ALC-Administrative Rules

All right chair call the meeting to order recognizing there is a quorum if you hear signed up to speak against any of the rules that are before us please make sure you find the sign up sheets that should be back there by the agenda on the flat top of the rail there you will be taking those up in just a little bit first thing we're going to do is have the reports of the executive subcommittee concerning emergency rules. We have one report from the executive subcommittee this month concerning the review and approval of an emergency rule last month are there any questions or do I have a motion to adopt this report. Second get a motion second any discussion. All favor say aye opposed motion carries all right the reports for the L. C. subcommittees concerning the review the rules we have no reports this month for male C. subcommittees concerning the review of the rules item the rules filed next on the agenda are the agency rules and if we could please will get the Commissioner of state lands to the table and Kelly if you would need to do so for the record when you get there please name and title. Thank you Mr chairman I'm Kelly board deputy commissioner state lands thank you recognize your head kill. Mr chairman rules we're presenting before you today the but Joe the majority of them are rules that came about as result of legislation that was passed in the most recent session one of the bills had an emergency clause two of them did not that comprise rules that are in this package rules we have today there are a hundred fourteen changes that were simple amendments we in the rules they were as a result of one of the bills and we changed everything land. property works like that we made it all consistent with the word partial. And then the rest of the changes that we made had to do with specific language within the bills that were passed by this body. All right anybody get it. Hi one second system would sleep. Or wait for the wake up and they have any questions regime million questions. Nine okay I just got one Over there it's a comment it's on our notes page to its total three subsection or subtitles C.. Says the sections provided that in circumstances where the payment of earnest money fails to the buyer fails to pay the balance due after the earnest money has been paid that buyers may be prohibited from bidding in all future auctions who is that this can be determining whether they may or may not or what's the process so that is just not left up to somebody in the office that may have an axe to grind against somebody or something like that they're all run through the commission may okay so you all would have the final authority yes Sir okay I have to assume I didn't have an axe to grind no in that instance but yes all right so would you kind of just give me real quick the framework or what would be the criteria that you would decide whether somebody could bid on it four would be multiple past failures single failure or what's going to be the the the criteria you you would use it will be a single failure and then the individual would have to present extenuating circumstances that may what happened to be a valid reason for failure to pay. This is not a small part problem with the Commissioner state lands office two years ago we had one point three million dollars in payments that failed for one reason or the other. Since the online auction is going on board July one of twenty twenty one we've had two thousand eighty three. Instances where someone failed to complete a transaction there. When we have problems with people it's typically not once and is typically not a small. Okay Seling county to two years ago we had an individual command bought a piece of property rose to check for sixty three thousand dollars and went out and looked at the property after that after they purchased it decided they didn't want to do it may stop the chair will make the problem worse this person was from Minnesota. So these are the things that we're trying to resolve we're not in this to try to make more money off of that we're in this truck stop that from happening okay all right any questions remembers. They're without objection this rule is reviewed and approved thank you thank you Mr chairman committee. All right next part of our culture Arkansas livestock and poultry commission. Patrick in late when you all get to the table name and title for the record please. White House chief counsel department of agriculture. That's a fixed part of our culture Department last posted direct morning John if you all would please go and presents rule. Thank you Mr chairman members of the committee of right now there the livestock and pulled Commission has three of poultry disease rules and so what we're doing is seeking to repeal those three rules and just combine them all into one rule and we did update modernize some of the language couple of those rules were written in the nineteen eighties so disease outbreak response and control methods have certainly changed since then so we're just updating the provisions and also adding in some language that was in an emergency AP and implements a rule that was in fact last summer. we consulted with the poultry federation the USDA and others in the poultry industry to get this to a rule that everybody could be happy with and that's what we're doing Mr chairman K.. Senate questions from members. Any of the entities that would be touched by this in the poultry industry having of I was looking at the public response no outcry thing this pretty favorable no Sir that's correct okay very good any questions from members. It was signed up to speak for against it then without objection this rule is reviewed and approved thank you very much thank you Sir thank you all right next run to the agency updates on the status of outstanding rulemaking department don't go ahead. Thank you Mr chairman again White House chief counsel for the department and just here to report the same status on the Plant Board temporal think of grief you time and time again on the issues that calls the delay in the promulgation this rule more we are now is based upon a law that was passed during this last session we do feel like we need to add one clarification in our definition section just to make sure that everybody understands that we we feel like that the federal law and state law definitions do conform and so that's what we'll be doing with that's where we are thank you. Credit questions from members senator hill that you yes okay Senator Hill you're recognized. Could you give us to disposal color on that as far as what what's been done I know you said you you brief the the chairman would you kind of roll call remember us those who do not on know what all complex yes certainly it you know we start with the issues involving the constitutionality of the method that some of the plant board members were appointed and that law was challenged it was held to be unconstitutional so have to point board members were removed and that of course will call some delay in any board meeting and and taking action on things but we did get a rule that we thought we could go forward with added on the agenda for may of last year and after the public comment period was over and after it had been placed on the committee agenda then we started hearing from people from the hemp industry a couple of people that had issues with that and we agreed to try to work with them to get it to a place that we could all be happy we met with them made some concessions they ask for more concessions and just couldn't come to a final resolution and that's brought us where we are now. Any other questions from any other members. Okay. Okay then see none thanks for being here thank you report Department education. Court if you will please name telephone record when you take C. please. Good morning courting solace for chief of staff for the department of education. I believe we have to rules remaining on the outstanding rules report at the first of those is our rules governing school safety the rules did begin the promulgation process we got all the way through the public comment period and then it became necessary to promulgate emergency rules and to properly allocate the set aside funding from the legislature so we never finished the promulgation process once we enter the twenty twenty three session and now since additional changes are needing to be made we're just gonna start that process over. I'll be happy to take any questions on those or any questions members. All right then a no go ahead to the next one and okay centers are Senator. Thank you just update on the emergency rule and how that those grants are proceeding. we received applications from all but one school district for those funds that were allocated and we are still going through the process of dispersing those funds and verifying that they are completing and doing the projects that they indicated on the application okay and I will okay good that was the process that we were able to enter into because the emergency rule correct on that yes okay gotcha. Any other questions. All right so we got on that one another and the other rules are are rules governing professional development and as I've indicated before we are doing a complete overhaul of those rules and so just the time frame to get adequate stakeholder input pushed us into the session and so we hope to have those finish later this fall okay any questions for members. Okay eleven others that it that that's it thank you for being here today thank you our office Arkansas lottery. Brent when you get to the table name title for the record please Sir. Brent Standridge chief legal counsel department of finance and administration office of the Arkansas lottery morning good against the center okay go ahead thank you lease a Mr chairman members of the committee so here today on a a rule that was called to be implemented percent ACT six thirty six of twenty twenty one establishing the Arkansas lottery scholarship trust account. Its primary leg issues a procedural in nature the account has been established we are doing what the legislation requires under the act however it has to be a formal rule so what happened was this is previously it has been an emergency rule along with their other rules that we have we're going to the process of revising. Many of our rules and this would be actually be a part of our operational rules we which were revising and revising some definitions in those operational rules as well. So what happened we already had public comment with respect to our Other rules in this rule as well and there were no no objections to that we got up into January and. Then we have the executive order that said. At the time we're going to have it put before the committee that you had to get the governor's office approval based on the questionnaire which is a little bit different than what the prime minister striations questionnaire was and then actually in may of twenty fifth may the twenty fifth we got a revised questionnaire that we have to comply with our understanding is if we get the approval from the governor's office we would not have to go through the whole process again of having you know public hearing and all that so we think that assuming that we get their approval that we would be ready to come back to the Committee and present this rule is well as our revise rules for approval so that's where we are now we're in the process of complying with the questionnaire that we got into may so we can do what we need to do to get the governor's office approval and then once that's done contact the committee to get it placed on the agenda for approval to any questions for members. All right of center. Six. If you don't have the rule in place from legislation that was passed in twenty twenty one but you went ahead and follow the law and the stop was that trust account and how did you. How were you able to do that without your rules being in place well it was just we did it pursuant to the Legislative act because a legislative act directed us to establish this trust account is actually in the legislation at sale at any was really we already obviously had trust accounts in place to take care of all of this but this was streamlining it to establish this particular trust account with this particular name so we did all that. In in frankly was a financial and accounting department or office that did that and our banking contractors the bank goes the case so they took care of all of the account work there we just recently renewed the contract with them actually didn't extension got a little bit more favorable interest rate for us but we're complying with the legislation requires in I think this thought probably as well it requires for example to follow the best banking practices that are out there. Well that might change in a year or two and I think that's what's necessary to have a rule you know that outlines exactly what we're supposed to do percent to the legislation but we follow what the legislation required soon after the effective date of the act and coming and will continue to do so right. Just for me personally because we worked very hard Senator Hickey and a lot of us Senator English to make sure that that lottery funding was was appropriately disbursed and that we were able to find any rear ends point of universes kind of put everything on a credit card so to speak so in my opinion that rule really should have been implemented you know in twenty I mean twenty twenty one and so yeah I would just encourage you to really try to act expeditiously in the governor's office to act expeditiously on this because it's very very important that that be very tight secured and clearly we have an activist judicial system right now overturning many of her laws so in my opinion I think it be very prudent for you to act quickly on that particular rule and not wait to bundle it with all your others that's my two cents thank all right thank you senator. Okay any other questions. All right thank you for your pitcher Debra all right thank you thank you all right members on if the final item will be on the June monthly written update from the proper corrections percent to act five ninety five twenty twenty one this update is regarding the status permits rulemaking implementation twenty twenty two legislation it's in your packet agency has letter deadline for those rules the first so it has more time than those agencies we heard from earlier and find the letter with the attachment of the tile summary status update does anybody have any questions. See none we will file for the June monthly written update and because we have no further business to come before the subcommittee of expect my co chair at the next meeting one all those other rules come down to be done in fifteen minutes like we were today with that we are adjourned.