House Rules

Thank you Mr chair Gayla mackenzie representative district ninety two and so I got to resolutions here and it will if if it will work best I think that the background really applies to both so we maybe can streamline this and avoid a repetition of I give you the background really for both of the rationale with the first presentation so with resolution ten thirty seven what this is seeking to do is make a rule change to the house of representatives so right now how we select the chairs as you all know but for those that are watching is we select them by their speakers select for all the committees and for all the cochairs so what this rule skews me resolution ten thirty seven six to do with regard to two committees and this resolution which would be the Legislative Council and the joint legislative audit it would change it from Speaker select two members selected by seniority and this pretty much mirrors the rules of the Senate so as we as you as you know we changed the rules last time so when we when we gather for this most recent caucus for this session for both of these committees these now became member select committees so if this rule were to pass when we come back in twenty twenty two to caucus after the November election. The process would be the same for selecting these two committees the difference would be that we would also select at that time the chair and co chair by seniority and as the Senate rules do only a majority member can service chair and any member of either party can serve as co chair and that again is for the Legislative Council and for joint legislative audit and the rationale behind this and the next resolution just a given both for this one here so you won't have to have redundancy is right now the way we have it the rules there's a high concentration of power. It appear in the position of Speaker of the house and I want to know that I I said position here and not person because this is not personal this has to do with whoever serving in that position at the time there's a great deal of power in that position. And so when you look at that Our constituents would be better served I believe if we took some of that power and distributed down among the members because our constituents can either hire. Or select higher fire the Speaker of the house the Speaker the house does not answer to them but we do we do answer to our constituents they can hires as we know and they can fire us we are more accessible so we take some of that power from the Speaker of the house that position and we distributed to the members by lot which is that's what we do we choose seniority by lot when we do that then our constituents and out here at at the bottom of the chain that powers closer to them and that is always better for our constituents and so that is the rationale here is to Give our constituents. More voice and of avoid even the appearance of anything of of favoritism or that maybe our loyalty might be divided because we want to serve our constituents but there's also a a position up here that has a great deal of authority of to to designate all these to appoint these different chairmanship so that is the rationale behind this is just to bring down more power to a level that is closer to the people who we represent and with that I'd be happy to take any questions all right thank you for that members of any questions. Seeing no questions we don't have anyone signed up to speak for or against the bill would you like to close for your bill. Thank you Mister chair I believe I'm closed for this I just before I ask for a motion to pass I think this is something that we need to be mindful that our constituents don't know a whole lot about until we discuss it with them and the some of you all recall what my crash landing maybe here my first day in my first term maybe was a second day. And the reason why I did that as I had a Bellavista in corny and when we were done we were just having discourse about the process and asked about it and when they found out about this is you know it sounds to me like we're getting the short end of the stick. And then he looked at me and he said are you going to speak up for us. And so what do you say to that extent. Yes so that's my attempt here and I appreciate your consideration and ask for motion to pass all right thank you the representative for the wishes of the committee. All right seeing a motion that bill has failed you want what president House resolutions ten thirty eight absolutely I'll see if I can't warm yet to this one a little bit more and I realize I may not but I appreciate your attention to this matter if we can get this out here for discussion out here in open so people can can look learn and listen and that's that serves a purpose so briefly with ten thirty eight what this does is it takes the ten standing committees again those same committees that now are members select committees and it takes the other committee joint budget which again now as a member select committee and it says the same process that the Senate does is that these will be member select by seniority same thing majority party would only be able to serve in the chair and then in either party could serve as the vice chair and once again we're not pulling away all the power from the Speaker we certainly have a roll a leadership role there that's important and so what this recognizes just like we did with the last session we took some back to back some of the committee selection this is taking back a little bit more of the chairmanships in an effort to have a little bit better of a balance of power for constituents and with that I'll take any questions all right thank you representative member of any questions on this bill. All right seeing no questions about the members or anyone the honest like to speak for against the bill. We have no one signed up just to close for your bill I am closed and I ask your motion to pass all right thank representative members were the wishes of the committee. Again single motion does fail thank you you know when I was in sales it was a long walk out the door but after you got it now but I appreciate you for listening thank you thanks for coming to. America moving to Senate bill six twenty eight. Representative Hester. Come on down. Members I believe this bill also has a fiscal impact should be on your desk Senate bill six twenty eight you're recognized president Bill. Thank you members this was a kind of a a simple thing that was brought up during during COVID but so up in Northwest Arkansas from cigar shops that you know when they were shut down they couldn't sell online yet people out of state or selling online into the state of Arkansas and so this just gives them the right to an Arkansas based cigar shop to to sell online as well so it's it's very simple ending on a visit quite a bit with how out of state people to sell in the state it's very technical and they're really not supposed to be really can't stop him either so that's really all this does is pretty simple thank you senator members or any questions. President of Eubanks you're recognized thank you Mr Senator Hester I mean it they still collect the same to taxes on the tobacco taxes does that do they not yes they will thank you. Members any other questions. I'm staying on is there anyone the audience would like to speak for against this bill. seeing none we do not have anyone signed up to speak for against the bill so where the wishes of the committee that was getting hold on senator Chuck close for your bill I'm close all right or the wishes of the committee The motion do pass all those in favor signify by saying aye. Posed Is have it congratulations you. I'm moving down the list to Senate bill six thirty one representative of Lance Eads. You look like him. Just introduce yourself for the record you can print that represent us Senator Eads bill representative Clint Penzo here to present Senate bill six thirty one I can go ahead okay Senate bill six thirty one. All right hold on members this does as a have a of fiscal impact should be on your desk Senate bill six thirty one I'm sorry go ahead okay pretty pretty sure builder allows hard cider manufacturers to live to deliver within which counties to recipients over the age of twenty one or twenty one or older also allows a. Or does not allow delivery outside of the county from where the cider side resists end of the manufacturer the employee has to deliver the hard cider of third parties cannot deliver the cider. That pretty simple bill yeah all right members any questions. All right seeing no questions we have no one signed up to speak for against this bill which I close for your bill I'm close for the building a good vote thank you members for the wishes of the committee. The motion do pass representative very all those in favor signify by saying aye. Opposed the ayes have it congratulates you pass your bill thank you committee. Right members are going down to house bill nineteen fifteen representative flowers. Member's house bill House bill nineteen fifteen also has a fiscal impact and it also has an amendment that's been passed out this time. Jennifer representative fires if you want to introduce yourself for the record will get started by adopting the first amendment and then we'll go to the second one sure thank you colleagues represented me in flowers and your president of my bill if you want to just explain the first amendment will get that adoption sure the first amendment removes the chair. And the second amendment clarifies the title to be more consistent with the amendment that was added as a member's own and basically identifies the bill is permissive okay. Thank you ma'am you heard a and X. explanation of the first amendment without objection because of that amendment adopted to the bill. And then you've also heard an explanation of the second amendment changing the title so without objection to adopt the secondment to the bill you can present your bill great thank you So I think I want to be short and sweet and rather answer questions and to provide clarity. this bill came really from an idea and then various questions over time from people in my area of that I wasn't able to answer in the bottom line is we are provide oversight for the lottery we now provide oversight for medical marijuana and so I got together with a few of my colleagues who were also interested in seeing oversight over the casinos and what started as a few became many. initially the bill was not permissive it It have the language shall but basically what the bill does is provides permissive language so that the legislature through Allegis an existing legislative subcommittee. Can gather existing information utilize staff to find out other information that we might be interested in to provide oversight it does not require anything of the casinos and And and now allows for permissive man a language and the other thing that I would like to make clear to. Is that. when I first of began to share this information I make sure to contact the leaders in my area as well as share the language with the governmental relations or the lobbyist professionals here representing the casinos in the state I think everyone really expressed concerns and I work with them and and you may hear one you may hear several speak against but I have only heard from one person with concerns and I think gathered when you look at the number of people I think that this is something other committee other members believe that we should see so I'll stop there and save more for closing or for an answer your questions all right thank you for that presentation members are in question. sing NO questions we do have several people signed up to speak for against the bill we'll start with against the bill Alton staff of. Good afternoon if you just introduce yourself for the record you can. Mr chairman again. They don't. All right. It's an amateur move sorry all. Good afternoon my name is Carlton staff and I served as the chief market officer for stairs and development LLC and the stairs and casino resort and I'd like to begin by apologizing I'm gonna read from some prepared remarks I spent some time thinking about just what I wanted to share today the best way for me to articulate my thoughts to you was in a constructed formats Health I'll make eye contact like I normally would in such a presentation please understand I spent a great deal of time making sure I shared exactly what I felt would be most useful to you all today so with your permission I'm going to read to you can look at the ball potter my hat. It's an after it's an honor to be here today and I'd like to tell you this is the first time I've been back in the Capitol Complex since leaving government about two years ago. I want to point out from the beginning that although I'm signed up as against H. B. nineteen fifteen unlike when I previously worked in government my role here today is not to try to twist your arm or essentially lobby you on this bill I merely felt it might be useful for this committee to hear directly from a gaming operator on the ground day what the regulatory environment in our industry looks like at least from my perspective. In addition I'm here something of an example of the accessibility of our business I did not send someone who works for us and government relations although our industry has wonderful folks in government relations and that's for all three facilities were operating but I felt it was important to hear from me directly as well the principal executives of the property because we are here if you have questions. I assume the same by the way issue hot springs and West Memphis in terms of accessibility I want to say that this is a bad analogy but it's one that keeps coming to mind regulation is like salt on your food too much and the food is terrible not enough and the food is no good and I hope that makes sense to you because it a very simplistic level I believe that we have sufficient regulation in our body I look out across this room and I see many friends many folks with whom I have tremendous respect but frankly I'm surprised that many would seek more government and more regulation it's it's not consistent with what I saw in the past from having worked with you all on matters before. I would contend today that you see no gaming is the most regulated business in the state of Arkansas and then to give you a few points to back that up we are already subject to hundreds of pages of promulgated rules FAQ three hundred and seventeen to be exact these are just the rules from the commission that we abide by three hundred seventeen and frequently they change You know I I hear discussions about sports gaming and and other functions that'll be another thirty forty fifty pages we're happy to do it our compliance department is staffed with ex bankers and lawyers to ensure that we comport with this but also all the other regulatory proposals that are a part of our business whether it is any money and any money laundering title thirty one officers foreign assets many people don't realize the casinos file suspicious activity reports cash transaction reports much of what we looks like look we do looks like banking and in a prior life when I worked in government I worked extensively with Candice Franks at the bank department and I can tell you that the banking regulations from the state as compared to casino regulations. They're rules don't look like this. One other thing I think is important to point out and a lot of people don't realize this in fact I mentioned this to a senator sitting in the gallery a moment ago the FNA has on site at our property and in hot springs and in West Memphis field audit staff twenty four seven three sixty five there's a definite employee at Saracen on Christmas Eve on Christmas day on thanksgiving on new year's there there in fact just yesterday you all approved to an additional fifty thousand dollar appropriation for overtime and extra help because they're on site. And I racked my brain this morning trying to think of any other business in Arkansas that has the state president and co office twenty four seven definition on all for me I see him every day their staff is at most fifty feet for me and their on site observing the entire process. I'll tell you this we have nine reserved parking spots at the racing commission for DFA does anybody else have reserved spots nine of which for the state now but that's the expectation we have because the folks are on site we submit minimum internal controls known as mix to the racing commission which must be approved and these are forced enforced to the extreme and not to pardon me for getting into the weeds here a little bit but I want you to understand how important these minimum internal controls are and the level of enforcement of this on our business operation. An example that we went through recently and again hang with me while I'm in the weeds here but I want you to know how detailed these internal controls are internal control say that in the event that a machine needs to be open for repair two security guards must be present to observe of course in addition to thousands of security cameras we learned from the commission that on this one instance we had one security guard immediately present and one security guard was at the end of an island. Well that doesn't exactly meet the minimum internal controls so we had a meeting we had a retraining and we visited about so why am I telling you about where a security guard standing in an aisle when a machine is opened. Because it was important and the commission brought to our attention we had a meeting there was no finding of air we changed our process it was a matter of a gentleman standing about six feet closer than he really was but if my rules address how close a security guard should stand the second security guard when a machine is open for repair you can imagine all the other things that the rules address in these pages and in our internal controls which are filed with the state. So again three hundred seventeen pages here alone are COVID operating an addendum to our internal controls as an additional seventeen pages of rules and regulations which I will tell you I I'm proud that we were able to work through with the secretary of health and governor's office to create a robust format. I should also mention that the state has live access to our cameras twenty four seven and three sixty five and that may seem like a small thing but let me give you this as a control. As an executive of that property I do not have access to our cameras twenty four seven three sixty five if I want to view surveillance I put a request into our surveillance rector and I observe it so what I'm saying to you is this state has enhanced access beyond even the principal executives a property and I understand the same is true at the other two facilities within Arkansas again just more examples of the regulations we already comport with the state has more access to our business than even we do which is great. The lottery was mentioned previously which was something I spent a great deal of time working on once upon a time the lottery is different the lottery is the state looking at its own business that's the public's business and with a lottery oversight committee you're observing the business operations of a public entity. This is private enterprise and it is owned and controlled by sophisticated entities with experience in the sector while I may roll be relatively new to gaming on our staff we have folks who have thirty forty fifty years of experience in the casino business lotteries a little different and I do think that lottery oversight makes sense because it's it's essentially a state agency it's a business operating within the state. Our business in pine bluff does daily reconciliation which we reviewed with staff our numbers are tallied interviewed every four hours from four PM to midnight with flash reports to our executive team by email wherever they may be everything is reviewed by the state for compliance and accurate tax collection both internal and external auditors review the financials are internal audit teams to review to examine our compliance with all financial and non financial functions and on top of all of these internal reviews in external audits Saracen has a debt load of several hundred million dollars with Wall Street bonds and you can bet our financials are reviewed by those bondholders on a regular basis. To make the comparison to marijuana. And it's not a good comparison point with all due respect with marijuana you're still in a very gray area federally illegal state legal you also have a number of businesses in which the operators have no legal or real professional familiarity with the practice if they do have practice them in familiar ready it comes from another state or possibly from a time when it was not legal contrast this to gaming in which we borrow heavily from the talent of places like Nevada Oklahoma and New Jersey in which for decades generational experience exists as I mentioned before we have folks who've been in the gaming business for longer than I'm alive at Sears gaming is run by large management teams who have done this for years and like I said decades in the business and I'm like marijuana the three existing gaming venues have no real issues to report. Certainly there is significant drama in Polk County I think that's probably the right word for it drama. But the legacy operators tremendous tremendous colleagues were glad to be operating I guess competing against in a friendly way in hot springs in West Memphis I have been transparent and we've got quality interaction with the regulators and with the licensing process I would challenge you all to speak to the racing commission about their position in terms of Saracens access or lack there of to them I talked to the director of the racing commission three or four days a week sometimes it's just to say hello but that's the level of comfort we have with our regulators and they with us it is no secret the casinos throw off a lot of money. But they're extremely expensive to operate without nine hundred employees at Saracen with four oh one K.'s followed benefit plans and the like. So what it amounts to at the end of the day is we make about grocery store margins on our business I sale of that to say this I have some concern for what the real purpose of the committee is what is it designed for is it ultimately about the money and if it is about the money is it about where it spent where it's given where it goes we do a good job at Saracen of telling people were a fun place to visit you probably seen or television ads we tell folks it's a good place you can come have a state. Hi it's a place you can win say a BMW which by the way this Saturday night were given one I gotta give that plug in here but perhaps I ought to do a better job at the properties explaining our commitments to the community. But since I'm here I will say a couple of things we're not very good at Tooting our own horns but in just the last month I've authorized a six figure contribution you APB and half a dozen five figure more contributions within the community ranging from everything from cancer to preservation of the blues again that's just this calendar month these are not things we put on billboards or on ads we we're here to invest in the community not necessarily to crow about it if that's what's necessary we'll do it that's not my style I'd rather tell you about the amenities than what we're doing for the community I believe you me the folks were the recipients of these that they now. Even in a down year in which casinos were closed for an extended period due to COVID and revenues remaining relative to normal times the three gaming operators paid over fifty million dollars in gaming privilege taxes. What that sink in during covid at a time when hospitality required grant programs bailouts subsidies and assistance without any public support whatsoever we provided an additional fifty million dollars in gaming privilege taxes that is on top of the full slate of normative business taxes you're familiar with sales taxes income taxes and the like. This is working and why does it need more oversight. Finally until the expansion of gaming through amendment one hundred there appeared no need for this type of oversight for the two other racino is now casinos. Which at some level makes it a little bit personal for our property and Saracen if it wasn't broken before but is now because we exist. It makes me wonder. One new facilities come online to date and another may at some point. No significant issues have arisen with the three and operation I stand proud of our licensing process with the commission. There was no drama about the licensed in Jefferson County apparently they saved it all for Polk County but that was a smooth process and we were up and running quickly the commission is eight entity in which I have tremendous faith I recognize many don't but it is one in which I believe is one of the best operating entities within state government they are doing what they do is best and they produce a monthly gaming report which I believe indicates the sophistication with which they operate I will tell you members if you don't get it I would encourage you to contact the racing commission and see their published report which reports to the penny everything wagered one lost in every aspect of business from a sports book to a table game two slot machine it's publicly available and to the penny. If something should occur regarding further public discussion on the matter you certainly have the authority to ask for more information and again I am here today as proof that if you ask will come running and I'm here again not as a lobbyist but is an executive of the business and I am happy to be responsive to any subcommittee or any entity I just merely do not believe more regulation for the state regulations necessary especially when this is what we have so far. I would say that if more conversation is needed and this is not of my business perhaps the attention ought be attuned to Polk County where there are questions and a lot of legal issues related to the issuance of that license in other words when they were to there was not a problem now that they're three there is. I hope that what I've shared with you is useful and again while I was signed up to speak against I really just wanted to give you some background on what it is like for us we are happy with the regulatory environment now as significant as it may seem and just question the need for more. So I hope that I haven't wasted too much of your time if nothing else this is a tremendous opportunity for me to come back after two years and see many familiar and friendly faces I thank you very much and I will be here and I will be here after the meeting as well if anyone has any any questions thank you Mr seven members of the questions. Thank you for your testimony. We have someone signed up to speak for the bill but Mr Qingyang. Introduce yourself for the record you get started. Is the can you hang the director of governmental affairs at the Arkansas family council thank you Mr chair members of the committee will be pretty short and brief on my remarks I want to thank representative flowers and I think a good many of you all that are actually sponsors are on this committee of this good bill H. bean H. B. nineteen fifteen we support this bill because it gives the legislature the permissive tools and I think that's key permissive tools to create a subcommittee to advise and provide oversight of the casinos is established under amendment one hundred of. I think you know it's a good to talk about you know casinos here in St well as compared with other states here in the U. S. currently Arkansas has no state regulatory authority or gaming association with legislative oversight besides the racing commission that is specifically for casinos that operate in our state of the twenty five states with commercial casinos twenty one states have both or either a state regulatory or or gaming association's states one racing commissions also have a gaming commission. The total statewide commercial gaming revenue was four hundred twenty six point five million dollars in twenty nineteen and steadily increase since twenty fifteen. Giving the legislator the permissive authority to create a subcommittee to vice on issues and contracts dealing with the industry with that large of a revenue impact in Arkansas is the only smart the prudent. Furthermore we are only one of two states here in the US without statutory funding for responsible gaming and this bill would give the subcommittee the ability to study social economic indicators in Arkansas so just gambling addiction bankruptcy home foreclosures divorce and other factors identified by the Legislative Councils that could help possibly help our Kansans. A family council supports H. B. nineteen fifteen we believe it's a great step for the legislature to advice and study the permissive manner and possibly address matters in a positive way in relations to the to amendment one hundred we would ask that you would vote for H. the nineteen fifteen to be happy to take any questions. Thank you Mr Yang members are the questions. Acting or questions thank you. Number there's no one else signed up to speak for against the bill anyone the audience wanna speak for against the bill. Ninety nine percent of your clothes for your bill yes thank you. I wanted to make a couple of points that I didn't that I wanted to wait to make in closing. Amendment one hundred was an amendment to our state constitution it wasn't an act it was an amendment to our state constitution. Which basically prohibits us from doing anything this is not a bill to regulate this is a bill to oversee. The regulation rasse exactly with the racing commission and the FNA and it should. All of the regulatory standards that you just heard Mr staff of very eloquently outlined all regulatory standards that do and should exist for gaming organizations. And while. The lottery maybe different medical marijuana may be different one thing that is very significant I think that all of us should consider in looking at whether or not the legislature should provide to some measure of oversight is that I don't know of any other industry. That brings in and where we tax on a state county and municipal level the the amount of money and in the way that it does that provides where the state provides perfect for protection for that industry. That industry require or allows for for licenses in very specific. Our areas of the state. Meaning. Neither you or I or any corporation could decide Hey I want to compete I want to open a casino in Arkansas that's not going to happen because the state has said you know what you can have these licenses and build based on your relationships with the local government who can write you a letter and guess what in the renewal of those licenses the locals have no more say. That's completely on the racing commission which is appointed by the governor. The legislature has no. Say has no regulatory authority and this bill is not arguing that this bill doesn't. A seek. More regulation for the for full scale casinos you heard about you know the fact that we've had we have had gambling in the state for over a hundred years but we're talking about to race tracks. And we went from that to the two one race track and for full scale casinos. In a state with three million people. It seems to me that. Given all the good all the jobs but possibly any any upticks of any issues that could happen. Why wouldn't we want to make ourselves aware and just monitor what happens economically and socially. My district and my council voted for this overwhelmingly. I I went to the grand opening in my area. And I'm sure after of the COVID is over I'm I will have relatives who want to go and we will go. But the same thing that I said along the way when we voted for this to come into our state is the same thing I say now I do not have any particular focused version to gambling in the state of Arkansas but it needs to be done right it needs to be done responsibly we need to make sure that our people our communities are protected. We do it for a for a for a lottery and even though it's different. It really is the same it's gambling. It's gambling. And if we are going to provide a measure of oversight. For medical marijuana why wouldn't we for for full scale casinos in Arkansas should we be afraid. Is the I mean I don't even understand what the controversy is. Representative Cavenaugh recommend question. All right I'm sorry go ahead ma'am. We're not taking a motion going to finish what you're saying. I just I would ask for you all to. Not allow yourselves to be taken in by language that doesn't apply to this I am not here seeking more regulation or bigger government this has zero fiscal impact this bill seeks to ask ask it's not requiring. Ask for the Legislative Council to use utilizing existing subcommittee. To oversee meeting taking existing information and making sure that we are aware what's going on in our state now that we have the four casinos. That's it so with that I would ask for your for a good vote on this bill. Member you've heard presentation of the bill represent Wardlaw you're recognized for motion. Are you a motion to pass all those in favor say aye. Opposed. Right now is having sorry that we bills failed. Hi I'm going to Senate bill six fifty four. President will give you present a bill okay. Good morning committee representative McGee from Conway good bill appreciate do pass. Has any questions. There I'll explain. What this does this bill simply for people to come out of state that have a valid merit medical marijuana card right now they have to submit online to the health department every thirty days all this does extend that period to ninety times so they still they still get their marijuana it's just they don't have to do it every thirty days that's all that it all the builders. I remember you heard presentations illustrations. I'm asking no questions no one signed up to speak for against the bill got close for your bill. I'm closed appreciate do pass on the committee that a motion that's motion with a motion to pass all those in favor say aye. Posted congratulations bills passed. Thank you committee. Senate bill five fifty one and representative Dalby. Mister chair with your permission I have Great Falls. Forster forced them here with me. You senate bill Carol Dalby district one Texarkana members on here on Senate bill five fifty one which is the unfair cigarette sales tax act members this is a commerce issue this is not a tobacco wishes to commerce issue this going to level the playing field and allow all wholesaler's particularly our Kansans who are wholesalers to compete in the business environment is a little background what is happening now in the state of Arkansas outside this state there are large wholesalers some of them were even publicly traded companies who offer a rebate to the retailers here and but our own wholesaler's they're often mom and pop operation small companies are not allowed to do that the law says right now that you can't do that with this bill is asking is that we be allowed to do that it gives our our folks pricing flexibility levels that playing field it allows that Arkansans compete with those who are trying to compete from an outside. Business what happens is the national retail sellers retailers will be giving those incentives once again we can't give them with this amendment does not do it does not change the invoice price of cigarettes to the retailer the wholesaler is not allowed to discount cigarettes to the retailer for less than their invoice cost. This will not reduce the sales tax collections there's no monetary hit to our budget it doesn't change the price anyway all it does is level the president who can field I have Mr Forson here with me if you have any particular questions as to how the how it works I know that some of you've gotten some texts and emails and says this is nothing but legalizing bribery this is not legalizing bribery this is a business operation that takes place all over the state in other fields this is the only business is not allowed to give rebates that's all we're asking to do I'll be happy to answer any questions. But. All right I'm available for any questions I just say very briefly on the bill that has represented Dalby said the bill does not change retail prices it creates a very narrow situation where a wholesaler can give a rebate to a retailer and that narrow situation is is tailored so that SP by check or electronic transfer and has to be within the definition rebate which is after the transaction issue and that's important because it does reduce the price and it provides an audit trail. Members any questions. I'm staying on thank you we do have several members signed up to speak for against the bill will start with against the bill Mister carried a lot. Just introduce yourself and you can continue hello my name's Kerry lot with the chief operating officer with base distribute company and Russell Arkansas. for a matter of clarity I guess I'm also a member of tobacco control board I am not speaking on behalf of the tobacco control board today but as employee of a small seller in the state so. we do not rebate we've always been against rebate in state of Arkansas we. operator business according to the laws in place on tobacco sales and regulations in the state of Arkansas. Of the unfair cigarette sales act was created to create a fair market place for tobacco sellers. And made rebate any legal in the state what this bill why this bill is struck was drafted is reversed that and allow remaining in the state and make it legal. Actually let me restate that this bill is drafted because a wholesaler in the state was Capri baiting. Penalize and now wants to change the law instead of changing their business practices to operate by the laws in place. What this bill would do in that in essence is allow wholesalers to buy business whoever has the deepest pockets would be able to buy the business. Enforce the smaller so sellers of such as the one that I'm employed by out of business I do not think it's a good bill I do not think it's I think the unfair cigarette act is a bill in place that we just need to enforce the law in place now so I thank you for the opportunity to talk and with S.. For your all right members any questions. Seeing none thank you testament thank you going to. For the bill we have that Susie or Susan. She's good okay. I can't read this other name merchant wholesale. All right thank you Sir. Steve good. All right. I can't read it to me there the oil companies something like that. No. How about grant Fortson. Okay. And Taylorville. Good. All right we have one more speak against back up. Introduce yourself for the record when you get sent down and then you can begin your test. My name's Becca Bates I am Wholesaler in Arkansas basis shooting I also have eleven retail tobacco stores around the state. I. I agree with what Kerry was saying I think that the law that is in place now works and it's good for everyone as long as it's enforced at the point where it's not enforced it does create a lot of problems so I feel like that needs to be the route that we take instead of changing the law the law is good as it is now and I and like he said I think that the reason the law is being challenged right now is because we have been there the tobacco control board has been enforcing the law more and they feel backed into a corner and don't know what to do so they want to change the law. Hi this. I think that retail pricing will be affected and the reason I say that is because as a retailer. My cost is my cost whether it's on the initial invoice or whether it's paid to me three months down the road. My cost is my cost and there is a if there's a fight there and challenge their for the retailer because the larger retailers are if if this were to get past the larger retailers are going to come in and say my cost is my cost and I only have to market at nine half percent. And I think that's that's another can of worms were opening I think it's very broad. And I think it's going to open up a lot of. Issues in the future. I'm here for any other questions you have that we do have a question thank representative what you're recognized so did you say you're a retailer and wholesaler yes ma'am so you have pretty much a captive audience right. Yes ma'am as the wholesaler and the retailer correct yes and so you can supply your own retail stores yes ma'am. So what and. I don't really see how this is going to affect you. I I mean I understand that all it's not just me though it's it's all this yeah but you're the one at the table speak against the bill ma'am because I don't foresee this affecting you in any shape form or fashion does your is it affects me on the retail and first of all it will affect me on the retail end but second of all I am for small business but you're making a profit on both wholesale and retail sure. Thank you. Representative there's any other questions. I'm not saying nine thank you for coming down I appreciate it. Members no one else signed up to speak for against this bill representative Dolly would you like to close for your bill. I am close members I just want to remind you this will level the playing field is a commerce issue it helps the businesses in the state of Arkansas with that I am closed. All right you've heard a presentation of the bill we have a motion for representative ought to I guess that's a motion do pass all right all those in favor signify by saying aye. Opposed. The ayes have it congratulates you pass your bill. Members one more bill on the agenda by the way we skipped over house bill nineteen forty two is going to pass on that one we're going to Senate concurrent resolution thirteen. President of are you gonna president Senator Hickey is bill. All right you're recognized to present the bill resolution thank you Mr chair at this resolution is just trying to keep up the future general assemblies aware of the laws so that they know how it works without pulling the actual statute this will be similar to how they do scope bills so. That I would appreciate a good good vote. You've you've heard a description of the bill members are there any questions. Seeing none no one signed up to speak for or against the bill got close free bill I'm closed and make a motion to pass with a motion do pass or Senator fault all those in favor signify by saying aye All opposed the ayes have it congratulates you pass your bill. members before we go wanna give a big shout out to our staff member sherry in Kasandra thank you guys for everything you do for us. This will be the last rules meeting thank you guys.