ALC-Claims Review/Litigation Reports Oversight

She's quorum Welcome to the. Committee my co chairs and you have any comments just glad to be a part of this committee look forward to working with everybody awesome. Same here Members if you'll look at the first agenda first time on our agenda is adoption of the rules this. The subcommittee rules set out the submission dates for items to be included on subcommittees agenda as well as a procedure for consideration of item submitted after that date in addition the rules also specify the requirements for submitting records to the subcommittee by the claims commission for claims review and by other state agencies for litigation oversight are there any questions. I have a motion to adopt the subcommittee rules motion second on favor any posed motion carries all right item the one. members the items under the R. litigant reports submitted by agencies for the subcommittees review before we start I just want to remind agencies presenting multiple reports to present each report separately and then pause to allow the subcommittee to take action. will begin with that item the one which report from the University of Arkansas systems Would you please present and introduce yourself for the record and you're recognized to present all right I'm David current from the university of Arkansas System I'm sitting in for Joe corgis despair and the drive from federal today but he's he's handling this lawsuit as against the U. a federal campus the planet's misuse filed a pro se complaint in July two thousand twenty two see it she alleges that she should be getting a higher salary in her current job and therefore she says she's been subjected to racist culmination in retaliation the university denies allegations were in the middle of the discovery process in the trial is set for January two thousand twenty four. You have any questions members. Seeing none I have a motion. motion. Second. Second all in favor say aye opposed motion carries item D. two. We have two reports from the department of labor licensing. Thank you Mr chairman committee miles Morgan staff attorney the department labor licensing our first item on the agenda is the board of electrodes Amherst versus Morris James this was a a civil money penalty that was issued by the board Mister James of had performed electrical work on two residences in Jonesborough and there were multiple violations of the electrical code we filed suit of the board. issued violations Mr James we filed suit after he had his time period to pay he didn't they didn't contact us with all the collection suits we were awarded a default judgment is license has been flagged as well so he cannot renew his license or perform work until he pays that outstanding civil penalty and that's and I'll be happy to take questions right Senator Rice thank you was there any previous history on this person DO lasting been flagged a hit in the current violation before this with Mister James yes no Sir not that are not that Arkansas he's from Mississippi and I think he did work in Jonesborough and I don't think we had any prior complaints on Mister James to my knowledge this to new residents or I believe so there to there were two separate sentences in Jonesborough the the. Resent himself I guess as a licensed contractor he had a he had a license and a we did a a once we got the complaint Arkansas lives yes Sir if you have an Arkansas license and we cited him for it and at the hearing he did he asked if he could enter into a consent order to pay a reduced amount of the penalty which he signed and it was conditioned on him paying the penalty and if you didn't pay the penalty his license would be surrendered he fell to the feel that obligation he didn't pay the penalty Davis and I'm not I'm not question of what is handling all other name to it did we Leding have a license anything to do with reciprocal from another state or did he have to go through just like a new person would I think he I think he had I'm not positive I think he has a license like a normal he went to the normal process I'm not sure if he was reciprocal of Mississippi or or not One one it is just if somebody's got a good life while you do try to go through that and that's always a sixty six yes Sir and there's a lot of times you know we can make contact with the contractor to address those some of the code violations and a lot of that's a lot of the process and that's one of our success we don't have a lot of these collection suits because our goal is to reunite a contractor to make the corrections before it leads to the thank Richard question yes Sir thank you representative Gazaway thank you Mr chairman. I just had a few questions about this some of them have been asked one he said this individual did have a license. Yes Sir members authorized to work in the state of Arkansas correct so this doesn't arise out of the fact that this was someone performing work you didn't have a license correct these were just electrical code. Violations after our department staff today they they perform an inspection on the homes so that it doesn't Emine typically you've got local code enforcement officers that kept come out the permit this they have to check it. why did this reach all the way to the state board as opposed to lead and just kept the local folks can handle this I'm not real sure about that representative Gazaway I mean we can follow up with that if if the local I guess Jonesborough the county might have been involved but we had you know our inspector made the inspection generator the report notice for the hearing and then Morris James contacted us entered into a settlement agreement where he would pay a reduced amount within I think it was thirty days and he signed it and it also is a provision that we would follow suit in Pulaski County and his license would be surrendered if you fail to his or you know to to to pay and a poll this obligations one more follow up Mr chairman go in and Right I understand all that I understand kind of how it all happened I will say. Eighteen thousand five hundred dollars seems pretty hefty for shoddy work I mean how how did you guys arrive at that is that kind of a normal amount that you find people yeah this statute provides for two hundred fifty dollars per violation and it also provides for each passing day as an additional violation that that it didn't corrected and I think there were multiple violations on each house and then the time passed and that's where the the in the inspection listed each violation with the two hundred fifty and I believe to learn fifty it can it can go up to five hundred per violation the department has been consistent with two fifty with a flexible and and H. back just want one final comment not really a question but I hope that. I completely understand we don't need people who are doing shoddy work out here wiring houses because it poses a big public health risk. but at the same time and I hope these weren't like little ticky tack violations for which a person was fined eighteen thousand five hundred dollars and lost their license I'd hate to know that that were the case I don't think it likely probably wasn't but I take no if it was but anyway that's all I have thank you thank you represent Cozart you're recognized signature. this morning that see that the human kind of follow up on his will be called the still part of my questioning but the eighteen thousand five hundred is the fight is any that go back to restitution to help them repair those damages that were done well that is an issue that with with the of our board cannot issue restitution from your liability from the board however in our orders that can be used as an exhibit for civil suit by the affected homeowner and I think that's that's been used before earlier this year with the other electrical case that I came down here for and I do understand the the fines and how they do build up quickly talking with Mr Kroll back there I service in a contractor for for a long time and close people will let those things go and go and go with a build up of course so hard to collect sometimes too so thank you Mister senator and representative singing other questions you need a motion to review. Not a motion and second any discussion. On favor. Any post motion carries next we have. Yes Mr chairman added a similar this is with the H. back board there is a department inspection there were multiple violations of the boards the mechanical code and some of the statutes and rules of the H. FAQ Board from the work performed by Mr Smith we have had a hearing on that the board up held the penalties that the staff recommended we filed suit after he didn't contact us to pay or set up a payment plan a lot of lot of times that that's something that we work with we filed suit in circuit court with Pulaski County we've rewarded a default judgment his license has been flagged so he cannot renew if you wanted to until that penalty is paid. And I'll be happy to take questions. Seeing no questions an emotion for review. The motion the second on favor. Imposed. Motion carries. thank you Mr chairman committee thank you a Texas to item D. three. And. Have. Arkansas contractor licensing boards of several items here take these one at a time. You would. Recognize yourself for the thank you Mr my name's Greg crow on the administrator of the contractors licensing board you're recognized president I will would course through the twenties and and no in order that they all are Thank action to collect unpaid civil penalties. The first one is a current residential committee versus don lackey. Mister lucky was it about nine thousand some odd dollars for the worker Chabot in the cabinet city actually contacted us to deal with it because he was not licensed in the work was so bad it had to be torn down. Customer got no value for their money we have had a hearing it was imposed a penalty and he didn't pay it and we ought to answer to specialise in our I'm happy to answer any questions but but we are always trying to get the consumers taking care of it they'll go back and take care of a consumer with its given refining their money or whatever M. will respond with a slap on the wrist yeah publican read. This person wouldn't do that and so he didn't pay the penalty we sued got servicing and I received a default judgment earlier this week against him for the for the money for that will be held after collect another question but again it's to this day if you would go take care of the consumer given back their money we would go back and get back to the Committee and try to try to do something to take to reduce we want the consumer taking care of. The questions. Representative. Ladyman you're recognized thank you Mr chairman appreciates let me ask questions not part of committee but but listen to this discussion how does the city code enforcement officer has that relate to you guys do they come the use is something they can handle what does that work we have a really good working relationship with most the cities that have code enforcement some cities do some cities don't even even some cities issue permits don't necessarily have a code enforcement office but we work closely with those and many times they can handle the problems and it's a licensed contractor ninety percent of the time they that's what happens they deal with that contractors fail inspections all the time that's not an unusual that and they go back out there and fix the framing or fix the whatever sticks and we don't not we don't care the city then care anybody's happy and gets taken care of but everyone of these are licensed people and again we deal with a whole lot Cozart represent because I can tell you we do a whole lot more than you're seeing here a mosque people who didn't do take care of the customers that they take care of the customers that's really what we're concerned about in this one the city capped it reached out to us and ask us to take action because he obviously wasn't satisfying the city. Right representative Shepherd. You're recognized thank you Mr chairman and I understand are we on the three the three okay okay so with regard to all the items in the three I notice on the notification the litigation notification form the death of our current status is left blank although up to the top it says collection of a civil penalty. Is the status on these has a. As well I guess where are we in the process of that's that's your my old we have a judgment that we're now trying to collect or are we something short of that on some of them were something well short of that this one we actually got a default judgment we got it we have a certain kind of fall judgment this week other ones we were and we got service some waiting on the lands I'll cover those as we go through them but all the process some of them we don't have served in on a couple of them I don't think we're gonna get served okay I would just ask for the in the future if if even if it's just a brief statement in that sectional current status either to say waiting service judgment obtained attempt just that would help us I think you start here thank you. All right thank you get that done seeing no other questions for this one in a motion to. Review. The motion second. any discussion on favourites. Opposed. Shares. Three B. Mr minex one is on the president committee versus Kevin Colvin DBA Casey still Mister Mister Colvin was doing they have a project in the top member right I don't have that down I believe. Sorry was in Clarksville area and this was his third offense is second offense with a two hundred and fifty dollar penalty we just wanted them to do the right thing and he and this time around he actually tried to play games and have the check made out to somebody else but of the contractors in his with with him and everything else so this is that's what the penalty was a state because it was it was his third offense we have since sued him we have not got service on and we're probably gonna have to get an extension because the due date for us services seven seven but we have every reason to believe he still around we had a process server trying to find them the last address we had formed he's not there and the other address we have is a PO box and you will pick up his mail so we're still working on getting them Sir. Any questions. In a motion for review. The motion the second. in discussion on the motion on paper I any opposed motion carries I'm three C.. This is a the Committee verses Justin brewer Mister brewer was a former employee of a property license good contractor who use the company's name and went out of start selling jobs individually and having the customer make checks out to him and that was bad work in question and the money went to him not to the contractor he was allegedly he was a former employee of the company turned to me and said help us here we can see written people often use in our name given a bad name so we have we have not yet served him or trying to what we're trying to find them this is what the ones I'm having doubts we will ever find that we're trying to. Any questions. Ninety motion review your motion second any discussion on the motion all in favor. Imposed motion carries item D. three the. A this is what this one is the Committee versus Joe Walker doing business as the NJ home improvement this is one that he he intercontinental to four thousand dollars worth of in home or to work is not licensed was paid two thousand up front and never did any work at all. So. All right I'll close status apologize we a we have an address in Helena nothing was still there but that place is not gone because the tornado and then we headed Rosa Texas so we hired a process server in Texas trying to find in there but they couldn't find their we now got a new address in Arkansas that will continue to try to serve. Represent Cozart you're recognized for a question. Thank you Mr of the scroll is that still a really big out of people giving people money up front even with all of the Notifications you put out there. Absolutely we you know what I tell consumers when the call is I have a second thank my two times per minute committee members as the I ask what they work for a living and they say yes I'm asking of the boss pays them money and then they come to work or if they come to work and then the boss pays money in they always say welcome to work person I think social contractor I don't believe it now you can't wait to the you can't build a house and wait to the end up paying the two hundred fifty thousand dollars for four thousand dollars at any given time you should be paying them as war continues not to put it out in press releases we put it on our website we do every time I get in front of thank you to consumers together I want to give a speech about about that into. A total of bring it up I just want everybody to know that they have done a lot of. Work on trying to let people know how not to be ripped off by contractors with their licensed or unlicensed and this still happened so this is kind of what from my report thank you Mr thank you seeing other questions emotional review emotion second any discussion. All in favor aye. Imposed motion carries item D. three D. S. con the residents committee verses of Robert Logan Taylor Mr Taylor again similar story he was paid to have a thirty thousand dollar contract was paid two thousand up front he did do a little bit of work but not very much then disappeared we have sued him I apologize I said the last guy went to Texas that not a businessman got a mixed up my fault this guy we tripled into Texas and how to process server but they didn't get him now we do have an Arkansas address and it's just Sonia hopefully we'll get a good answer. Any questions. Seeing none of the motion. A motion for review and a second any discussion all in favor aye any opposed motion carries item D. three F.. The company residue committee versus Justin bendable this was a product he's from Clinton that the projects and North Little Rock the under contract was paid eleven thousand one hundred twenty five dollars he did do a lot of work but there are lots of issues that he abandoned the job and then come back and fix the issues again just we always try to work within our goal is to get the consumer taking care of it they'll take care of the consumer we're going to get a slap on the wrist he didn't work with us. We have sued him we have no address on him right now they have won the including the we're still looking to try to find. A motion. A second any discussion on favourites imposed motion carries item B. three G.. Of residence committee versus Charles tourney Mr turning was doing a project in Van Buren Arkansas it was a missionary job for five thousand one hundred twenty dollars he was paid twenty eight hundred up front thank you did do some work but it's such a horrible job to all the bricks had ripped off the house just didn't do good work at all can a license person we he was penalized and we're Stadium we did get him served his response date we also just recently serve because is response is due by June twenty six on to the to the possible safety following answer. Senate questions in a motion the motion to review and a second any discussion on favourites. He opposed motion carries Adam D. three H.. This is the president Committee verses Donald Ashcraft dean the in the painting again he was paid this one he was paid forty two hundred dollars and for the job completely and and full there was some work done but it was a very bad work and the consumer at the heart of the contractor to fix it Committee penalized him forty two hundred dollars no season Arkansas without penalizing ten thousand eight hundred trying to get attention again if you'll come back and take it to the consumer will be happy to but I'm down to slap on the wrist so far and then we have we did get in we did get him served and I filed a motion for default judgment because his answer has not been made yet. Right I'm sorry you're recognized for a question I'm new to this committee so I know on the rest of these under for a it says the relief amount that's being sought and this one does not I apologize for the we didn't know the format right and that will perhaps will not happen again okay we. It will. I was confused I don't. There is is my responsibility to make sure is done I wasn't the one that did it but still my responsibility to make sure can you tell us what that is is again recently sued him for ten thousand eight hundred dollars thank you. Thank you Mr. I have seen other questions yeah motion for review and a second any discussion on favourites the opposed motion carries. Adam D. three II last won this tournament this is the resident of committee verses a Lauren Hernandez this is one we actually watch like what the labor department's talking awhile ago when we enter into a settlement agreement with the but the consumer this one was not as bad as some of the other ones but we try to get their attention and the she had to we ate with us Max penalty there was a lot of the statute which or seven thousand two hundred dollars for four dollars a day what we can do this in two three hundred dollars if she would pay the three hundred dollars not have any additional violations for three years and pay the homeowner back as agreed they reached agreement how should taken money for a job is not done a rich I but not in the first thing in she most importantly never by the homeowner back we get given on time again or thank you you're supposed to be within a short period time between we just kept extended and kept expanding and kept extended and and she never did Shepherd paid I want to back and never paid us back on our past three hundred dollars so did get escalated to seven thousand two hundred that was Hammer in the. Impaired mystic approach you need to get escalated to the seventy two hundred dollars and again even after that even with virtually escalated and she had taken care of the homeowner we've been happy to go back so we have sued her for seven thousand two hundred dollars she did get served and she had told June ninth to file response following answer and she hasn't done it so we we are in process again apologized. Representative Cozart you're recognized for a question thank you Mr if you do not have any more questions I will have a motion but also in the statement I'd like to make if you do not mind personal privilege basically this is a. Mr Crowe is retiring after about the twenty four years at the start with the the licensing and that will be going out him his wife enjoying their time and I got to work with him during the four half years I was there he's done a great job taking care of the department there and I just want to congratulate him on his time we will not see him here I'm sure because he's going out next month so just wanna thank you for your service to our state and all things you don't have been a great friend to me and probably others in here too and I'll make a motion to review this same time her get motion the second any discussion. All in favor aye opposed motion carries thank you very much for your time and your service thank. All right that takes us to item D. for from a report from the public service commission. If you would state your name for the record and you're recognized president. Our voice chief administrative law judge and chief of staff of the commission staff. Go ahead of it have one item for review is an appeal from a PSE docket group operatives appeal to PSC order that granted intervention to a couple of parties it was filed in the court of appeals the commission filed a motion to dismiss because it was not a final order the court of appeals granted it the case was reversed. Any questions on this. A motion for review. Says second any discussion. All in favor. Imposed motion carries thank you John. Right Texas. Item E.. The one. This is a settlement report from the Office of Attorney General. If you would hit your button there and then you would both state your names for the record. And then then start presenting thank you my name is marina Jackson I'm a senior assistant Attorney General for the state of Arkansas White House chief counsel for the department of agriculture. Go in and this is regarding settlement review only the case was filed in the United States District Court for the Eastern District of Arkansas the court issued the judgment against the agency our service settlement involves the attorney's fees only the decision was made in the attorneys fees were negotiated in the amount of twenty thousand dollars which is your reasonable amount considering that the case was filed in two thousand nineteen in the judgment was issued in two thousand twenty two and there was for attorneys involved less paralegals and other employees on the plaintiff's side so the actual amount of plaintiffs you was my tires in this but will be we were able to reach a settlement agreement in the amount of twenty thousand dollars in we seeking approval of this agreement all right Speaker Shepherd you're recognized thank you Mr chairman it so it appear from the information that the judgment went against the state and it was determined that the act was unconstitutional and then the settlement was entered into. Could you talk about that. It doesn't appear that it that the judgment was appealed and so could you talk about the decision apparently not to appeal and enter into a settlement. Our yes so the issue was about this the company was sold for a key this was at their company that produces and sells in the State of Arkansas that plea and food based meat that is not made but they are the clearly stated on the label that this product does not contain meat in the able to conduct their business all over the United States without any issue with the statue this statue in Arkansas prohibited them from doing business in the state of Arkansas so they were able to present the fission evidence showing that to change the marketing of their products it's going to cost them. In excess of million dollars in there was the judgment was entered against the state after the consideration of the pleadings the decision was made not to appeal okay and that was. That decision and the settlement was entered into was it last year is that correct I believe it was in two thousand twenty two what it was pending approval of this committee and they took some time to schedule this all right thank you thank you. Right Senator Johnson you're recognized I think this is the that was the. Lectin cauliflower rice or riced foods is that correct department of ag is that is that the bill. It did contain a provision that addressed using the term rice when rice was not in the product that particular section of the law was actually not challenge it was the provisions of wall that dealt with things that were appear to be meat products that were challenged and held to be unconstitutional but. This is not meet her at. Right is plant based for laboratory grown. Okay. Thanks all right representative Gazaway you're recognized for a question thank you Mr chairman I'm just trying to get the time line down. It. When was this case settled. this settlement agreement we attached to the documents it was actually executed February second two thousand twenty three. Where one party and another party executed on March second two thousand twenty three the judgment was issued in the September of two thousand twenty two and they had fourteen days to file their motion for attorney's fees which we extended the deadline for filing that motion because we were negotiating with that this can be so. So was there ever a final settlement that was entered into. yes it is currently enter to invoice parties executed the settlement agreement that we provided for review right okay okay. And. Have you guys pay the attorney's fees as part of that settlement not yet according to the settlement agreement if will be done after after this approval and then as far as the one more follow up Mr good and then as far as the I understand currently the underlying act that this suit was about was ultimately deemed to be unconstitutional that's correct and if I can clarify one thing the settlement is for attorneys fees only okay the the lawsuit was not settled the the judge entered an order and judgment against the department in this matter so the only thing that was settled was there petition for attorneys fees I see okay and then with when was the underlying act or the the is this may be based on what was that found unconstitutional. The judgment was entered on September thirtieth two thousand twenty two. But it was at the same time that the. When was the judgment ran against the state. September thirtieth two thousand twenty September thirtieth twenty two thousand twenty two. When the judgment was entered again this state okay and and then they were allowed to petition for attorneys fees and that's that's what we're here on today and that's what the settlement subsequent to the judgment yes okay our yes I understand thanks thank you did we not appeal the decision now with the vision was made not to appeal the decision was made jointly with the agency the Attorney General office or community this will. Why would we appeal that. There was no. We we did not think this appeal would be successful. Okay speaks Shepherd you're recognized. So that in you touched on the point I understand the settlement is as to attorney's fees but there was a decision made not to appeal and so that ship sailed so to speak so then the only remaining issue where the attorney's fees to be awarded credit I understand I looked at the judgment by and read every part of it did you did you indicate that. The only part of the statute was struck down that there are some parts of it that still that still or apparently enforce the vast majority of the statute was struck down there was one provision regarding products that use the word rice but don't actually contain rice that was not challenge the rest of the statute struck down. All right seen other questions Need a motion. In a motion for review and a second any discussion on the motion all in favor. Any opposed. Motion carries. Texas T. to. Thank you very much for your time. Yeah you too from Department finance administration. If you would state your name for the record Mister John Maddox to begin thank you Alicia Austin Smith and chief counsel for the Revenue Division of TFA. I have the honor of bringing to settlements to you guys for approval today we'll start with the first item on the agenda is Raytheon company. Raytheon filed suit in Washita county circuit court to contest a corporate income tax assessment and also the denial of certain refund claims the parties have been it entered into a settlement agreement condition on your approval of course in which the taxpayer Raytheon would dismiss their refund cat claims and the interest and they would pay all of the assessed corporate income tax in exchange the department would waive the assessed penalty and interest. And we ask for your approval of the settlement and I'm happy to answer any questions right speaks Shepherd you're recognized thank you Mr chairman so on this this settlement and the next one basically the settlement is they're gonna pay what the split the state had assessed and we're going to forgive the penalties and interest basically that's absolutely correct so my question is as to this and all asking us to vote seeking to answer at this point if you if you know is as. Based on this will D. F. and H. change anything about how they interpret any statutes going forward war war are we going to DO and I will continue to interpret and enforce the statutes the same as they always at. Thank you Mr representative Shepherd. We continue to maintain our position in each of the matters at hand we will not change any any determinations based on these cases thank you. Right seeing other questions a motion. Got a motion the second for review any discussion on favor. All in favor. Imposed motion carries all right. Around the corner the ends to take some black matter to be yes this is river valley landscape and design and they filed suit in Pulaski County circuit court to contest a sales and use tax assessment the parties have entered into state settlement agreement same issue its condition on your approval the taxpayer would pay all of the assessed sales tax and the Department would waive all of the penalties and interest we're asking for your approval and happy to answer any questions. Revenue questions I have a motion and a second any discussion all in favor aye any opposed motion carries. Thank you very much for your time seeing nothing else we are adjourned.