings this week and last week over that in the historical way of that being funded is through rainy day and set aside and truthfully we shouldn't fund things on an annual basis that way are on a on going basis would be a better word than annual and so I think there's some discussion actually moved that into part of the department of ag budget so possibly in effect in the fiscal session that could be addressed they would be here late on their money but they would still get it in the biennium so that discussion is ongoing and we would invite you to join us in that discussion so with that Senator Irvin you're recognized and and folks we've still got a lot of folks in the queue so we do have a long agenda to go I just wanted to follow up on what that conversation is on construction we have to have a better accountability though for these dollars because if you leave it to the fair board's which is fine some very boards are great but I have seen fairs where the students where they keep and house their animals and the barns are falling apart and they're horrible and instead they're going out and building other buildings and offices for the fair board and they're not taking care of the rodeo arenas and they're not taking care of the stalls and the barns where these kids are with their with their livestock so I hello part of that discussion a representative Wardlaw you need to make sure that there's more accountability and more direction on the construction monies for our fair so that we're not just deteriorating and leaving things deteriorated and that that we have a little bit better grasp on how they're using those monies I hope the Department of act will do that because I think and again. Connecting with our ACT teachers they'll tell you where the problems are so I hope they're part of the discussion thank. Representative Richmond you're recognized thank you Mr are Mr secretary. Well my letter that was submitted here last month and I'm just trying to figure out how much the responsibility that that I hold on this thing it It explaining your letter that the the impact that it was going to have our county fairs that this money was actually going to be taken from the county fairs in order to find this this go rope up in Northwest Arkansas did not nurse or okay it didn't go that specifically it was a it it had a potential starting point for discussion on distribution of the funding but it didn't it wasn't a specific I. saying your county fairs are gonna get cut that all heck just keeps getting bigger body. You senator Peyton you're recognized thank you Mr so if if this is already been answered I must have missed it but how much money went to the A. Y. E.. Forty eight thousand. And Trying to return and what Senator Hester was talking about. I mean we have county fairs then we have district fairs and of course the state fairs the big show of. That's the numbers if the participants in the county fairs are in their way to the state fair basically following in certain levels of the county fair that's where we end up consolidated not at A. Y. ET for those participants but how much do we. Typically fund. The district fairs each year are you know compared to the forty thousand they went that A. way trying to trying to see how that matches up to how we would fund the district fair thank the this year they received twenty five thousand seven hundred. Right why he got twice what the district fair units. And it's basically Northwest Arkansas also it's at as far as I know a why he would include out of state participants but the. That just doesn't correlate with me thank you thank you Mr. Thank you senator. Second word ward I think of the legislation but pretty loudly Sir do you still have a report did you want to briefly give I can be very quick if you prefer thank I would just end by saying you know I appreciate the appreciate the comments I do you and and I take full responsibility for for the frustrations and difficulties there and and you have my assurance of work as hard as I can to help fix things and help address the concerns of been raised today I recorder is important one half percent agree with that it is the rural communities it is the people of images that are shown in these are or the future of our agriculture industry which is our our our state's largest industry and we'll do everything we can to support that and and help make that right to as much as we can across our state's Larson's Reserve as I've said it's very broad it's very diverse there's a lot of opportunities there and we look forward to working with you all to help grow the industry and help get the get the future of industry involved as well. Thank you and I appreciate your willingness to work with us and getting this worked out because our youth are very important and the industry of our state is very very important thank you Sir some guys with that will move on to the to the president's presentation of the June revenue report. Dr so we'll. Thank you Mr chairman Carlos Silva legislative research on your staff and to them huge presented June twenty twenty three report as you look at page one to adjusted gross revenues eight point eighty five billion dollars there is a change of seventy six point nine million dollars a year over year which is zero point nine percent when we take it out the mandatory deductions we're going to have seven point one a five billion dollars which is a growth of three point nine percent your over a year and we had an increase of two hundred nine seven million dollars on page two we have a cumulative deviation from the forecast it has been reset every time doesn't of data forecast from from the agency and after we take any all those things into account there is a surplus of one point one six billion dollars for this fiscal year as we move forward from page three to page five we just have stand general revenues and form Page six and beyond is this special revenues being collected Arkansas has moved the same direction most of the neighboring states they have increasing collections throughout That the state's near us and we have followed the same trend recently without take any further questions thank you. Thank you. Senator Teague you're recognized for a question is Mr Walter here I just have a couple questions for him. Tian. Yes Sir. On Mister shall not. wall thirty FAA. John shall not DFA after all the discussion I'll be brief because I made in record just want some information so our our general revenue numbers from a collections is going down from previous years of you know we're spending more than ever and going to exponentially be spending more money at what point in time are you looking at projecting where these things don't come to an ex. Is it next year that you're saying Hey we're gonna go back to increasing instead of tax collections going down. When when are they going to start going back up again. So official forecasts that was released on may seventeenth we went out to FY twenty five. And at that point we show growth essentially normalizing over the last few years we've been far above our long run average and far above the RSA levels producing these large surpluses. we assume that we would come down off those unusual growth rates. not just in growth terms but in absolute. Terms so that's why you see these negatives along with the tax reductions we assume that that would take place but it comes down and and false negative in FY twenty for the current fiscal year and then begins to lift off of that was some positive growth in FY twenty five. It will still be above the RSA level this year reducing or indicating a surplus of about four hundred million. which we don't have an RSA for FY twenty four of but the lines to come close together and and FY twenty five assuming that the trends continue I mean I just says one thing on the budget to vote against it even in your projection seven four hundred million on a six point three billion dollar budget is not near the Commission sounds like a lot but it's just not I mean but so your project in these things to go down to negative numbers but is a concern at all that your sales tax revenues which is increasing the revenues I mean let's just be honest it's inflationary driven it's like I mean it's like thinking we have a really really strong economy which we do in about eight or ten counties basically. But anyway so I just have concerns if you can resend those things in those projections and I'd like to meet with you guys talking about that is you know this thing that we have a billion dollars which sounds like a lot I remember billion dollars back on a four point eight billion dollar budget I mean there be the quick learner having a two and a half billion dollar budget or three billion dollar budget state if you look at those figures so. Right now this idea of having to be in dollars even though that sounds like a lot can be gone in this economy with all the icebergs out there in this idea that this continued thing that we're doing obviously this is a statement of spending one time money. For ongoing operations is so far out of control and it's physical respect your responsibility to keep doing that Senator would be glad to sit down with you and talk about the long run forecast we're we have we share the same card concerns you have we have a good surplus that we bill that we see and twenty three and we had and twenty three and twenty four report we're forecasting one four million but you're right as we go forward and inflation is under control those numbers will come back it will have to deal with those so we will be glad to sit down with you. Representative makes you're recognized thank you Mr so my my question is on the the the the surplus can you give us a rough breakdown of how that is going to be allocated I know certain amounts will still like roads and long term reserve and then my. Follow up is we've got our long term rainy day fund that a certain portion is what's the balance in that account we know how much we've been able to put back as a state. With regard to the surplus are you talking about the surplus we've already determined a a of a need for and have a put into legislation are you talking about the surplus that remains unallocated and that one point six billion dollar surplus we have from last fiscal year. On the one. A portion of the one point six that we ended up with at the end of twenty three laws allocated about four. About four hundred million was so the the actual surplus it remains is not quite that high But we also took the surplus that existed prior to the end of twenty three and that was allocated by the legislature with agreement with the governor and and that was about one point six billion dollars I don't. Guestroom. We can provide that to you that they could be easier if we gave you that in a and a schedule as opposed to trying to go through it go Adam Adam. Would that be okay yeah that that's fine and then my second question is how much do we have in our long term our state savings account if you will be with the catastrophic yeah one point five two nine billion dollars. Okay all right thank you. Thank you if you're saying that the staff of the Russian get that out Senator Tucker you're recognized. Thank you Mr I had that same question so I appreciate a representative makes the one other question I had is if you look at the revenue in June of twenty two on the individual income tax estimates it was ninety six million in June twenty three was forty four million which is a fifty four percent decrease is that just from the tax cuts that were passed or what what's the explanation for that. Let's. It's a combination of the deceleration from unusual currents in the prior year nonrecurring growth essentially and the prior tax year we had a very high capital gains business earnings and bonuses we assume that that would not continue in the forecast we've probably overshot on the downside more negative than what actually occurred so that's why you see it above forecast but we assumed all that would would settle back down the it could not repeat at that level from the previous tax year. then you had also the the adjustment for the tax reductions thrown on there okay what were those one time occurrences last twenty two. Well again that comes back to the earnings in the prior tax year so it's a it's a blend of inflation affects in earnings you know capital gains or quite volatile does relate to stock gains and then bonuses occurred throughout the economy from a corporate offices on down to Rank and file was that you need to June or. Okay I know what I'm talking about is the revenue in June only. Okay for June it's a continuation of those effects now the tax reductions were retroactive so we sell a lot of the play out and In the. Late fiscal year activity you know tax filing season basically. Okay I appreciate it. Sir Dismang you're recognized and just real quick so it I think there's been a couple of questions on what we've already allocated aus the anticipated surplus which is now realize what we just realizes July first and so it just for the committee that's two hundred fifty million that was allocated for facilities funding that brings it to five or five hundred million altogether there was fifty million for you M. S. N. C. I. which we made that allocation today for the full hundred million so that's previous fifty plus this fifty there's twelve point four for the school safety set aside others forty five million for departments occasion adequacy set aside there's twelve million for teacher scholarships there was two million for the U. APP land grant there is one point one million for the lines teacher Eddie education program and then eight million dollars for eighty C. H. D. C.'s for the master a planned upgrades and so that generally get you to the four hundred million at the referring to those are one time expenses those are not ongoing expenses but that's what we agreed to legislatively to go ahead and allocate out of the estimated surplus now rely surplus. Thank you gentlemen thank you senator with that we'll go to the executive subcommittee report Senator Rice you are recognized thank you Mr the executive subcommittee met on Thursday July twentieth and reviewed and approved emergency real art educational regarding rules governing education freedom accounts review and approval of that emergency rule be effective at twelve oh one AM on August first subcommittee authorize BLR to move forward with the R. if the for consulting services related to the education facility property insurance issues in addition the subcommittee S. B. O. R. to draft procedures and a timeline for proposed study for the game in the State Police subcommittee related to gun to conceal weapons those procedures will be considered by the executive subcommittee at its next meeting Mister I move the adoption of the report. Rob motion of second second all those in favor say aye. Is have it with that we'll move on to the standing committees administrative rules and it's representive eleven you are recognized thank you Mr chair. members administrative rule subcommittee met on Thursday July the twenty yes Sir committee adopted the bureaus report of the acts of the two thousand and twenty three. Regular session requiring new rulemaking subcommittee reviewed and filed quarterly reports by the department of corrections and the parole board and percent ACT five ninety five to two thousand twenty one the subcommittee received agency updates on outstanding rulemaking all rules reviewed and approved as noted in the report Mr chairman I move for adoption report. And the plant board does have a quorum correct Mister chairman. Thank you that is correct they do have a quorum thank you. Do I have a second second all those in favor say aye. All opposed ayes have it with that we'll move on to the gamefish State Police subcommittee representative Miller. Thank you Mr chair of. Game face State Police subcommittee met Monday July seventeenth two thousand twenty three to discuss current concealed carry law instruction and enforcement the committee heard from Arkansas state police get French as other law enforcement officers and concealed carry instructors more to come. That's proper motion of second. I'm second all those in favor say aye. Is have it I overseen the employee benefits divisions ogle back to representative Pilkington. The chair the employee benefits division oversight subcommittee met on Wednesday July nineteen twenty twenty three subcommittee approved the topic and time line of the upcoming diabetes management program study to be undertaken by the subcommittee beginning at its next meeting in August the employee benefits division also provided an update on the pharmacy benefit manager or PBM contract with navis and answer questions regarding members access and claims I move for adoption of this report. I have a second. All those in favor say aye All opposed us have it so with that we'll move on to the review subcommittee Senator Flippo you're recognized give report thing Sherman the review subcommittee met on Tuesday reviewed agenda items including MOFs grants and contracts the disclosure of a loan agreement with a member of the General Assembly was approved no items were held and I move adoption of the report. Senator Petty you're recognized thank you Mr chair I would like to make a note for the record that I'm gonna recuse myself from this though because of my personal involvement on one of the items. That is a proper of notation and we'll make sure that it's in the record so with that see no further questions do I have a second I have a second all those in favor say aye All opposed Is habit with that we'll move on to the personnel committee Senator Davis. You are recognized thank you Mr chair the personnel subcommittee met on Wednesday July nineteenth interview the requests and reports listed as items one through twenty on the report item six a swat pull request from our for the Arkansas state police in item ten growth pole position for the public service commission or both held for further review by a LC it should be noted that item sixteen with attachment one provides the final report from the personnel subcommittee regarding the payment of law enforcement officer stipends required by act at five sixty one and two thousand twenty three as well as the procedures to be used the application for group to and the staff in amounts to be paid for Group One including reimbursements for certain institutions of higher education I move to adopt the report at the proper time including items six intend following explanation and discussion by the full committee. Thank you senator is I think I think I had questions on the state police I have met with them and I am okay with that one if the committee would like to hear the explanation that's fine but as far as I'm concerned they justified everything they said and personnel committee. And thank you and if anyone has any discussion or questions on item ten were happy to take those I know that there are a couple commissioners here from the public service commission and I know. A lot of you have conversations with them to try to get questions answered so there may not be any I think it's important that they come explain it because in committee the guy that came to the table really couldn't explain what they were doing with that position so maybe if we have them come table and explain it. Thank you. So if you guys would introduce yourself for the record and you're recognized to explain the changing your personal charm Wardlaw doll welcome chairman of the public service commission. Good morning I'm Katie Anderson at public service commissioner. Chairman we were we apologize for the dustup that occurred the other day we all three commissioners were in Austin at a national public of regulators meeting of what we hope to do here is we have a position that we no longer need as a result of eight eleven going to the attorney general's office and we have a we are surrendering that position I believe OPM is freezing that position we're asking that it be moved and set up as a chief of staff which would slide all from our chief of chief A. L. Jay's position both are chief L. A. L. J. a and R. executive director have taken many more duties as result of senior retirements and as a result of additional case law of the case load because of the increase options available on power generation that were undergoing and we're trying to do it with the staff we have them we believe we can if we make these adjustments and that's the purpose I think one of the questions that came out the other day and Sir Davis you're welcome to jump in here but what is the cost differential so are you spending more money than you had already out your budget is an equal cost would give us some expert you will be an equal cost we are a non general record non general revenue agency and so we set the assessments that the utilities pay so it is because of a revenue neutral thank you any other questions are committee. See fifty seven I'm not sure who that is. To send a private. Thank you Mr. Just just out of curiosity I know you said we transferred the duties of the eight one one board over to the attorney general's office the public service commission still has a very detailed properly so it doesn't items that the public service commission is related to its pipeline safety just outside of the eight one one board so if you give up this director position we've given up all duties that the PSC overseas for the pipelines and and the stakes are over twenty four thousand miles of pipelines and. Numerous federal codes given authority to the public service commission to oversee this before giving up a director's position. What what are we doing with the with the regulatory aspects of the pipeline the that is a very good question that position was placed there when we believe that we were going to be assigned in flight enforcement of a one one eight eight eleven there is a nother Director there that's in place of. Who is very well qualified and all his isn't in the House higher and so we're excited that there will be no lapse in service or security for the state. I see no further questions. They would come back to senator Davis's motion to accept these positions in her report. And I have a second all those in favor say aye. All opposed us have it to the full P. report a person port is adopted thank you Mr chairman and members of the committee thank you so with that members we move on to review of communications first item on review of communications is Department of Human Services presentation of the report of assisted livings. So do we have. The Secretary president. And there she is. Secretary but if you would introduce yourself for the record and you're recognized the report yes good morning Chris dependent secretary department Human Services. I would like to report that Again as directed by section section fifteen of actor to thirteen twenty twenty two reporting on the living choices assisted living waiver the efforts to increase reimbursement rates in the June meeting we presented that we would be seeking two million dollars for support of the LS we have achieved that two million dollars and I'm here to report that we are in the process of proposing or creating a proposal that would distribute the two million dollars based on the average number of Medicaid that's utilized by each facility during the period of twenty nineteen to twenty twenty two. and that would take into account pre covid COVID and post Kobe utilization rates we should have that done within the next week. I think that's good news seeing no questions we appreciate to report thank you for being here today absolutely thank you some members you follow me along to seven B. there is a motion to review that I need for the department of parks and tourism. I have a motion and a second all those in favor say aye opposed ayes have it seeing no other action items to move on to K. as interim study of as as we do every month that that income study without objection will be moved to the Committee. Of presence which is the House Committee on Advanced Communications technology seceond no objection that will be moved see no other business time we stand adjourned.
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Agenda

A. Call to Order.

0:33

B. Roll Call.

1:14

C. Approval of the Minutes of the Last Meeting, June 16, 2023.

1:26

D. Department Secretary Presentations, pursuant to Act 413 of 2021:

3:50

E. Presentation of the June 2023 Revenue Report – Dr. Carlos Silva, Legislative Economist

50:04

F. Report of the Executive Subcommittee — Rep. Jeff Wardlaw, Sen. Terry Rice, Co-Chairs.

1:01:54

G. Reports of Standing Subcommittees:

1:03:07

H. Reports of Interim or Special Committees: (none)

I. Review of Communications:

1:12:03

J. New Business: (none)

K. New Interim Study Proposals and Interim Resolutions:

1:13:51

L. Business Carried Over: (none)

M. Adjournment.

1:14:12

SUPPLEMENTAL AGENDA

2:46

A. Department of Finance & Administration, Request from the Department of Commerce: Arkansas Insurance Department, for a transfer of $190,471.93 from the Restricted Reserve Fund - EBD or Contingency Set-Aside, pursuant to Section 3(19) of Act 561 of 2023.

2:57

Documents

TitleTypePagesSource
Agenda — ARKANSAS LEGISLATIVE COUNCIL (ALC), Jul 21, 2023 Agenda 5 Official source ↗
Exhibit C - ALC Minutes of June 16, 2023 Exhibit 8 Official source ↗
Exhibit D.01 - DPHT Act 413 Exhibit 15 Official source ↗
Exhibit E - BLR June Monthly Revenue Report Exhibit 10 Official source ↗
Exhibit F - ALC Executive Report - July 20, 2023 Exhibit 2 Official source ↗
Exhibit G.01 - ALC-Admin Rules Report - July 21, 2023 Exhibit 46 Official source ↗
Exhibit G.04 - ALC EBD Subcommittee July 2023 Report Exhibit 2 Official source ↗
Exhibit G.05 - ALC - AGFC report Exhibit 1 Official source ↗
Exhibit G.12 - ALC-PEER Report July 18 2023 Exhibit 3 Official source ↗
Exhibit G.14 - ALC Review Report July 23 Exhibit 33 Official source ↗
Exhibit G.15 - ALC Personnel Report - July 2023 Exhibit 13 Official source ↗
Exhibit I.01 - AOC - Annual Court Security Report - 2023 Exhibit 2 Official source ↗
Exhibit I.02 - CodeRevisor_IndexReport_2023RegularSession Exhibit 4 Official source ↗
Exhibit I.03.a - DC - AEDC - Q4 of 2023 ITP Report ALC Review 070323 Exhibit 2 Official source ↗
Exhibit I.03.b - DC - ASD quarter report Exhibit 2 Official source ↗
Exhibit I.04.a - DOC - APB - June 2023 Activity Report Exhibit 44 Official source ↗
Exhibit I.04.b - DOC - DCC ALC Monthly Report- DCC June 2023 Exhibit 7 Official source ↗
Exhibit I.04.c - DOC - DOC IPTR500-18510487-1 Exhibit 2 Official source ↗
Exhibit I.05.a - DFA - EATR - June 2023 General Revenue Report Exhibit 5 Official source ↗
Exhibit I.05.b - DFA - AACD Annual Report 2023 Exhibit 195 Official source ↗
Exhibit I.05.c - DFA - OCSE - Child Support Semi-Annual Report_July-Dec 2022 Exhibit 2 Official source ↗
Exhibit I.06 - DHS - OOS - ALC Assisted Living Report - June 2023 Exhibit 1 Official source ↗
Exhibit I.07.a - DPHT - CZDC Monthly Activity Report - June 2023 Exhibit 4 Official source ↗
Exhibit I.07.b - DPHT - Division of State Parks_FY24 Special Language Report Exhibit 3 Official source ↗
Exhibit I.08.a - DPS - ASP UNIFORMED HEALTH PLAN JUNE 2023 Exhibit 3 Official source ↗
Exhibit I.09.a - DTSS - DBA Monthly ALC Report - FY23 June Exhibit 36 Official source ↗
Exhibit I.09.b - DTSS - DBA 4th Qtr Report.Non-State Transactions Exhibit 4 Official source ↗
Exhibit I.10 - PSC 2Q23 Rate Case Report Exhibit 5 Official source ↗
Exhibit I.11 - TOS - Financial Reports Summary - July 2023 Exhibit 2 Official source ↗
Exhibit K.01 - ISP-2023-085 · New Interim Study Proposals and Interim Resolutions: › Interim Study Proposal 2023-085, by Representative Julie Mayberry, requesting the Leg… Exhibit 2 Official source ↗
Supplemental Item - Exhibit A - Supplemental Restricted Reserve Request - Charter Schools Insurance Exhibit 4 Official source ↗

Speakers