Arkansas Legislative Council (ALC)
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- October 2, 2026
Speaker 10
1:43
re ad y all right members if you could go ahead and
take your seats we're on it Representative painter if you could take a seat are you ready members are gonna call Alc for the month of February to order er sees the cops members at this time I would like to recognize Senatorhammer if you would for
Senator Kim Hammer
Unverified
2:13
the morning prayer before you today and man we are so thankful that we get to live where we live and we look around the world and we see what others don't have and we see the abundance of your mercy and grace that you've shown upon us that we have what we have we pray it would be good stewards of it whether it's in our lives personally or whether it's in our respective roles as servants to the people through our positions we serve in our
either elected position or or appointed hier position just help us be good stewards help us be mindful of your presence today not only in the deliberation decisions that will be made but the tone and the attitude with which our thoughts will be delivered just pray that you bless bless our elected officials at the national level regardless of whatever party they're affiliated with you tell us to pray for our leaders you don't segregate them or separate them out and just say pray for them and so we lift all of our elected officials up before you today and just pray Lord we be a nation that acts like one
nation under go and we ask all these
things in your name amen. thank you senator members you have in your packet the minutes from last meeting I need a motion to adopt the minutes from last meeting we have a motion second note any discussion seeing none all those in favor say aye opppose the ayes have it takes us down to itemd if we could get doctorctor Silva for the revenue report you don't have to run it's ok
but I appreciate it if you would just
Speaker 19
3:52
introduce yourself for the record and you begin. Thank you sir Carlos Silva bureau legislative research I'm I'm staff
Speaker 20
3:58
and today I'm here to present the January2026 monthly revenue report that's our seventh month of this fiscal year as we look into page number one you see gross general revenue collections year to today uh4.78 billion dollars that's an increase of around $80 million for this fiscal year today or
1.7% above last fiscal year as we look down on on the bottom there at the page you're gonna see on net general revenue available for distribution which is uh4.1 billion dollars that's an increase of around $111 million or 2.8% from last January of 2025 and if you're looking down there you're gonna seegR highway casino gaming you see the large increase there so that is due to once they hit31.2 million dollars in GR the money
get transferred out gas holed up in a sub account until the end of the fiscal year and then that got transferred to a highway and transportation fund so that's why we see this increase here doesn't mean that has increased by 1000% has been faster just because we have that flat hold up at31.2 million dollars as we move to page number 2 we'll see our cumulative deviation from the F andA net general revenue available for distribution forecasts and we're gonna be at this month $1660.3 million above
their forecast of May2025 if you look into the bottom of this report of the last pages of this report you'll see the updated forecasts from the agency that was done on January30th of this year so there has not been reset yet they'll be reset next month so when you see next month you see the new forecast present ed here so this is as of January we have $160.3 million on the original forecast they had $185 million surplus before we had the 160 so this new
forecast the FNA had a surplus of around334 million dollars in which I say will be reflected next month on on how we're gonna reset here that was done due to the sales individual income tax that has grown faster than expected and of course we have that shift on the individual income tax this year for41 million dollars from fiscal year 25 to5 school year 2 6 and we have the32 million dollars have been collected by the individual that want the the lottery so we have some
other things that have moved here and as we move here to our page number3 in the bottom of it you see a casino and gamemet taxes we're all talking about on the third to to the to the last line there you're gonna see34 million dollars versus32 so the $2 million difference that's what we have seen and with regards of any other major change we'll have here is page number4, the fourth line you're gonna see fine spinal sincor
costs you see a large number change there but that is due to some civil penalties of around $85,000 and lawsuit settlements from last year that have been been higher that's why we have seen this change here but with that I will take any further questions related to this report thank you right members any questions all right
seeing none there's no action required Doctor Silva thank you for the report that takes us down to the report
of the executive committee I recognized my co-chair today,
Senator Justin Boyd
Unverified
7:31
Senator Justin Boyd. Thank you Mr Chair the executive of subcommittee met yesterday and approved a waiver request for cooperative purchasing construction services for the Jackson County school district this was an amendment to the request previously approved by the executive subcommitteeittee in September of 2025 the subcommittee also heard an update fromblr director
Marty Gerrty on the bureau's biennial independent audit which had no findings I move for adoption of this report at the proper time. thank you senator
members any questions on this report? seeing nonepresentative board you're recognized for
your motions motion to adopt this report right we have a motion to move a 2nd. 2nd any discussion seeing none all in favor sayy aye opposed you guys haven't report is adopted thank you. that takes us down to items f1 administrative rules a recognizedsenator deeses at this time
Senator Tyler Dees
Unverified
8:26
thank you Mrir. the administrative rules subcommittee met on February 19th this week. subcommittee filed quarterly reports on administrative directives from the department oforrections and the postrison transfersfer board. The subcommittee approved one agency's request for exclusion from the reporting requirements for rulemaking the subcommittee also accepted the recommendations of the division of public school academic facilities and transportation concerning the extension of rules pursuant to actct781 of2017 and Acts65 of2021.
the subcommittee received agency updates on outstanding rulemaking from the 2023 regular session and filed agencies's monthly written updates on rulemaking from the 2025 regular session. at the agency's request, two rules were pulled from consideration prior to the meeting and moved to the next meeting. all of the rules were reviewed and and approved and noted in this report. Mr Chair, I move for adoption of the report at the
proper time. right thank you senators senator members any questions on this item? all right seeing none senator you're recognized for your motion. Move we adopt hang on
just a second no that's that's ok go ahead senator you're recognized for your motion. I move we had I move for
adoption of this report we have a motion in second any discussion seeing none all in favor say aye opposed you guys have it it's passed that takes us to item4 recognizecognise if you would please send it or
Representative Dwight Tosh
Unverified
9:48
excuse me Representative Tosh you're recognized thank you Mr. The game and fish statelice subcommittee met on Wednesday January the 21st during that subcommittee meeting we heard discussion on the federal
immigration laws whileldlife management areas and flyway federation and also boting laws in Arkansas subbcommittee met again this past Wednesday during that meeting we heard testimony regarding pit maneuver statistics and the process for decertification of of law enforcement officer Mr Chair, I move for adoption of this report at the proper time thank youpresentative members any questions? Senator English
you're recognized for a question. Thank you Mr Chairman. The hospital
medicaid andvelopmental dissabilities sud subcommittee hang on we're still we're still on game and fish. did you have a question on this topic? OK. all right seeing no other questionspresentativetasha recognize for your motion. move for adoption Mr Cha. right we have a motion for adoption. we have a second all those in the papers say aye opposed the
Senator Jane English
Unverified
10:51
ayes have it OK, Senatorli, you're recognized to make your report you Mr Chairman. The hospital Medicaid andvelopmental disability studyittee met Thursday to hear testimony
on the following items the overview of current status ofsnA an update on the reimbursement rates under the Living Choices Assisted Living waiver by DHS subcommittee also discussed the final report provided by Georgia Center for Opportunity. I move for adoption of the report at the proper time thank you senator members any questions on this item? all right seeing none senator you're
recognized for your motion? I move for adoption we have a motion to adopt we have a second
Se any discussion seeing none all in favor signify by saying aye opposed the guys haven't report is adopted members that takes us down to item 10 I believe Senator Wallace
Speaker 43
11:48
has given that report occupational licensing there you go
Senator Dave Wallace
Unverified
11:52
all right you're ready I am sir. go ahead the occupational licensing review subcommittee met on Thursday and received reports from various occupational authorization
entities in group one. I move adoption of the report at
the proper time thank you senator members any questions on this report? aren't seeing none senator you're
recognized for your motion Andir, I make a motion this report be adopted. OK? we have a motion to
adopt the report if a second it a second any discussion seeing none all in favor say aye aye opppose? you
guys haven't reporters adopted it that takes us down to the peer report I believe Representative Wardlaw is given that report today. Representative Wardlaug you
Representative Jeff Wardlaw
Unverified
12:32
recognize. the peer subcommittee met on Tuesday, February 17th. the subcommittee reviewed reports reviewed requests and approved the following various temporary appropriations infrastructure investment and jobs actct appropriations on that one members you will see an updated spreadsheet sent to you next week, members of the peer the spreadsheet that they've been sending out is in a rear you're adopting this in forward for a quarter so you should see the spreadsheet for that forward quarter so that's been corrected we also had transfer requests
in there there was some questions for the bead program. so at this time of permission of the chair I'd call the broadband office to the table. right we could get someone from broadband and when you get to the table if you would just
introduce yourself for the record and we can get on with the questions. Glenn Howie, state broadband director thank you Mr Chair Mr Howie, it's my understanding
Representative Jeff Wardlaw
Unverified
13:34
there's some participants in the program that haven't paid their local property taxes throughout the state of Arkansas to the tune of about 8 to900,000 dollars and about 10 counties included they were not included in this month's report but there is pressure from their lobbyists and folks to get them included can you walk me through your guys' standpoint on their tax delinquents and when you when we should see them in a report thank
Speaker 53
14:00
you representative for that question but you're correct there is a provider who is a
provisional selectee in the program however they were not part of the 15 providers that we put forth this week because they have not met all of our our check boxxes including what you're pointing out right and so as I committed to on Tuesday and then before and prior months we will never bring a grant agreement, a provider to to execute a grant agreement before you guys without we are fully evaluated them they have not met those boxes as you're talking about and so they have not been presented to this committee at this
Representative Jeff Wardlaw
Unverified
14:34
time. So once you do bring them before us and
we know they've had delinquent property taxes for multiple years. if my my understanding is this goes back to 2022. how do we know that the grant dollars that you're then giving them will not be spent on old bills and will be spent on building out new broadband opportunities for our constituents so how do we audit that to make sure the money's going to what we say
Speaker 53
14:59
it's going toy and so one we would not bring that particular provider before this committee until there's resolution on that issue that's number one and number two
is the way that the bead program is structured the way that our office will disperse funding is based on what's called a fixed amount sub award OK? so in that particular process disbursements go out to a provider only when they achieve actions so as they build out and they hit certain percentages of locations and facilities are in the ground and people are getting connected that's when we pay them so they only paid when they perform their actions thank you Mr Chair that's all the
Representative Jeff Wardlaw
Unverified
15:32
questions I have I'll yield for the rest of the committee and then I'll make the motion right
thank you Representative Wardlaw members any other questions on
this report seeing nonrepresentative board law you're recognized for your motion. move for adoption right we have a motion to adopt we have a second. Thank you and a second any discussion seeing none all in favor say aye opposed ays have
Representative Frances Cavenaugh
Unverified
15:58
it that passes and that takes us to item 12presentativealvanaugh you're recognized thank you Mr Chair. The revenue subcommittee met on Tuesday and reviewed methods of finance one alternative delivery construction project procurement discretionary grants one
ratification, service contracts and received regular monthly reports in addition to the regular review items the subcommittee received one contract for review from the district for tire removal programme the subcommittee voted to hold consideration of this contract until next subcommittee meeting on March 17,2026. Mr. Chair, I move for adoption of this report. Thank you Representativealvanaugh
M members any questions on this report? seeing nonpresentative Kavanaugh you're recognized for your motion
A move for adoptions report. right we have a motion to adopt. we have a
second. A move for adoptions report. right we have a motion to adopt. we have a 2nd. 2nd any discussion seeing none all in favor say aye opposed the ayes have
Representative Rick Beck
Unverified
17:00
it. thank you. that takes us down to I believepresentative Beck for the state insurance programs you recognized thank you chair the the state insurance program oversight subcommittee met Wednesday February 18th the subcommittee reviewed the employment divisions excuse me the lo
benefits division contract with the Boston consulting Group the subcommittee approved the following Ebd items the pharmacy formulary recommendations for December of 25 and for January of twenty6th and January of 2026 the drug that we also reviewed the medical drug recommendation for February of 20 26 and with that I
move for adoption of this report all right members any questions on this item? all right seeing none Representative Beck has had a motion
to adopt we have a second Se any discussion seeing none all in favor say aye oppose the ayes have it all right that takes us down to item 14.
Chair
Unverified
18:07
this would be the personnel committee uhpresentative warren you could you're
Representative Les Warren
Unverified
18:10
recognized thank you Mr Chairman. P personnel subcommittee met Wednesday, February 18th in room A. the committee reviewed all items listed in the report. I
will answer any question members may have and move for to adopt the report at
the proper time all right members any questions? all right seeing nonpresentative warren you're recognized for your motion. I move for adoption of the report. OK we have a motion to adopt we have a second second any discussion seeing none all those in favor say aye oppose the ayes have it
Our members that takes us down to item h this is review of communications in your packet there's a presentation of a report from Aidd if you would take a look at that for a second I'll need a motion to adopt that report at the time at the proper
Senator Terry Rice
Unverified
19:06
time Senatoriceich you recognize we got somebody from AId that I could ask a question from yes
sir if we could get some down here from AId to answer a couple of questions
right and members just so you're aware I've, I've skipped down to itemh 4 currently. we'll go back to itemh1
here and momentarily but gentlemen if you would introduce yourself for the record we can get on with Senator Rice's questions. Jimmy Harris insurance commissioner of state insurance department.
Chair
Unverified
19:46
Danielholland Pbm general counsel statesurance department. Thank you Senator reich you recognize thank
Senator Terry Rice
Unverified
19:53
you good morning gentlemen. appreciate you being here had a question
had a question here on the back page of this can you give us an update it says uhavvidas Health Solutions has objected to providing data can you give us some
Chair
Unverified
20:13
update is that changed? no sir that has not changed we're we we're working on setting that matter for hearing at Aidd both the parties have briefed the issue it's about data from self-funded plans that we're looking at in this affiliate pricing examination. we'll get that set for
hearing within the next week or so and then then finalize that issue
Senator Terry Rice
Unverified
20:36
is there any other providers that is in the same boat no sir just navi yes sir
you senator. I'm going to recognize my co-chair Senator Boyd
Senator Justin Boyd
Unverified
20:51
at this time. Thank you Mr Chair. just making sure that you've seen that West Virginia find novitis $800,000 and you're looking into that too
Chair
Unverified
21:02
I have you and I've spoken with some Pbm regulators in West Virginia about that. Yes sir, I'm aware. thank you. thank
you senator Representative beatty you recognize? Thank you Mr
Representative Howard M. Beaty, Jr.
Unverified
21:11
chairir. I kind of following up on that question have have y'all kind of had a an internal meeting to decide what their pain threshold would be to comply with state law here in Arkansas and what it's gonna take for them to comply with state law in Arkansas so I would
Chair
Unverified
21:27
say for the most part they they have complied it's it's
more of an issue we're disagreeing about whether or not a state can request to this type of data they are complying with the audit. I don't don't
Speaker 83
21:42
want that to be the impression but we are in a disagreement over this one particular issue. what about the client's always right and the state's
Chair
Unverified
21:52
the client correct? I I definitely see your point they have some it's a legitimate argument that they're that they're making it it's a there it's within
their their power to object and the state does have to give due process to all licensees so that's what we're we're giving them at this point. Well it's been
Representative Howard M. Beaty, Jr.
Unverified
22:13
a problem from the rollout even the way this they rolled out the program in the very beginning I I still have heartburn over how that was done oh at the very beginning the of of the process so I hope that y'all get some resolve on this and I think that's something members of this committee take very seriously so thank you thank you thank youpresentativepresentative rose you're recognized
Representative Ryan A. Rose
Unverified
22:35
thank you Mr Chairman over here on your right you just and I'm paraphrasing you just said something in the effect of that their their objection
carries merit or has validity or something along those lines could you just explain that to the committee briefly why you why you believe that what
Chair
Unverified
22:52
it is that you believe has merit well obviously I disagree with their position here my my point there is that again we we have to give due process to licensees and when they bring up
a legal argument about this we have to address it give them an opportunity to to brief that particular issue, give Aidd the state an opportunity to do the same and respond and then let you know our hearing officer make a recommendation to the commissioner so I I very much disagree with their position here but we have to give them due process which is which is exactly what we're
Representative Ryan A. Rose
Unverified
23:32
doing here OK so you to paraphrase once again is
you're saying they they need to have due process and more or less go through the process as opposed to saying that their
objection carries merit. Am I interpreting that correctly I think so yes sir thank you thank you Mr
Senator Justin Boyd
Unverified
23:55
Chair thank youpresentative Senator Boyd you recognize? thank you Mrir. So could you just clarify are there are5 Pbms that are being audited is that correct that's correct and four of the five are not making the
argument that one of the five is is that correct it is and do any of the other four
pbms have multimillion dollar contracts with the state of Arkansas to your knowledge? not that
Chair
Unverified
24:22
I'm aware of. thank you. thank you senator. Senator hammer you're recognized thank you Mr Chair.
Senator Kim Hammer
Unverified
24:28
With regard to being compliant with the laws that was passed are they being compliant and are you working within you you mentioned about due process but the requirements of the law
Speaker 92
24:41
are they being compliant with it as it is now well that that's what we're looking at in this examination. we we're conducting this examination to find out are they compliant with the law when it comes to affiliate pricing so and and when I say that there's merit to the argument what I mean is that they have raised an objection and we have to deal with that objection I can't just go back and tell them sorry you have to do this oncece they raise an
objection in this process there is due process concerns that we have to give them but back to your question, yeah we're we're that's why we're doing this examination to find
Senator Kim Hammer
Unverified
25:25
out how compliant they are with Arkansas law the the four that Senator Boyd referenced though they
Speaker 95
25:30
didn't raise any objection like the one company did is that correct? there's
Speaker 92
25:35
been several objections throughout the process that have come from different Pbms we've we've been able to work those objections out short of setting
a public hearing and conducting all this briefing this particular issue though withavtas we just weren't able to come to any kind of agreement
Senator Kim Hammer
Unverified
25:51
to move forward. OK and what is the one issue that they're that you're having to exercise due process over in handling what is what is that issue
Chair
Unverified
26:00
that they're raising it's providing some claims data for self-funded plans which are normally you know there's an argument that can be made for self-funded plans that that this is preempted by ERISa that's the argument that they're making
Speaker 92
26:15
the state and Aidd and myself we disagree with that position so that's that's essentially
Senator Kim Hammer
Unverified
26:20
what we're fighting over at this point and how long do you think the due process is going to take 30 days,60 days you got an estimate or a timetable or flow chart as to how you think it's gonna play out and get to
Chair
Unverified
26:34
a conclusion where you're going to have some some resolve to it so the again the matter this matter's been fully briefed counsel
Speaker 92
26:41
foravvitis and myself yesterday approached the hearing officer
and asked for a hearing date. at this point we we've asked for a hearing date in april. I haven't heard back yet so but we should find out
Chair
Unverified
26:54
soon when that hearing date will be and that that'll be the the next
Senator Kim Hammer
Unverified
26:58
step on the administrative level here. OK then the last question is this who's driving the conversation who's driving the narrative who's driving the the the force behind getting it done them by their political maneuvering or you by inserting yourself to the full limits of which you have the power to do well at
Chair
Unverified
27:17
so again they they they can make these objections and then we have to deal with them
Speaker 92
27:22
in a in a certain way as far as who's driving the conversation. it was the state it was Aidd who initiated these examinations we've worked through all of the issues so far but this is one that we just couldn't come to an agreement on but they they certainly can you know hire attorneys and and fight this at the administrative level, and we'll just have to get a decision from the hearing
officer and and possibly from courts if they don't like that decision but this is something that's within their that they have the right to do
Chair
Unverified
27:57
this and we have the authority to continue pushing and continue asking these questions during the examination. all right
thank you all right thank you senator
Senator Missy Irvin
Unverified
28:07
Senator Urban you recognize thank you just providing a little bit more clarity for me the issue at hand is that we're asking for claims data
information on a self-funded plan that Navita is in contract with with an a company private company that's correct So so the private company has contracted with Navidas. to be their pbm to perform a duty and we are asking for that contract to be breached
because well it could be potentially correct I mean if that information and that data of claims data on those employees of that private company is is somehow protected by the contract between the company that hiredavvius would that not be a a potential breach of a contract? No, absolutely not. this
Chair
Unverified
29:15
isn't a contract issue. this is a federal law preemption issue
Senator Missy Irvin
Unverified
29:23
so we're asking federal law federal law preemption issue but it's based on the state
Chair
Unverified
29:32
law that was passed the the examination itself is conducted under a state law and and federal law in in our view does not preempt a state from asking for selffunded data in light of the Supreme court's decision in Rutledge. OK.
Senator Missy Irvin
Unverified
29:48
I just needed clarity. thank you.
all right last question here we have Senator Love
Senator Fredrick J. Love
Unverified
29:55
you're recognized thank you Mr. Shean and following up on Senator Irvi because I I'm just trying to figure I'm trying to understand like what would be the specific reason why they would not want to turn over this data. I mean is it is it any different than any other data that will be turned over from a a a plan that is not self funded
I mean like what what really is the crux of their argument here so with there's essentially
Chair
Unverified
30:27
two buckets of insurance plans here there's fully insured and there's self-funded plans the employee retirement Security Act, the federal law that typically governs the vast majority of aspects when it comes to selffunded plans the Supreme Court in Rutledge in 202 said that that that ERIA preemption it's called that still exists but when it comes to costs states can regulate some of those areas so the argument specific
ally is about can we can a state regulate this particular area of of cost so for for fully insured plans can the state ask for this this type of data for plans that are typically covered under ERISA. Hm OK it is definitely a
Speaker 79
31:18
complicated issue. I'm happy to to meet with you and we can we can talk through some of those details if if that didn't that that would that would definitely help so
thank you thank you Mr chairir. thank you gentlemen seeing no other questions you're excused. thank you. we appreciate that information. members that
takes us back up to itemh1. This is Arkansas teacher retirement system. you have a review of an agreement in there and I'll need a motion to file this as reviewed the motion second of the second any discussion? Yep, I'm sorry Senator Higgie I was
going a little too fast you reckon I sir? Right I I
Senator Jimmy Hickey, Jr
Unverified
31:52
was trying to figure this out. I'm not for sure if if I may own
some stuff that's a parent company of this so I'm just going to say that I'm will not vote on this because I
can't figure it out sitting here. I understand that's noted thank you. right members we do have a motion we have a second any discussion seeing none all in favor say aye oppose the ayes have it members there are bevy of reports that are in your packet you can take a look at those. there's no action needed so I'll give you a minute to look at those if you have any questions let me know
remember seeing no questions there is no other new business no other interim study proposals no business carried over. thank you for your participation we are adjourned
Agenda
A. Call to Order.
B. Roll Call.
C. Approval of the Minutes of the Last Meeting, January 16, 2026.
D. Presentation of the January 2026 Revenue Report & January 2026 General Revenue Forecast – Dr. Carlos Silva, Legislative Economist
E. Report of the Executive Subcommittee — Sen. Ben Gilmore, Rep. Les D. Eaves, Co-Chairs
F. Reports of Standing Subcommittees:
G. Reports of Interim or Special Committees: (none)
H. Review of Communications:
I. New Business: (none)
J. New Interim Study Proposals and Interim Resolutions: (none)
K. Business Carried Over: (none)
L. Adjournment.
Documents
Speakers
Speaker 10
Representative Les D. Eaves Chair
Unverified
Senator Kim Hammer
Unverified
Speaker 19
Speaker 20
Senator Justin Boyd
Unverified
Senator Tyler Dees
Unverified
Representative Dwight Tosh
Unverified
Senator Jane English
Unverified
Speaker 43
Senator Dave Wallace
Unverified
Representative Jeff Wardlaw
Unverified
Speaker 53
Representative Frances Cavenaugh
Unverified
Representative Rick Beck
Unverified
Chair
Unverified
Representative Les Warren
Unverified
Senator Terry Rice
Unverified
Speaker 81
Representative Howard M. Beaty, Jr.
Unverified
Speaker 83
Representative Ryan A. Rose
Unverified
Speaker 92
Speaker 95
Senator Missy Irvin
Unverified
Senator Fredrick J. Love
Unverified
Speaker 79
Senator Jimmy Hickey, Jr
Unverified