House Rules

With that. Chair sees a quorum. Welcome to a rules committee. The first thing we have on the agenda we'll take it out of order. Without objection will go to House Bill eleven sixty two since it's a bill that we've heard of. And then introduce yourself for the record and you made again. Thank you madam chair representative David Ray District sixty nine colleagues this is a bill we we I heard last week initially last week it's house bill eleven sixty two that would allow a microbrewery restaurant to manufacture or sale what are known as ready to drink products and there were some questions that were addressed by an amendment on page six and opened by Senator chance look at that amendment represents Wardlaw you're recognized motion to pass I have a motion do pass there's no one signed up to speak for against is there anybody out there that wants to speak for against the bill saying no one was the we've got a motion to pass all in favor say aye. As amended. It was a members that's for the amendment I'm I'm sorry Sir I'm sorry. Took me a second that was for the amendment. No I. Hi that's right after the hearing last week I I added a member's own amendment. So we have a motion do pass all in favor say aye anybody against I know. Your bill has passed thank you Sir. I will go back up to house bill ten twenty one representative Matix you're recognized please state your name and then you may begin. Thank you madam chair covering a witness to the table with me. I bring awareness to the table yes yes you cancer. So representative John Maddox district eighty six and I have a witness I'd like from dentist himself. Hi my name is Derek Campbell and I am the owner turned on his mind. Now sorry okay my name's there came along with Wausau brewing in mean Arkansas and been working with John on this particular bill thank you for being here representative back in you're recognized for safety thank you madam chair. This is actually we say this a lot this is actually a very simple bill but it solves a really difficult issue for this microbrewery owner and then others that could be similarly situated so the situation I'd like to just kind of explain it so he obviously owns a microbrewery in Polk County which is mean Arkansas and there are some local restaurants who would like to sell this product one of those local restaurants is less than a mile away however. You mean is an amazing place all of it but it's very isolated has a lot of you know so the problem is it doesn't make a lot of sense for a distributor to drop from Fort Smith or Texarkana to Meena to pick up a very small load and transported a mile to a local restaurant so what we have is we have a willing buyer we have a willing seller with two people one enter into a contract for commerce but due to government regulation we can't do that and again one of these restaurants is less than a mile away so what this bill does it allow self distribution for micro breweries up to a limited capacity though and so that limited capacity was done by amendment and that amendment was drafted an agreed upon by the distributors so they set a limit so there could be so I guess they're not too concerned about getting into their territory for lack of a better term so really that's all we're trying to solve my client does want to work with distributors he is working with distributors and we hope that will will happen more but that's really what the bill does A. B. C. is not taking a position on it they're not opposing it obviously. We've worked with them the distributors are on board so there's no opposition that I know of so that's basically what this bill does but would be glad I'd be glad to take any questions. yes I just want to echo what John said as you know okay previously was a dry county and so we kinda overcame those hurdles and we were very in a dry county and operated in that and now that you know what kind of transition to the White County and we're being permitted as a microbrewery restaurant in that area again just a bill the ability to build a service my County my local neighbors restaurant owners I know would love to be able to develop that relationship further with them and better service them and then also just territories to where we're not able to achieve distribution just due to our geographic area and distributors making it to us so that's our goal represent Wardlaw you're recognized. Is ABC here today yes. We have to the table yes. This state yeah just for the record she told me outside you could wait. Sure we applied for today. This may be our last time at this. Thank your name for the record Doorly calendar record alcoholic beverage control president Wortman recognized sponsors and you guys were neutral can you tell us how you all became neutral. So we are not taking position either way for against this bill you know we're here to promote the regulations that you all pass and so this is not one that we have a strong position on the impact of the industry either way it will help the small territories thank you thank you ma'am and are there any other questions program yes I representative gene you're recognized. The transportation of this hi we're in the bill does it say it's going to stay inside the county or the city of Maine. It does not say that that is not the intent time certainly if there was a addition that the limitation of to read upon as a per barrel beryl amount per year so if they want used to all this to Texarkana or force be if they could under this bill absolutely and there could be cases where again due to the fact that it doesn't make economic sense for distributed to drive to mean a drive back to Fort Smith that that might be helpful the first goal is to service the local providers if there are some others that that our interest in this product certainly he would he would do that if it's makes sense from a cost perspective okay thank you thank you manager thank you. Any other questions. Saying no other questions there's no one signed up to speak for against the bill is there somebody in the audience that would like to speak for against the bill. Seeing none what is the will of the committee. Motion do pass all in favor say aye. Pose no. Congratulations your bill is passed thank you madam chair of the committee. Next we have house bill thirteen eighty nine representative Graham like you're recognized please state your name for the record. Hello everyone my name is Zach Graham exit representative for district fifty. You're recognized to proceed house bill thirteen eighty nine was brought to me by DF nine the goal of this bill is to require service industries out we're to require service industry license for certain persons or entities related to casino gaming and to require background checks for service industry licensed employees by franchise holder or casino gaming Court is in a licensee I'm gonna go through a couple bullet points which they gave me to hit the high points this will allow racing commission through DFA auditors to conduct federal background checks on employees a franchise holders or casino licensees the bill requires certain employees franchise holders or casino licensees who service gaming devices to obtain a service industry license which will require a federal background check the racing commission already has the authority to conduct background checks based on a rule the FBI requires legislative and enactment that meets certain federal requirements in order to conduct a federal background check the racing commission can only conduct Arkansas specific background checks right now which is not healthy for employees to apply from out of state this bill allows the racing commission to conduct a federal background check and there's no revenue impact I haven't heard of any opposition I was contacted by a representative is from Oakland and say they were they did not oppose thank you representative are you finished if I if there any questions I'm asked somebody to join up here you want to go ahead and get your shall come up they can go ahead and do some steps for the record and then that way we can start with questions immediately. Thank you madam chair members of the committee Paul hearing assistant revenue commissioner for Hey and you have a statement you would like to go ahead and say before we start with questions no madam chair representative Graham presented the the high points of the bill happy to answer any questions that the committee has questions thank you Sir are there any questions. Representative Cavenaugh you're recognized for a question thank you madam chair just wanna clarify so they have to conduct more than a hundred fifty thousand dollars worth of business before the required to get the background check so I'm provision Cavenaugh thank you for your question so what we have our service industry companies and that are not employed by the casino so generally speaking these are going to be companies that provide operationally gaming support such as providing machines working on machines doing the technology so but currently right now all of our service industry licensees are being subject to a state side criminal background check we have to have a a statute in Arkansas law that would authorize DFA to conduct the full federal criminal background check so everybody that is going to receive a service industry license from the racing commission currently is going to have a state side criminal background check this would just only at the ability for us to conduct the federal criminal background checks we can make sure that it's not our data in the background check is isn't. Not limited to just a state convictions contained in the state database okay there really than answer my questions on page two right line on I don't five it says conduct more than a hundred fifty thousand dollars in business with one or more franchise holder or last seen a licensee what's a hundred fifty thousand dollars about and that's in in the bill that is a and for language so if you fall under any of those provisions in the bill to qualify you for a service industry licensed any any of those apply so it's not that you have to have a minimum amount of business that you conduct if you do any of these functions for the casino or the franchise holder you will be subject to the requirement of having the license having the state side criminal background check and then under this bill you would also have the requirement to have a federal criminal background check as a condition of receiving the service industry license. Okay so why do we need a hundred fifty thousand dollars in there that's what I'm asking is why we need that if you've listed everybody that's got to have the background check why don't. Why the one hundred fifty thousand dollars and these are a reflection of what is is currently in our racing rules these these requirements I'd be happy to follow up. We have a we also have a member of our excise tax section the might be able to speak to that specific required as well. Back in a minute Q. while they're trying to get that answer for you yes representative Tosh you're recognized. Thank you madam chair and this kind of follows up with representative Cavenaugh will does get a little differently but other than the additional cost. Of the of the background check is really additional fees or any other additional licensing fees or anything else it's being added here that maybe you've covered it but I didn't I didn't understand it if you did I just want to know is an additional call any war other than the background that no representa Tosh there's no additional cost so what we currently have for our service industry licensees the requirement to have a license for those employees that are not employed by the casino or by the time that the franchise holder and we already have a requirement for license and fees fee structure currently in our rules this just codifies those requirements for service industry license in in the Arkansas code but there is no new license that we are creating no no new additional requirements on the casinos of the franchise holders thank. Represented all that you're recognized thank you madam chair of I heard you say that this is an or provision and I'm looking particularly line Page two line nineteen section two. And and maybe I'm reading it wrong but are we. Or maybe it's really section three provides management operation goes on supplies materials devices and then the next one's conduct more and you don't get to the war and he get to section six so are we saying they're going to have to do one two three four five six or number seven no ma'am so under that provision of the bill which is subject subsection six one three seven if that business or that employee falls within any of those one three seven they would have a requirement to have a service industry license it's not one three six. Or seven it's one or two or three all the way down to seven. Representative Cavenaugh I think the answer may be coming to the table if you want that would go. Thank you ma'am you're welcome to state that question again form if you would like. Please identify yourself for the record. D. and a Munn Smith DFI. Thank you madam chair what is significant of the hundred fifty thousand why we need that in order for a company be required they have to have a license they have to stand or they have to have a hundred fifty ACT senator Katy K. That is part of the rules. For the vendor to have to have to be licensed they have to be licensed and also all their employees okay so they can actually do a hundred thousand and they didn't have to be licensed. For the cap that's that's for the company I'm not sure on that for the company licensed Baptist and. That's the requirement for the minimum. Okay summer okay I'm kind of confused so. A hundred fifty thousand requires a license but if somebody does a hundred thousand they don't require license and they're not they don't fall under this. They would be they would. For a company licensed for a individual license or ID. Service industry industry license they would have their own. Okay. As clear as mud thank you. I guess I guess I would say if to your point like if they had a hundred thousand dollars in business and they didn't meet any of those other criteria of the seven criteria no they would not but I would also odds are they would probably means it's one of those other criteria somewhere. Representative Dalby you're recognized thank you ma'am sure I hate to keep coming back to this. But represent Cavenaugh Collins. Raise my interest suddenly this hundred fifty thousand dollars really doesn't make a difference as long as you meet one of those other requirements you don't even have to have the hundred fifty is that what you're saying you just have to make one of the seven. Is that what is that what you're bills trying to do yes okay. Thank you I'll let Paul come up and answer but from my understanding yes. You want to let your might back at. There you go represent Dalby okay and thank you everyone of them I think Paul did you hear my question that I mean I did used to have to me because you just tell me it or on each one of right so you just have to make one of the criteria you not to make Ryan also been you don't have to meet a combination is that what you're trying to say yes and I think what what's really important here is we're talking about people that are going to be working for a company that comes on to the premises of the of the gaming establishment to work on machines to deliver machines and things of that nature and we want to make sure that those people that have are gonna work for service industry have a have gone both through a state side in a criminal in a federal side criminal background check into to your question also to represent cattle's question I was trying to think about what possible type of company might not fit under one through that's the one through four. Or six or seven and perhaps a casino or franchise holder they might be buying or conducting business with a very small company for a very little bit of money and they're not going to be sending any employees on to the establishment and then that company that is a very small operator that's providing a very small dollar amount of service but none of those none of their employees are going to be doing anything that would follow one under the service industries license that's. I can only think is the only justification for why that we would have a dollar threshold but if you hit that dollar threshold in the amount of business that you're going to do with the casino of the franchise holder at that point your pick considered and doing enough business that we need to make sure that your company employees have passed both the state and the federal criminal background check hopefully that's helpful. but but to do the representative Cavenaugh questions that's one make sure that if you are a person is doing any type of work with the the casinos machines or the or their network or any type of those support organization did you are going to be subject to the federal criminal background check in that within this bill right now we're only able to perform a state side criminal background checks will be hoping to expand to make sure that the quality of employees that work in the gaming service industry area has a more comprehensive background check. Are there any other questions. Thing no other questions is there anyone there's no one signed up to speak for against the bill is there anyone in the audience would like to speak for the bill or against the bill. Seeing nine what is the will of the committee. Having no motion I'm sorry to say but your bill has died like a motion. Except we have any House Bill Fortino too representative Wardlaw please and identify yourself for the record and then you may begin. Thank you madam chair House Bill fourteen two is a process to streamline complaints that are filed to that this commission and make it easier for Arkansas situates and our opponents the fund that are reports are flawed are something is wrong with our campaigns I say that because it's not just our campaigns all campaigns and those campaigns deserve sunlight and they did deserve a process in which every point single body can file a complaint if need be so with that manager are to be happy to take questions are there any questions. Thing no questions we have one person signed up to speak against the bill Mr Gramm Slonim please identify yourself for the record and who you're with and then you may. Thank you madam chairman members committee minds Graham Sloan I'm the director of the Arkansas ethics commission of the what I'm here to express concerns about Senate bill fourteen oh two it does deal with the filing of citizen complaints with the ethics commission we this past twenty twenty two was we received a record number of citizen complaints and so I I don't think there's a bottleneck or an inability to file complaints the what this what this bill would do is it would require the ethics commission to establish an online filing system and the first concern there is that we don't have anybody on staff of that expertise and would therefore have to get a vendor that's very expensive our appropriation might. Be sufficient to cover it however are actual funding is not the ethics commission we're a miscellaneous state funds agency we took about a four percent reduction in the appropriation or the funding was four percent less but the problem there is that how we're fully staffed so we can't not spend money in salaries we can't not spend money and personal services matching so what that leaves us doing is having to not spend money in operations and the amount that we were are required to not spend this year was thirty five percent of our appropriations it's left us in the position that the FNA is calculator we're gonna run fourteen thousand dollars short and so their film out the paperwork or helping us navigate the process of getting an additional money just to pay the existing bills and so to the extent that this is unfunded mandate to we would have concerns there but the the probably a more major concern one goes to the merits of it is that uh the current law requires a citizen complaint to be signed under penalty of perjury and I think you want that to be requirement in the process that the system's going to file a complaint they're going to subject themselves to the penalty of perjury it's gonna might make them stop and think and and not file something that's potentially frivolous there other states in Missouri Florida Kansas that require complaints to be either be delivered in mail or by mail or in person the Arkansas that the commission in that restrictive we will allow somebody to submit a complaint by email or by fax with the provision that they followed up with the hard copy within a certain period of time in. And it's it's really not just a samples let somebody send us an email that to satisfy the signed under penalty of perjury requirement you we're gonna need the original complaint and the one thing that you are all familiar with and it's probably a sore subject but the candidate filing system the C. any reports of child required file or required to be signed under penalty of false swearing in an order secretary St as determined in the that in order to meet that requirement that you have to sign up you have to register to be a user of the system you signed a signature card or the front end of that process and insert you know to say I'm gonna I'm gonna be issued a password when I make a file and use that password it's my signature anything I submit as under penalty of. Usually fall swearing in so you know there's there's that requirement. that you have to sign up indeed to become an authorized user so if you if you created an online filing system for complaints it's not as simple as somebody just waking up will not decide they want to file a complaint they're gonna be required over to register and and and if they're gonna have to submit the signature card either in person or by mail then I don't see what the difference with they want to file a complaint Hey let me submit it in person or by mail and like I said we will allow them to fax it or email it but we do need the original and to meet the signed under penalty of perjury requirement and I think that that's just you know if if you if we created a system that's not going to be any more convenient for the for the user and again we had a record number complaints this year so I just don't think there's a problem with you know citizens by find in this file a complaint. But representative more you're recognized how many complaint thank you madam chair how many complaints did you have this past election cycle you know what I mean I'm but wish I had that exact number four yeah I think it's in the neighborhood of a hundred twenty in the end that Thank you hundred fourteen was the old record and it might be as high as a hundred forty but just somewhere in that on twenty two hundred forty range. Follow up yes Sir. How long usually does it take to investigate these complaints. the. Cases can go before a board as many as three times The law requires us to to get it resolved within. Two hundred ten days or if it. Because of biology Education hearing two hundred forty days they usually don't take that long but we have had cases they've got out there to the you know pretty close to the to the time deadline. Are there any other questions. Saying no other questions were members of is everybody will speak for the bill. Against the bill represents Wardlaw you're recognized to close for clothes for your bill. Thank you madam chair I took a lot of notes the other day when miss long called me main concern was how many complaints would be filed and how they would be able to deal with that from an amendment this morning so you guys know so you know I'm not trying to work with folks in the amendment pretty well just start bill out deadlines do anything. The problem we're having today is we're not able to get the form marketers came to me numerous times last year they would be able to get the form would have to get the form they fill it out they got no response from the agency so we put this on the internet we make it more streamlined and make it more easy for constituents is nothing in my bill that says that he has to do any other things he just went through and said he had to do it did say a bill processing asked how that process before Legislative Council for November first election cycle starts. In the first part of November with filing period so did do that but it didn't say you had to have all that perjury requirements didn't say any of that in the bill they're making it more complicated what is hundred twenty complaints is too hard for them to do in a year I mean that doesn't sound like a lot of complaints I just think they need to be more of a service agency to the to the constituents they need to police the candidates and they needed to efficiently in and to do it right and you do it weather sunshine in the process of that are constituents can get to the process and do it correctly with that I appreciate a good vote not make a motion to pass I have a motion to pass all in favor say aye. Opposed no. Congratulations your bill is passed and that's all the business now wait just one second Mr relayed we would like to thank you for your service and being here and keeping us straight on our alcohol Bills to make sure we do that the rights that we thank you for that and the I know you get a new position maybe Friday. Is it Friday that you're actually start next week Friday is not listed as a research director and I do want to say thank you so much and represent Wardlaw before coming here I told and I actually do enjoy coming before the legislature being involved with you all I don't think you to it. Face value I think that he I'm not thought I might be budging that a little bit but I have enjoyed the last four and a half years that I've been here in the two legislative sessions that I've been there I appreciate all the the questions and the ability to help you all answer the questions of your constituents have and I do appreciate that. Thank you. And what that were adjourned.