Arkansas Legislative Council (ALC)

Greetings members of call the Arkansas Legislative Council to order and first up so if you look in your packet you have minutes take a motion for approval of the minutes. I have a motion and a second all in favor aye. Minutes or pass thank you next up a. My co chair. Is coming right here. We're going to have the executive subcommittee report. The report. You may I'd I should remember that we didn't have an exact subcommittees. Report is we didn't have. He always will give representative Wardlaw chance to speak do you have anything else represent Wardlaw all right. We are only ministry the rules Senator Hammer you are recognized. Thank you Mr demonstrate real subcommittee met on Thursday November seventeen the subcommittee filed a report of the executive subcommittee concerning its approval of emergency rule subcommittee reviewed and filed a quarterly reports that were submitted by the department of corrections and parole board president to ACT five seventeen two thousand nineteen ACT five ninety five of twenty twenty one subcommittee were received agency updates on outstanding rulemaking subcommittee filed the November monthly written updates pursuant to act five ninety five and three rules by the Department finance administrations Arkansas racing commission concerning shockwave therapy non invasive treatment prohibited practices were health consideration by the full A. L. C. all of the rules were reviewed and approved as noted in the report I move adoption of the role but not including the Arkansas racing commission rules concerning shockwave therapy non invasive treatment and prohibited practices which will be considered separately after the adoption of this report. Thank you members I skipped over our Legislative. Collimation we'll come back to that after this report Senator Stubblefield you are recognized. Thank you Mr chairman of I just want to say a few words we don't I don't think we need to call the two gentleman from the racing commission up. But I do wanna say few words about these rules the federal rule changes for the Arkansas racing commission. And I thought about this all night this is this is simply the federal government coming into Arkansas saying we know more about how you should raise your horses then you do. That's basically what it boils down to shockwave therapy has been used for seventy years I know I race horses it's a very simple non invasive procedure that we use for navicular tendonitis arthritis in spine you can't even tell you do it. And in presenting this is akin to taking someone to the hospital having to go across the street by the way you can take the horse off the race track for two days and do it across racetrack and then bring back nobody would know if you'd done it an hour after it was done it was done on the race track. But this is like going across Austin sending you across the highway have an MRI it is sitting you results two days later this is simply another example of gross overreach by the federal government and we vote on this I want to be recorded as a no. Mr chairman. Thank you. Recognized to lead to a representative Cavenaugh question. Thank you Mr chair. I also want to express my frustration with these roles now my frustration with the rules of not with the Arkansas racing commission or Oaklawn I either want my frustration again is with the federal government the federal government has implemented. Some procedures in horse racing testing safety guidelines. Which it further record everyone knows I'm logged in horse racing that's that's a large business for us but. And so I live this every day. But what we have here is we have the federal government who now has control of testing and safety for thoroughbreds. It's going to go on and a quarter horse industry also and it's not just going to be about racing it's gonna be about our rodeos it's going to be about all our performance so this is not the end of this this is the beginning and it's going to get large. And what we really have is people and they say that I have no knowledge of equine athletes setting rules that don't understand what benefits a horse or what doesn't benefit horse. Everyone that's in this industry understands that we have to protect our equine athletes and that's what a lot of these treatments that are banned do they actually help recover they actually help them get prepared for the next race. My frustration is that Oaklawn is stuck between a rock and a hard place with these rules if they don't implement them what can happen to them is they could be sanctioned by the federal government. Then they can have their export license taken away for their simulcasted which is a huge hit to their bottom line. But more importantly the horsemen the owner's right trainers jockeys the exercise people they can be sanctioned by this organization also and lose their livelihood if they don't comply with these rules so what we're looking at here in the state of Arkansas is Senator Stubblefield say it is a massive federal over reach. I will say. It is being fought in many different levels on the federal level there's three lawsuits I know of ones has been lost I'm not sure it's going to appeal there is one that Arkansas is involved in one Louisiana is involved in and for the record I just wanna say Arkansas needs to get involved in the Louisiana lawsuit because that's the best opportunity to overthrow this over reach the federal government so the states can have their sovereignty and like representative I mean Senator Stubblefield I also want to go on the record to be annulled but it's not because of the racing commission or Oaklawn is simply because the federal over reach but for the record I don't see any other option that they have at this time. Thank you and members since I made the motion yesterday and rules to hold us over Just so the whole council could hear what federal government it's done and it's been stated but OFSTATE again this is not something to write a Arkansas racing commission has done this something that they're gonna have to live with unless it's overturned in court they're simply trying to put it into effect in December before it goes into effect federally in January therefore having an effect before race incision get everybody up to date on what the new federal rule is and just want to make sure everybody understood that it's not something that they've done it to we necessary can do I do have a number of people on the board with blacks double feels on their first back to you senator spoke with. I just want to add one more quick thing was German thank you you know yesterday was brought up this that we should passes of for the sake of consistency of when I look to the fifty states we have no consistency in our election laws or immigration laws would I be consistency in the in the sale of illegal narcotics across the fifty states so you can't use consistency of excuse to pass this law. This is this is a very simple procedure that's done I've helped do it to heal navicular sesamoid of arthritis in horses and to speed up and enhance that that the healing process because a horse cannot get in a wheelchair or use a cane like a person can they still have to put their weight on that leg in the quick again get those animals healed up the better it is for them and the owners not this are going to run a committee quicker. But it helps them heal quicker it's better for the animal we don't need washing DC telling us we have veterinarians that are smart enough to know this we have for many years we don't need to say telling us along with HSUS and pita well I'm not sure or not pushing this the sole agenda. How how we should take care of our horses and put another burden on a horse racing industry this is not the fault of the racing commission in fact they're on our side. They agreed with us yesterday. This is simply a Washington imposing its will on another state and putting more burdens on on another industry. That we use our cans George so that's all I've so I'm sure. Thank you representatives you're recognized. Somebody yeah thank you sorry I was in another discussion I I agree with everything Senator Stubblefield said and representative Cavenaugh but I think no matter what we do here today these rules are going to be in place in January they're going to have to comply with whether we like it or not in Oaklawn clearly doesn't want these rules and I'm sure definitely feels the same way. and and they are trying to make a consistent they're going into effect in January they're trying to get it ahead of the curve because the racing season my understanding is correct starts in December. And Oaklawn has I believe said along with the FNA yesterday during the rules. Committee meeting again they're not a fan of these rules but if the lawsuit prevails they would automatically go back to the way their rules are today. And there's a rule in the rules subcommittee that is also rule in this committee this is a state agency presenting a proposed rule to the subcommittee indicates its intent on or agreement to revise the proposed rule in response to discussions by the subcommittee and the revision of the rule in such manner would not violate any of the requirements of the administrative procedures act in the subcommittee include Nailsea may review and approve the proposed rule with the revisions agreed on by the state agency so they're saying they don't want to they do Needham. To be consistent for the racing season that starting in December. If the lawsuit prevails or go back to the old way. I don't I don't think anybody in this room only once the rules but but the people that don't want to have this to do it I think that's important understand thank you. Thank you senator these Senator Irvin you're recognized. Yes Mister chair I think at the proper time I'd like to make a motion that we referred this to the Arkansas Attorney General Representative Cavenaugh secular had no but I I do feel like this is something that our state needs to consider have. Senator Irvin we through. Senator Irvin. We through. Record. What happened okay sorry I'm three I just I think it's just something that we need to we need to have them look at if there is a lawsuit that's on going I think it would be important for the attorney general's office to look into that so at the proper time I can make that motion again I've got to get more people on board let me state again that is those are set to the committee and I ask many questions yesterday. Federal this is perfect January regardless of less court throws it out again if we do not approve this. It It. We're still going to affect they will does not have time to before the racing season starts to change and try to get everybody knowledgeable of the new rules after right after season starts you a representative Ladyman you're recognized. Thank you Mr chair. I just I totally agree with what representatives said and All I Want to do is is try to add more clarity if I can of. The past that we we need to pass this in order to help the racing commission have a full season uninterrupted up because if you run half the season under one set of rules in the second half under another set of rules it's very confusing. for people that are trying to comply with the laws. And and I've comply with these environmental laws for a long time and it you they're they're bad enough it's are consistent but if they're inconsistent it's terrible for the people who are trying to comply with these laws and I agree with senator still fill in representative Cavenaugh it's it's a very bad thing but we need to keep in mind we need to help the racing commission have a very good season for them and for the economy of the state so for that reason we need to pass this bill. Representative Cavenaugh you're recognized thank you Mr not not just want to remind everyone that we cannot pass this rule. And it is still going and affected that matter the lawsuits are still ongoing Arkansas can join the committee time actually Arkansas's involved one and is involved in one of the better ones right now. But more importantly. If we don't have on the best way to put this if we don't give the racing commission and I work on some cover and we don't go ahead and approve these rules which I have already told you I'm gonna be against but I I see no way that we can not do this. Is it puts a red flag up for the feds who then we'll start looking at Arkansas because we have said that we're not going to comply so what does that do that possesses a baking on their radar and they're going to come down on the so I just want to bring that out thank you. Senator Irvin view at your vote. I make a motion to pass at that we approve these rules but also across the attorney general's office to be involved and give us an update on any lawsuits that they're involved with as well as And if there is other offers the opportunity to try to create common public comment for the for the process of the federal. Okay We've got that motion I've also got the other motion senator Hammer did four other then needs Just a minute. I would take a vote on on items one through three on the thoroughbred racing deals Senator Irvin is made the motion to pass those rules and also asked Attorney General to look into what you mention all those in favor I. Opposed. Rule passes with objection I'm going go back to senator Hammer for the other items on rules Is there any other. Thank you I forgot your motion to pass those that correct. Sure thank my understanding what we just did if we vote to pass we if you take my motion we will vote everything else everything except one through three which just passed yes Sir I have a motion Senator Hammer have second. On favor I opposed the the entire rules have been passed thank you members for the discussion going back now for our October revenue report Dr sale all the giants for skipping over. You but to we've given you time to prepare your ready to go I can tell you will recognize yourself for the reckoning thank you Mr chairman our children. Legislative economist beer Legislative Research and right now we're gonna talk about item the. So item D. is October twenty twenty two general revenues for the fourth month there so we got that July August September October as looking truck gross generation use your today we have approximately six two million two thousand seven hundred nine six million dollars after we take it I'll all the deductions like claims and taxes and runs the play on collected checks EFT reversals we're gonna have an adjusted value there at two thousand seven hundred and ninety million dollars and then have off the top so we have that now available for distribution at two thousand four hundred and fifty five million dollars. As you move forward you pay to we got to see the cumulative deviation from the may forecast so seem to talk about over the forecast that was presented to this committee What this week I have not be updated there so what we looking here is from the may forecast we have a two hundred twenty four million dollars above forecast as we move forward to next month that's going to be adjusted based on that forecast that the F. and I have present here in last few days. So page three to page five we're looking at generation use collected by the Revenue Division we have income taxes cigarette tobacco taxes alcoholic beverage taxes and so everyone on those first three pages and as you move forward you Page six or nine we gonna have to select a special revenues there is there is the increase that we have seen the state of Arkansas it's similar to have seen the need neighboring states the strand has been happening for the last few months we a little bit slower than the neighboring states when looking to just a date total values therefore generation you but we still moving in the same direction as all this state nearing in on the state of Arkansas so with that I'll I'll take any further questions thank you. Thank ducks representative will you're recognized. Thank you Mr chairman of Dr on the First page of all will page three actually the income is that six point eight percent of which is about two hundred seventeen million and then when you look at the page to graph it shows that from all those. To September we had a hundred and twenty eight million dollar increase and then it decreases from September through October to forty nine point two million. Do you think that we're starting to see a construction of the economy. As a result of the inflationary spiral or were experiencing. So what what are you seeing right now is based on that may forecast so as the FAA have updated forecast we we will update these values as well and starting next month so sings the everyday can have actual ballots next month is going to be as zero above forecast causing a corrective forecast but as we look into the the. The indicators and we were looking through all the experts there are. Expecting to happen in the next few quarters that is a large portion that is expecting Q. four to have a small reduction that the majority is looking at Q. one to have a a motor reduction in Q. two which that's what he seems to be. What people contributing on but you for a still have some doubts so what's going to happen that is definitely a slow down but at wal level we do not know yet so and when does that slow down was going to take effect you still have some questions between Q. four and Q. one but then we got a store we expected to see that. Once you get some values on those holidays wrestle how people are doing spending money during the holidays when you're looking to. revolving loans. We moving back Choo Choo values above pre pandemic so when a democratic cards in and some of those revolving Types of credit we above that so I individuals going to continue to spend that money through all time equity values on the home stretch decline so are they gonna attempt to reasonable doubt that the consumption trial time or not so that some of the questions that they are pending right now in the next couple quarters and we keeping close look on everything that's coming now we have something coming out right now for the state and nine o'clock so just happened so about we we keep an eye on and I'll be happy to talk with you with you later on if there's any further questions I hope that once your question Sir follows Mr chairman of the they were the reason I question and asking you about that is I noticed that several of the the Special revenue particularly in alcohol area are Dale showing minuses and to me that's a pretty good indication that the that the consumer is starting to back all for the money that you're spending because they don't have as much is that a fair assumption. Seoul I make totally we we seem to but when you look at Rio spending they still up at least on the numbers that we have for September that that is still the wish to spend a higher levels that he or previous years. So we really noticing a reduction we do expect a reduction and that is a lot of a discussion when this reduction is going to happening but people still consuming at higher levels it is it is a declining rate of the increase is not something that as we have seen in the previous years but but still positive when compared to someone that. Previous months. One of follow up on that on page seven. I noticed that the aviation sales tax Johnson from October twenty one oh seven hundred seventy six thousand two three million dollars what what what's the difference there yes thank you for the question is a great question Sir so of the Asian so we look extra looking to flights they have increased it's it's being positive in many many months now and it has a positive trend we still not fully back to twelve would be on prepend them make their but it is moving and an a and a fast pace towards the prepend them make levels and that's why we seen that last year was really low that's why we have that you for trouble yes Sir thank you Dr thank you chairman. Thank you senator Hammer you're recognized thank you Mr good morning. The thank you underlying thought is that we'd like to hold about twenty percent of the budgeting reserve just you know as a cushion in the event when things start to fall we can you know we can be safe you think that number still a realistic number that we need to hold on to or should we increase it a little bit more do you have a personal opinion about what's the safe balance we need to hold up for when when things turn down. That's a policy question so I will leave that to then the wisdom of this committee I'm sorry let me let me catch this based on your based on your research that you've seen other states do that are fiscally sound are we in line with them or are there other states are being more aggressive as far as what they're holding in reserves or do you do you know or could you find out. I'll need to take a look into that that that's a lot of moving parts right now and and what a change in what they reserving so I need to probably contact them in order to get those values and and keep in touch with two L. are you looking for the whole US are you looking for the neighboring states I would probably say region provision if what you know or or someone comparable to you know to say I don't care if they're in the region not if you would if you look at that we'll get together yes Sir thank you. Not saying anymore questions Dr seven thank you well I do have one popped up but I will say we we do value your your knowledge but you just displayed some of it to a representative Ladyman you popped up there thank you Mr I don't know where this is a big problem but on page the eight and nine. I'm just looking at the end right area those the incomes on those different lines like rice and corn and some of those they're all negative is that is that because it's seasonal or is there a problem going on in agriculture that we don't know about. I talking about we do we want to we tax well I'm talking I'm talking about all of them really if you look at prices down fourteen percent court is down twenty eight percent. And the others are in the form five percent range are all down right so the commodity state they tend to be really fall of tile but rice and corn specifically as we start looking to your two year and four last month of we had some declining yields right there for rice we had around fifty pounds month over month decline you yield and a hundred thirty pounds year over year decline you when looking to the total acreage there and we gonna see around the corner I think was The person you over here and so there's there's a decline they're above again I got culture one distension to really follow up task we're going to see some of the injured up but the price it's it's a big portion of the and and and the yield that that has happened to change out there but if you need further understanding what is going on with the yield would probably to contact somebody and Act department to understand if it's a it's a weather issue or or something like that but that's what we have seen well I'd be interested to know if it's due to volume reduction to the Mississippi River not being able to ship grains and with that I'd be interested to know if that's a problem yes so he's with that's something that we can do not looking too yet that's kind of the values that we seem to decline but the reason for the decline it's it's not clear yes I need to contact a in an agricultural economist or somebody expert on that industry to kind of get that sent us some information to the chair on that yes Sir thank you. Represent Ladyman did you want any information secretary ward is with us today. Yes Sir to ward or someone from the actor I want to come up and comment on that. Thank you senator ward you're recognized self yes Sir appreciate that west for from the Arkansas department of culture and I I was blown out conversation there and I I would say there there is of all a lot of volatility in the commodity markets in particular but this year it's been very challenging we have the house and Senate ag committee meeting a few months ago and just talk about the the challenges that the industry is facing so you some of that destruction of courses has to do with the Mississippi River but broader it has to do with blockchain disruptions has to do with the number of acres planted has to do with hot dry conditions over the summer that it impacted the ability to to your gate and then just the overall quality and an overall production harvesting of those commodities but we can certainly dig in a little bit deeper provide a more specific report on your rice corner meticulous but overall commodities this year that we've that we've seen but it has been a very challenging year for all all of our. Well I'm I'm just wondering if inflation because farmers or squeeze a little bit you know is it really affecting them that much inflation. so I'd I'd like some information sure actually we we be more happy to ride find it for you but it's it's been fertilizers and inputs and yes overall spot diesel and every piece of the the input that that producers have to rely on every single year been impacted and in a negative way this year has been very very challenging but we would be more happy to chip thank you for. Okay not a single question thank secretary ward being here did you have. The. Thank you doctor we appreciate your report. And next members were going to the peer report and represent you banks going to give that force. Thank you Mr chair the peer subcommittee met on Tuesday November fifteenth the subcommittee reviewed report received reports reviewed items and approved requests for the following items various temporary appropriation American rescue plan Act procreation infrastructure investment jobs act appropriation rainy day fund transfer restricted reserve fund transfer a reallocation of resources for DHS and a fund transfer for our dot several items are noted in the report is being held in subcommittee I move adoption of the report. I've got questions of the representative would you're recognized. is anyone can we have someone from the of they come to the table was chairman. somebody if they come out of well got a question about the the Rescue play a. Harper Monique. Somebody come up and that. Please recognize yourself. And about the FNA. Thank you Mr of. How much how much more money do we have that we're going to hold out and get this isn't the permit us as it relates to what seven inflation but how much how much more money to do we have. There has not been awarded. So far that we have not awarded it is a and I'm going off memory here I can get you the exact amount but somewhere in the four hundred fifty to five hundred million dollar range short of five hundred million how much money has we have we pump into the economy since the beginning of the pandemic. We spent all of the cares money with the exception of the little bit so that's a hundred and receiving one point two billion that we spent another Proximally nine hundred million or so of the Arkema on any that came through yesterday and then you have some direct funding also. This was so. We we have. I understand the need or what but but I think we need to fully understand that recognized he's here as it relates to all this money has flown in to the state and the so we about a third of our budget that we have every year is what we've had pumped in in one year in addition to what we spent and collect. Is that all right. Okay that be a fair statement okay. Do you see the direct correlation between what we're facing today and with inflation and what it's doing to the earning the citizens of this state as a result of our spending and spending too much money and we've got for all of the lower. In the in the ever area of that expenditure you see that is a problem. As a result for the inflation. I get that I'm an accountant so it gets more to the economic side of the question but just what you said thank you Mr chairman thank you Sir. Thank you saying no other questions to hear your views of. I've got a motion from represent you back for peer to have second second on favor I. Post thank you for the number ten review representive Eads you have a report of a. Thank you Mr chairman the review subcommittee met on Tuesday and review the agenda items including MOFs grants and contracts the approved at least for motor vehicles for tobacco control no items were held and I move adoption of the report. I have a motion and a second on favor I. Both. Thank you we have senator Wallace I believe you have the personnel subcommittee report. Yes Sir thank you Mister. Mr chairman personnel committee met Wednesday November sixteenth the room off of the mac building the committee reviewed the request reports listed as one through item seventeen only port I would be happy to entertain any questions and I moved to adopt a port at the proper time. The motion have second on favor I. Boesch report is accepted The next have the B. D. in covert benefits division Senator Hammer believe you've got that record for sure thank you Mr the employee benefits division oversight subcommittee met on Wednesday November sixteenth twenty twenty two in addition to an overview of the B. D. budgeting processes by Jake believe director of the DVD Division subcommittee reviewed and approved the following actions that were approved by the state board of finance on November ninth twenty twenty two one employee benefit divisions quarterly report for the first quarter of FY twenty twenty three and two changes to the B. D. drugs formulated plant for adoption the report. I have a motion and a second. Thank you a single question John favor I. Those passes thank you. Representative Cavenaugh occupational license report. Thank you Mr chair the occupational licensure review subcommittee met on Thursday November the seventeenth to discuss and approve the final report for the occupational entities and group to I move for adoption of this report. The motion the second number I. Hosed report is past members if you've looked on your list of the other reports the only one H. one Arkansas Public always retirement system requires a motion to approve if not any questions only take a motion. I have a motion the second all in favor aye. Both in and out of home number for number five sorry number six Hey Secretary white. If you come up. Give us a brief update we appreciate that. Thanks to remark what department Human Services so obvious that the a report to you on the assisted living right now progress there that rate on the state prohibition side everything is in place for you all to review that rule next month and so that is set to go receipt thanks to helpful comments from public but they're all in support of the rate on the federal side we've sent the waiver amendment CMS to implement that rate increase we've had a call with CMS staff and also with CMS's their actuarial vendor and to this point they have not asked any questions and so I'm taking notice to be good news but we are waiting for them to finish their review and then bring back approval of the rate and which we are still expecting to have before the end of the year and with that be happy to answer any questions. Representative believes you're recognized thank Mr just quick what are you raising the rate to and from. Oh goodness I apologize I did not bring that with you see it's just run it later yeah right or a pay in the eighties this would raise it to eleven ninety six fifty four okay is thank. The mounting a more questions thank you secretary what free report being here today thank you members not anything else that requires action I will remind you December sixteenth as an actual Legislative Council meeting it is expected to maybe be a little longer than normal we've got a lot of stuff to cover but we seem sometimes that doesn't happen and vice versa so please put on your schedule for December sixteenth to be here and of the center urban on the board you're recognized. I just wanted a direct members attention to item G. one which is this reporter Arkansas criminal justice task force on offender costing collections are specifically when I think Senator Clarke Tucker at representive Robin Lundstrum and senator Bob Ballinger they did a lot of work on this along with our department of corrections and folks and everybody in that space so if you get a chance take this with you please and review it it's very very important that we have a more consistent way of collecting fees and fines for folks who have called themselves up in the criminal justice system so that we can help them get those paid down effectively and if it was very very good work so I just wanted to specifically thank those individuals at particular Robin Lundstrum she did a fabulous job on this and that so take that with you folks and and please review that for a future policy changes thank you thank you senator urban and with that members I hope you have a I have been blessed thanksgiving we are German.