Insurance & Commerce - Senate

It is a little harder. This call a meeting to order. Member revoked actually take pictures they were away to staff is here and and do them at a later time whenever you all get back together we don't want it without them we'll start out the known go rendering real fast of four open disclosures for everyone this is insurance and commerce committee for any disclosure that you wanna make that you differently items that you're involved in it so I want to start myself to no good representative Murdock was school round room as far as a member of the committee I'm Ricky Hill I'm involved in the banking business farming business rental property real estate and and of. So why that kind of kind of covers may just wanna make sure we get everything out there for disclosure. my name's Reginald Murdock real estate construction development. I guess this all. Hi Justin Boyd I'm in Arkansas licensed pharmacist and owned parts of two different pharmacies in Arkansas and then also an LLC that rents to one of those pharmacies. On. Thank Jimmy Hickey I'm from Southwest Arkansas all my stuff's enumerated within our a Senate ethics thank you. Jonathan Dismang also known by and still rental properties real estate in I hope to have been there be in the at some point thanks. Missy Irvin From the north central Arkansas Mountain View and married to a physician I have but he works for a health systems. Other than that I take care of dogs and cows and horses and cannons. What I'm after here senator over that reminds me I am married to an audiologist to practice is ideology in in Fort Smith at at at a clinic she does not have ownership in the clinic. The appreciated one doing that just moving right along without objection we're gonna jump ahead to H. B. eleven forty seven AM at the Senator Hester president his bill. Thank chairman hill of members house bill eleven forty seven is is something we discussed last session that there was a lot of work done on a compromise and what this ultimately does it allows a licensed residential contractor to have There are people that are employed by them sell their homes without a real estate license these people can only sell their home of their employer cannot represent a buyer cannot represent anyone else outside of that industry and the one of the most significant cabbie ought to that negotiation was that that that that real estate contractor or that new home contractor would have a broker represent them as well so that to make sure that you know the real estate agents felt that was very important to make sure everyone involved street is treated fairly. So that said they there there's a lot of disclosures in here where they have to allow notified that a potential buyer that they have the right to have a real estate agent represent them if should should they so choose anyway I'm happy to answer any questions on that and I'll tell you really the the biggest thing that we're trying to accomplish here and it's not limited to this but just a little bit understanding is if somebody's going to build an entire subdivision that a model home up front they can have somebody set up front that shows houses throughout the day and do that without without having to be a licensed real estate agent that's that was really the main focus but not limited to that. Happy to answer questions. Any questions for Senator. There's no question forum for anyone here to speak from the audience is signed up to speak against the bill. A step forward. Anyone to speak for the bill. Saying none senator you close. Okay as always when you have a bill the people of work hard on a compromise to this is where we're at not everyone's happy with it but I believe by far and away the majority people understand what we're we got to on a compromise and that's what we do I appreciate a good vote. Hello what's the will the committee. Bass motion do pass. Second Senator Hickey. Any discussion. All those in favor. Hi all those opposed the. Five seven. Thank you Senator your bill passed. You get the. You can make them aware that. Senator Dismang to take the chair. Hello seedings role in. And. All right thank. Our chairman hill you're recognized president Senate bill six correct yes Sir thank you senator this is a pretty pretty simple bill just allows a contractor to have a lifetime license we restated sixty five if they've been in the business for twelve years or more by a restricted one time license used to have to. Have your bond and you have to fill out your financial statement when you needed me to with by the by the board other net just allows you a one time fee of sixty five dollars the to buy a license to have a restricted lifetime license. That I'll take any questions thanks any members for me questions on Senate bill six. Seeing none I do not see anybody signed up to speak for against. From confirm that a but like to speak against the bill. For the bill all right seeing none no questions Senator Hill you're recognized call make a motion to approve. Okay a motion to pass to get a second by Senator Irvin all those in favor signify by saying aye hi all those opposed motion carries. Senator dis S. B. sixty six. Well good morning committee Center diss for Senate bill sixty six this is a protection of children's Act bill that we're working on and that's that's the intent we have the reason for this bill is we have just about every literally every other adult oriented business and industry we regulate with with an age verification process if you try to go and buy cigarettes over counter you show an identification and unfortunately we have a growing growing need and harmful material for for children is causing issues with our youth and so the intent of this is to require age verification process for online material when it's harmful and so we've outlined what is harmful material and we've asked for a reasonable age verification process in order to in order to help with the big problem that we're seeing from our children and so that's that's what this bill does it's it's a growing concern with you know when I look at my to my children I'm I'm father of three young kids and I see technology advancing that the way I describe it is like a weapon and it's a sword and it can be used for good and it can be used to cut your own arm off and so this is a I needed measure to make sure that we protect the children and youth inside of our state so happy to answer questions about the bill as well. This committee have any questions for Senator days. Senator. The service I'd appreciate your the bill and and and you can if you can just speak to this actually just have a. Somebody who looks at the things and she's a very conservative person and and supports the whole idea about it and but one of the concerns brought up was Tracking data or creating some sort of a you know it and that was just a concern for my constituents who reach out to me that so if you could speak to that but the concern would be how how this is going to be tracked and then monitored absolutely I to share that concern and I think all of us should all of us should be concerned about your identification your personal information on any online site whether that is Amazon whether that's in your Google search any any online banking we should always have a level of check and concern when putting any sort of your personal information out on to the internet and so I can tell you that in this bill the way we've written it is that it it actually brings liable for damages if the websites do leak out any personal information is so is it would be the same type of of closet you would have with with other personal information that you do like as I said for online banking and so there's protection there and I would also echo and add that if you do have concerns of any site that you don't think is reputable or has the ability to To to not share your data and I would advise you not to go to those websites and so that's the intent here I would I would I would I would tell everyone you should always be protective of that but there is in this bill we are bringing damages to the publishers if they do leak that personal information okay thank you. Any other questions first for the center. Seeing none. Is there anyone I have one signed up to speak of for the bill Mr ****. Thank you I'm chairman hill and members of the committee please please identify yourself a record my name is Jerry **** executive director of family council and we are based here in Little Rock so I'll I'll be very brief in my my comments this is a very good bill in fact I didn't realize how good the bill is still I began to study the issue a little bit more and begin to realize that this bill is really on the cutting edge of where we need to be S. A. as policy makers there is law out of California law out of the United United Kingdom that has actually forced a meta and of these other online entities to change their policies regarding how they post material and how they relate to the people that are minors and so these companies are not going to change their policies for the better unless policy makers pass good legislation like this I bill like this just passed in Louisiana and has gone into effect there and so this is our opportunity really to be cutting edge with this type of legislation I think we all know the harm that is right there in a teenager's hands in the form of a cell phone where they can access just about anything and so this is a good common sense measure that I'm really excited about I told Senator dis I said this is kind of the sleeper bill of the session this could be one of the best bills that you will pass and I think you'll see a a really really good outcome from it and so I think it's very well written I think it's very clear in what it does and with that Mr chairman I would just urge a really good vote on it it's good bill. Okay any questions for ****. Senator. It's more of a don't you agree type of a question but I I appreciate everything you said but at the end of the day if parents give these devices to their teenage children then it's the parents fault. Yeah I I'm I think that we just have to be very very clear about who are the responsibility you know we're and and I'm for this bill okay I will vote right this bill make the motion to pass this bill but I think it's very important for us to clearly clearly state that there is a failure happening with parents who are handing devices to their children as early as the age of four or three or two. And whether it's an iPad or whether it's a phone or whatever and we do not do enough in this government or anywhere to educate parents about the harmful things that are happening with these devices. You know and and I think it's just very very important for us to state that publicly because again. You know I have seen where there have been children abducted kidnapped and almost sold into sex trafficking because the parents gave them a device and had no ability Nothing it and at some point government can't speak can't we can't fix everything we just can't that's legislation we can do that we cannot fix that and the parents have to step up and take accountability and and do this you know for themselves and to protect their children when you agree absolutely one hundred and ten percent and utility comes to responsibility Senator I I couldn't agree anymore I mean I just do one thing that I would die just add to what you said that that makes things may be a better is the fact that he after this Louisiana law passed it was only been in effect since the first of January. there's a website I'm told that it's the largest porn website on earth and they I'm told by the news articles have change their policies they know where they now require third party age identification before they will let somebody on the side so I think you'll see good changes in that area by passing this law and I you know I I wish little kids didn't have cell phones in even if you don't give your child one their friend may have one and it's just I agree it's a problem it is a huge problem in the but I commend senator deeds for trying to to do something about it you know some some days you just have to try and he's doing a really good job so thank you but I I agree again Senator Irvin I totally agree. Mr chairman any if there are no other questions I'm of the. Get away any other questions. C. nine thank you thank you Mr chairman thank you members of the committee. Does anyone have any other questions for Senator days. If not we'll committee. Welcome Senator Irvin had a question. Yes. Yeah I'll close a I view this is the responsibility as a parent with three kids myself just like you mentioned I also view it as ours as responsibilities as I like to fish or for the the people in my district who have have cried for leaders to step up. And and to help prevent the **** peddlers in the publishers of websites that prey on our children I can tell you we already have we have it is actually harder to go to an adult beverage website today from age verification process that it is too that somebody's property sites and that doesn't make sense to me in there we're seeing the damages mean down the statistics are coming back you know the believer of of Christ in the what scripture says in Philippians about think about waters pure what is Hollywood is noble that's the driving factor for me you don't have to be of that mindset because we also have to to school data showing that children are two times more likely to to have relationships that are left to fill in in a divorce tied back to their exposure to early exposure to **** and harmful material online and so I'm not gonna sit back and say I didn't do everything I could to prevent the statistics that we're seeing in a growing and new changing world technology so that's that's why I'm here that's what this bill is intended to do thank you appreciate a good vote thank you. Motion. Do pass by Senator Irvin second the center Penzo. All all in favor. All opposing sign. That seven. The bill is passed sanity is thank you. Senate will skip over SB ninety four by Senator Kim Hammer senator Wallace the next several bills are yours. Thank you Mr chairman I'm joined by Mr Akers. Mr chairman Senate bill ninety five. We've had to pull down the we've had a late me last night and the recent change in the bill but I'm ready proceed with the other three. Thank you senator Hammer we senator Wallace is pulling down SB ninety five that correct yes Sir okay. So Senator Wallace proceed with this be ninety seven. Sure this is the bill It is presented by the state The board of embalmers funeral directors cemeteries and burial services is of Hello the cleanup bill but it also requires. These organizations that have lost your license for whatever reason to surrender their files under contracts in the past they've had. Businesses that have Thank you going out of business and sometimes because of their. Operating in a fashion that's not accepted by society and yet they've kept those files and they've continued to presents himself as a ballot organization so this bill clean set up with that I'll let Mr Akers We have into it. Thank you my name is Robert acres I am the director of the funeral services division in the prepaid funeral benefits division with the Arkansas Insurance Department to expand a little bit on S. B. ninety seven that is related to the prepaid funeral benefits division which is under the Arkansas insurance department there are four major categories that are impacted this time around in the bill Arkansas Code annotated twenty three forty one eleven has to do with as senator Wallace mentioned revoked prepaid funeral benefits licenses what we needed to add to the wall this time around we have had some push back from one or more organizations in this state who have either had their prepaid license revoked voluntarily surrendered or allowed it to lapse but when we go to take possession of those files they don't internalize those files and so for all of those prepaid licensees who follow the rules and the laws and pay the fees and paid to be license is not equitable for someone who's not going to follow the process to keep that business and house so that's the change to twenty three forty one eleven the second change within bill SP ninety seven has to do with Arkansas code annotated twenty three forty one nineteen which is annual reports. Currently in for the last two and a half decades. The prepaid funeral benefits division has six regularly recurring reports are filings on an annual basis we have for quarterly reports one in your reporting one annual license renewal and not only for the prepaid licensee standpoint of you but also internally for staff it does sometimes create an undue burden as far as pushing paperwork what the proposal is for twenty three forty one nineteen is to eliminate the requirement of having a quarterly report submitted to the department anything that's reported on a quarterly reports can be included on our annual report so this is an attempt to simplify the reporting process for all of our prepaid funeral benefits licensees by doing away with the quarterly reports the third take away from SP ninety seven has to do with Arkansas code annotated twenty three forty one twenty two which is cancellations and transfers we've kind of been this is working process for the last ten years or so but essentially it's a decision tree is it the cash funded insurance funded annuity funded if it is is it revoked overseas your revoke herbal if it's either of those is the cancellation or transfer being sought before death of the coupon credit benefits you're after the contract beneficiary and what we realize is that there was insufficient language currently within a CA twenty three forty one twenty two that made it clear who has the right to determine final disposition of the Arkansas already has a law on the books it's the final disposition right of two thousand and nine and essentially we've included that in the verbiage of Arkansas Code twenty three forty one twenty two the fourth take away from the bill is impacting Arkansas code annotated twenty three forty one twenty five which has to do with the prepaid funeral benefits contract recovery board the board was created in the two thousand one legislative session under Act one zero four three. In the twenty two years that that board has been in place they have met twice one time in two thousand one again one time in September two thousand sixteen it is not a statutory board is a an advisory board only the Arkansas insurance commissioner has the authority under Arkansas law as it currently exists to review and approve prepaid recovery claims since the advisory board does not have statutory authority to either have hearings revoke licenses assess penalties may clause or anything like that it's it's really not necessary this point time all the administration related the prepaid contract recovery fund is handled internally by staff if any ID so that the push on twenty three forty one twenty five is to. abolish the prepaid recovery claim board which is an advisory board only we are keeping the prepaid contracts recovery claim fund which is a trust fund to pay for insolvent cases or when you have a funeral home that DO defaults on or or embezzled money and stuff like that is to cover the consumers and make them whole for that so those are the four major categories under SB ninety seven. Thank you Mr chair yes yes groups involved here these bills are present on behalf of the Arkansas state board funeral directors the other group involved is the Arkansas funeral directors association in this particular bill they are neutral and there's no known opposition to this bill at all. And with that Sir I'll stand by for questions thank you Sir any questions Senator Dismang. I'm just gonna since we're sharing on SB ninety five ninety seven ninety eight whatever these are I do financial work for a special care cemetery I don't see anything in these that provide any benefit to perpetual care cemetery opponents caution that that would be my disclosure thank you thank you Senate. My mind's just as it as it relates to the word last. Could you give me a little information was determined lapses there a certain time period before sums considered laughter is one day mean lapsed. what had and we have that defined anywhere thank you senator Hickey we've been very lenient on that really Arkansas code annotated twenty three forty one nineteen. on the reporting and then also the licensing into things falls under Arkansas code annotated twenty three forty one ten one eleven one twelve essentially lapsing would be. The prepaid funeral benefits licenses for all prepaid licensees in the state of Arkansas are required to be renewed June first of every year and we typically start receiving apps as early as January the majority of them get their apps turned in the week before the renewal deadline we just work with them so when when we refer to lapse it's cases where a prepaid funeral organization intentionally does not renew its prepaid license and there is current provision in the law of the law as to their remedy if their license lapse they can come back and have a hearing before the Arkansas insurance department to determine whether or not the licensed needs to be implemented most of this is has to do with revocation is case in point we had a. Yes Sir my I don't I appreciate you trying to go further my deal is probably the last part or those done online or they dun through the mail or what. Whenever somebody does a renewal my my thing is is the unintended consequence we have this thing that just says that it's a lapse you know if if under the law somewhere else he if somebody if you all to do not receive the renewal are you required to notify them online or some other way before you would actually consider it lapsed that's that's the and that's why I'm going down that because it does appear like to me that within here do you have a thousand dollars per currents on on those I just per contract so if somebody. Application gets lost in the mail. I don't want them to be considered lapsed and then to get charged for all this so that's that's where I'm heading certainly I understand and trust me I would prefer not to lapse licenses for prepaid Sir I'm currently administrating myself six different blocks of prepaid business in the state of Arkansas and it stretches my schedule very thin so my preference is if we can get them on board and get them renewed let's do that selected and let them do that now well it's not in the law or the rules as a courtesy I try to send out to you and even three notifications via email in advance of deadlines the deadline for renewals has been in the law for twenty five to thirty years everybody should know what that is and then when we get to the deadline date. I target those licensees that still haven't submitted their licensing honestly we've had licensee's that'll submit a renewal application three and four months after the deadline date but I don't have the staff to go grab all their business and administrated in here in Little Rock so we do work with our licensees on that day if you get if you get one that comes in if you don't mind Mr hits are if you get one that. Are they online or in the mail or both. renewal applications have to be received in the mail because it requires notarized signatures on the original documents and also a renewal fee so we currently do not have a process to do online renewals for the prepaid funeral benefits license the license is issued to the funeral home of the Senate hearing that respectfully yes Sir okay so you receive one three days after the drawing is that considered lapsed no Sir it's not okay to receive one nine days after is it considered lapse no Sir twenty five days is it considered lapsed it would bother me if they get that far out is that in the law or is it solely at your discretion as to when you consider something last. I don't unilaterally make that decision if we go that far. Then we notify the licensee that it would have to be referred to the legal division for additional follow up so I can tell you we haven't had any case where an existing prepaid licensee has allowed its prepaid license to the to lapse do you see any problem and I know this is never fun if you pull that down and actually had a definition that may be said that if you do not receive it. After the time I don't care was one day that you all will will actually send out send out something that says that we must receive in our office within one week or something of that nature do you have an issue with that Joe so that we can treat everybody equally and I'm not saying that you would but this is we know laws going for the next until somebody amends on you know I just don't want to somebody to ever sit in that position so well I don't like so and so I know you would but again this is not about you you know this you know I don't like him he should get his deal here within three days after and we're considered lapsed and now he owes a thousand dollar fine per current so I really would appreciate if we could define what lapse means a little bit better thank you Sir. Any other questions. Senator Irvin. Okay. Is anyone here to speak for against the bill. Seeing none center. Close. Mr chairman I'd like to address Senator Hickey as. Point I think it is a good point. Sir this is. These individuals just like whatever business no one there to would just made the point that they will end up contacting the folks afterwards before they they declare them if I understood you right before they declare them as lapsed so they're actually contacting them again after they have left by the law. So the law so the law requires you to the wall in writing requires you to do that or is that just your practice. It's not within the ACA or the rules it's just our practice to do so and typically it's email and followed up by a hard copy letter mailed to the licensee. So you guarantee sixty years from now that that'll be done that way. If we're still pushing paper sixty years from now in trouble. Mr I'll be glad to pull this bill that are not that I'm not be and it. I'm for it and I agree everybody should have it there my only thing especially with the only Avenue that you have with the notarization is and that makes sense the fees in closed. With the mail and things like that I mean it's just there needs to be before somebody is subject to these penalties for a lapse that there is a date certain or that you send them out an email to some predetermined place that you would do it just as an abundance of caution to make sure it's not. You know truly just an oversight for. A few days. So thank you Sir and Mr I think that Senator Hickey is recommendations will just make it better bill shall be glad pull this down and will make up the amendment and we'll come back thank you senator okay sorry for the trouble that's what he said centerman yeah I would concur with Senator Hickey a lapse needs to be clearly defined in the law instead of a subjective opinion about what lapse means and if it's you know. And clearly with your answer I think it will it is more of a subjective determination so I I I think that would improve your bill will be glad to do that. Thank you Senator S. B. ninety seven is being pulled down then senator Wallace we'll go to ask me ninety eight. Simply put this is between the few homes and it's going to clarify the percentage payable for a substitute. Providing funeral home service they they have about four different Categories and I'm will lead Mr Akers address those. So recognized thank you can is being ninety eight. Essentially the Arkansas code annotated is a high level framework when it relates to burial associations burial associations have been around since nineteen fifty three ACT ninety one we have had an increasing number of disputes between funeral homes where the contracting or home who is handling the paperwork for the burial associations. End up having to pay a seventy providing funeral home for doing services the bylaws for each. Burial association may differ as for how they handle it but was initially what we want to do with this particular bill is lay down a framework between funeral homes as to how much of the face amount of the certificate gets paid if the family chooses to use a certain providing funeral home these practices have been in practice for decades now between and among burial associations but it was never in the code and so we do feel quite a few requests from the field to clarify and in this this is bill was attempt to. Till all of the participants in the funeral services industry dealing with payroll associations what to expect to get paid. And to leverage on that again this is not a your Max out on. Thank you Mr to elaborate on this this again is a bill that's been presented by the Arkansas State Board of funeral directors in the Arkansas funeral directors association supports this bill. Thank you any questions for for the senator. Seeing none is there anyone here to speak for against the bill. No one signed up so. The center. And just trying to find the other page to the bill. Is it just. Yes. Do we not have. Page three. Do you have page three of the bill. Wallace. At the bottom of page two. It it cuts out there should be another page three to the bill. But it's not in our office I have a page two in a. Page three Senate bill ninety eight. Right I'm sorry it's this isn't stuff we don't have Page three and are your senate. I understand all this we don't necessarily Kerry are I've had I mean I have it with me but I assume that these are all going to be in paper form and completes only come to the committee. So there you have another one. We. That's right thank. If you just give us a moment yes. Senator well from there looking that is or anything else you wanna say. Just so there's no known opposition VOL two homes representative or in Greenwood with this. And always try to keep the undertaker's happy when you get to be my age. Page three it said. What do you mind. And maybe this is right I'm sorry. On page three right there it says that it's at the discretion it's at the discretion of the license servicing funeral home whether or not to retain the disbursed funds. For return the funds. What is. What does that mean. Well why would it be at their discretion is the a state or family or they not entitled to these or these non revoke herbal or what. As the burial associations bylaws and rules go to the very among the various peril we have a hundred and thirty one burial associations currently in the state of Arkansas so essentially we had an issue here in the last couple of years where the contract funeral home who administrates the burial association did not perform the I need services the I need service provider. Gave a credit to the family for actually more than what the burial associations certificate was and then when these contractor home sent the money to the city to providing funeral home that says to provider refused to take the funds told the family you go back to the you go back to the bill association and and telling you want to cancel and get a refund that historically is not the way it should happen so essentially that verbiage being added to the bill on page three it is an instruction if the family chooses to use a different funeral home at the time of need they need to accept the funds that are paid to them through the burial associations. If the city provider doesn't want to keep the income if they don't keep the funds when they can do their general other operating account issue a refund to the family but. Warning to the by laws and the rules existing for the last several decades. The family can't after the death go back to the contract funeral home and say Hey listen I want to cancel my dad's bill association certificate just give me the refund me the premiums paid in so that's why in page two and page three of this current bill is. L. aligning specifically what percentages and whose responsibility is to paint the certificate proceeds at the time of death. The service. The server the servicing funeral home is the initial that's where the initial contact was is that correct. So that no Sir the contract funeral home is the funeral home that administrates the burial association and then families have the right to choose whomever they want to bury the relative and we've had a number of cases where a family would go to a competitor in town they do the work that needs service provider is also the subject providing funeral home and for decades there's really been an agreement between and among the burial associations as to what they're going to accept for example if the death occurs within the twenty five or thirty mile service area radius of the bill association. Then the bill so change is not required to be paid those funds to the servicing funeral home it's all within the parent association bylaws but again we've had we've had some issues over the last several years disputing the percentages that the servicing here are the contract funeral home has paid to the seven two provider so this was an attempt to clarify the percentages in the process Hey Justin bear with me. Senate is at the northern most just try to keep it so if you don't mind because I need simple I'm simply for. This is at the discretion of the last scene service funeral so we're talking about the servicing funeral home. All whether or not they're going to read the retain the money they're going to keep it in their pocket. Or they're going to return it to the family. That is what you wanted this bill. Hi I see the benefit is that it has to deal the servicing funeral home should reflect a creditor judgment on its final bill to show that the consumer was given credit for the burial associations certificate phase amount. I had a funeral home tell me that Hey I don't need the money and when the bill association sends me the money I'm just going to for the check and send it back to them that's really not the way the process needs to work the seventy two providing or the servicing funeral home should accept the funds as reimbursement from the contract funeral home in either deposit those funds into its general orders offering account because it's already given a credit to the family for the burial certificate now if the seventy provider the any service or wants to be a friendly neighbor if they really don't feel like they need the money and after everything's done if they want to give the family a refund of that money that's. Optional for the service or. So the families already been made whole absolutely fair enough thank you that's what I needed in the thank you Sir. Senator Irvin. I think that's one of the things that I was concerned about are the families that have paid for this are they I mean if they're made whole but are they. As the servicing funeral home charging more than what they had contracted with the burial association and the contracted funeral home. In other words if that I mean in order to avoid competition or amongst them I want to make sure that the consumers not the one getting harm to the US. No ma'am the consumer is made whole on the final bill when the servicing funeral home reflects a credit for the full face amount of the bill certificate. Primarily ACT ninety one to nineteen fifty three a lot of those were in issued in denominations of five hundred dollars certificates and so the servicing funeral home will show a credit for the five hundred dollars the families may hold yes at a rate of a dollar twenty five a quarter you're paying five dollars and it takes a hundred years to fully fund a five hundred dollar bill institution certificate so the family gets value because the majority of. Bill association membership out there haven't been in the system for more than forty or fifty years so I think the issue that I referenced just a few minutes ago was a case where not only did the servicing funeral home give the family a hundred and twenty five hundred fifty percent value on it beryl certificate but then they turned around and said no we're not going to take the money from the BA wanted to go back to the burial associations and cancel the membership and get a refund of the paid in Davis that is not the way this is that's not what the process works but the family does get full value for the burial associations certificate on the and the the final billing statement from the servicer okay thank you. Any other questions. With that senator John close for your bill closed. Whether we should committee. Motion to pass intervened second massive center Boyd. All those in favor say aye. All opposed same sign. The eyes have it Senator your bill is passed thank you Sir. B. ninety nine again senator Wallace yes Sir your starters Committee those funeral bills. I get keep is full of happy. A pretty simple bill there is currently a requirement to do a yearly in the semi annual. Report. In the. State board would like to. Make it only able one your record just one time a year in the show home association agrees with that. There's no known my position of this all the homes are in favor of this. Just reduces a Media reports. So it's basically all this is doing is just change the date. Well done to date eliminates one there's two we want to use that one at a year in year one mid year and okay eliminates B. here's okay yes centreboard. So this because the bureaucracy in half that is correct thanks or. In the Roger are mistaken has a few comments Senator Ricky just just one. So is everybody on a calendar year there's there's no benefit I see the other ones of was fiscal was fiscal year so now we're moving into the calendar year is everybody on a calendar year or was this originally put in on a semiannual basis so that we could pick up people that were on a fiscal year and the calendar year. I'm not sure of the genesis of the buying or the the semi annual reporting requirement for burial associations I just picked up the burial associations in July two thousand eighteen after the two thousand seventeen session it is a paperwork simplification for the burial associations essentially the mid year report is due for the months activity of January through June that is due to the Department by September fifteenth and then we have a July through December which is due in March. All of the above essentially what we're trying to do is get uniformity among the various funeral service deal prepaid has an annual report. We're doing away with quarterly reports hopefully the educator cemeteries is an annual report and this is a and I'm sorry I did not appreciate my only thing I'm if if that's if it's just something we could check into I just wanna make sure that what we were trying to do was not to get basically the year end at the close of business for each one of those and that's why we used a fiscal year and a calendar year before back on thirteen years ago whenever all this was putting in. If that's not the case in its in if it is just the calendar year the way you have it I'm fine I just wanna make sure that we started all the way through and Senator Wallace if he figures that out between now when he presents it on the floor then that'll be great yes Sir it is the calendar year and it's just doing away with one of the report thank you Sir. Any other questions. So what will it be. Do pass it will be to close. It It. The second by Senator Irvin. All in favor say aye. Follows posing sign that seven center is being ninety eight has passed. Thanks you make. That's a done business I'm glad that we're with them with thank you for doing those senator Wallace the. Yes P. one eleven centerman. Please recognize yourself for the record thank you senator Missy Irvin district twenty four. Derek Smith with the Mitchell William silicates and with your lawful law firm representing the ACL live. Okay Senator Irvin thank you members Senate bill one eleven at before you create a new benefits I have a family leave insurance and if you'll see through this through this section it's setting this up to allow an insurer licensed to transact accident and health or life insurance business in the state to issue an insurance policy covering the risk of family leave hello outlines that this is a new benefit and follow the same procedures as as other insurance benefits that would be. Regulated within the state of Arkansas on through legislation and and and propagation of rules Hello Mister Smith explained a little bit more to me I feel like this is a good benefit to and courage family leave and help people plan for taking family leave so they can be with their children. Mister chair Committee I think Senator Irvin did a really good job explained the bill the American council of life insurers a CLI is the national trade association that represents of life insurers throughout the country eight in Arkansas there two hundred forty seven member companies representing about ninety four percent of the life insurance premium what this bill does is aye Senator Irvin explained provides insurance for the risk of paid family leave from an employer you think about FMLA which everyone's familiar with its provides on paid leave for an employer to take time away because of an illness. For themselves or family member or for the birth of a child what this does is allows employers to provide paid leave it provides insurance coverage to cover that risk when we presented the product to the insurance department they said it's not currently permitted under any of their lines of authority so moving with a model bill that in coral adopted we proposed this presented. And I would just follow up to say that I appreciate the language and here in dealing with adoption and foster children and as well as our own children I think we need to do more as a state to encourage people to take in foster children and and adopt our children so I appreciate that that part of the bill significantly. Thank you any questions from the committee Senator Hickey. Now. Senator boy. Thank you thank you Mr. So this is a simple question and it's going to know my account so we have to pass a state law to allow insurance to be sold of a specific type. Yes so the statute our Arkansas insurance code provides list of lines of insurance are permitted to be sold in the state if an insurance product doesn't fit within that line is not permitted and this is one that wouldn't fit thank you. Any other questions. See no one signed up to speak for or against the bill. Centerman. Pretty close I appreciate Derek Mr Smith bringing us a bill I think that in call is that an organization that way I think most are familiar with I appreciate their work on this issue appreciate a good vote. I make a. Go ahead. The motion to pastor Boyd second second by Senator Irvin. All those in favor hi all those opposing sign. Senator Irvin S. B. one eleven has passed thank you thank you. One. Now Senator Irvin one nineteen. Thank you. Number seven Senate bill one forty one what this bill does is is was it a real world SP one nineteen. No I'm I'm or passing over that passing over that one okay. Is senator king is not here senator Bryant is not here self serving SB one forty one. Okay member Senate bill one forty one what this does is really just say aye that if you have subscribers in this state and you are health insurer then you need to follow the current laws in that are on the books in the state of Arkansas. That's that's what this bill does. Simply put. This. No one signed up to speak for against the bill we have any questions from committee. Seeing none centerman you're pretty close I've closed motion to pass. Motion to pass Senator Irvin second by Senator Boyd all those in favor say aye. Opposing sign as seven center ring is the one forty one has passed. But as for Senator include one forty two. Within forty two. The story. H. B. H. B. ten forty representative right. Thank you Mr chairman. I think it's fair to say senator Wallace is killing me with all these funeral jokes. Okay sorry for the bad job. house bill ten forty repeals the Arkansas legal insurance act this is law that was passed in the nineteen seventies and really hasn't been updated since then what it refers to is is what's called in the code legal insurance but what would really is our legal plans most of legal plans today are not insurance at least in terms of how we typically think of insurance what they are today is typically a subscriber based prepaid legal plan and the way it works is a subscriber will pay a monthly fee for access to a basic set of services that they can access should they need legal assistance with a local law firm so the things that are typically covered or things like document review a basic consultation preparation of will things of that nature and if they desire services above and beyond what's covered in their basic service plan they'll be able to access those added that a pre negotiated discount rates. a lot of times individuals will purchase these plans similar to how you might purchase membership to triple a for roadside assistance or businesses will purchase these plans and offer them as an employee benefit to their employees also under the act the sales associates for companies that sell these prepaid legal plans they have to have a license from the state but is not a license in the way that you or I would think about a license there's no education or training requirements there's no test that they have to pass or anything like that the only requirement is that they pay a bi annual fee to the state there's thirty three states that never that never regulated this area of licensure in the first place and of those that did more than half of sense repealed the requirement just in the last couple years Texas Tennessee Arizona and Nebraska of all repealed or significantly curtail their restriction are there regulation on that. So what the bill does is basically just conform Arkansas law to regulate this product in the same way that the vast majority of other states do which is to say not at all and eliminates the licensing requirement that basically serves no purpose there's no opposition to the bill that I've encountered and the insurance department has said they don't have any concerns with the bill. It's invoice. Thank you Mr chair so does this bill receive a record for the most pages of stricken language without replacing it with any. it might I eat out I read this bill two years ago but I think my fatal flaw was I had Senator Gilmore on it and so that may have that may have doomed doomed is Chad pants chastity chances of passage. Any other questions. Say no other questions. And there's no one here signed up to speak for against it you're free to close representative right I'm closed thank you Mr. The will of committee. Do pass by Senator Boyd. Second center Penzo all those in favor of this motion say aye. All postings sign. Regulations senator ray. Eighteen forty thanks thank you Committee. Fifty cent Penzo. As order okay we're gonna have a recipe one fifty one SP one sixty nine I do not see Senator Bryant anyone here to run the bill for him. The SP one seventy eight Senator Hammer as an amendment. And this act this bill does have an amendment. For. Senator Hammer free to present your member yes Sir all it does is add representative Vaught as a cosponsor to the bill Mr. Motion to adopt the amendment Secondus Senator Hickey all in favor say aye. Opposing sign. Limited opted to go ahead Senator Hammer thank you very much of Mr what the bill and members of the committee what the bill simply does is it allows for a PCP to be able to establish what would be referred to as the a it's a bit behavioral health care manager within their facility and be able to be reimbursed for that position from the insurance companies are through Medicaid and the reason that brings us to necessity is that through all the meetings that were conducted this past summer through the mental health counselor stat wish on the house in the set through the majority of those is that there is a gap whenever a PCP recognizes that maybe somebody has an issue and they need to get them into the hands of a professional counseling and so this person would be the navigator for lack of better term that would make sure that that individual it presents to the PCP maybe in a routine visit routine physical whatever the case may be something may service we're the PCP would recognize it Hey this person needs a little bit of of expertise outside of that PCPs realm that they could utilize this behavioral health care manager to help navigate to make sure that they get connected to the right source maybe that that primary care physician would want to have a therapist within their office that they would you don't have in house or they may want to refer him out but what this does is make sure that that connection occurs between the identification that the patient may have issues that would be better handled by a counselor working in conjunction with PCP this doesn't cut PCP out of the scenario at all in factors built into the language that there has to be a conduit of information so that the PCP can be working in a team affect with all those to make sure that that mental health of that individual's get in the best quality care and attention needed and in a nutshell that's what the bill. Does Mr be glad take any questions. Senator Hickey. You would do we check to see if there's is there any G. R. fiscal impact on this I mean it or would it all. Come other federal funds or do we look into that just to make sure the only one it would have an effect on would be Medicaid I did not get any resistance or push back from them on this they were set and the means the whole time I mean if you feel it's necessary to get a fiscal impact well I just. I think we kind of stated you know that we if if something did I mean up as far as passed out of committee I mean since we're kind of still early I I personally think it would be okay with that at the office but if there is a fiscal impact possibly to just bring back on your own before you run it through the floor because we would have factored in our state if it's significant I don't sitting here I'm not for sure that they're it there is going to be an impact on state to your or you could possibly just be the percentage that we have to pick up or what I'm struggling trying to figure that out sure I don't know that would but for the peace of the committee we are early in the session that's why I want to get filed early I'll be glad to continue take questions to the content of the bill and then request a fiscal study if that's what committee wishes. Okay what we'll come back to that after we get this question Sir let Centerton. I just want to ask at the same if you look at the docket of bills that affect Medicaid. And Medicaid spends there's a lot of them between this committee and public health committee which is of concern to me because if we you know pass every bill out and then at the end of it we see that we have dramatically increased Medicaid spends that is going to be an issue when it comes to the state budget and RSA and everything else that we have. That we're dealing with in reforms across the board and we we really don't know those numbers yet I I I like the idea behind your bill it I'd need to. Check to see about. You know how logistically it's going to work but. That would just be my only concern is because we have so many bills out there affecting Medicaid and requiring more spend that I think it be prudent for us to really hold these bills and then make a determination. towards the end of the session got that's my advice and and I think that would be a consistent a statement because you from from others involved in the CPT you have folks from Medicaid that attended those meetings but that was before the new administration got into place perhaps and so. I just would would suggest that. A man Mr yes thank you all be glad to do that I will say this and and I'll. Mr after you're done answer any other questions so that everybody can you know give the questions answered that they want to be side anything deal with the fiscal I will request the fiscal analysis want to get it back I would like to come back to committee but I do want to make this observation throughout all those committee meetings that were held the one thing that was identified in this bill is that it could actually generate savings to the Medicaid system because a lot of times what happens is people come in they see their PCP and if they can catch from upstream where they could have a issue identified instead of just going back out and living life until the wheels come off and they end up in a psychiatric hospital or something of that nature I can at least express that the intent of the General Pena was that this may be in all likelihood save the system money because we're gonna get people treatment sooner than later at a less cost to the system because we'll be keeping them out of you know intensive cases out of intensive therapy or other psychiatric I can't say that will be able to come back and prove that but that was the general discussion throughout all the meetings that that's why collaborative care at the PCP level is most critical stage to insert that so as to help cut costs downstream but mainly just make sure quality health is caught sooner than later and I just wanna respond to that if I can I don't disagree with you it out all right in fact we don't do enough at the PCP level with trying to allow them to practice medicine based on their training and their residency in their experience we don't do enough of it and so I don't disagree with you at all I just I just want to respect you know I just want to respect the. This that and all the other bills and and making sure that we look at it thank you and I appreciate that and I'll I'll do that Mr and bring it back thanks will pull S. B. one seventy eight down one of financial study I'm visibility study of the feasibility study conducted to by Medicaid by the appropriate channels and up would like to come back as soon as I get that Mr specially that shows that it's cost neutral or potentially cost savings if that's agreeable. Fiscal impact yes Is physically paschal impact yeah yeah okay thank you no he center just for benefit and that's not necessarily a rule that we have in place I mean that I just wanna make sure that we're clear that's not necessarily a rule that we have in place I don't believe on this committee or in public health or in the Senate but I just do think is prudent for us as legislators and just making sure that were being and very aware of of those expenditures and and waiting all those factors may I have bills myself that that would be affected by the same issues but I just I just think it's a prudent way to approach our Medicaid sure totally your bill senator you have just. Based on that but it be maybe not it may not be a rule but the leadership of the Senate did send out all the committees and request that you know and I understand that we normally do that the revenue tax because those may be the most impactful or do you know public health but through all committees that you know that we try to keep a running track and have have the fiscal impact because you know whenever you get RSA on all of these you know at the end of the session you know sometimes you're sitting there and you're right well we passed out. Three hundred and eighty million more dollars worth of bills and and we have to back into it so I think that the thought process was is that you know we're trying to stay ahead of the curve on that within all committees so thank you centreboard. Thank you Mr chair and I think I'm I'm reiterating with the two senators across for me said but also what you said so what concerns me with the fiscal impact is it might say we're gonna cost we're going to pay pennies but senator Hammer might very well be right. Costing pennies here might save us dollars down the road so when you bring that back if you feel that way out I would like to have that discussion as well if it's just all we're talking about is it's going to cost this and I don't provide us with what we think it's going to save this having some testimony that we we believe that I think is this part of it because too many times Medicaid I've seen where we save pennies and I know it's costing us dollars somewhere else thank you but at may Mr yes I don't think she's in the room to think whether prohibit or I do prohibited her from getting here I do have one individual that I will I will bring back that can consist that is a professional in the field that will be able to speak to your issue nothing bring a level of comfort for everybody I appreciate that Senator Hammer can ask questions Mr yes Sir curiosity if you don't mind answer was ever signed up to speak for against the bill because if their cancer could maybe get him after the meeting find out sooner than later. No Sir they were not that's a good sign Mr of miniature I'd respectfully like pull this down I'll bring back that that the fiscal impact is not okay thank you Mr yes Senate bill ninety two I should be prepared to bring that back next week we just out of courtesy to the committee to let you know that we had a a pretty good meeting yesterday with a group of people can make modifications and should have ninety two ready for you next week okay created thank you basing NO one else here I wanna make one public statement before we leave I was wrong while ago with the center Murdock ahead Senator Dismang compared and take the chair will go because I thought the majority party had held a chair