Arkansas Legislative Council (ALC)

You know things a little different is going to seat selections so first off I'm a go to seed eighty five to center Tyler days for opening prayer Senate prayers over we'll start with seat selections I want to make a couple things really clear we're going to call your name one time. This room is going to stay quiet as a mouse so we can hear the members give us that seat number if you don't give a seat number when your name is called one time you will be given a seat number. Your name will forever be in the computer with that seat number so it's very important that you pay attention and you give us that number we've got a lot of stuff to do today we have a religion to get through we're going to do this is fasten is patient as possible represented our center days you're recognized. Yeah I would say. Let's break. Thank you lord thanks for who you are and that you're you're worthy of our trust we ask that you guide us that we seek you in a secure wisdom as we do the the work of the people here it with this committee and and throughout this this building And nearby ask for your grace your blessing as we do that more thank you for a the responsibility the awesome opportunity to do that well in we ask again for your guidance through all at the same price and. With that are recognized miss Garrity to get started with seat selection. Speaker Shepherd. Seventy three. This. Senator Hester. It. Fifty. President Cozart. Seventy four Senator Gilmore. Eighty two. Representative makes. Thirty four full. Senator Chesterfield. Twenty two representative gene. Sixty two. Senator Irvin. She. Fifty four fifty four. Representive Eubanks. Seventy one. Senator Dismang. Eighty. Represent Miller. Sixty sixty one. Sir Caldwell. Senate call those eighty two. Senator Irvin is forty nine forty nine. Represent Womack. Forty five forty five. Senator English. One fifty one. Represent fight Charlene Fite. Forty eight. Senator Stubblefield. Ninety two. Represent Deborah Ferguson. Forty three forty three. Senator Hickey. Eighty one eighty one Senator representative eaves. Seventy two. Okay Flippo. Yeah. I'm sorry I missed the center there Senator Blake Johnson. Eighty six. Represent McNair. Sixty three. Senator Wallace. Senator Wallace. Eighty seven. Represent Ladyman. Forty four. You represent Whitaker is twenty one. Sept. Yes. Senator Davis. Eighty nine. Represent Bentley. Nineteen. Senator hill. Eighty five. Represent back. Twenty. Senator Mark Johnson. Four fifty four. Represent Kenneth Ferguson. Forty seven. Senator Greg Leding. Fifty two. Represent Vivian flowers. Okay sixteen sixteen. Hello. Richmond so I said no Senator Hammer. Sixteen. Sixty sorry. Hammer. President Vaught. Seventy. Senator Solomon. Eighty four. Represent Richmond. Seventy five. Senator Tucker. Fifty three. This represents Fortner. Sixty four. Senator king. Ninety ninety three. Represent Cavenaugh. Sixty eight represent Murdock or center Murdock I'm sorry Sir Murdock. Twenty four. Represent Gazaway. Sixty seven. Six of. Sixty nine. Senator McKee. Fifty eight. Represent Watson. Seventy one. Senator Penzo. Fifty nine. Represent Pilkington. Sixty seven. Senator Boyd. Fifty five. Represent all the. Sixty five center Petty. Fifty six. Represent Crawford. Forty two. Senator Payton. Ninety. Representive eleven. Six six sixty six. Senator Dotson. One. Ninety one ninety one ninety one. Represent McCollum. Forty six forty six. Forty six what's. You can. Represent Danny Watson will be in C. number forty. C.. Represent million. Thirty seven thank you. Representative mark Perry. I Mark. Forty forty one forty one. And represented by Clinton. Thirty nine. Fifty five. Clarification center Boyd is in C. fifty five. Okay members you would get seats we're going to get started need a motion to approve the minutes from the December meeting. Our motion and a second all those in favor say aye opposed ayes have it with that members were gonna change of our gender going for this year we used to do our secretary reports at the end of the agenda we're gonna start doing them at the beginning we want to make sure that all you guys are here in your seats to hear what sectors have to say so with that we'll go with department labor analyzing starters soft members get our conversations to a minimum. So. Yes. Secretary beset you're recognized to give your port. Mr chairman members of the committee it's pleasure to be here owing to the rather expansive agenda that you have today and as well as the chairman's admonishment that I only have ten minutes I'll be I'll be as brief as possible. It. It's not working okay. Great. Four areas then I would like to highlight with regard to our department that we have centered on over the last two years H. R. financial IT and transformation issues with regard to HR we've created a standard policies and procedures manual for our entire department as you will recall we inherited twenty three agencies additional licensing agencies after transformation and what we saw the need for was a comprehensive a look at all of the policies and procedures that the various agencies had once that review was complete we realize that we had people everywhere and so we needed a standardized policies and procedures manual so that we all could be on the same page and we have created that document over the last the several months obviously it's going to be living document as policies and procedures change through legislative action but never the less we have that now and that creates transparency and on our our our department employees so they know everyone knows where we're going with a common mission second financial and of course I want to certainly give credit to this legislature for working diligently with this on creating a common financial system of for that the for the Department of common financial system was absolutely necessary as we inherited these twenty two to twenty well I say twenty three because obviously H. back is is a separate division by twenty three entities we needed to be able to have a common financial. System before we were writing twenty three different checks for copiers whatever and of course that is not as efficient as we would like to have it certainly did not contribute to expediency in answering questions that you members of your body would have force so now though with this particular legislation with the accommodation of the legislature we now have that in place that's going to mean timely payment to our vendors is going to allow for more accurate budgeting and forecasting of our revenues and our expenditures and moreover it's going to allow for the creation of a common financial statement that I will get at the end of the month that will allow me to be more attentive to your concerns your questions but moreover questions that the governor's office may have I move on to I. T. I T. is a critical area when you're trying to mesh twenty three different agencies all of them having different missions different protocols often we needed to have a common IT systems why well one we're licensing entities. All of the professional licenses that we were issuing work often coming and different times we often had lines out the door because they were they're trying to renew their licenses or they had questions with regard to their licenses and so it was a it was if absolutely necessary that we find a way to have a coherent process a one stop shop if you will we've done that with the help of I in a they have a furnish some of the funding but we've done it through what we call E. L. P. this is our electronic licensing platform ladies and gentleman and I think it is such a good platform that is something that we can eventually duplicate a statewide among all of the agencies what that does is it allows all of our agencies to go online our constituencies are licensees they can go online apply for their licenses as well as their renewals it's a one stop shop we have onboarded roughly half of our department on to this new platform our goal is to have one hundred percent compliance by the spring of next year I realize that is an aggressive goal with the limited staff that we have but I've gotten assurances that we can get this done even if we have to bring in extra help and so that ERP platform is something you're going to be hearing an awful lot from me about not just of the department for the department of labor rather but for it to use it as a platform across state government it's very inefficient cost is ten thousand dollars a year for each of the divisions and it's working extremely well finally transformation as you know we've consolidated of all of the. These these agencies into one department but more over what we've done is we've looked at the financial condition of those agencies that we inherited we found disparities or within their financial of health some of them had administrative deficiencies and so what we've moved very aggressively to do is to assess those capabilities and combine those entities that were most vulnerable we've been successful doing that we saw some legislation consequently now we have appraisers home inspectors and ABSTRACTERS' of combined as one entity and we have geology and auctioneers combined in one entity we have reduced our staff by a total of a hundred and twenty personnel mostly through attrition some through just reorganization but largely we have found a way to do more with less and streamline our operations that concludes my presentation Mister chairman I'll take any questions you may have. We do have some questions on since our C. charge not loaded at the embassy Senator Hammer you're recognized thank you Mr on that one. Sir thank thank you over here director or secretary two quick questions you said you couldn't do this without the help of and you're talking I think about platforms or something you made the comment you may just a minute ago yes Sir who who did you say you can do that without the help of well we need to obviously legislative help we want to be able to conclude our on boarding by next spring we want to use this as a benchmark I'd like to have an opportunity to come back to the legislature did demonstrated so effectiveness it's efficiency and then we need your assistance to propagate that throughout state government but who is that is that outside contract inside the site in a I it is okay yes and then the second question is when you talk about reduction of your workforce are those filled positions that you've reduced or where those vacant positions that you reduce when you make that comment we done that may need through attrition and to and through give back positions that we see that we no longer need there's no need for us to keep them in our budget if efficiencies are eliminating the need for those positions we've just either given them back and as I say some through attrition okay thank you they Mr thank you see no further questions thanks secretary for your support and thank you for your hard work thank you Mr. What now we go to Secretary curry with the department of energy and environment. Secretary of you would introduce yourself for the record you're recognized to present thank you good morning my name is Shane Cory I'm the secretary for the department of energy and environment I understand you have a full agenda so I will try to be brief I do have a quick power point I'll probably go through a few slides and then at your seat you've been distributed a document called any a work it try it is document that's intended to give you an overview of all the different programs and entities within the department of energy and environment with a description of what they do so with that I'll just start with making sure everybody understands who all is part of the department energy and environment we have the division of environmental quality we do have the oil and gas commission the liquefied petroleum gas board the pollution control and ecology Commission and the Office of State geologist formerly known as the Geological Survey I guess currently until July first it will be sent the name change at that point in time. Our total budget is right around two hundred forty eight million dollars for year Department Jean environment and just wanted to point out the things that I found interesting about that is about forty nine percent of that comes from federal funds twenty four twenty five percent or so comes from special revenue and right now two percent of our budget does come from general funding at the department level like Secretary beset has mentioned we have also consolidated a lot of our internal processes fiscal H. R. administrative services fleet facilities all into our office of operations I have a few staff members here out briefly introduce we have our chief of communications Carol booth who is fairly new to the Department as of February all of you know Michael Gruppe he's still with our department obviously and happy to have him. Warren Ballard we've consolidated all of our legal operations to the office of chief counsel and Lauren is here and she has taken on the role I think started in January February as our officer chief councillor of the consolidated all those services well and on the administrative side and turn up programmatic staff we've kind of divided the department of energy environment and the two sides we have our our energy administrator Larry being on most of you know him he's been the only gas commission for a number of years also now the administrator for the energy side he kind oversees the on gas commission the Geological Survey the LP gas board the energy office and the mining program and then Caleb Osborne who's here as well is our chief administrator of the environment he oversees environmental programs also known as the director oversees the office of land resources office of water quality office of air quality I think just a couple minutes on highlights and things that are going on of the department first of all and the environmental side we have recently issued a permit to hive our facility to be constructed in Crittenden County the good news about that is we're asked to do that within a hundred eighty days we actually issued that permit within a hundred seventeen days we want to make sure that one let you know the good work that the queue is doing to to facilitate economic development Arkansas also we've been put in a position where we are having to fight a lot against federal overreach many of you know in January the EPA denied our proposed state implementation plan required under the clean air act and with the governor's leadership and help of the Attorney General we did file the lawsuit in the eighth circuit court of appeals we survived a motion from EPA to dismiss that action and also a motion from EPA to transfer it from the eighth circuit to the DC circuit court of appeals so we're happy with that progress we've done several things with tornado response. But in the interest of time I'll just wanna highlight one thing on the energy side case shall don't know self Arkansas is home to bromine production will reproduce brought will be produced brine skews me to produce bromine out of brine but in that same brine there's also let them play and so we had a pilot plant has been built in south Arkansas those results are very promising its it's kind of spurred a lot of new leasing activity and we've had recent conversations with some of those companies have acquired this leases about them coming in and setting up additional opportunities to explore for lithium and self Arkansas so we're really looking forward to that and I'm not going to review legislative session you all or well involved with all of that do you think Senator Irvin for her help and I'll just highlight two of our department bills on one of them we were able to reduce the pollution control and ecology Commission from a fifteen member board to a seven member board of the eight that are eliminated forever actually state agency directors so we believe we created some efficiencies there and then also in terms of the Geological Survey. We we have eliminated the Geological Survey board we've renamed that the office of the state geologist and the biggest take away is now that entity is now funded with special revenue as opposed to general revenue so that's a savings to general revenue about two point one million dollars so that two percent number that I talked about earlier will be more like one point six one point seven percent as we move forward with that I'm happy to answer any questions or or. If you have any questions you do have a documented does have a I believe our contact information as well and happy to address any questions you have. Senate just feel you're recognized question thank you thank you Mr Corey for being here and thank you for having a number of women I see obviously in your in your division I'm just wondering other ethnic minorities who work in that division is so about how many. I don't know the exact number but yes we do have and Our chief of staff April gold is not here today and I'm sure she could give me that number start with thank you future with staff I appreciate it thank you very much. Thank you sent over other questions thank you for report. And members I did have a member come up and have a question for Secretary Bassett so I want to bring him back to the table to get that question answered. Yeah he's here. And the members following me better be running. Secretary of you would introduce yourself record and soon Senator Beatty said a representative baby sits down I get him and Gilmore confused are recognized. Sometimes they confuse me with him to let. Aduro bass as secretary of labor. Representative ready you're recognized thank you Mr chairman. Secretary Bassett my question reboot is regarding the disaster recovery testing that the W. S. had last week that was schedule I'd like you to talk to us about that how that process went and results of of that testing. Well I don't know what DWS does I'm no longer directory do you have yes I don't know how that testing I'm not familiar with. Okay I'm I'm I thought that was your area no Sir I I was before transformation I was director of the department workforce services now I'm secretary of labor so that would be to McDonnell who secretary or miss ship adopted children's whose. Who's taking my role our man I apologize providing but I'd like to get someone from that that that's a departure to privatize Mr chairman to have a disaster. You. Just a question. Thank thank you I'm sorry to have bothered you it's quite alright thank you senator I'm not sure if they're here but if you can find them will will pop amend the agenda at appropriate time thank you Mr chair. With that members will move on to the presentation of the April revenue report members also want to bring you and make you aware that there has been a adjustment to the General forecast and it is a debatable under this section of the agenda and if there's any questions on that at the end of. Dr civilised presentation will bring the FNA the table to answer those questions. Actually you are recognized to introduce yourself and give the report. Thank you Mr chairman Carlos Silva legislative economists BLR your staff and today I'm here talking about the April revenue report is going to be item you impacted. So in collections on engrossed with the first line have S. seven point three billion dollars collection and we have a deductions that we have taken out there for a total I just a general revenue of seven point three one three billion dollars and after we have taken off the top to have a six billion dollars in collection for the month of April your to date there for the fiscal year. When compared to the last year aprovecha April there is a decline of around fifteen percent however when you look at fiscal year two fiscal year we still pop we still positive there but when you look into the net available for distribution we have a small decline of two point six percent on the first page last line as we move forward to the second page you see that we are four hundred thirty million dollars above forecast does a forecast for November and they'll wait till kinship they already had a five hundred ninety eight million dollars of surpluses kind about the expected there so four hundred and thirty thousand four hundred thirty million dollars plus that five ninety a with around a billion dollars in surplus up to now so expected of course. As we move forward to that page number three we have details for the general revenues from page number three two page number five which with the rest of the pages look convene to. The special revenues with that I'll take any further questions Duchess of a first off can you kind of give the committee a synopsis of what this revenue forecast and we just got would do to this four hundred thirty million and how that projection looks come July of first. And then I have some members for questions your profile probably going to big bring the agency said the forecast was for from the USA that's fine. And I'm sure next month we'll show that in the grass as it has for the November forecast does that is correct I will make the adjustment for the next months things that updated forecasts have come a couple days ago and the report has already been provided to this committee at the time thank you dot shall not if you would introduce yourself for committing you're recognized answer questions I'm John shall not with DFA. we we we we lease the forecast on may seventeenth of this week we are now projecting a. A surplus for current fiscal year. At your at your end of one billion thirty four million. That is on the net available results of seven billion. and then we also includes in the forecast a projection of FY twenty four and twenty five. since we now have a an RSA for FY twenty four we are pairing that with this new revenue forecast and showing a surplus for FY twenty four of four hundred and twenty three million. The. Looking at the growth rates the doctor tional mentioned year to year we are coming down off very high growth rates in recent years you know weeds we still have disinflation taking place but the labor market is quite The negative numbers for year to year from twenty three down to twenty four and then lift off to normal growth in FY twenty five. Thank you dot shall not and now Senator Hester you're recognized. So we're projecting over a billion dollar surplus in this is a this is accounting for the the income tax cut the work that we did retract for the first of this year is that already in there that is in there a as well as in this new forecast we're picking up the tax changes that took place in the most recent legislative session. Okay thank you. Senator hammer you're recognized thank you Mr when you use the term normal growth in twenty twenty five would you expand on what you think that means or give a deeper definition what you think that's looks like. The the growth that we track is in current dollars not the inflation adjusted version that you see often than GDP real GDP or your Mike a little closer please thank you. so we are looking at nominal or current dollar growth of a. About three percent in FY twenty five that is similar to our long run average road. in the state and it includes Somewhat elevated inflation even at that point at about two and a half percent Long run average for for inflation is closer to two percent so it's still somewhat elevated even now at that point and that actually has a contributing factor for our rules L. L. at the to the point in FY twenty five. We will also factor then the tax cuts. We do take a cautious approach with corporate income tax after. Two and a half years of extraordinary growth in corporate income tax we are assuming it comes back down to a normal level. that's a very volatile components and we are very conservative and handling that part of the forecast. and sales tax we we have growth rates close to two percent which is near normal. For that activity so. What I hear you saying in layman terms is that by time we get back to twenty twenty five. What we've been going through the last three four years hopefully should be leveled out and when it comes to our forecasting or anything deal with the numbers we ought to be back to what which pre covid experiences is that fair statement. That's that's accurate okay all right thank you. The doctor still worship on the the one have you made any adjustments recently with what we've seen we we continue to have food inflation that is is impacting a regular our Kansans day we have seen corporate cut positions we see adjustments bear have you made any adjustments. For recent events. Looking at the economic assumptions that underlie part of the of the process here we do show Negative impacts on the labor market this is from ongoing inflation fighting efforts tamping down the economy with higher interest rates. You know we've taken a. pretty conservative view of what that looks like we're actually show employment growth falling to near zero. so I think that's adequate for what we're seeing today what we've also fully benefited from retains savings and households at least in the middle class and an upper middle class households and that is buffering some of the initial effects of inflation fighting that's expected to wear off as well so that's why FY twenty four looks a little weak in the forecast and I and I appreciate that because I tell people when I say what's going on as to when you get negative between people's ears it's hard to get it out there takes a little time so I appreciate your factoring that in thank you. Representative Cavenaugh you're recognized thank you Mr chair. I hear several economists talk about how we're going to get a recession in this calendar year the late part of this calendar year are you all figure in that in to your assumptions that we might actually go into a. What they're calling a full blown recession we don't identified as a full blown recession and in this forecast it's it's it's for certainly close enough certainly below average growth. but the components of GDP that go into defining a recession or not. Aligning together to produce a noticeable a negative result quarter to quarter you know in recent quarters consumers have not been playing the part of falling into a recession so they've been offsetting other components of GDP and until we see all of the major components a law and turning down we're not going to see the outcome. But we do see the consumer a contribution slowing down to growth okay so you're you're not afraid of that we're going to get a recession in the later part of this year. Not with the labor market that we're seeing now and you know consumers are still going to be bolstered by the strong labor market situation okay thank you. Senator Teague you're recognized. Yeah I just wanna follow along the same lines it's almost seems like two thousand eight two thousand nine again on over when we were just keep and spending money and we're at these projections are going to go out there and have all this money and everything like that and it just didn't happen when the housing market bus the bubble busted of we're going into well we went over a fiscal cliff but then we got a bailout our baby got a bailout but to so you don't look at it you know federal tax receipts are down of the deficit spending is up I mean they're not do anymore less spending we're not tuning less spending of. You look at some things to concern me is like sales tax growth rate usage to percent but how much of that is inflationary driven I mean something used to cost a hundred twenty five dollars is no three and forty dollars I mean we just had a clutch fixed in an old truck we have in the pharmacy because three times preprinted make up three times more than pre pandemic I mean people are shifting more credit cards at a higher interest rate. I mean. Is this almost two thousand eight nine when we were when we were given all these projections and yet so basically different happen. So that there clearly are cracks in the system household spending and and the financial condition we're saying in in the banking system. so there are cost concerns out there but they're not on the scale of a financial crisis we don't have any major overhangs in the financial system that were aware of maybe we're not getting the whole story on the banking situation but the. It looks like it's containable. Now well when it comes the banking situation if there's one thing they're going to say about that they're going to live in they're not gonna go until people banks are in trouble because you have a rush on the banks so I mean they did that and eight nine I mean but yet and we had to we're revenue bank failures I mean if you look at going forward for all these exponentially spending programs we just implemented. No I exponentially that Astana cost more than a cost more in year three and then you look at these. Very real situations of people that have financed a lot of money on five your balloons at two percent or something and now they're gonna be looking at eight or nine percent or three percent or eighty nine percent when these five years come to hear in two three years I mean all these are impact in and yet. We're just gonna keep going. I mean these are more than cracks I mean a little trouble by the word cracks in the system these are real. Issues. Certainly there are there are problems at the household level are you saying that in financing for automobile purchases for example and use cars You're seeing someone within housing. that's why the forecast has the pattern of slowing even after we reach the pause. coming up in interest rate setting by the Federal Reserve. We don't show a dramatic downturn we we turned down and interest rates we saw just a pause and so that pain is going to linger on for a few years here not just one have ever mean this was the same thing that was being said back in two thousand eight nine when we just kept spinning and go ahead and didn't take corrective action then I mean it's just real concerning I mean the dangers to me of somebody being down here was like it's far worse now of what's going on it was twelve thirteen years ago when all that crisis was starting to hit anybody raising warnings was you know discounted so I mean. I just see in that you know fifteen counties here in the state or the drivers the economy or the other sixty are brought low I mean let's just be honest and if you see some when you start seeing these correct corrections and slowdowns and all that eventually it comes to not just to stop it comes to a cliff like what happened then so I'm just concerned about the language of the year's cracks in the economy I think it's definitely for worse whenever you look at everything I mean federal tax receipts are down twenty seven percent I mean it when the revenue collection since last month when they down fifteen percent from the year before. In April that's what I read right for a. Any fifteen percent is the steep decline a is pretty significant I mean center we're gonna have to yeah I understand I don't I don't have any questions I'm far thank you. Senate just feel you're recognized thank you Mr chairman good morning how are you you get a. The one billion dollar surplus. Is any of that federal money come as a result of federal monies that we have on hand. Only to the extent it was indirect activity in the state economy subject to our tax base for general revenues. The reason I ask is because I keep hearing rumors that there is legislation proposing clawing back on use federal dollars that were handed out during during cold it is that going to affect us at all we have not factored in You know balances of that nature and call backs to the extent. Don't why would you not factor that in should it become a reality you don't believe it's going to become a reality is that what. Well we've take a conservative approach with the handling of those federal one time dollars and and special program dollars so that they're not in the forecast okay so are and last question. How much money do we have left over from those funds that are proposed that in the Republican budget of the House how much of that money would come would be taken from Arkansas should that pass. Okay I understand they can't claw back the one billion dollars so that's good news but how much good they call back. Thank you. Allen okay DFA. Senator Chesterfield we have approximately four hundred and forty million dollars remaining of this of the one point five billion dollar Arkansans that haven't been fully obligated or dispersed We haven't been given any indication that the the money that was distributed to the states is going to be clawed back on however I mean things change that that could change on a on a on a moment's notice back. What we understand that they're looking at. Clawing back or perhaps considering claim back would be the federal funds that are still parked at the various departments at the federal level that have not been dispersed either directly or indirectly to the entities that they would have been provided to that gives me greater clarity thank you so much and thank you Mr thank you representative back you're recognized thank you Mr chair in my questions. My bed just a simple answer you you talked about cracks and you said but they weren't at the level that yet that concerns you I think I'm trying to quote you I don't know how well I did there but so my question is this. The cracks that you're referring to you're saying they're not at a level where you see this recession thing happening. but I'm always a guy once a number right so how close are we to that level I mean are are we saying we're now at sixty if it hits forty we we think a recession happen or our house that just something simple that if you can possibly. We do have access to an alternative pest mystic forecast the with that has a thirty percent probability that would take us closer into recession. That's a US US forecasts and I don't think Arkansas could avoid the outcome for the nation. Thank you. With no further questions thank you guys and I appreciate a good presentation with that we'll move to the report from the executive subcommittee Senator Rice you're recognized give that report thank you members four give the report somebody turned in some time maybe a memory device it was found in the back here you look low memory device somebody law said come up here today. During the legislative session the executive subcommittee met March seventh authorize BLR to begin an RFQ process for architectural and engineering services related to secure walkway between the capital in the big mac billing this subcommittee met again on my eight in executive session to hear to personnel matters concerning B. L. R. the subcommittee met again yesterday may eighteenth to review and approve an emergency rule for the department of health the subcommittee also voted to approve an amendment to be L. R. contract with the Siegel group who has been working with us on the EBD re for the I also recommend rescheduling and I. A. L. the August A. L. C. meeting to the week of August twenty first through the twenty fifth members that's a week later than normal in August to accommodate the conference schedule and authorize B. LRT entering a contract with we're architects related to the secure walkway in addition the subcommittee voted to recommend changes to their O. C. rules to the full A. L. C. and those proposed changes are attached to your report this deal there is available with the AS BLR legal concerns Council is here if you have any questions regarding the rules. And if not we will need a separate vote For that in the report Mr. Senator Dotson I'm I'm not recognizing you yet but I'm asking you what is your question in reference to the rules the rules okay. The star where you. Please join us at the table. Members I will point out to help with the rules explanation that a lot of the deletions and rules is because legislation have expired and the couple changes in the rules is because of new legislation that was passed so most all the rule changes or statutory. She is. Senator Dotson you're recognized thank you Mr chair my question is on page twenty six of the new proposed rules. and this is related to The deletion of the approval of the Legislative Council regarding COVID nineteen vaccine mandates on state owned facilities and the conditional mandate for vaccination of children that that removal of those those two provisions and rules. Shall there be of Legislative Research as their Dotson that is being removed because if you'll notice in the rule it states that it's only effective for two years following full FDA approval of the cabinet nineteen vaccine at that date will be August twenty third of this year so executive opted to have that removed from the rules since it will expire in just a couple of months however the law still in effect and if there should be a need to use that procedure Legislative Council can still do that. So that you said that the official date of that is in August of the August twenty third of this year's when this provision will expire. Okay thank you. Survey you're recognized. Thank you Mr chairman my questions on the rules also Page three of or is dealing with the approval of the release of unallocated restricted reserve fund can you just give us a synopsis what we're accomplishing and preserving here. Yes there so previously you can see the rules listed I believe for. Difference I have restricted reserve fund set asides that had a bearing vote requirements for the Legislative Council M. one of those And be that an allocated restricted reserve fund set aside is remaining in the rule but it's only effective through June thirtieth of this year at the rest of those you'll see I now referred to addendum eighty that sets out the new twenty fives as set asides that were listed in ACT five sixty one of this year because it was so extensive it was too much to include in the in the. Balk of the rule so we just added that as an addendum provider follow up. So through June thirtieth. Is there any at any change from where we are prior to this rule been adopted are we preserving the current landscape through June thirtieth and then doing the switch over yes there The New set asides will take effect July first. Okay so from now on from the time this is adopted until June thirtieth we're not setting a new precedence no Sir okay thank you. Senator Hammer you're recognized thank you Mr on the back page twenty sexual questions Senator Dotson was raising the way the rules written. And I take it that this is taken straight from the law was passed. This subsection shall expire two years from the date the United States food and drug Administration approves the amount the immunization or vaccine do we have and maybe I just missed it do we have that verified that they have done that. Yes Sir we verified that it's and released through the FDA website they stated the date was August twenty third twenty twenty one so August twenty third of this year's two years from that date and that's the that's the justification for the date for August twenty third is referencing what they said it is is that correct yes there are and then drop down to the next one says if a variant of code nineteen occurs imitates to be more yada yada so that is kinda like we're waiting to see if something else is going to spin out of this because they talk about different you know strange coming out of it. That do we know for a fact that they of officially said that there are no more strange coming out of that I don't know that however this provision is also only effective within two years from the date of the FDA approval of this COVID nineteen immunization so or vaccination so it has the same expiration date is the first part. Okay thank you. Senator Dotson thank you Mr chair sorry I'm. Question on this it seems to me if I recall there are multiple COVID nineteen vaccinations where they all approved by the FDA on that date or. Does the law just as if everyone is approved. the. That seems like there could be multiple ones that. And I'm I'm certainly not an expert on vaccinations or the FDA however we we did this state from the first full rather than the emergency use authorizations it's from the full backs the full authorization by the FDA was August twenty first twenty twenty three thank you. Again members I will regenerate these are statutory law so if something needs to be changed here we would have to change it in the law and that was a does the reason these rules existed so Senator Rice you're recognized for your motion. Mister I move that we adopt the rules for the Legislative Council it's been presented proper motion drive second hi this. Yes these are every two votes members just to be clear staffs is a need to make sure everybody understands be a vote on the rules in a vote on the report. Okay I'm sorry messed up to be a vote from the Senate and a vote from the house so what do the Senate first I have a second from Senator Irvin on the Senate side so all those in favor say aye opposed Is have it House side I have a second from representative person all those in favor say aye. All opposed Is have it now will take a motion on the adoption of the report thank you Mr I would move that we adopt the poor for the AOC executive subcommittee is proper motion seconded by Senator Irvin all those in favor say aye. All those opposed. The ayes have it. With that will move to the ministry rules report senator Hammer you're recognized. Thank you Mr chairman the administrative rules subcommittee met on Thursday may eighteenth the subcommittee adopted its subcommittee rolls and filed a report of executive subcommittee concerning its December approval of an emergency rule subcommittee reviewed and file quarterly reports but department corrections and parole board and pursuant to ACT five seventeen of two thousand nineteen ACT five ninety five of twenty twenty one subcommittee receipt agency updates on outstanding rulemaking and approved to agencies exclusions from further reporting the subcommittee also filed January through may monthly file monthly written updates percent ACT five ninety five the subcommittee referred the Arkansas State Library rules governing distribution of scholarship assistance to the Legislative Council for consideration at today's meeting and the subcommittee voted not approve one of the roles from the northeast Arkansas regional solid waste management district all of the rules reviewed and approved as noted in the report moved option of the report but not including the Arkansas state libraries distribution scholarship consistent rules which will be considered separately after the adoption of this report Mr chairman moved for the adoption. Okay so going off for your report we need to go ahead and adopt that report and we'll go to Senator Solomon for the rule from eighty of so that is proper motion seeing no questions on that motion to have a second I have a second all those in favor of adoption report with the exclusion of eighty say aye. All opposed Is have it with that I'll go to you Senator Solomon for the eighty eight eighty E. real thank you Mr met with a D. E. and the state library and those issues are going to take awhile to resolve will do that and higher education A. L. C. appreciate meetings that we had and like to move to accept that report. As proper motions motion to adopt the rule Dr second. I have a second all those in favor say aye opposed ayes have it. Thank you thank you senator Hammer it's with that we'll go to the employee benefits division oversight Senator Hickey you are recognized. Thank you Mr of the employee benefits division oversight subcommittee met on Wednesday may seventeenth of twenty twenty three the subcommittee is approved the subcommittee rules review DVD contract with navis health solutions LLC approve the B. D. formulae recommendation reports of February twenty third two may twenty third and we also approve the ground ambulance trips benefit proposal I make a motion that we accept this proper motion the second I have a second all those in favor say aye. Any opposed. Is have it with that we'll go to the performance of peer committees representative Cavenaugh you're recognized thank you Mr chair the peer subcommittee met on Tuesday may the sixteenth the subcommittee adopted a rule received reports reviewed request and approved the following various temporary approaches appropriation request American rescue plan appropriation request infrastructure investment and jobs act appropriation request and restricted reserve fund transfer request I move for the docking of the report. As proper motion the second I have a second all those in favor say aye All opposed us have it with that we'll move on to the policy making committee senator Chesterfield you are recognized. Thank you Mr chair the policy making subcommittee met on Monday may fifteenth and heard from representatives Les Warren requesting approval of the actuarial consulting services contract between Osborn Carreiro and associates and the bureau of legislative research for the benefit of the joint retirement committee a copy of the contract is a chance to the report subcommittee recommended approval of the contract and the subcommittee also review the standing committee fund allocations for mileage and per diem the fiscal year twenty twenty four the subcommittee recommended maintaining allocations at current levels and those amounts as set out in the attachment to the report these balances will be effective July one twenty twenty three I'm adoption of the report. As proper motion drive second. A second all those in favor say aye opposed Is have it with that we'll move on to the review subcommittee representive eve you're recognized. Thank you Mr chairman the review subcommittee met on Tuesday and reviewed I agenda items including MOFs grants and contracts one item was held contract number seventy six on page forty eight of the review book report since the meeting the agency has requested the contract be pulled from legislative review so I move adoption of this report. That's proper motion a Google search Mr Gautam follows I have a second. All those in favor say aye. Well oppose ayes have it with that we'll go to the personnel committee representative very you're recognized. Thank you Mr chairman the personnel subcommittee met Wednesday the committee reviewed all items listed as one two thirteen on the report with the exception of item eight which was held up for review by a L. C. at senator rice's request in order to get additional information Senator Rice as notified me that is received some of the information is good with a review of the I am however has remarked that he'd like to make before I make my motion. Thank you senator rice you're recognized. Thank you Mr and not mine Tatian hold up of hiring personnel that's required for together statistics and and data for federal funding I did not get a document that was said would be sent to me I maybe that still coming just for my. And your our. Whatever statement I'll I'll say this for specially for new members. I always have concerns with water agencies agree to with with federal government for federal funding. Well this is nothing nefarious in this we have different agencies that do that and I'll be right members we have No. Review no input no oversight many times over I'd say many times all times over this type funding and many times we don't have any idea what is agreed to so again it's not that anything is nefarious is not anything that may be out of bounds but I always have concerns with the federal government can dictate to agencies may be the direction they need to go or will go without anything from elected representatives of the people having input I thank you Mr chairman language state. Thank you senator represent very you're recognized for most thank you Mr chairman be happy to entertain any questions and moved to adopt the report at the proper time including automate is proper motion I have a second all those in favor say aye. All those opposed Is have it members now we move on to items I and there's a number of motions that are needed I need a motion to file both request by the Arkansas teacher retirement system. I have a motion and a second I have a second all those in favor say aye. All opposed Is have it we need a motion to approve the Arkansas Economic Development Commission wrote a division rule services proposed. Proposed approval of funding for rule community grants a motion and a second all those in favor say aye. Oppose ayes have it with that we need a motion on number ten. This is. Two members regards skip over number ten and come back to it on number eleven ninety a motion to approve Division State Parks is there were special maintenance projects a motion the second all those in favor say aye. All opposed members of is not any questions on the monthly report from secretary button then we want to bring her to the table but if there's any questions on the living choices to living waiver then we will move on C. and no questions will move on. I will go ahead and take up the interim studies and then we'll come back to the Arkansas department of health on interstate is I'll take a motion to batch them if that motion includes them going to the committees that is highlighted in red I have that motion from senator Chesterfield. I have a second all those in favor say aye. All opposed Is have it so with that members we have special report today from the Arkansas department of health and I'll bring them to the table to start that report. Yeah I got it. Yes it members everybody has a copy of their power point at their desks. You guys would introduce yourself for the record. Casey Carter in Arkansas department of health. Joe Martin Arkansas department of health. In Austin for Arkansas Department of Health. Okay you guys are recognized to give your for. Good morning all in thank you for allowing us to come up here present to about the state's trauma system today so one of the things I wanted to start off was talking about pre trauma system which was two thousand nine and before four Arkansas we had overall fatality rate for traumas in the State of about fifty percent or higher fifty percent higher than the national average. we also had an emergency care system that was worse than a nation that was actually a study conducted by the national report card and we were one of three states without a trauma system or even a designated trauma center in the country. Our hospital to hospital transfer approvals in the state would sometimes take hours for an approval from one facility to another. So this body allowed us to have a trauma system and gave us some funds to pay for that of the wanted look at FY twenty three so the current funds that were in this year which is about twenty six point one million dollars that's been appropriated to the agency for this. Fifty two percent of our funds of the of this twenty six million goes to hospitals and EMS across the state hospitals typically utilize their funds for salaries for trauma medical director of trauma nurses surgeons at cetera our EMS services typically use their funds to purchase new equipment update equipment or in a lot of cases actually purchased new ambulances. Thirty three percent of our funding goes towards that contract and services those particular contract and services or such like our software packages such as image transfer EMS software reporting so it's a lot of data packages it goes into this part of the trauma registry et cetera. Eight percent of the funding goes towards us developing and continue any continuing a stroke and STEMI system for the state also that stroke and STEMI system is pretty much piggy backed and and developed based on how the trauma system has been developed over the years and in seven percent of the funding goes towards eighty H. operations that's our salary for and supplies it said refer that. So what from a system. You know as we said is that you know trauma is the leading cause of death and patient population of those forty six and over so you know that that's typically when you have a car wreck you wrap your car around a tree at cetera those can have multi system traumas and in the past those were pretty fatal in this state. A trauma system is defined as an organized and coordinated plan within a state that integrates the local health systems and delivers the full range of care so if you were in rule Arkansas and my example you wrap that car around the tree or the telephone pole. A lot of times in the past that was a pretty fatal accident especially depending on the multi system trauma. Now with the coordinated plan even in south Arkansas. You can do that you can work through the clinical aspects with EMS yet actually put in the air put in an ambulance and depending on your situation you may bypass the local hospital there if the local hospital cannot treat the injuries that the clinicians on the ground believe that you currently have sometimes a lot of times they might not help you to go to that hospital it might actually help you to go to a higher level of care hospital that can actually immediately treat your injuries versus sitting at a hospital waiting to be transferred to out back to the hospital that can actually treat your injuries for that. And that's what the trauma system is that it helps to coordinate that and plan for we do not build hospitals we don't put a new facilities in areas we support the actual facilities that are already there. And a trauma center is defined as basically a hospital is going through a rigorous designation process so that they have you know they they have the The Thank you thank you the tools and education needed for providing for the clinic are providing for the patients in that particular area so in Arkansas we have for trauma center levels we have level one which is comprehensive an education we have level two which is a comprehensive trauma system level three that can treat mild and moderate single system injuries and then level force level for his or those typically you find out in the rural settings that are able to stabilize and treat skews me and transfer the patient there are twenty nine of those facilities across the Arkansas a lot of those hospital or hospitals are located in rural services. So the trauma system components we have pre hospital services which inclusion on one one ambulances we have trauma communications which includes the Arkansas trauma communications center and the trauma image repository one of the things that is really unique and but quite frankly really need in the state of Arkansas is that these two particular components in our trauma system no other state has in this country this is something that we're very proud of that we've been able to do this because what it does is that it allows the trauma communication center to talk to the ambulances on the Graham and help them make that clinical guidelines or feel triage decisions games this state we believe this patient based on your report to us should go to that level for facility because maybe they are in bad needed to be made to be stabilized or you know their vitals are good enough for us to believe that you can transport by ground or air to a higher level of care so that they can actually get the treatment that's needed at that time. The other really awesome thing about the Arkansas German communications centers of back in my slide one where I talked about it used to take hours to get hospital to hospital transfer approvals that is down to seven minutes it only takes our communication center seven minutes to contact other hospitals to have that transfer approved and ready to get and that is a significant improvement that our system's been able to. The trauma image repository which is also another thing that no other state has this allows us to actually for example if you're at that level for facility and you get X. rays you get a C. T. any other kind of image like that that it allows you to send those images with the patient straight to wherever they're being transferred to. A lot of times that transferred hall or that a receiving facility will already have the images before the patient will show up what that does that cuts the amount of time and funding that it takes for hospitals to do more imaging because why would you have to do another X. ray or CT when you already have it so that actually cuts cost Inc and honestly it does not allow that other that patient to get re radio a recognized for like a CT and X. rays we have fifty seven designated trauma centers across the state that includes all level one through level force we have a trauma rehabilitation piece that rehabilitation peas is very important because a lot of times when you're out of the hospital. And you have to go to rehabilitation you can sometimes fall through the cracks specifically if you have a traumatic brain injury that is a significant injury that takes a long time to recover from in our rehabilitation allows us to have follow up contact with those particular patients that have a TV I. And keep them from falling now the cracks that is shown to improve outcomes and quality of life for these patients. The trauma registry which collects and analyzes the data that we receive we have a quality improvement which is you'll see later preventable mortality studies these particular studies help us to decide whether we are actually helping save people in this state from the system or not. And then we have injury prevention programs such as a suicide prevention hotline the national suicide lifeline our funding goes to pay and help fund that for the state of Arkansas. The next line here is that we actually have some of the actual results for the trauma system so my first table here you can say in two thousand nine a private or skews me pre pre trauma system prior to two thousand nine we had a thirty percent frankly impossible preventable mortality rate so defined that quickly frankly preventable deaths means most likely these patients should not have passed away they should have still may have been able to live in one of had a good outcome possibly preventable says most likely those patients should have still survived but instead they they expired. Post trauma system five years later when that when the data was collected you can see based office table that basically we went down to a three percent frankly preventable on a thirteen percent possibly preventable form a thirty percent to a sixteen percent so almost a fifty percent reduction in preventable mortalities across our state. So the next slide there real quick as you can see is that the total possible or sees me the total preventable deaths and the frankly preventable deaths you can still see where it nearly a fifty percent reduction even all the way from twenty fifteen to through twenty twenty one so the studies are showing us that our system our coordination and planning of the system of how we do house work with hospitals and NEMS is saving lives across the state. So I thought it was important to actually mention is that of all the lives that we're saving that is actually funding that goes back into this state and to the country. So it would there was a study conducted the show on all these potential preventable mortalities. based off of an average age of the age of forty two years. Was a with an average lifespan of about eighty two years says about what the researcher shows is that most likely at a conservative level at a hundred thousand dollars for life is that we could have saved the state and country over a hundred eighty six million dollars so the twenty six million dollar investment that we are getting for the trauma system is paying off. The last line I have here is our most common preventable mortality errors this is something that what we look after those mortality studies and to see of those preventable deaths how could this have been prevented and how can we push out better education so that we can prevent these later and engine say number one is the recognition of injury severity and because of that number one the EMS field triage decisions game was invented that helps paramedics and EMTs in the field to actually know and to recognize that the vital stats of that patient is in this range you know depending on the injury they have that is how we know that this patient is a major or moderate trauma patient they contact the ATCC of the entire system steps in and starts to help that patient that is my last slide I do have a couple here also just for you to have for maps across the state and the actual designated hospitals there with that I can take any questions and I appreciate your time and we do have a few Senator Hammer you're recognized thank you just a quick couple quick ones over here to live. Was was you M. S. not a level one trauma center back in the late eighties early nineties or could you check on that because of so I said that we were one of the three stage or in the only state without a designated trauma center could you check on that for me. So yes Sir we will double check that but from my knowledge of being in the system is that White River Medical Center was at a at a time the only designated facility that I'm ever aware of in Batesville and they were designated for about a year or two and then they did not renew their designation and then when we started the trauma system that's when all the designation started to occur okay if you might check on that and then the other question is and and having worked on the ambulance before on a totally understand the value of getting people from in the golden hour stuff get him flown to the closest facility but I'm also getting some calls from people that have gotten some pretty outrageous bills for having been flown in the helicopter subject if they're not a member of a a flight organization something like that or their insurance doesn't cover it are you tracking the data as far as those that are being billed for air flight that that cover that is not covered and because it can be a pretty abrupt surprised to the family to get that bill in the mail mail can you talk about a first second. No thank you for the question I do know that we we have been a we are continue to tract unnecessary use of area ambulance and well we do not have access to billing information you know through our efforts through our continues review of the data we do try to. educate providers of pre hospital included clinicians on the appropriate use of the air ambulance in the state so when that when their flight leaves its destination point arrives on the scene from what I heard you saying testimony while ago the triage discussion occurred between the the medication of medical personnel on the ground back to the trauma center they're making the determination I understand it's a difficult job I get it okay you don't want to make the wrong call but do you track how may times of helicopter lands and then leaves without a patient and is that patient build for that flight time for the time it leaves the pad to wear a arrives on the scene if there's no transport of the patient. Yes yes Sir so now if they do not actually transporter treat the patient than they do not get billed for it but typically what we have seen in the past is that if the if and helicopters actually landed and the ground ambulance did not you know decline them but by the time they landed typically they fly out and so you know most of the time they're going to get billed for that okay we'll have offline discussion thank you. I thank Mr. Senator in your recognized. Thank you I'm your first slide these the report you Included that Arkansas emergency care system was the worst in the nation according to a national report card of the state of emergency medicine December two thousand and eight of its two thousand twenty three what is what are where are we now what's already so unfortunately when we were looking for an updated study they have actually not done or completed another study since two thousand eight if you go in trying review and find that the same study from away to still out there so I do not know from the national report card level of they've even looked at it or anything regarding that so of but I did think that pre trauma system that that was a fairly significant detail to remind everybody why we had to why we passed a trauma system in the state. Okay and then I would like you can do that and get this claim at offline but I'd like I'm at a greater rate down of where your money is going so where the trauma system funding is going specific to each level of at this age level designated institution and then also where how much money is being spent on directors salaries things like that I just I would like a complete breakdown of the funding for the trauma system if you can get that to me and then my last question is stone county Medical Center and is our county community and. Is your county community hospital why are they not designated as level force. So I I don't know the answer Senator about why they're not designated now that is something I can follow up on we do see a lot of times a hospital's will come in and out of the system due to you know see L. changes personnel changes of you know our were as we mature as a trauma system and along across the across the country actually with the American college of surgeons we follow the recommendations that the ACS puts out for trauma centers and as we have matured in age in our trauma systems some of those designation rules have have grown a little bit closer to the National standards and so there is possible I don't necessarily know if the stone county jail under this part but some other hospitals have come to a point where the national you know that was it was not recognized in want to participate doing that with the national standards at follow up have you ever denied. We did not identification no we we don't deny applications if they want to apply for a trauma system skews me a trauma designation then we will you know they have to fill out the application they fill out the paperwork and then our trauma nurses at the at the agency will go out there we will help them say these are the rules and regulations got a pass you're the things that you need to do to become a level four and at that point we will work with them all the way up until it's time for their site survey and at their site survey depending on what deficiencies they get is how they are if they are approved for designation on. So you do approve. Yes we on these national recommendations I'd like a list I mean all for that I'd like a list of what those national recommendations are and how they've changed from Arkansas's recommendations to these national recommendations and if we're being too narrow and our criteria because there are several of these areas that need to the assistance that the trauma funding can provide for them because we're being asked to provide funding in other areas we have an Avenue in a resource right here that needs to be better utilized thank you for the questions. Thank and to that point when you look over to slide results of the trauma system you guys numbers go back to twenty fifteen but you're representing you know the study from two thousand eight I'd like to know what those numbers look like in two thousand eight two now so you can get a better reference of what what we've done what we've achieved and what we prevented and I find it. Kind of astonishing we only put like eight percent to you guys is point here on stroke and stem when now the new manager out there in new ways or to to stop strokes at certain levels why are we not put more funding to that to make sure that we're getting out and rule parts of the state to make sure stopping those side effects from the stroke at a faster level and maybe maybe we are doing as much as we can and eight percent good but I'd like some explanation on that to see if if higher percentage rate there would actually help the citizens of this great state Senator English you're recognized. Thank you very much so you may or may not know the answer to this but one of the things we I think we did yesterday or and we maybe date is fifty four million dollars for hospitals to meet the collectively kind of look at changing the way they operate in some cases they won't have beds. Allen maybe they'll just be an emergency room how does how does their changing of that scope work with you. Because basically what I what I read was that the they would refer people with that need to go to FOR further services it would be at a hospital they wouldn't have any specialties it would go someplace else what does that do to you or how do you refer people or maybe you don't know the answer. So yes ma'am so eighty age does not refer the patients anywhere so this is actually part of the planning in the coordination from the initial incident all the way up until you know the standard of care is meant so I'll go back to my example is that I have a car wreck in Ashley County Arkansas of the I have a multi systems injury which could potentially may and I may have a brain injury because I'm on contest but my vital stats you know my blood pressure my polls is good I may have a broken leg so just two of those injuries already just by looking at the mechanism in one I have is potential that I'm going to need orthopedic surgery and I'm going to need an oral surgery or at least someone that has that specialty so that is something Ashley County Medical Center cannot provide however if I'm in bad enough shape they might take me to Ashley County Medical Center in order to make sure that you know I am not about to code or pass away you know and make sure that I'm stabilized once I'm stabilized Ashley County will get on the phone with the trauma communication center find a hospital that has orthopedics and neuro available so that they know which hospital that's closest Ashley County so in this particular example the closest facility that may have or so and would be Jefferson Jefferson County regional Medical Center so then they would decide whether I am of able to either be transported by ground ambulance racially county or if my injuries are bad enough flown from Ashley County to Jefferson regional so that an agency level this doesn't matter you know bother us at all but that's actually part of the planning in the coordination of the system and that is what's helping that patient yet the services they need quicker especially like with what senator Hammer mention with the golden hour. Thank you. I see no further questions thank you guys for your port and if you don't mind all the items that were asked for by the members of you would get that to the bureau staff so we can get that distributed out to all the members of the committee. So members seeing no further business for before council we stand adjourned.